The crypto currency IOTA

IOTA Foundation and Crypto Currency

The project around IOTA itself was started in 2015 and the IOTA Foundation itself was established in November 2017. It is an organization that has set itself the goal of revolutionizing the Internet of Things (IoT). Internet of Things refers to all things of daily life that have access to the Internet. These can be refrigerators, coffee machines or even washing machines. All these devices have processors inside and can access the Internet. IOTA can be seen as a network that tries to connect all these things. For example, you could use it to rent a car and pay directly with your smartphone. The car itself could also be used to pay things like tolls or parking fees. So you wouldn't buy a car anymore, you would just rent one when you need it. Of course, you would only pay for what you need and not for what you own. This all sounds like dreams of the future, but that is the long-term vision of IOTA. Whether this vision will ever become reality and people will accept it is of course another question, but IOTA is trying to create the technological basis for it. In any case, life would change fundamentally if IOTA's vision becomes reality.

IOTA has also built in its own crypto currency. This is used to pay for things on the network. To stay with the example above, you could pay for the use of your car or parking directly in IOTA. Transfers at IOTA are free of charge and are done very fast. In any case, IOTA does not focus on the currency, but on the technology behind it. The IOTA Foundation is already working with companies such as Siemens to create a "data market". On the data market, IOTA should make it possible to buy different data quickly and easily. For example you could install a sensor on your roof that measures the temperature. If someone is interested, he could buy this data directly with IOTA and the owner of the sensor could earn money. According to IOTA, over 99% of such data is lost and this is where IOTA wants to start with the data market and allow people to make money from it.

However, it is questionable whether anyone needs and would buy this data at all. It would also contribute even more to the existence of a transparent person if companies could sell and buy all data quickly and easily.

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Youtube-Video: IOTA explained in 2 minutes!

No Mining with IOTA

At IOTA there is no mining, the coins were created directly when the currency was created. Basically the smallest unit is an IOTA, but trading is done with MIOTA. A MIOTA consists of one million IOTA. But to be able to trade between devices in the micro range, there is a possibility with IOTA, an IOTA is only worth a fraction of a cent.

There is also no block chain in IOTA, here transactions are confirmed via the so-called tangle. As soon as a user carries out a transaction, he/she must first confirm two transactions. Therefore each user is also a person who confirms transfers. Since the whole thing still works very theoretically, there is still the "coordinator". He monitors and checks everything. That leads however at the same time to the fact that the crypto currency is not decentralized.

As you can see, IOTA is an incredibly ambitious project that tries to change the world as we know it at the moment. In any case, IOTA is highly interesting and everyone who is interested in technology should at least take a short look at IOTA.

Advantages of IOTA:

  • Fast bank transfer
  • Very interesting technology in the background, in which even large companies like Siemens are interested
  • Has the potential to change the world

Criticism of IOTA

Where light falls, there are of course also shadows. There are many people who criticize IOTA. Since IOTA is so ambitious, the first question is of course whether it will ever catch on. Nobody can predict whether people would rather own things themselves than just pay for their use. Another point of criticism is the lack of decentralization. Currently, IOTA uses a so-called coordinator who handles many technical things. In the long run IOTA wants to try to remove this coordinator. But until then there is no decentralization. And this is the main argument for many crypto currencies. It is also disputed so far whether the whole system of IOTA really works in practice as it is claimed. The whole project looks as if it is still in a beta stage. For example, if you do a short research on the internet, you will find many people who claim that their MIOTA has disappeared. Whether this is true and whether it is due to a technical error or human error of the user himself, cannot be said exactly. But since there are many of these reports, it is quite possible that there are still technical problems. The data market itself is also viewed critically. If it becomes possible to simply buy all data, companies like Facebook and Google will have even more opportunities to expand their monopoly. Many critics find this possibility more frightening than positive and have a very negative attitude towards the data market.

Services where you can earn IOTA for free:

Rating Name Country Earnings Currencies Type
of Service
Autofaucet Dutchycorp France Good Bitcoin Bitcoin Cash Cardano Dash Doge EOS Ethereum IOTA Litecoin Monero Ripple Stellar Tether Tron Zcash Bitcoin Faucets, Paid Clicks, Paid Surfing 2018
Crypto Junkie USA Middle Bitcoin Bitcoin Cash Cardano Dash Doge Ethereum IOTA Litecoin Ripple Tether Tron Bitcoin Faucets, Paid Clicks 2020
Yannik Germany Good Bitcoin IOTA Bitcoin Faucets, Paid Clicks 2015

Disadvantages of IOTA:

  • Due to the data market man becomes even more transparent
  • Currently no decentralization
  • The whole system is still rather theoretical and whether it works in practice remains to be seen

How can I buy IOTA?

Buying IOTA is only slightly different from other crypto currencies. You need a wallet for IOTA (here you can find different wallets) and then you can buy MIOTA. But you have to buy a wallet for another crypto currency like Bitcoin or Ethereum and buy this currency around your EURO. Afterwards you can exchange the bought crypto currency into MIOTA.

Alternatively, you can also get free crypto currencies from Faucets and exchange them into MIOTA. This way you don't need to invest money and still get different crypto currencies. Of course, you won't make any fortune here, but Faucets are perfect for getting a taste of the world of crypto currencies.

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Should I invest in IOTA?

An investment is, as with all crypto currencies, very risky and should only be made if you have dealt intensively with crypto currencies. Of course it could be that you get rich, but you might as well lose the whole investment. The market is very volatile, so one should be careful before investing money. Price fluctuations of 10% overnight should not worry you here. So if you are a nervous investor, you should keep your hands off IOTA and other digital currencies. In principle IOTA has what it takes to change the world, but it takes time, so when you plan an investment, don't think in days, weeks or months, think in years or even decades.

Our conclusion about IOTA

IOTA wants to revolutionize the world and promises us a lot. How much of it will be realized in the end and accepted by the population, remains to be seen. It is technically very interesting and has the potential to change the world. In any case you should keep an eye on IOTA, even if only parts of the technology are used somehow, a lot could change for the people. For example, car sharing is becoming more and more popular in cities and this is where IOTA would definitely find an area of application. Whether IOTA's vision of the Internet of Things really comes true remains to be seen. Many critics are very sceptical about this. The data market itself also promises to be a huge technological innovation. But again, it is questionable whether this can ever be realized. Many large companies such as Siemens or Bosch believe in the success of the data market and are very interested in the technology and work together with IOTA in this area. But especially in times when personal data is increasingly protected and people are more and more interested in protecting their own data, it is questionable whether something like a large data market can prevail.

In any case, IOTA's vision is interesting and we can look forward to seeing how the project will develop in the coming years.

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