IOTA and the Tangle Ledger
Iota (MIOTA) is a revolutionary cryptocurrency that gets around the issues facing blockchain based cryptocurrencies like Bitcoin and Ethereum by doing away with the blockchain altogether.
Instead, IOTA uses a technology called the ‘Tangle ledger’, which they claim can settle transactions with zero fees.
They also claim that the Tangle Ledger is far more lightweight and scalable than traditional blockchains.
It is like Nano (NANO) in this regard.
Scalability is the name of the game in cryptocurrency.
Market leaders like Bitcoin and Ethereum have struggled to overcome network slowdowns as the number of transactions-per-second (TPS) rises.
This measure is also critical as it is the main comparison between decentralized blockchain solutions and traditional centralized solutions offered by the likes of VISA.
Compared to VISA's 24,000 transactions per second, Ethereum only delivers 20 and Bitcoin 7.
Because tangle-based solutions offer a way to achieve consensus with zero fees, it has great potential to be used in machine-to-machine microtransactions that prosper as the Internet-Of-Things develops.
The last week has been a rough time for the cryptocurrency markets.
However, IOTA has been a green light in a sea of red which has brought it to the attention of many observers.
Many have questioned what has been driving such strong support for this coin above other currencies.
Some even believe that this supports the future potential of the cryptocurrency.
Instead, we see a lack of any real substance behind this short term growth.
Over the past week there has been no substantial progress in the IOTA project besides hiring new team members.
We believe those in the markets should be wary. This is because any cryptocurrency which survives an initial dip in the market often becomes a magnet for those who mistake its growth for genuine support.
Over the past few weeks we’ve seen the same thing with NEM(XEM) which reached around 0.51 USD among a market slump before falling to 0.21USD at the time of writing.
IOTA could still become a new cryptocurrency market leader but it exists in one of the most crowded sectors of the cryptocurrency market.
Furthermore, it is aimed at serving interconnected devices which don’t yet exist .
The new and unproven Tangle consensus mechanism has a long way to compared to Bitcoin's Proof-Of-Work means.
Researching cryptocurrencies involves going beyond the hype and flashes of green.
Many believe that 90% of cryptocurrencies will never actually be used.
It is in falling markets it is usually the ones that have shaky foundations which fall.
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