What is IOTA?
IOTA is an alternative cryptocurrency that was founded back in 2015, in a collaboration between Sergey Ivancheglo, David Sønstebø, Serguei Popov and Dominik Schiener. The idea was to create an open source cryptocurrency which could be used as a safe method for machines to communicate as well as to enable companies to explore new business-to-business models.
This would allow companies to trade services on an open platform in real-time without having to pay any fees for it. Unlike most other cryptocurrencies, IOTA does not use a blockchain for their transactions, but rather they use their own “Tangler” ledge, which is able to settle transactions instantaneously, on demand as well as store data and such in a safe and secure matter.
In order for a user to make a transaction with IOTA, the user will first have to validate two independent transactions and make sure the transaction has been confirmed by the other parties. The system currently uses a system known as “Coordinator” for its transactions, to ensure the safety of the transactions, the system will be removed when the transaction system itself is big enough to handle everything securely.
The first trades between users of the coin began in 2016, while the coin was still in beta testing. The trades were a success and it quickly gained traction in the cryptocurrency community. IOTA also started a collaboration with industry leading companies Fujitsu, Microsoft and Deutsche Telecom, while also providing a platform for REFUNITE, the world’s biggest database for missing people, who could use the IOTA technology to help families find their family.
In 2017 the first major investment in IOTA came from Outlier Ventures, who invested a seven-digit figure in the technology. The goal is to spread the technology across the globe and provide a platform for small and major companies to exchange services and accept payments.
IOTA is not a cryptocurrency which can be mined, instead it had an Initial Coin Offering (ICO) where companies and private persons were able to purchase the coins. Outlier Ventures bought a massive amount of the coins in circulation, while the rest are spread across the community and other companies.
A total of 2.779.530.283 IOTA coins are currently in circulation, which is also the maximum amount that will be created. IOTA currently have a value of around $2 per coin, which provides a market cap of around $5.000.000.000 at the time of this article (March 2018). IOTA was almost worth $5 per coin at its highest, but has taken a dip in its value just like any other cryptocurrency out there.
What Can I Use It For?
As mentioned above, IOTA is not a cryptocurrency that is designed for every day usage for “ordinary” people, meaning that it is not a payment method accepted widely in the cryptocurrency world. That doesn’t mean that it is useless however, far from it.
The technology behind IOTA has been created to establish an open market platform for companies to trade services and make payments for those services. This could be where you provide a company with valuable data that they can use in targeting users and that company can pay you with IOTA, free and almost instantly.
In order for the company to send you the funds through the IOTA Tangle ledger, they will have to confirm two other transactions in the blockchain-like ledger and once done, the money will be received on your end. This could cut out middlemen such as banks, eliminate fees and create a safe environment for companies to transfer services and goods between each other.
IOTA only became available to users who either purchased coins in the initial coin offering, meaning that users could not mine any coins and gain them that way through. That meant that as soon as the value began rising on IOTA, the trading industry reacted quickly and enabled for the coin to be a part of their trading offerings.
Just like any other cryptocurrency out there, the IOTA is quite popular to trade and the value has also gone up significantly in comparison to its initial value at the time of the initial coin offering. But with most coins being held by Outlier Ventures, the amount of coins in circulation for trading is not the highest, making it more difficult to trade than some other coins.
If you are looking to get your hands on some IOTA, either to use for its original purpose or as a long-term investment in value, you will need to go somewhere safe and secure to do so. While it is nowhere near as popular as other cryptocurrencies and it doesn’t have the highest value per coin either, it can still be traded on many of the more popular trading sites.
You can currently trade IOTA on Binance.com, which is one of the world’s leading online trading platforms for cryptocurrencies. Here you can trade it against other cryptocurrency pairs and bet on if the value will go up or down in comparison to those, for example BTC/IOTA or LTC/IOTA. You can read more about Binance here.
Playing with IOTA
While it is very popular to gamble with cryptocurrencies these days, it is not something that has caught up to IOTA yet. There might be some sites out there that offers IOTA gambling, but it is not sites that we can support and recommend at this time unfortunately.