IOTA grew to fame as a cryptotoken based on the Internet of things. In addition to garnering an almost instant fanbase, IOTA claims that it provides instant transactions with zero fees. Since many blockchains have quickly risen in fees, IOTA’s developers have launched from a very new beginning, developing a new blockchain that aims to solve the issues with other crypto codebase. The team behind this new project have devised this distribution ledger to support a new industrial revolution and machine-only economy, where machines are able to trade with one another without a third party.
Using an Exchange to Buy IOTA
You will need to use an bitcoin exchange that supports multiple cryptocurrencies in order to get IOTA. The first step to purchase this digital currency is to purchase a quantity of cryptocurrency and then exchange into one of the other currencies that currently trades with IOTA. There are only a few them, including Bitcoin, Litecoin, and Ethereum. However, you can use any type of bitcoin to purchase these Bitcoins and then buy into IOTA just as you would any other currency. You can store IOTA in your wallet and start using for other trades as well.
How to Buy IOTA
Since IOTA is not like any of the other cryptocurrencies, it has to be purchased a little differently than other digital currencies like Bitcoin. You can’t currently purchase IOTA using fiat currencies such as the British-pound or US dollar. Instead, you’ll have to use Ehtereum, Litecoin, or Bitcoin to make it happen. Here is a good method to getting IOTA and investing in this new currency.
1. Sign Up for Coinbase
You can register a Coinbase account online at Coinbase.com. Coinbase is a reputable exchange with most of the cryptocurrencies available for purchasing.
2. Set Up Your Wallet and ID
You will need to make sure that your account is verified before you can start purchasing IOTA. You can do this by completing registration and verifying your email, as well as providing identification.
3. Purchase Bitcoins or Ethereum to Get Started
You’ll need to purchase Bitcoins or another type of cryptocurrency in order to buy IOTA. You can only buy IOTA using these forms of cryptocurrencies. Coinbase will prompt you to input a payment method. You can use your credit card or bank account.
If Coinbase is not for you, you can also purchase at Changelly. This is another exchange that provides secure transactions and makes it easy to purchase all types of cryptocurrencies.
4. Send Coins to Binance
After purchasing Ethereum or Bitcoin on Coinbase, you can send your coins to Binance in order to buy IOTA on the exchange. Select “Accounts” at the top of the screen then choose Bitcoin or Ethereum to transfer to Binance. Click “Send.” You will need to enter the address of your Binance account in order to complete the transaction.
5. Exchange into IOTA on Binance
Now you can go to Binance to purchase IOTA. This site allows you to exchange all types of cryptocurrencies. It takes seconds to sign up for Binance. Once you’ve signed up and verified your account, you can exchange the new Bitcoins or Ethereum in your wallet for IOTA.
Once your Ethereum or Bitcoin has landed in your Binance account, you click on the exchanges link in the top left of the screen and select “basic” from the drop down option. This will take you into the main exchange page.
Once you’re in the main exchange page on Binance, go over to the search box on the top right of the page, and type into the search box “iota”. You should then see the different IOTA markets for BTC / ETH / BNB / USDT.
In this example, I have BTC ( Bitcoin ) to buy IOTA with. So I selected BTC and up comes the price for IOTA/BTC market. Click on this trading pair and the buy sell box will appear down the page.
In the buy column, select the amount of IOTA you want to buy with your BTC. Binance has preset percentage buttons that you can use to quickly make a trade. Click on 50% to trade 50% of your BTC balance. Once you’ve decided how much to trade, click on the Buy IOTA button and the trade is made. You should see your IOTA balance appear in your account in a few minutes.
History of IOTA
IOTA believes that in the future, there will be even more devices, appliances, and other machines connected to the Internet. This is called the Internet of Things or IoT. This market is projected to be grow in worth, scaling up to $267 billion with over 30 million devices connected by 2020.
While there are some challenges facing crypto at the moment, the new IoT also faces a lot of challenges with scalability and security. IOTA is meant to solve some of these issues by leveraging acylic graph (DAG) technology. This is meant to help provide a new alternative to the current blockchain technology out there.
Why Remove Blockchains from Cryptocurrencies?
