As the cryptocurrency sphere becomes more popular, other crypto projects apart from Bitcoin have received an increased attention. Today, tokens vary from platform to money oriented altcoins and are all finding a niche within the Fin Tech ecosystem. The IOTA project is among those hot fundamental valued crypto ideas as it stands.
The IOTA project whose design is inspired by the Internet of Things was developed by Sergey Ivancheglo, Serguei Popov, Dominik Scheiner & David Sønstebø. Its efficiency in machine-to-machine communication has further increased the platform’s competitive advantage.
IOTA In Brief
The initials of this blockchain project stand for Internet of Things while its token ‘MIOTA’ has an M to show the coin’s class as per the SI unit. The letter ‘A’ meaning has been a topic of debate for a while now.
IOTA network has attracted a good number of users within various industries. Most notably is the platform’s compatibility with the smart power grids systems. IOTA network ensures that records of watts & commands are done properly. Solar panel owners could therefore tokenize the extra production units & leverage IOTA to get payments for these. In addition, IOTA facilitates data collection & enables analysis of the same for monetizing purposes.
The IOTA & IoT Compatibility
IOTA ecosystem is a good suitor for the M2M communications & IoT integration because of a few enhanced features within its network. The IOTA platform is highly scalable & charges nothing for operating within its network hence its suitability. Furthermore, the network design uses a protocol that is quantum-resistant preventing its users from such attacks.
Unlike most crypto projects, IOTA’s network is based on ‘Tangle’ as opposed to the popular blockchain network. This Distributed Ledger (DLT) facilitates the scalability aspect of the IOTA network making it an attractive integration candidate for industries.
Tangle uses a unique transaction verification approach. The network does not have a 3rd party or miners for validation purposes but instead transactions are used to verify themselves. Basically, every two transactions will be validated by the 3rd transaction; this is what makes the IOTA network highly scalable. As long as transactions happen, the network will be in a position to accommodate even more.
However, IOTA is still facing some challenges. A couple of players within the crypto community have said that this network is mostly centralized; a report from MIT scientists released back in 2017 highlighted some of the software’s shortcomings in detail.
IOTA Foundation & Strategic Partnerships
Crypto projects view partnerships from within & out of the industry as a big milestone. IOTA is among the Fin Tech digital assets that have been quite successful on this front. This Non-profit organization has in the years of its existence lured a good number of partners to progress its aim of connecting the world with its advanced protocols.
Its most recent significant partner is the United Nations Office for Project Services (UNOPS); IOTA is set to be integrated to make this organization’s system more efficient. According to the Blockchain Tech Special Advisor in UNOPS, Yoshiyuki Yamamoto,
“we share a vision where machines, devices, sensors and people connect and communicate to each other – it’s the world of ‘Industry 4.0.’”
In addition, IOTA foundation built a market where over 15 firms could interact with data that may be of help to them. Microsoft & Fujitsu are among the popular participants in this initiative. Another working relationship established by IOTA is with the ITIC (International Transport Innovation Center) where the two develop vehicle testbeds that are autonomous.
The MIOTA token was recently listed the popular UK-based asset trading platform, eToro. Users can now trade their altcoins via this network and access other financial products like Forex as well. This will enable UK investors to include MIOTA in their crypto portfolio if interested in the project. When the altcoin was listed on eToro back in August, its price rose from $0.50 to almost $0.8 for a short period but later reversed this trend to settle at around $0.57.
IOTA’s Fundamental & Price Overview
MIOTA token price is highly influenced by the reaction of the wider speculative crypto market. This is because despite its good prospects, the altcoin remains under a class of asset that is highly volatile. It is also yet to get a good adoption figure to confirm its fundamental value leaving much of its price action to investor speculation.
The IOTA token price is highly correlated to crypto market movements. This simply means that IOTA will probably be bullish when other altcoins like BTC, ETH & LTC are on an uptrend. It therefore goes that a downtrend in the market would mean a bearish MIOTA altcoin.