IOTA is a fast-paced, and next-generation public shared ledger that uses an innovative technology called Tangle. IOTA uses Tangle as its core technology, contrary to the blockchain. The blockchain maps out all the transactions in its chain; IOTA utilizes the entire network, Tangle, where all its transactions are linked. This offers several advantages, and it extends the scope and application of the technology. In this article, we will see the advantages of IOTA over the blockchain.
- IOTA is the predominant market driver and uses the technology Tangle. Contrary to the blockchain, it maps the transactions into the whole network, unlike a single data chain. Tangle can be explained as a network that helps to increase various implementation capabilities by simultaneously expanding the IOTA’s scope of application.
- The major segment that distinguishes IOTA is Tangle, its unique block less technology. While blockchain’s data structure is an organized list of transactions, Tangle’s system can expand in various directions.
- One of the advantages of Tangle is it supports the Internet of Things(IoT). IoT is a network of several connected devices used to share and interact with information. This implies that Tangle can support fast and seamless transactions among various connected devices.
Why Is IOTA Unique?
Here are a few reasons why IOTA is a unique coin when compared with other cryptocurrencies.
- Almost all cryptocurrencies use blockchain technology, while IOTA uses new technology, Tangle. IOTA, using this technology, is designed to be very much scalable. Further, IOTA does not charge any transaction fees for its transactions that have taken place in their network. This makes it unique when compared with other cryptocurrencies.
- Cryptocurrencies like Bitcoin and Ethereum have an issue of scalability because of their transaction speeds; this is not the case with IOTA. Moreover, the network’s transaction speed increases when there is an increase in IOTA users, thereby offering infinite scalability.
- When a user performs a bitcoin transaction, they face the problem of higher transaction fees. But, IOTA charges zero transaction fees, making it the first digital currency that does not charge any transaction fees.
- Recently IOTA had partnered with big giant companies like Samsung, Cisco, and Volkswagen, which are interested in testing this technology. It is also working with the City of Taipei to offer Tangle-based ID cards for its citizens.
Advantages of IOTA and Blockchain
Several factors make IOTA special, unique, and interesting. Here are the few features where IOTA is far better than blockchain.
- Transaction Rates
One of the major problems with blockchain is, it was developed for Bitcoin and has a very low transaction rate. Further, its security measures are very high; for example, in a bitcoin application, the blockchain transaction rates are in the double-digit range, which is not enough for several applications. If we take IOTA, the reverse is true; the transaction rate increases when more users are using the system. Additionally, the transaction time to confirm the transactions in IOTA is very low. In the blockchain, there is consensus; that is not the case with IOTA.
In a standard blockchain payment portal, the initiator or the transaction’s sender sets the transaction fees. Consequently, it is not feasible to execute smaller amounts of money as payment. On the contrary, the major advantage of using IOTA is, even smaller payments are possible with very low to a lesser fee transaction.
When the transaction rate increases, so does the scalability increase. IOTA systems keep on scaling; where there are more subscribers, more transactions take place faster. The time taken for placing a transaction and validating will reach zero as soon as a specific size is reached with latency. Experts believe that IOTA uses a processing module that can become faster when the subscribers and transactions increase.
- Future Ready
People who use blockchain face one major issue – the technology is a bit expensive in terms of security assurance and computational needs. For example, the Bitcoin mining process needs more computational power when time increases. However, this cost is reduced by IOTA by removing the main areas of traditional mining, which makes it future-ready.
The blockchain owner has the authority to change the system with new data that can be modified for their gains. As a result, organizations are left with the dilemma of using blockchain technology with external applications while constantly maintaining the immutability of data. This is not the case with IOTA.
In the long term, IOTA can help companies verify their data and in the practical implementation of its applications. IOTA’s latency is very low, and it can pay every single transaction automatically with IOTA. Further, when we reviewed the IOTA Price forecast, we can see that IOTA has a bright future and a high possibility of adoption rate. With Tangle, the growth can be visible within a 5 to 10 year period. According to Changelly’s IOTA price forecast, the IOTA price can go up to $38 in the future.