Reasons to invest in IOTA

Reasons to invest in IOTA

Why should investors buy IOTA? IOTA is, as mentioned at the beginning, a very special digital currency. IOTA does not have a blockchain like Bitcoin, but is based on a specific data structure, the “Directed Acyclic Graph DAG” (Tangle).

The technology is still quite young, but is already considered extremely promising by numerous experts from large companies. Of course, there are also critics. Unlike the well-known blockchains of various cryptocurrencies, the Tangle data structure still has to prove itself, of course.

In theory, IOTA has numerous properties that can be used to solve some well-known problems – problems that Bitcoin and many other cryptocurrencies have been struggling with for a long time in some cases. These include:

Transaction security without a “miner” and high energy consumption like Bitcoin.
With IOTA, there are no transaction costs. This makes it practically the only cryptocurrency with this feature.
Good scalability: The Bitcoin network can only process a handful of transactions per second in comparison.
IOTA is one of the few cryptocurrencies that will also be resistant to possible attacks with quantum computers in the future.

The IOTA Foundation also announced in 2018 that it is working on the “Qubic” platform. This is a smart contract platform that is primarily intended to serve the Internet of Things. However, the possible uses go far beyond the focus on IoT that the company has set itself as a goal.

13 What could happen next with IOTA?
The basis for IOTA is thus the new Distributed Ledger Technology (DLT) “Tangle”, which can be translated as “tangle”. It is not based on traditional blockchain technology. Compared to the blockchain (a chain), the tangle can be compared to a chaotic network that has countless links. All transactions can therefore run in parallel. A new transaction must always confirm two previous transactions. The more transactions are implemented in the IOTA network, the faster they are confirmed.

Another special feature of IOTA is that any number of transactions can be carried out via the IOTA network without incurring any fees. This makes the digital currency extremely attractive, especially for micropayments. Tangle technology offers service providers, entrepreneurs and users enormous application potential in the Internet of Things.

Numerous well-known companies have already recognised this potential and rely on IOTAS data structure. These include large companies as well as various organisations that cooperate with the IOTA Foundation.

In 2019, the plan to “coordicide” – the abolition of the central coordinator – was finally implemented, which until then had protected IOTA from attacks and earned the cryptocurrency much criticism as being “too centralised”. Ultimately, the value of a digital currency is always in proportion to the number of users who use it.

If IOTA succeeds in achieving its set goals and increasing the volume of transactions in the future, the potential value of the currency will be correspondingly high. Of course, no one can see into the future. And so things can always turn out quite differently.