The IOTA vision explained in 2 minutes

The Tangle Vs. Blockchain Explained

Interview with David Sønstebø

A small introduction into the world of cryptocurrencies

A small introduction into the world of cryptocurrencies

Given the fact that lots of people struggle to understand the concepts of Blockchains, I try to give a small overview over what has happen till today and where IOTA can be the additional benefit to the world.

Satoshi Nakamoto, an anonymous person, published a legendary whitepaper in 2008 in what he described the possibility of a decentralized peer-to-peer payment system of the future without financial institutions. The beginning of a disruptive technology movement was born.

Bitcoin’s last years were determined by ups and downs, the technology however worked as designed. As a consequence thousands of startups, entrepreneurs, investors and visionaries came together and built the blockchain ecosystem.

A blockchain is a sophisticated network of peers which is able to store and sent data for different fields of applications based on cryptographic proof.

Bitcoin as a currency aims to replace the world’s financial systems. The blockchain itself is safe and impossible to crack. Third-party applications connected with the Bitcoin-blockchain were often used to scam people and in addition, a never-ending discourse about the safe use of Bitcoin was always part of the business.

Since then, hundreds of cryptocurrencies were created with a vast spectrum of services.

Cryptocurrencies differ in subject to their field of action. Some are made for security- and anonymity-reasons, some are made as data carrier.

While Bitcoin, as the most prominent one, aims to replace currencies, IOTA is made for the Internet-of-Things (IoT).
IOTA’s focus lies in the interconnectedness of devices to enable micro-payment in short time-frames or: “To be the backbone of the IoT”.

Sensors in all fields around the globe can be attached to the Tangle, to provide functionality and improvements.

Why the name IOTA? It refers to the smallest letter in the Hebrew alphabet which is often used as “a slightest amount”.

Furthermore the obvious similarity to IoT, hence the nomenclature.

It operates on the Tangle, an evoluted blockchain which has countless strong distinctions from a blockchain to fit perfectly for the IoT.

The biggest difference lies in the taxation of transactions, which is at 0.0001 BTC for Bitcoin transactions, but completely free for an IOTA- transaction.

This disparity is of big importance in the world of Internet of Things as fees would handicap the transaction-environment of billions of devices.

-Further reading including a technical comparison between the Bitcoin-blockchain and the Tangle can be found here:

https://medium.com/iotatangle

-The technical description can be read in the Whitepaper of Serguei Popov:

https://www.iotatoken.com/IOTA_Whitepaper.pdf

-An interesting and helpful article about the Internet of Things by Forbes:

http://www.forbes.com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can-understand/#8b809f68284

 



To draw a conclusion:

For the first time ever, through IOTA people can transfer money without any fees.
A revolutionary, innovative solution for a Billion Dollar market.

“This means that even infinitesimally small nano-payments can be made through IOTA. IOTA is the missing puzzle piece for the Machine Economy to fully emerge and reach its desired potential. We envision IOTA to be the public, permission-less backbone for the Internet of Things that enables true interoperability between all devices.”
(Dominik Schiener, 2016)

-For further info follow the given links:

IOTA’s Main Website for general information http://www.iotatoken.com/
IOTA’s Forum with further reading and community-guidance https://forum.iotatoken.com/
Community driven Tangle-explorer to check transactions and stakes within the tangle http://tangle.guru/
Community driven map of all nodes and devices within the Tangle http://iotamap.com/
IOTA’s Slack for communication/developer/
community point of contact
https://iotatangle.slack.com
IOTA’s Blog for information around its vision https://medium.com/iotatangle
Ios and Android wallet http://iotawallet.info/
Community-based support page https://iotasupport.com/
Bitcointalk Announcement-Thread https://bitcointalk.org/index.php?topic=1216479.0

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