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IOTA

IOTA
IOTA

IOTA (IOTA) is a distributed ledger for the Internet of Things that uses a directed acyclic graph (DAG) instead of a conventional blockchain.

Its quantum-proof protocol, Tangle, reportedly brings benefits like ‘zero fees, infinite scalability, fast transactions, and secure data transfer’.

The IOTA Tangle is a Directed Acyclic Graph which has no fees on transactions and no fixed limit on how many transactions can be confirmed per second in the network; instead, the throughput grows in conjunction with activity in the network; i.e., the more activity, the faster the network.

History of IOTA

Sergey Ivancheglo, Serguei Popov, David Sønstebø, and Dominik Schiener, who joined later, together co-founded IOTA.

The blockchain was announced in October 2015 through a post announcing a token sale in an online bitcoin forum. The roots of IOTA go back to the Jinn project. That project aimed to develop ternary hardware or low-cost and energy-efficient hardware, primarily general-purpose processors, for use in the IoT ecosystem. Jinn held a crowd sale for its tokens in September 2014. Approximately 100,000 tokens were sold during the crowd sale, amounting to collections of $250,000.

The Jinn tokens were soon in hot water because they marketed as profit-sharing tokens. (Initial coin offerings were gaining traction at that time, and there was no clarity about their regulatory status). In 2015, Jinn was rebranded as IOTA, and another token sale was held. This time around, the tokens were marketed as utility tokens, and Jinn token holders could exchange their tokens at equivalency with the new blockchain. According to David Sønstebø, IOTA was “spawned” due to the Jinn project. “..so it only makes sense first to introduce IOTA and then Jinn afterwards,” he said.

The genesis transaction for IOTA was an address with a balance that contained all mIOTA, its cryptocurrency, that will ever be mined. But reports state that a snapshot of the genesis transaction is yet to be found online. These tokens were dispersed to other “founder” addresses. The total number of mIOTAs planned to be in existence is 27 quadrillion. According to IOTA’s founders, the total number of mIOTAs fits in “nicely” with the maximum allowable integer value in Javascript, a programming language. Within three months of its debut on cryptocurrency markets, mIOTA reached a peak valuation of $14.5 billion on the back of mania about bitcoin’s prospects. But its value has since crashed with the subsequent swoon in cryptocurrency markets. 

How do I buy cryptocurrency?

While some cryptocurrencies, including bitcoin, are available for purchase with U.S. dollars, others require that you pay with bitcoin or another cryptocurrency.

To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or ethereum.

Coinbase is one popular cryptocurrency trading exchange where you can create both a wallet and buy and sell bitcoin and other cryptocurrencies.

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