IOTA is an electronic currency intended for the confidential and secure transfer of information and payments without fees. The project developers are David Sanstebø, Sergey Ivancheglo, Dominic Shiner and Sergey Popov.
The main feature of IOTA is the ability to transfer data through Tangle, create communication channels between authenticated devices. All data transmitted through IOTA is completely protected from unauthorized access.
IOTA transactions are protected by cryptographic signatures, just like regular cryptocurrencies. The hash function of the original Curl design, which was originally used for the signature, has been criticized as unreliable.
Thus, the developers replaced it with SHA-3, which has become more popular and trustworthy.
IOTA developers have created a special coin wallet. However, this development has very mixed reviews and therefore cannot be recommended to novice users.
Thus, new tokens and coins appearing on the cryptocurrency market are promising technologies. The number of devices connected to the internet has long exceeded the number of users, which makes IOTA one of the key conceptual achievements of modern society.
Exchange of data on payments is carried out through specialized Flash-channels, where there is a mutual accounting of transactions. This technology helps to reduce the time needed to confirm a transaction by summing up the financial data of hundreds of thousands of transactions. Obviously, the balances are sent to the general IOTA network.
During the development of the protocol, a separate level of the Flash Network was created, intended for large volumes of transactions within Flash channels. The effectiveness of the IOTA system is ensured by a sufficient number of complete nodes.
There are no miners of this token. Thus, the operation of the nodes is provided by companies, in particular, the cryptocurrency exchange, interested in using or developing IOTA technology.
Due to the fact that system maintenance is the main component of the company, in contrast to traditional cryptographic solutions based on mining, currency can function without user fees.
Although IOTA was conceived as a separate system that allowed internet users to instantly pay for and receive any product, the harsh reality did not allow the aspirations of developers to be realized.
In the first months of the platform existence, interest in it was low, as a result, the necessary minimum of users did not form. Due to this, the coin had to be redone and additional technological solutions implemented.
The initial growth of the asset was associated with loud statements by developers. As a consequence, IOTA was repeatedly criticized, which led to a decrease in capitalization and coin price. Also, ordinary users faced technical problems.
This shows that the two main factors affecting the cost of IOTA are news and technical solutions. As for the political will, the project works fully within the framework of civil international law, therefore it cannot be restricted.
The latter circumstance attracts investors. But traders need to understand that the asset should be considered as a long-term investment. The actual idea of IOTA is to become an analog of ordinary money on the internet.
This means that, ultimately, the exchange rate of the coin will conform to the same laws as Forex currency pairs. Coin should be included in the portfolio because it is promising, and we are talking about a time interval of 150-200 years.
But in the conditions of low demand, weak information background and the lack of real technological solutions, the price for IOTA will be relatively stable, without sharp drops and jumps.
Also, the growth of this cryptocurrency price can be affected by the decision of the owners of large retail chains, such as Alibaba, Amazon or eBay.
Addition of the coin to a list of means of payment that can be used to pay for ordinary consumer goods will be a breakthrough for the currency and will inevitably lead to an increase in demand for it.
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