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IOTA (cryptocurrency)

IOTA (cryptocurrency)

IOTA is a distributed ledger technology based on a structure called the "tangle". It was developed to enable decentralized transactions for the internet of things.

Introduction

IOTA is a distributed ledger technology based on a data structure called the "tangle". The tangle retains similarities to blockchain while removing the block structure in favor of a directed acyclic graph structure. There are no specialized miners in the network. Every user who generates a transaction on the network must do a small amount of proof-of-work to validate two other transactions. This enables a zero transaction fee model in which the only cost paid by users is the proof-of-work needed to validate two transactions per transaction initiated.



The smallest indivisible unit of currency is called an IOTA. There is a fixed supply of 2,779,530,283,277,761 IOTAs in existence.



History

Fundraising

The IOTA token sale took place from November 25, 2015 to December 21, 2015. 

Controversy

IOTA runs a centralized close source Coordinator as announced in their blog post on transparency. The purpose of the coordinator is to provide a milestone checkpoint to resist against attacks on the network while it the network is young. The coordinator has been a source of discussion on decentralization for young distributed ledgers.



Neha Narula, Director of the Digital Currency Initiative at the MIT Media Lab, along with colleagues posted an investigation into cryptographic vulnerabilities in IOTA. Contact with the Neha Narula prior to this blog post inspired IOTA to temporarily switch from a cryptographic function of their own design known as Curl to the more standard Keccak (SHA-3). IOTA's Sergey Ivancheglo posted a response to the investigation suggesting the vulnerability was previously known and intentionally included as a copy protection mechanism. This inspired debate from various members of the cryptocurrency community including a constructive criticism from Vitalik Buterin and other members of the Ethereum community.



Public listing

Bitfinex was the first major exchange to list the IOTA token on June 13, 2017. At the time of listing IOTA market cap was valued at over one billion dollars among the highest public listing price at the time.

Architecture

The IOTA team claims the tangle architecture allows for infinite scaling whereby speed is limited by the amount of transactions on the network. IOTA is written in ternary rather than traditional binary.







Consensus on validity of blocks is reached in a probabilistic way.



Timeline

People

Name
Role
LinkedIn

David Sønstebø

Founder



Dominik Schiener





Sergey Ivancheglo





Serguei Popov





Further reading

Title
Author
Link
Type
Date

How IOTA Might Create Smart Contracts to Crowd-fund Projects on the Tangle - Ethereum World News

John P. Njui

Web



IOTA Coin Review - Hacker Noon

Best of ICOs

Web



IOTA Introduces the ISO: A New Crypto Crowdfunding Model

Mike Dalton

Web



IOTA Partners with Microsoft to Launch First Cryptocurrency Marketplace for IoT Industry | CoinSpeaker

Alexandra Sayapina

Web



Is The IOTA Cryptocurrency Project Built To Last And Be Here For The Long Haul?

Shiraz J

Web



The Tangle

Serguei Popov

Academic



Documentaries, videos and podcasts

Title
Date
Link

IOTA and High-Mobility Webinar for Connected Car App Developers

December 19, 2018

IOTA explained in 2 minutes!

December 5, 2017

IOTA Foundation at Humanitarian Blockchain Summit at Fordham

December 21, 2018

IOTA Research Summit Q&A, 2.2019 (full video)

February 21, 2019

IOTA's Tangle - Simply Explained

December 26, 2017

Companies

Company
CEO
Location
Products/Services









References