In this cyber world, the need for decentralized and permission less systems is increasing day by day. Though Blockchain promised a compelling vision of decentralized networks their networks in recent times have become increasingly centralized around a few powerful actors.
IOTA by solving the inefficiencies of the Blockchain is empowering machines and humans to participate in flourishing new permissionless economies. Based on the revolutionary distributed ledger technology it powers a secure, scalable and feeless transaction settlement layer.
Recently IOTA announced partnerships with big organizations and companies such as Microsoft, University of Oslo, Bosch, Fujitsu, Schneider Electric, and Deutsche Telekom. As there are no transaction fees you can send as little as 1 IOTA. As of now, on 29 November 2018 1 IOTA is worth $0.305958.
In the same way, Bitcoin and Ethereum utilize blockchain technology to function, IOTA a data transfer layer for the Internet of Things (IoT) uses a new innovative protocol called Tangle. Tangle employs complex web structure known in mathematics as a Direct Acyclic Graph (DAG). It differs from the blockchain which consists of transactions grouped into blocks. In DAG individual transactions are entangled together.
The structure of DAG enables high scalability of transactions. The more the activity in Tangle the more transactions the network can process. Currently, IOTA can process between 13 and 1,500 transactions per second. This unique scalability of tangle makes it a prime facilitator of IoT(internet of things).To know more about IoT https://dhacker.in/5g-and-iot-a-new-global-era/
The main purpose of the Tangle is to eliminate the need for miners and to handle the vast amount of micro-transactions required for the internet of things. For example imagine if Toaster, washing machine and the car in your home can diagnose faults, order and pay for fixes and supplies to be carried out and delivered by other machines all without consulting you; sounds like a sci-fi right. But all this is possible with the internet of things and IOTA.
Moreover, IOTA is more secure than bitcoins as it uses quantum resistant cryptographic algorithm i.e. hash-based signatures instead of elliptic curve cryptography which is immune to brute force attacks.
Within a few years, it is expected that the number of machines in the world will more than double over the next decade creating a machine economy that would be very robust. As the future is shaped by the Internet of Things everything is going to be smart. There is a need for a new ecosystem to exist to power this smart economy. In the need of the hour, IOTA is showing tremendous potential to affect how transactions take place in the futuristic world.