IOTA Analysis and Review- Should You invest in IoTA?

What is IOTA? IOTA stands for Internet of Things Application. It is a crypto token for the internet of things(IoT) ecosystem. It is optimized and designed for IOT to leverage the resource and services available within the ecosystem.

IOTA: In Short

  • Date of Launch: June 11, 2016.
  • Coin Supply: 2,779,530,283,277,761
  • No blockchain. Uses Tangle Technology.
  • Uses SHA-3 in Proof of Work (POW)

So what makes IOTA special? It solves the three main problems that are associated with cryptocurrency ecosystem, i.e., scalability, offline transaction and transaction costs. Let’s learn about the tech behind IOTA.

The tech behind IOTA (Tangle Technology): Blockchain vs Tangle

The tech behind IOTA is interesting. Directed acyclic graphs (DAG) is used for machine-to-machine(M2M) transactions. They termed it as Tangle. It is different from Blockchain as it doesn’t require block and chain. In simple terms, Tangle completely removes transaction fees. Being free from blockchain also means that it is highly scalable and requires no mining.

So, how are the transactions confirmed? The transactions are confirmed by two parent transactions or nodes in the network. This makes it easy to scale and require no blocks whatsoever. All of these enables sending micropayments between machines without any associated fees.

Tangle also works offline with the concept of subtangle. The subtangle can work on its own in an offline environment. The whole network gets updated when the network connection is available. Multiple industries can take advantage of the offline environment. For example, supply chain.

IOTA in News (Partnerships)

IOTA is all over the news. Its price has surged 600% this month, making it a lucrative option for investment.

The latest partnership with Microsoft has started a bull run for IOTA as more and more people have started investing in it. It is not the first time those big companies are partnering with IOTA. You can find the whole list of IOTA partners here.

IOTA:  Top 3 by the end of 2018?

The ICO for IOTA started in 2015. It started small but gained a lot of traction when it got listed by Bitfinex. Right now, it stands at 5th position on coinmarketcap. It shows immense promise as it solves significant problems such as transaction fees, offline mode, and scalability.

There will never be a fork, unlike other cryptocurrencies. Instead, the more nodes the network joins, the better the network will become. It will become faster, more secure and scalable.

Considering the market cap and the growth that IOTA is showing right now, it will grow more in the upcoming weeks or even months. Breaking top 3 by the end of 2018 is a different story. It can reach 4th position, but it is hard for it to beat BCH for now.

Should you invest in IOTA?

IOTA is an innovative project that aims to take advantage of the $267 billion IoT industry by the end of 2020.

However, the current bull run has not stopped as it has grown over 600% in the last month. So, if you are thinking of investing, you may want to wait and see how the price curve behaves in the next few days.

As usual, always do your own research before investing. DYOR.

There are also some concerns that you should consider before investing in IOTA.

  1. The power game: Just like blockchain, if anyone holds more than half of the computing power, they can control the transactions within the network. Tangle is slightly different in this aspect as it only requires 34% of the network computing power to fraud transactions. To solve this problem, Tangle is currently using a centralized solution known as “Coordinator.” According to plans, they will make it decentralized when the network becomes huge and it is not easy to own ⅓ of the network computing power.
  2. Lack of testing: The technology is new and there is a lack of testing or peer review for IOTA. Also, the decision of IOTA team to use their crypto algorithm instead of SHA-3 is bringing concerns among the investors.

IOTA Price Predictions

I would not like to make any prediction with IOTA. If everything goes well, IOTA should cross 15 USD by the end of 2018. Having said that, there is a high chance that it might correct shortly. Currently, we are seeing an unstoppable run-up. Do not be in FOMO. Wait, and let the price correct, before diving in.

Where to buy IOTA from?

You can buy IOTA from Bifinex and Binance. If you are new, just buy Bitcoin/Ethereum from Koinex and send it to Bitfinex/Binance and buy IoTA in exchange for your Bitcoin or Ethereum. I personally would prefer Binance over any other exchange because of their low fees. If you still do not have your account set up with Binance, I highly recommend you to sign up for Binance.

Where to store IOTA?

You can refer to this article to learn about IOTA wallet. If you are not technical, you can keep them on Binance.

My personal View on IOTA

That’s it. Should you invest in IOTA? Yes, only if you believe in the technology (and not because of the hype). The current series of events have shown great promise. However, you may want to wait for few days to see if there is a dip, as investing now means buying IOTA at all-time high price.

Do let us know what do you think about the IOTA in the comments section below.

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