IOTA is an innovative new distributed ledger technology to function as the backbone of the Internet of Things.
Born in 2014, it is the only technology of its kind that is able to function as the lightweight distributed ledger with scalability, quantum resistance and decentralization for all IoT devices.
IOTA was created as a far related derivation of the blockchain technology but is far more advanced and is already recognized in the innovation-press like Forbes, Techcrunch, International Business Times and Huffington Post.
The whitepaper can be read here: Whitepaper
The Blockchain is a great invention but it’s also stigmatized with pre-conceptions because the majority of issues occurred through human failure. Blockchain’s as such were never hacked, just the human-software interface.
Traditional Blockchains rely on miners, so to say computing-power-farmers that boost transactions through a synchronized peer to peer network and mine small parts of the currencies with processor power.
These traditional Blockchains of the first and second generation are using transactions fees to prevent peers from spamming the network.
That is because the field of application often lies in financial systems to replace currencies ($, €) -like Bitcoin. Bitcoin’s transaction fees are at approx. 50 cent per transaction (Feb-2017).
IOTA is mostly made for the IoT as the technology for data integrity and industrial appliances. Furthermore pay on demand, micro-payments and machine to machine communication like sensor technology, smart cities, adaptive systems etc.
It is quite evident, that Bitcoin and nearly all other cryptocurrencies weren’t made to function as the network of the IoT. Considering hundreds of thousands of nano-payments each day in the near future, these Blockchains would generate an enormous amount of fees, just for conducting transactions, while costs of these nano-payments oftentimes undermatch the fees.
Therefore, it is indispensable to use a secure, fee-free system, which IOTA is. This technology, therefore, is a novum.
The underlying technology, the Tangle, is a third-generation Blockchain-technology, based on a directed acyclic graph, made for the problems of tomorrow.
Beyond that, the Winternitz one-time signature scheme enables quantum resistance, which makes it perfectly equipped for the future.
Have a look at my articles to get an idea of the revolutionary technology of IOTA.
A compact info sheet with the most important information around the technology.
If you struggle to find a beginning in this new world, feel free to follow this presentation to have a good start.