Iota Blockchain Review (8.43/10⭐)

This open-source distributed ledger was very promising since its launch in 2015, with its token which held the number 4 spot based on market cap. Read on to find out when and who developed the network, its utility, transactions costs, scalability, reputation, advantages and disadvantages.

Briefly about Iota Blockchain

This ledger-based blockchain got its name from the Greek’s ninth and smallest alphabet. It was developed in 2015 by David Sonstebo, Sergey Ivancheglo, Serguei Popov and Dominik Schiener. The ICO was conducted by an online public crowdsale, whereby, those taking part were allowed to fund this project by buying the IOTA token with different cryptocurrencies like Bitcoin. The investors were later allocated the token supply proportionately. In 2016, their network went live.

IOTA's Tangle is a open, feeless and scalable distributed ledger, designed to support fricionless data and value transfer.CryptoLists.com

This blockchain rules out use of transaction blocks and instead uses DAG and Tangle to ensure unanimity of transactions. Mining is not on this blockchain’s features because it uses nodes for transaction validations. These nodes have to verify the two preceding transactions for new transaction issuing. IOTA blockchain has an upperhand with more experience than other blockchains. Its Initial Coin Offering raised was 1337 BTC, equivalent to $500,000 back in 2015.

Utility of Iota Blockchain?

Taipei, the capital city to Taiwan, signed a contract that would allow IOTA blockchain to test its technology and change the city's outlook to a smart city. To achieve this, this blockchain has been making digital cards that run based on its Tangle technology. Since the energy divisions are moving the IOT way, which incorporates decentralised electricity grids, IOTA comes in to provide feeless and fast transactions. In the health sector, this blockchain provides credible and up-to-date data as it improves digital health services. For manufacture and supply, IOTA blockchain provides detailed information regarding each stage, which validates the products to ensure their quality and genuineness.

Advantages at Iota Blockchain

Disadvantages

Costs

With IOTA blockchain network, you can complete transactions at no extra costs. This is because it does not incorporate mining for its coin. Each transaction confirms the two previous unverified ones to be completed instead of relying on mining which includes expensive hardware.

Reputation and Buzz

This blockchain is praised for its zero transaction costs and scalability. People, however, criticize it for being a centralized system with the coordinator node in use instead of a standard algorithm. Since this network was launched in 2015, it faced a hack in 2019 which saw an estimated loss of $2 million. Another downside is that people are bothered about the inavailability of smart contracts.

FAQ

Who is behind the creation of IOTA blockchain?

A team of four; Sergey Ivancheglo, Serguey Popov, David Sontesbo and Dominik Schiener.

When was IOTA started?

It was first launched at the end of 2015.

Is the platform’s future secure?

Yes, because it can be used in many real-life applications. The users increase each day since it shows its potential to become dominant. With the zero fees nature, users are likely to increase thereby securing the network’s future.

When was the Initial Coin Offering and how much was raised?

Since the time of its inception, ICOs were not common. Therefore, an online crowdsale was conducted in 2015 and 1337 BTC were raised. At that time, these bitcoins were worth $500,000.

What blockchain is IOTA under?

This network does not have any blocks or chains. Instead of a blockchain technology, it uses Directed Acyclic Graph(DAG), which makes IOTA scalable.

Screenshots from Iota Blockchain