Is IOTA on its way to Mass Adoption?

In the cryptocurrency market, each coin is of a somewhat slightly innovative nature that differentiates one another. IOTA offers something beyond a blockchain architecture, nor it is focused on establishing a mode of transferring money efficiently. So what exactly does IOTA offer that makes it such a promising model?

IOTA is innovative in mainly 2 features: Firstly, it aims to fully support the potential offered by IoT devices. An approximate 1 billion objects are expected to be connected to the IoT by 2020, and the IOTA has created a cryptocurrency that can aid the IoT. Secondly, it uses a Directed Acyclic Graph (DAG) system, Tangle, instead of the blockchain architecture — the majority system implemented for cryptocurrencies.

- Advertisement -

IoT and IOTA

The Internet of Things (IoT) is basically the communication and interaction solely between machines, that is without human interference. Any object connected online can then communicate with each other, ultimately to promote convenience. IOTA is an open-sourced distributed ledger, aiming to facilitate secure payments and communications between devices that are part of the IoT

IOTA Tangle

IOTA decided to opt for a DAG system instead of the blockchain model. This DAG system is known as the ‘IOTA Tangle’. Tangle is essentially a string of individual transactions interconnected to one another, and stored through a decentralised network of nodes. If we look at a transaction process in detail: the Sender is required to perform a Proof-of-Work (PoW) — to approve 2 previous transactions, before sending out a new transaction for approval.

This means that the DAG system is fully decentralised, because the role of ‘miners’ has been removed. As explained, since there are no more miners in this model, the need to pay for PoW is then eliminated. This means there isn’t a fee anymore for a transaction. The ‘fee-less’, ‘decentralised’ and ‘scalable’ features are what differentiates the DAG system from a blockchain model.

Challenges Ahead?

However, with a different model comes new obstacles. In order to be completely secure, the whole IOTA ledger will have to be constantly verified by the decentralised network. So with an infinite amount of possible future transactions, the DAG ledger will become infinitely large and time-consuming to verify.

Good News

On a positive note, IOTA has recently pushed its boundaries into the mainstream with bullish news. Jaguar Land Rover is aiming to implement a “smart wallet” using the IOTA system for data sharing and collection e.g. traffic conditions, with a reward model for IOTA currencies — that can then be used for tolls, parking fees or other driving expenses. In fact, IOTA has already established significant partnerships in the automobile industry in the US alone. For instance partnerships with Audi, Wolkswagen and Jaguar, which are needless to say one of the largest car manufacturers worldwide.

Another recent piece of news is the launch of the IOTA Academy by the IOTA foundation, that aims to educate the mass audience with the online program. This routine has been proved successful among others e.g. Binance Academy and Coinbase Earn, all with educational purposes.

There are way more potential in merging the IOTA to become an integral part of our daily lives, and this is only the beginning of it. However with such innovative technology comes big risks, so let’s wait and see how IOTA will progress in the future, whether bearish or bullish.

- Advertisement -

This is not intended to be, and should not be construed as being, (a) any offer, solicitation, or promotion of any kind; (b) the basis of any investment or other decision(s); © any recommendation to buy, sell or transact in any manner any good(s), product(s) or service(s), nor engage in any investment(s) or other transaction(s) or activities; or (d) the provision of, or related to, any advisory service(s) or activities, including regarding any investment, tax, legal, financial, accounting, consulting or any other related service(s).

Source

Previous Articles:

- Advertisement -

Latest News

BPX Gains FCA Nod to Trade Tokenized Securities in the UK

BPX, a startup focused on trading tokenized securities, received several authorizations from the UK’s...

Shopify, Coinbase Launch USDC Payments; Mastercard Expands Crypto Access

Shopify and Coinbase allow merchants to accept USDC stablecoin payments, making crypto transactions easier...

Coinbase Launches Wrapped ADA and LTC on Base, COIN Hits New High

Coinbase has introduced wrapped versions of Cardano (ADA) and Litecoin (LTC) on its Ethereum...

ClickFix Attacks Surge 517% in 2025, Fake CAPTCHAs Spread Malware

ClickFix attacks using fake CAPTCHA verifications have risen by 517% in early 2025, according...

FHFA Orders Fannie, Freddie to Consider Crypto as Mortgage Collateral

The U.S. Federal Housing Finance Agency ordered Fannie Mae and Freddie Mac to consider...

Must Read

Top 10 Best Cryptocurrency Lending Platforms

This article needs an update. Many of the platforms listed here have closed their doors.In this article, we are presenting the best cryptocurrency lending...