While Bitcoin has made blockchain technology incredibly popular and proven that they can be valuable, this viewpoint has issues with scalability in the long-term both from a financial and technological standpoint. The fees that are now being assessed by miners have a new incentive to keep the network going. However, it is not able to scale as efficiently as a method with no blockchain. There can only be so many payments processed per second either, which has caused other issues for miners.This means there is a new need for micro and nano payments that will grow as businesses and industries start to adopt the Internet of Things on a larger scale, leading to the Economy of Things. This era can occur when all physical assets become digitized in some way and placed into one centralized global marketplace.
How Does IOTA Work?
The main innovation behind IOTA is a new direction from DAG called tangle. In this new cryptocurrency, there are no blocks. Instead, transactions form by tangles, where require two parent transacations. As a result, the new network structure and nodes represent a graphic that has no crcles and makes for a lighter structure than the blockchain. IT basically looks like a neverending patchwork, much like the branches of a tree.
You may be thinking if there are no blocks, then how are transactions approved? In this case, it all comes down to a portion the network responsible for the general thinking when it comes to proof-of-work or proof-of-stake, validation of the blockchain is decided upon by the whole network of active participants. This means that everyone has a say in how the network regards transactions making process.
There are three stages to transactions making process. This includes signing the transactions with a private key, then using Markov chain Monte Carlo algorithm to pick out two unconfirmed transactions and see if they are not conflicting. Finally, for the sake of the transaction being validated, the node must also have to complete a cryptography puzzle. Proof-of-work is required in this case due to the puzzle.
Once any of these steps have been completed, the transaction is able to join the network. If you carry out the MCMC algorithm, supplying information about the transaction, then you have a higher chance of the transaction being accepted by the network. IOTA members also have the choice to determine which probability was best when a merchant requests a payout.
Advantages of IOTA
While some features are kept from the blockchain, there is also a P2P or peer-to-peer network that requires the validation mechanism from the network, which improves upon the original DAG technology. Tangle is able to handle this a bit more efficiently than the blockchain in other cryptocurrencies. Transactions are now faster and also more reliable. With multiple confirmations of transactions, there are quicker payouts, which makes it possible to trade more with the currency.
With infinite data growth and scalability, the network can become more secure as more transactions occur, and there are no blocks, so you don’t have to mine either. This provides a few more benefits, including no transaction fees and no centralization of power over the cryptocurrency. This also means that there are no needs for high resources or hardware to be used.
Most mining is actually done in China through coal mining. Saving resources also helps the environment and planet over all. Tangle and DAG networks are also not consumed by threats to computers. They are still safe but also fear into the future, the large-scale calculating capabilities for these computers also shows that there is a threat to the blockchain type of digital currency. Instead, you can use encryption protocols being solved or broken in order to win a reward.
With the initial coin offering or ICO for IOTA crypto token dating back to 2015. The token has now been traded into Bitfinex. This exchange revealed that it tracked the development of IOTA through last year and has supported the project completely. after trading finally allowed for IOTA to debut, the first two hours saw big gains in USD volume. IOTA also soared in BTC volume over the full trading day. By the end of the first day, it hit $1.5 billion, which was the market cap. It currently sits among the highest cryptocurrencies.
The team behind IOTA has been working in Bitcoin blockchains since 2010. Some of the team has actually worked with other cryptocurrencies like NxT, which was the first proof-of-state blockchain to come out. The main team has been working over the past two years, building the cryptocurrency from scratch. The headquarters for the cryptocurrency are in Berlin. It is essential for the team to be located in this area.
If you haven’t seen IOTA before, it’s probably just because it’s new and many people have not been able to purchase it using the regular fiat currency. Instead, buying IOTA requires that you be a bit familiar with different exchanges and understand some of the technical pieces of the process before you go on an exchange.
Since this cryptocurrency just launched, it will be interesting to see how it performs alongside the blockchain cryptocurrencies that have recently been introduced to the market. With the new tangle concept, it’s likely that a lot of cryptocurrency traders will purchase just to get into something that isn’t expected to slowdown in only a few short years due to the vulnerability of blockchain.
The IOTA team has also been growing in recent months with new individuals who are helping to make the cryptocurrency more secure and available to different currencies. It will take awhile before it can be traded in fiat currencies. However, the sky is the limit for this cryptocurrency that continues to trade at a very high volume every day.