Features of IOTA: How Is It Different?

Original Post – profitconfidential.com
Tks to Iota.News by Nala

Unlike most altcoins in the cryptocurrency market, there are no blocks, no chains, and no miners in IOTA. Thanks to the unique architecture, the Tangle ledger is able to settle zero-fee transactions that enable devices to exchange exact amounts of resources on demand.

The two main differences between Tangle and blockchain are the way the data is structured and the way consensus is achieved.

Data Structure: While the blockchain is structured as a sequential linear chain where blocks are added at regular intervals, the Tangle data structure is based on a directed acyclic graph (DAG), which means it all moves smoothly in one direction, without going around in circles.

Consensus: In a blockchain, consensus is achieved through a competitive mechanism where multiple parties vie with one another to add the next block to the blockchain and get the block reward/transaction fees.

So in effect, consensus is delinked from transaction generation and is largely performed by a small group of people (miners) within the network. This results in the one thing cryptocurrencies were supposed to avoid: centralization.

On the other hand, in IOTA, every user in the network has to participate in the consensus. There is no other option.

Every transaction can only be completed if the user references two transactions directly, and thereby any other transactions in the sub-Tangle indirectly. Because of this unique setup, there is parallelized validation with each and every transaction.

So the network stays completely decentralized as there is no question of delegating trust to miners, and no transaction fee either.

In addition to these main differences, the other features of IOTA are:

Centralization of control: As there is no separate “mining” in IOTA, each user can be viewed as an independent “miner.” Futuristic Cryptography: Although large-scale quantum computers do not exist yet, IOTA is ready for them. It uses “exclusively quantum resistant cryptographic algorithms,” which are immune to this brute force attack.

Microtransactions: For the very first time, real-time microtransactions are enabled, giving IoT developers and web developers a brand new set of tools to reassess business-to-business opportunities.
Data Transfer: One of the core features of IOTA is the feasibility of transferring data through Tangle in a completely authenticated and tamper-proof way.

Voting: The Tangle architecture is ideal for a variety of projects that require secure data transmission, especially in the realm of e-governance. A very important aspect of e-governance is e-voting, and many companies and academics have already started exploring the possibility of using Tangle in this field of use.

Masked Messaging: Masked authentication messaging (MAM) is the first extensible module of the IOTA core. This feature enables nodes (computers/smart devices) to transfer/exchange fully authenticated and encrypted data through Tangle. In other words, a device can transmit important and sensitive data enhanced with quantum-proof security through Tangle. The data can be analyzed at any time by anybody with the right security clearances.

Share-A-Service: What with shared accommodation, shared rides, and even shared office spaces, the sharing economy is here to stay. And IOTA will be driving this sharing economy into the future, where anything with a chip in it can be leased in real time.

IOTA and Solar Energy IOTA-and-Solar-Energy

The use of IOTA in the solar industry is just one example of how IOTA can be used to power its way into the future. Imagine a small group of houses that were not on the state grid, where one of the houses generates solar power. The surplus energy produced by that house could be shared and accounted for seamlessly through Tangle.

IOTA-and-iotIOTA and the IoT: The Future
What we are seeing right now is just the tip of the iceberg for IOTA and the IoT. According to conservative predictions, there will be 75 billion devices connected to one another via the Internet of Things by 2025. All of these devices will be relying heavily on microtransactions, nano-transaction, data transfer, MAM, and all the other features of IOTA.

Source:profitconfidential . com

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