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You have probably heard of the Internet of things, and precisely IOTA is a coin for the IoT or Internet of things. The growth of IOTA has been rapid it was worth just over $0.35 and had a market cap of less than one billion dollars. A month later it was worth over $4, and the market cap had passed the $11 billion mark, it took ripples position on the 4th most traded cryptocurrency. The founder of this fantastic cryptocurrency is David Sonstebo, and he stated "it was developed to enable the "paradigm shift" to the Internet of Things by establishing a "de facto standardized "Ledger of Everything." Simply put, this means the cryptocurrency will enable data exchange between sensor-equipped machines that populate the Internet of Things."

What is IOTA?

Most of the cryptocurrencies including Bitcoin uses a standard blockchain technology to verify each transaction with the help of miners and their mining machines. However, with IOTA things are different, the developers have developed a new algorithm called Tangle which uses the concept of Directed Acyclic Graphs (DAG). For a transaction to be verified each block in the chain has to approve two previous transactions at various blocks. The most significant benefit of this is that it eliminates the requirement of miners and their mining machines first of all this clearly mean that less environmental damage and less energy will be wasted. Another benefit of this is that it eliminates the chances of a bottleneck between miners. Also, the growth and speed somewhat becomes dependant on the number of people using it which to some extent means the users are controlling the currency. IOTA has 0 fees on transactions and claims that it has solved various network congestion problems which results in unnecessary delays. IOTA in the future is expected to be used for simple day to day transactions like on different vending machines so that the transactions costs are eliminated from the process. The reason bitcoin can not be used for these simple day to day transactions is that high transaction fees are associated with bitcoin.

IOTA has a bright future ahead or at least that is what it looks like, the cryptocurrency has partnered with the famous tech giants Samsung, Innogy and Cisco. Bain the successful consultancy firm states that the market cap is expected to cross 470 billion dollars by 2020. Kerstin Eichmann of Innogy said, "We can expect that a machine will be able to pay its assembly, its maintenance, its energy and also for its liability insurance by giving data, computing power, storage or physical services to other machines." With that being said there are a few problems with IOTA for example according to an MIT team the developers discovered a security issue with Tangle. Neha Narula, director of MIT's Digital Cryptocurrency Initiative, said: "Once we developed our attack, we could find collisions using commodity hardware within just a few minutes, and forge signatures on IOTA payments." The progress of IOTA could also be hindered if other popular IOT firms like Amazon end up developing their own coin.