What Is IOTA Coin? Should I Buy and Invest in IOTA?
IOTA trading is finally available on a few of the major exchanges today such as Binance, Bitfinex, OKEx, Exrates and Coinone. Everyone who has been following the project is excited about it. What exactly is IOTA coin? For those who are totally new to Iota, it was created as a far related derivation of the blockchain technology but is far more advanced. If you are planning to buy and invest in IOTA, you are looking for some action. The price of IOTA will further rise in anticipation of exchange launches.
Disclaimer: The content below should not be taken and viewed as investment advice, but only information and opinions. This article is for information and illustrative purposes only.
#1 Coinone announced today (27th November 2017) that IOTA was listed on the exchange (second largest in Korea) on 28th November 2017. Get IOTA now on Binance if you live outside of Korea.
#2 IOTA launches IoT data marketplace, envisions devices autonomously buying and trading information: datum.iota.org. IOTA has partnered with Microsoft, Fujitsu, and twenty more companies to launch the first publicly accessible data marketplace for the Internet of Things. The launch is only the first step in this massive, globally collaborative project. There is more good news to come such as IOTA is going to be listed on Bittrex soon.
#3 IOTA as a part of the Decentralized Identity Foundation.
What Is IOTA Coin?
First of all, you have to understand the terms of the Internet of Things (IoT).
We are all living in a connected world, where it has been coined and our daily interactions with technology have become widespread. That also means in the process of inter-networking of physical devices such as cars, buildings, home, electronic devices and software, these objects are allowed to collect and exchange data.
At the forefront of the 4th industrial revolution is the Internet of Things, or IoT, the idea that even non-network devices can and should be connected to the internet.
However, a global network is always vulnerable despite its benefits such as DDoS attacks. Without a proper system in place, it will only get worse.
Wide scale machine-to-machine (M2M) communication has always been claimed as a perfect use case for Bitcoin and microtransactions. No doubt, Blockchain is one of the greatest inventions but it is also stigmatized with pre-conceptions because the majority of issues occurred through human failure. Blockchain’s as such was never hacked, just the human-software interface.
Not only that, this technology has a number of drawbacks, which prevent it to be used as one global platform for cryptocurrencies. You’re probably used to hearing about Bitcoin’s scalability problems and long confirmation times due to a growing user base.
Traditional Blockchains such as Bitcoin rely on miners. Computing-power-farmers that sit in China that boost transactions through a synchronized peer to peer network and mine parts of the currencies with processor power. Hence, we pay a small transaction fee when we send Bitcoin to someone over the network as this transaction fee goes to the miner a part of their rewards.
To resolves the problems of transaction costs, scalability, and offline transaction, IOTA was hence developed. IOTA is a completely open source and a non-profit organization focused on building an IoT solution inspired by, but not based on blockchain technology.
IOTA was developed by the IOTA Foundation is a “gemeinnützige Stiftung” (i.e. non-profit Foundation) located in Germany. with the aims to simply provide an IoT solution that leverages blockchain’s security and incentive mechanisms without the drawbacks of fees and transaction scaling.
#1 No Transaction Fees
Instead of the global blockchain, there is a DAG (= directed acyclic graph) that is called Tangle instead of a regular blockchain, enabling various features like zero-cost transactions, infinite scalability or offline transactions.
As I mentioned earlier, the traditional transactions are verified by miners. In Tangle, every single transaction forms a new block and is essentially verified by itself.
In other words, in order for one’s own transactions to be entered into the ultimate register, one must also act as a relay for at least two other transactions. As such, a mining conglomerate is not required to certify that a transaction has taken place.
The lack of transaction fees enables new data-driven business models. Data will be signed and hashed by an IOTA node. Signatures and the immutable hash values assure the payeer that he can rely on the authenticity and integrity of the data when a nano-payment is made.
To date, major public blockchains like Bitcoin and Ethereum haven’t successfully proven that they can deliver micropayments at volume due to how they compensate the parties that process and settle payments.
The IOTA tangle goes far beyond one-dimensional blockchain concepts with a completely new architecture. It is not just another blockchain idea. It can be understood as a well-engineered new technology concept that can be a key enabler of the machine economy.
Ethereum recently pumped due to Bitcoins lack of scalability, but the bancor ICO showed that Ethereum also scales poorly. Today’s blockchain technologies have clear limitations regarding scalability, computing resource requirements and transaction fees.
In IOTA, scalability and adapting to high-throughput environments where devices make thousands of transactions is the norm. As such, IOTA is the first permissionless distributed ledger that achieves scalability, making Machine-to-Machine payments for the IoT possible.
#3 Offline Transactions
Blockchain has the concept of a global state, where each network participant must be in full synchronicity in order to make a transaction. The IOTA Tangle is designed less rigorously, enabling the network to build clusters and even make transactions in an offline environment.
