Since Blockchain introduced the mainstream public to distributed ledger technology, we’ve seen a myriad of different takes on implementing it. Most networks rely on blockchain technology and create a chain of data blocks interconnected through cryptography.
However, some projects have chosen a different path to provide users with decentralization. Iota is one of those “slightly different” projects that have aimed to revolutionize this tech ever since its inception. This is why many users tend to convert ETH to IOTA in their quest to seek innovative technologies.
This article explores the Iota network and provides some fundamentals on how it works and what drives its value. Additionally, we will give some of the benefits it brings to aspiring investors and analyze its current positioning in the crypto markets.
The Particularities of the IOTA Blockchain
As we briefly mentioned in our introduction, Iota does things slightly differently than other blockchains. In fact, Iota is not a blockchain in the proper sense but relies on a unique technology called Tangle. This is a system of nodes that confirm transactions at a far greater speed than other blockchains and provide near-limitless scaling for mass adoption.
Tangle is a directed acyclic graph (DAG) network that allows multiple transactions to interconnect and hence, increase the speed of the throughput.
The IOTA network was originally created in 2014 with the goal to provide a scalable and decentralized infrastructure to the rising internet of things industry. To this end, it uses the MIOTA currency, which represents one million IOTA units. IOTA tokens are essential for allowing machines and humans to interconnect and interact with each other. In many cases, the use of this token is mandatory so that users can interact with the network and use its features.
IOTA Benefits for Buyers
Since IOTA is not a blockchain, its token cannot really be considered an altcoin. It strictly has use cases within its ecosystem, with multiple benefits for its users.
0% Fees
The IOTA network is designed to have zero fees for its users. The currency is created with microtransactions in mind, allowing for the transfer of data and assets free of charge.
Fast Transactions
The DAG architecture of Iota doesn’t require complex processing of transactions. This allows them to be near-instantaneous and to scale with mass usage. To be more precise, a transaction gets validated by approving two previous transactions from another node. This means the more people use the network, the faster it becomes.
Low Energy Consuming Environment
Because nodes need to compute only two transactions at a time, they don’t require complex or advanced hardware. Hence, the carbon footprint of IOTA is extremely low, almost negligible when we take into consideration the service it provides.
IOTA Price Analysis
IOTA has already gone through two bullish cycles and is currently undergoing its second bear market. In its history, the token has managed to reach incredible heights, with an all-time high of $5.69 in December 2017. Considering that the token was worth $0.15 prior to the rally, IOTA managed a 3,200% price increase at the time. The price retraced back to around $0.08 at the bottom of the bear market in 2019-2020.
During the bull market in 2021, the price managed to reach $2.37. Currently, the token is trading around $0.2, providing a great entry opportunity for investors.
Conclusion
Ever since it was released to the public, Iota has tried to innovate the blockchain space by providing scalability through its unique approach. As a result, it has managed to survive for seven years in the market, which made it one of the most resilient cryptos to date. It remains comfortably settled in the top 100 cryptos, despite the harsh competition that has emerged in the past few years.
Some traders may prefer to trade MATIC to SOL (https://godex.io/exchange/matic-to-sol) as they are newer and more popular cryptos. However, tech-savvy investors still have a warm spot for IOTA in their portfolios.
