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Highlights
- Unlike Ethereum or Fantom, IOTA is a distributed ledger with no block creations
- IOTA is said to be a network without any fee for developers, with faster exchange of data
- The IOTA crypto has lost value this year, but if the network finds adoption, IOTA may gain value
Cryptocurrencies and blockchains are usually considered inseparable. Blockchain networks including Ethereum, Fantom and Solana are competing to offer decentralized app services to developers. There is a cryptocurrency that claims to be based on distributed ledger, but not blockchain.
Here, the founders claim that blocks are never created, which means there are no fees or costs involved in the validation of transactions. Let’s know more.
What is the IOTA network?
IOTA has a distributed ledger called Tangle, which it claims is both open and scalable. The biggest unique selling proposition (USP) of the IOTA crypto project is validation without any fee. The network steers clear of blockchain, and there is said to be no miners. A user who sends a transaction to the network does it without any costs, and in turn, validates a couple of other transactions.
Though IOTA has no block creations, it claims that the data and records are immutable. The network uses lesser energy, and transactions are processed faster. That said, it claims to have a “globally distributed network” at the heart of all data exchange.
Also read: 5 key crypto predictions for February 2022
What is the IOTA (MIOTA) crypto?
The MIOTA token is the cryptocurrency linked to IOTA’s distributed ledger project. MIOTA can be traded on exchanges like Binance and Bitfinex.
Is the IOTA cryptocurrency a good investment?
The IOTA crypto is linked to a project that claims to use a distributed ledger without creating any blocks. This is in stark contrast to the blockchain networks of Ethereum, Solana and such other popular cryptos. The IOTA network projects itself as an enabler for the Internet of Things (IoT) ecosystem.
Blockchain networks have their sets of drawbacks like high gas fees and energy use. If any network like IOTA can genuinely overcome these weaknesses, while simultaneously providing a secure and globally distributed network, the linked token may surge in value.
Also read: 5 NFT cryptos to watch in February 2022
IOTA crypto price prediction
IOTA ranks among the top 50 crypto assets in terms of market cap on CoinMarketCap. The IOTA crypto has a market cap of nearly US$2.3 billion as of now, and it is trading at nearly US$0.84 apiece.
IOTA peaked to nearly US$5 in December 2017. This was followed by a downward trend in price, and for much of 2019 and 2020, the IOTA crypto remained under US$0.5. A surge was noticed in February last year, but in 2022 so far, the price has dropped.
Over the past 24 hours, IOTA crypto trading volume has soared by almost 50 per cent. If the IOTA network can find takers for its “blockchainless” distributed ledger, the IOTA crypto may touch US$2 by the end of the first quarter.
Data provided by CoinMarketCap.com
Bottom line
IOTA is a distinct cryptocurrency project that claims to work without blocks. The technology has yet to prove its utility, which is why the IOTA crypto hasn’t had a sustainable rally. If the tech is favored by developers, the price may surge in the medium term.
