What’s IOTA and Tangle? We explain the cryptocurrency

What’s IOTA? Who is currently a little in the scene umhort the on the block chain technology based and financial transactions without centralized men such as banks or financial institutions make possible.

You can also drove this idea but: What would if you have a safeguard pay with the non-humans but machines? So devices that are networked with each other on the Internet of Things (IoT).

And that brings us to the subject of IOTA.

IOTA is a cryptocurrency should allow it autonomous machines to pay each other.

Sounds still pretty crazy, or even scary at the moment.

but in the future it could well become a reality – the first steps are zuruckgelegt definitely.

About the so-called Internet of Things equipment household appliances and other Endgerate be interconnected today.

Maintaining IOTA is to make possible continue to be, financial transactions between the individual Advised.

A possible example: The refrigerator notices when a product is empty ordered fully automatic and paid for without the involvement of the owner the goods.

Possibly the delivery is a drone executed which was also commissioned automated.

In order for all this to work without middle men needed to a standard with the machine a variety of transactions quickly and can exports favorable.

Exactly IOTA should provide.

The cryptocurrency for machines not based as opposed to Bitcoin on the block chain and is therefore scalable.

? This is called in German: The number of participants and the size e of the system do not matter – ideal so if you liked that as many machines as possible can communicate with each other?.

based on the block chain crypto currencies like Bitcoin suitable only bad for the above requirements.

Main drawback: the block chain grows and grows the more transactions are conducted.

In principle, it is in the block chain yes to a large e database to which all can access similar to an Excel file when you only new entries but add no can delete old ones.

For payments at a grand scale is a disadvantage because the transactions are getting slower and more expensive the more people participate.

Paradoxically, exactly what happens in Bitcoin.

A transaction with the cryptocurrency is simply too expensive.

In addition the Verschlusselung the block chain more and more energy resources claimed the more transactions are executed.

For these reasons, the block chain is even bad for a system in which potentially millions of devices communicate with each other.

IOTA is not set to block the chain so it is also called “cryptocurrency without block Chain”.

Instead sets IOTA to a further development of the block chain structure called “Tangle” (English: maze).

This architecture is also called a directed acyclic graph.

In simple terms, the system is based not more on a network of individual Block which are arranged one behind the other but on transactions.

If a user wants to lead a transaction he must authenticate before at least two other transactions.

The object of the block chain is thus taken over here by a network of mutual transaction authentications.

In practice, this method has several advantages: The Tangle is about scalable and may be for systems with any number of transactions are used.

In theory, the system is even faster and faster the more users are exports transactions in the Tangle.

This is especially interesting for the targeted application on the Internet of things.

noticeable, it was able to low latency in the communication of Endgeraten.

Currently, many people broke into the medullary crypto currencies as a pure investment property View.

That said, it’s not about understanding the underlying technology or use it to speculate as the protection and mogli waxed to draw much profit from it.

Therefore, the developer of IOTA be currently very reticent when it comes to investing in IOTA.

First and foremost, it’s really about them apparently about an industry standard to do with the devices on the Internet of Things can communicate.

If you are playing with the idea to buy IOTA you should in any case consider that the market extremely unstable even in this cryptocurrency is.

Seriose predictions about the future prospects of IOTA are therefore hardly possible.

So you should also think twice superior to for what you actually spends his money and whether it really supports the technology behind.

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