With “blockchain technology” grabbing most of the headlines when it comes to crypto-innovation, IOTA is offering users with an all-new digital framework that promises to introduce a similar level of innovation but within a much larger, industrial scale.
IOTA’s key market driver is its native technological offering called Tangle, which unlike a blockchain, maps transactions onto an entire network as opposed to a single data-chain.
This helps diversify the implementation capabilities as well as the scope of application for IOTA, especially for customers looking to incorporate a decentralized ledger technology within an industrial setup.
What are the core advantages of IOTA over Blockchain?
One of the biggest issues with the blockchain, as originally developed for Bitcoin, is its slow transaction times.
As things currently stand, transfer rates for the blockchain currently lay in the low double-digit range, which to be honest, are quite low for many modern applications.
IOTA employs a system wherein the transaction rates increase dramatically as more customers begin to use its native platform. Not only that, through the use of an innovative consensus protocol, IOTA is able to provide its customers with shorter confirmation times.
When using regular blockchain based payment portals, the transaction fees are usually set by the sender/initiator of the transaction. As a result of this, it becomes increasingly unfeasible to process smaller payments amounts.
One of the biggest advantages of IOTA is its ability to facilitate small payments with the incurrence of little to no transaction fees.
From a purely technical standpoint, we find that IOTA uses a processing module that becomes faster as its number of subscribers and transactions increase.
It is also worth mentioning that when using IOTA, the time between placing a transaction and its validation starts to become zero as soon as a certain data-size is achieved.
4. Future Ready
One of the central issues for customers using the blockchain is that the technology is expensive in terms of its computational requirements and security assurance.
For example, to implement Bitcoin mining processes, more and more computing power is needed as time goes on.
However, IOTA reduces such heavy cost requirements by eliminating key areas of the conventional mining process.
When using the Blockchain, its owner, in theory, has the power to manipulate the system with new data, thereby modifying it for their personal gains. As a result of this, there exists a tangible dilemma for organizations looking to integrate the blockchain with externally auditable applications wherein the immutability of data needs to be maintained at all times.
What makes IOTA so appealing for industrial use cases?
In addition to the aforementioned advantages, IOTAs use can also go beyond its deployment as a simple payment protocol.
For example, large business operations can choose to adopt IOTAs Tangle technology to support their IoT use cases.
Similarly, through the use of Masked Authenticated Messaging (MAM), IOTA is able to streamline encrypted data transfers while maintaining a high level of integrity, data protection, and data access management.
With the crypto revolution now in full swing, more and more users are looking for real-world technological options that can make alt-asset driven micropayments a reality.
IOTA not only provides a platform that has the potential to facilitate digital payments for everyday transactions and trade but also delivers a technology which makes IoT communication a reality.
Cover Photo by Daniele Levis Pelusi on Unsplash