IOTA is a Tangle (variant of Blockchain) Platform that was born with the purpose of serving as a raw material for the Internet of Things network based on a distributed ledger.
IOTA is the revolutionary new data transfer and transaction settlement layer for the Internet of Things.
What problem does IOTA solve?
The problem posed
Here are some of the problems that blockchain projects are facing today that the dev team wants to solve:
Low scalability.
High transaction fees.
Slow transaction and processing speed.
High resource requirements: High hardware and power.
The ability to transfer data through less secure devices.
Solution of IOTA
The IOTA project has relied on distributed ledger technology and Tangle to solve the inefficiencies of current Blockchain technology . This is the missing link for the Internet of Things and Web 3.0. Here are some features of the above method:
Low resource requirements, designed for small devices like sensors to be involved.
All data is encrypted allowing data transmission and storage of devices to become secure.
Transact offline, no network device required.
The method of operation, technology as well as products of the project will be explained more clearly in the following sections. Guys, watch closely.
Highlights of IOTA
In this part, I will explain to you how it works as well as the technology and products of the project.
Referring to IOTA, the special feature of the project is its technology. This is a coin that does not use Blockchain technology , IOTA is built on Tangle technology (Blockchain variant). So what is Tangle? What advantages does it have over Blockchain? How does Tangle work? Please follow below:
IOTA develops according to Blockchain technology but the method of operation is different, by changing the entire algorithm of the “ledger” with another algorithm called “ Tangle ”. It is a distributed ledger based on DAG ( Directed Acyclic Graph ). You can call it “Blockchain without Blocks and Chain”.
Tangle will be completely different, there will be no more “Blocks”, no more “Chain” and no more “Miners”. The biggest difference between IOTA and coins like Bitcoin or Ethereum is that there is no division between users and miners. For IOTA, the user will be the miner, and the miner is also the user.
The special thing here is that the mechanism requires that no matter how much you transfer, you will have to confirm 2 other people's transactions to ensure your transaction is completed. In addition, Tangle also allows users to transact even offline, which is IOTA's competitive advantage compared to other Blockchain projects.
Instead of a group of the network responsible for consensus confirmation (miners or large token holders), here the entire network of participants in the transaction is directly involved in the transaction. transaction approval.
As such, consensus in IOTA is no longer decoupled from transaction creation: that's why IOTA has the ability to " scale " without any transaction fees ( No transaction ) fees ), which Bitcoin or previous and current Blockchain projects cannot do.
With no bottleneck, Tangle's scalability is limitless plus no transaction fees, making IOTA's transaction processing smoother and transaction speed faster. .
Here I will go into an example of the IOTA consensus algorithm for you to understand better.
Instead of the function of a miner like other consensus algorithms, IOTA has to confirm 2 previous transactions.
Each transaction is represented by a tile on the map, and the arrows represent the accept connections between each transaction. Each subsequent transaction needs to approve the previous two for validation.
For example:
5 approves 2 and 3 and passes direct approval while it also has an indirect approver 1.
Transaction 0 is a primitive transaction and in the case of IOTA it will contain all the IOTA (MIOTA) numbers that will be generated.
Transaction 6 is a top transaction because it is an unaccepted transaction.
Besides, IOTA is designed to connect Internet devices around the world together, so the resource requirements are very low. Unlike typical high-resource projects including both hardware and energy, Bitcoin requires a high configuration of miners and a large amount of power consumption.
IOTA Framework
Besides the Tangle, another important part that needs to be mentioned is the chassis on the top surface of IOTA. This layer makes projects buildable on IOTA, creating an ecosystem. The components of the IOTA Framework include:
Digital Identity: Establish trust and interoperability between organizations, individuals, and devices, and enable the development of identity solutions with open source code.
Tokenized Assets: Enables tokenization of real-world assets.
Stream: An organizational tool for securely structuring and navigating data through Tangle.
Smart Contracts: Smart Contracts will leave proof of activity on the Block, and their automation saves time and money for stakeholders.
Access: Framework is used to build access control system for smart devices. It is designed to work with any IoT resource.
Stronghold: a secure software implementation, whose sole purpose is to protect digital information from exposure to hackers and accidental leaks.
