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IOTA - The Backbone of IoT

Anyone with a bank account is familiar with the concept of a ledger, containing records of their debits and credits. Collectively, we have all entrusted financial institutions for generations to safeguard these highly sensitive records and their accuracy. With no ability to verify the data that we receive on the Internet today, and with cyber crime on the rise, this delegated and unverifiable trust has become a major obstacle for an inclusive and permission less economy.

With the advent of distributed ledger technologies, we are now able to distribute and synchronize ledgers of data and money in secure, distributed, decentralized and permission less environments. By removing the need for trusted third-parties as the gatekeepers and arbiters of truth, enormous efficiency gains, innovation opportunities and new value propositions emerge.

Block chain technology promised a compelling vision: decentralized networks allowing open innovation and peer-to-peer transactions without intermediaries or fees. Ultimately, they were never built to execute it in full, due to inherent technical flaws in their design. As block chain adoption has increased over the last decade, early adopters have been hit with sluggish transaction times and skyrocketing fees. As financial rewards for validating block chain transactions became increasingly competitive, their networks have also become increasingly centralized around a few powerful actors. But the need for decentralized and permission less systems remains, and has only increased in recent years.

The IOTA token (symbol MIOTA) is the currency used to transact on IOTA’s distributed ledger. Before you buy IOTA, you should know that IOTA is a revolutionary new transaction settlement and data transfer layer for the Internet of Things (IoT). It is based on a new distributed ledger technology, the Tangle, which overcomes the inefficiencies of current Block chain designs and introduces a new way of reaching consensus in a decentralized peer-to-peer system. Using IOTA, for the first time ever, people and machines can transfer money and/or data without any transaction fees in a trust less, permission-less, and decentralized environment. This means that even nano-payments are possible without the need for a trusted intermediary of any kind.

The IOTA token was created to service the ‘Internet of things’ (IoT): the billions of small computing devices that are increasingly being embedded into everyday objects, enabling them to send and receive data. IOTA transforms these connected machines into autonomous economic agents, enabling an entirely new ‘economy of things’.

The token was launched in June 2017 with its total supply of approximately 2.78 quadrillion IOTA (2.78 PetaIOTA) made available from the beginning. No additional IOTA will ever be created. Until IOTA adoption becomes more widespread, 1 MegaIOTA (MIOTA) is the currently accepted base unit.