I have been following IOTA recently and I have been pretty impressed with their technology. The Blockchain is great but it’s showing its age with limitations like the transaction cost, speed and scalability.
IOTA on the other end has a brand new technology called the Tangle. Basically, there is no mining, every transaction is a node and has to confirm 2 random previous transactions (which creates some kind of web). There is also a weighting system which enables the system to identify spam and not approve these transactions.
So here are the main advantages of Tangle:
- no fees
- secure (supposed to withstand a quantum computer attack)
- no miners having too much power and holding up the development (like Bitcoin)
- environment friendly (no need for large mines consuming tons of energy)
Furthermore, the team behind IOTA is focusing on the Internet of Things which is a gigantic market and they already have partnerships with serious companies like Microsoft, Ubuntu, Innogy, Cisco or Bosch.
Basically, machines will be able to make transactions automatically between each other and use IOTA to do it instantly and for free.
The best part is that the system is fully scalable, more transactions make the system more efficient and faster. So no need for an implementation of SegWit or Lightning network, it’s natively in the Tangle.
I can see a lot of other uses for IOTA like using it as a banking application for people who do not have access to banks (just for South East Asia, only 26% have a bank account so the market is enormous). Think of M-Pesa^1000 :)
Post initially published on Steemit