The worlds largest investment network – eToro – is now offering the IOTA cryptocurrency for trading.
IOTA is a platform designed for enabling fast communication and transactions for IoT platforms. As more household items, cars and other products become connected devices, the need for a reliant protocol to mediate between them is on the rise.
For example, in the near future, a smart fridge could “sense” that you are running low on orange juice and autonomously order more from your grocery store.
This scenario requires a platform that could both relay the messages between the machines and take care of the financial aspect of the transaction.
And that is what IOTA is trying to do. Its Tangle technology enables multiple devices to communicate on a vast network that actually becomes stronger as it grows.
Unlike traditional blockchain platforms, IOTA does not have miners, or specific nodes that verify transactions, but rather, each device that processes a new transaction is first required to verify a previous one and register it in a public ledger.
The network’s overall processing power actually grows as more devices join it, while in most other blockchains, more network members could lead to latency and growing transaction processing times.
The creators of IOTA set out to make a network that has no transaction fees and is extremely scalable. Its unique architecture is designed to do just that, using the process described above.
Moreover, since to buy a single IOTA token would cost fractions of a cent, it is quite easy to process even the smallest of payments (microtransactions) – another important feature for an IoT platform.