IOTA nodes can operate without being connected to the main tangle quite happily. If they later wish to connect to the network (when, for example, an internet connection is available) they can do so with ease.
Who’s Behind the Organisation?
The team behind IOTA, working on new Blockchain architectures and consensus protocols since 2011, has been developing for the past 2 years a completely new architecture built from scratch that resolves these inherent blockchain limitations while staying true to its core principles.
In 2016, the IOTA Foundation was announced and since then, it grew in numbers and expertise.
David Sønstebø (Founder)
Dominik Schiener (Co-Founder)
Sergey Ivancheglo (Co-Founder)
Dr. Serguei Popov (Co-Founder)
Dr. Carsten Stöcker, physicist with Ph.D. from the University of Aachen.
Prof. Gideon Samid, PhD, PE, who obtained his degrees at the Technion — Israel Institute of Technology
Dr. Navin Ramachandran, MBBS BSc (Hons) MRCP FRCR is a practicing radiology consultant at University College London Hospital (UCLH)
Dr. Mervyn G. Maistry
Should I Buy and Invest in IOTA?
The Internet of Things offers exactly this rapidly expanding landscape for communication service providers (CSP’s) to explore new revenue and growth opportunities. With IoT connections expected to reach more than 1 billion by 2020, the need for a secure, cheap and scalable micro-billing mechanism is apparent to everyone.
Some say IOTA is new and there is a huge potential in its project. That is not entirely true. IOTA development began with hundreds of supporters back in 2015 and it has been covered in TechCrunch, VentureBeat, Forbes, Cointelegraph, CIO, etc. repeatedly. It is not a new project and they have been there for a while now.
Although it is not a new to some of us, in my opinion, IOTA is still far away from “mass-adoption”. Months of negotiation and clever strategic management of the IOTA-CORE, especially David Sønstebø’s efforts and Dominik Schiener’s participations in meaningful IoT-conferences, lead to tons of collaborations and partnerings between IOTA and real companies.
Investing in IOTA now at the time of writing is a good choice as it is barely out the gate publicly. The team slowly began releasing information about the partnerships that they have worked on with large organizations since late 2015. Over the last few years, It has gained its momentum and ready to take off anytime soon.
The most recent news from IOTA was it launches DLT Research & Innovation Network from Norway. Norway has always been world leading in adopting digital technologies across both the public and private sectors and is now waking to the potential of Distributed Ledger Technologies (DLT), the IOTA Foundation has teamed up with leading Norwegian clusters, research and academic institutions to create a new DLT research and innovation network.
From my point of view, the price of IOTA will further rise in anticipation of other exchange launches and make one big jump up once a series of exchange listing is announced.
IOTA is still under the radar, but there are great indicators that this won’t take long to change. Looking at the Google Trends interest below, IOTA is slowly getting more attention as the ecosystem grows every day. The reasons for the overall growing numbers are that the founders, and especially Dominik Schiener, are participating in conferences, hackathons, and presentations for months.
How and Where to Buy IOTA?
You are now able to buy IOTA on Bitfinex and Binance. If you want to buy IOTA before it picks up speed, have a Bitfinex account ready. You will be able to buy IOTA with both BTC and USD.
However, it may not be feasible for those who wish to deposit fiat currency other than USD.
Wire transfers are available for 0.1 percent of the amount, with a minimum fee of 20 dollars. Express wire transfers, which are completed within 24 hours on business days, cost 1 percent of the amount, with a minimum fee of 20 dollars.
Bitfinex also accepts TetherUSD and digital currencies such as Bitcoin and Ether. To avoid all the hassle, you can buy IOT with Bitcoin.
There are many ways to buy Bitcoin. Perhaps the easiest way is through Coinbase or Coinhako. Once you have purchased some Bitcoin, you are ready to buy some IOT on Bitfinex. Buying Bitcoin is straightforward.
Buying Bitcoin on Coinbase is straightforward. Registration is pretty straightforward, requiring things like your name, email, and a verification of your identity (eg: pictures of your driver’s license, etc). Once your account is created and verified, you’ll need to add a funding source like a bank account and/or a debit card. Once this is set up, you can buy some Bitcoin.
The reason I encourage my readers to buy BTC from Coinbase because you will get $10 free BTC once you trade your first $100 through Coinbase.
Then, go to Bitfinex and get your Bitcoin wallet address. Then send BTC from Coinbase to Bitfinex.
Just one click and your funds should be on their way to Bitfinex. It will take a bit of time, perhaps 5 minutes or more, for your Bitcoin transfer to complete.
Once you receive BTC in your wallet in Bitfinex, you can proceed to get some IOTA by going to “Trading”, “IOTA”, “IOTA/BTC”.
Then type in the amount of IOTA you wish you trade with your BTC.
You just exchanged Bitcoin for IOTA.