Alongside the blockchain and cryptocurrency industries, the Internet-of-Things technologies are also in their blooming phase. Analysts predict that the I-o-T network will have 50 billion connected devices by 2020. These would include Fitbits, smart home gadgets, smart cars, I-o-T enterprise solutions for warehousing, manufacturing, retailing, transportation, healthcare, cities management and infrastructure, among many others.
The flawless operation of such a big network requires full optimization and stability - this is where IOTA makes a difference.
Although MIOTA (the official coin of IOTA) is trading like all other cryptocurrencies, the IOTA Foundation built and launched the solution which aims to ensure that all I-o-T data is distributed to the correct location with a clear tracking data in its distributed ledger protocol. In other words, IOTA aims to quantify, optimize and stabilize the I-o-T network, by addressing the scalability issues of the modern Internet.
IOTA was designed to manage machine-to-machine communications and transactions, rather than user-to-user crypto interaction so that it can offer suitable solutions to the smart home and smart city technologies.
The network differentiates itself from the rest of the currencies, as mining is not possible. Miners, blocks, transaction limits and fees are substituted with M2M transactions.
IOTA's data structure is called Tangle - an alternative to the classic blocks in a blockchain. Transactions are not bundled up and divided, but rather entangled together as a stream of individual transfers. Every participant on the platform benefits from the equality of roles and incentives.
With regards to its wallet, IOTA offers its users choose from a number of options: Full Node, Headless Node, Light Wallet and Android Wallet.
The hardest wallet for setting up is the Headless node – full node in the local computer that features simultaneous management of multiple accounts.
The Full Node runs through IOTA Reference Implementation and can be accessed via local GUI. The full nodes have to be connected to neighbors with static IP.
The easiest options for users are the Android Wallet (mobile app) and the Light Wallet, which is a local interface that provides access to a full node in a variety of environments.
Although IOTA’s team needs to improve further the security features of the network, the future looks very bright for the team. The I-o-T industry offers great opportunities for blockchain technology and if IOTA gets the mix right, it could be the leading power in the industry in the next couple of years.
With its ambitious mission, the blockchain world will certainly hear more from IOTA’s foundation.