When it comes to blockchain technology, we’re still in the very beginning stages in terms of advancement and innovation. Most projects the technology will help revolutionise have not even been thought of yet, and in the future, literally anything can happen.
Who knows, a newer and better form of technology could be brought about proving the older, almost 10 year old blockchain technology to be inferior and negligent.
IOTA has developed a new form of technology called Tangle, which by definition shouldn’t be considered blockchain technology. It isn’t mined therefore transaction fees do not exist, which means there are no blocks, and there is no chain!
What they’re proposing to do is connect The Internet Of Things (IOT) through their revolutionary technology, using the IOTA cryptocurrency token as the intermediary store of value.
The technology is still in BETA mode, and in the very early stages of development so it’s hard to tell just yet whether it is better than the proven track record of blockchain, or whether or not the technology will live up to all it’s intended to.
In theory though, the idea seems genius and if it does take off, it has the potential to rival the big players in blockchain.
So what’s the difference and how does IOTA work?
“As the Internet-of-Things keep expanding, the need for interoperability and sharing of resources become a necessity. IOTA enables companies to explore new business-2-business models by making every technological resource a potential service to be traded on an open market in real time, with no fees.” Quote from https://iota.org/
IOTA still uses a distributed ledger, but the difference is there is no blockchain. “Contrary to today’s Blockchains, consensus is no-longer decoupled but instead an intrinsic part of the system, leading to decentralized and self-regulating peer-to-peer network”
Blockchain technology has always faced the barrier of fees, and although the rise of the technology has been immense over the past few years, especially the past few months, fees have always been an issue on user’s minds. User’s are currently used to, at least domestically, being able to transfer fees between bank accounts for free, without paying any fees.
Although the idea of a decentralised economy is exciting and for sure has fuelled the fire under the rise of blockchain as a whole, fees are becoming unreasonable, and there is a good possibility that a fee-less alternative which is still decentralised, still as secure, and still solves the same if not more problems as blockchain will be very well accepted by the community and have a better chance of going mainstream.
Rather than just a cryptocurrency and a new token, this technology is a next generation distributed ledger & app building platform which allows businesses seeking to build projects in the cryptocurrency, blockchain (or now Tangle?) space can utilise and begin innovating forward.
The platform should in theory provide an ideal place for businesses to build new decentralised apps on top of, with global, instant connection and data transfer at the core.
IOTA have highlighted a few possible use cases on their website:
- Data Transfer
- Masked Messaging
- Everything as a Service
- Anything that needs a scalable ledger
Every day, we’re blown away by the crazy pace at which the cryptocurrency world is moving forward, and excited each day to wake up to read about the latest developments or announcements and feel grateful to be able to share the knowledge with the bitGuru audience!
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