IOTA is an open-source distributed ledger that can make secure and valid transactions without using a traditional blockchain network. The ticker symbol of its native token is MIOTA.
IOTA network decided on a different architecture for their project after recognizing the shortcomings of blockchain and its inability to scale to the enterprise level. It follows a directed acyclic graph (DAG) structure called the Tangle. Unlike traditional blockchain architecture, Tangle is a parallel blockchain system that processes transactions.
With Tangle, the IOTA protocol does not require miners or validators to confirm transactions in advance. As a result, the IOTA network is faster, simpler, energy efficient and scalable.
The IOTA network has a unique system for transactions with a reputation system called MANA. This helps in distinguishing transactions that are not in the Tangle. You can also rent out your MANA for liquidity if you are a token holder. You will get paid some portion of the network resources for enabling transactions.
The revenue model for holders is similar to staking in Proof of Stake (PoS), but with IOTA, the returns are not nullified by network inflation. It is also important to note that MANA has no fee. Instead, it is an allocation mechanism that helps holders access network resources.
IOTA and its foundation create scalable solutions in the IoT ecosystem that are not limited to any industry. IOTA's fast network helps support complex architectures and can have many use cases, such as building smart cities or providing digital identities.
IOTA price and tokenomics
MIOTA has a maximum supply of 2.8 billion dollars. These tokens are in circulation, thus making MIOTA a non-inflationary cryptocurrency. One MIOTA is equivalent to one million iotas, like how satoshis are to BTC.
MIOTA charts show decent growth over the last couple of years. However, if the company implements more complex use cases, MIOTA's price will have a more significant impact.
About the founders
Founded in 2015, IOTA was created by David Sonstebo, Dominik Schiener, Dr. Serguei Popov, and Serge Ivancheglo. Scheiner and Sonstebo share the co-chairmen seat on the board of directors, while Popov leads the foundation's research department.
Due to internal conflicts, co-founders David Sonstebo and Sergey Ivancheglo resigned from the board of directors in 2019. The director of research, Serguei Popov, later became the board's co-founder and member.
Earlybird Venture Capital, Outlier Ventures, and Robert Bosch Venture were the first institutional backers of the IOTA initiative. IOTA has also secured partnerships with reputed brands like Dell and Jaguar. Additionally, it is backed by many financial partners such as OKX, Bitfinex, and Huobi global.
