What is IOTA All About? 

Technology makes our lives easier. And as it is now, we might be at the cusp of a new age as far as technological advancements are concerned. In the very near future, it’s highly probable that the mundane devices around us will be interconnected with each other and to the internet. Think of your fridge, car, oven, car, shower, coffee maker, etc.

These devices will be able to work without needing human intervention. In other words, we’ll be able to derive more value from the things around us, thanks to them being connected to the internet. This phenomenon is called the Internet of Things (IoT). 

It would be ideal if we could actualize IoT without any of the current impediments that face it – with two of the major ones being security and scalability. There is a valid concern that an IoT network would be a security disaster as far as information security, data privacy, and cyber safety are concerned. 

IOTA is a distributed ledger platform that seeks to address the issue of scalability and security for the Internet of Things. What exactly is IOTA, and what does it offer the IoT economy and the distributed ledger space?

What is IOTA?

IOTA is a cryptocurrency project created and optimized for the Internet-of-Things (IoT). The IOTA team envisioned an IoT – already a bold vision by itself – that is powered, secured, and driven by blockchain. David Sostebo, the co-founder of IOTA, wrote that ” IOTA was initiated with a very clear and focused vision of enabling the paradigm shift of the Internet of Things… through establishing a de facto standardized ‘Ledger of Everything.’ 

IOTA diverts from the traditional blockchain model adopted by the majority of cryptocurrencies. Instead, it uses a dedicated distributed ledger platform called Tangle – itself an implementation of a computer science and mathematical concept known as Directed Acyclic Graphs(DAG). Tangle’s consensus mechanism works this way: for new transactions to be valid and before it’s added on the public ledger, it must be validated by the two lastly entered transactions.

This removes the dependence on miners to validate transactions, thus allowing for more scalable transactions (by reducing network congestion and network delays) as compared with traditional blockchains such as Bitcoin’s and Ethereum’s. 

How Does IOTA Work? 

The idea behind IOTA is to integrate blockchain solutions to the Internet of Things. IoT is not a complicated concept or a fantastical idea belonging to sci-fi movies. As a matter of fact, it’s already part of the world’s economy – think devices that monitor factory conditions, driverless cars, smart homes, smart lighting, smart pet care, etc. Research indicates that in 2017, IoT devices had grown up to 8.4 billion, with an even more aggressive growth projected for the future. 

How IOTA Works | Forex Academy

IOTA’s founders believe that for IoT to realize its highest potential, network devices should share and utilize resources more efficiently. The idea is for devices to acquire more resources, such as internet bandwidth, power, storage – only when they need them, and to sell excess or unwanted power at any given time. 

Even the smallest IoT network’s implications would be tens of transactions every second, as devices relay info between and across each other. Such volumes of transactions are beyond the capability of the current blockchain model. For instance, the Ethereum blockchain can handle 15 transactions per second, while the Bitcoin blockchain can handle 7. This results in high transaction fees for priority transactions, while the rest of the transactions can take hours to be completed. As such, the blockchain, as it is, is simply not scalable enough to support the IoT economy. 

IOTA and Scalability

Upon completion, IOTA anticipates having billions of interconnected nodes on its network. To this end, its processing power is designed to expand as more nodes join the network. Tangle’s consensus mechanism dictates that each transaction is linked to two other transactions – in the end, creating a web of transactions based on a verification history. As time goes on, every transaction becomes linked to the ones that verified it. This simple model removes the need for a blockchain. 

In terms of computing power and securing the network, each time a new device submits a transaction – it contributes to the network in this way. Again, this removes the need for block miners. 

IOTA and Transaction Fees

IOTA is also fee-free. As new devices contribute computing power when they submit transactions, the only cost they expend is the electricity they use to confirm the two previous transactions. This essentially makes IOTA free to use. 

This absence of fees is intentional. The IoT network will comprise devices transacting with each other at fractional costs and a very high frequency. Levying charges on such transactions would render micropayments impractical. To serve as the backbone of the IoT economy, IOTA has to be a free network. 

34% Attacks

As you already know, the blockchain is vulnerable to what is known as “the majority attack.” This describes the event when a party manages to control more than 50% of the network (51% attack). In such an event, the attacker can perform malicious transactions, stop miners, and so on. For its part, Tangle will be vulnerable if an entity were to control 34% (over ⅓) of the network’s computing power. 

The IOTA network would be particularly vulnerable to such an attack when it’s still a small network with fewer nodes (i.e., now). It’s easier for a bad actor to gain control of 34% of the network at this time. To curb such an attack, the network is utilizing a Coordinator that synchronizes data across all nodes – cushioning the network against an attack. 

The coordinator node is necessary to protect the early Tangle, and the network plans to get rid of it when it becomes robust and resilient enough. But that also means that the platform is not exactly decentralized right now.

In May 2019, IOTA announced the plan to kill the coordinator and implement ‘Coordicide’ – a new procedure that would make the network decentralized. The protocol, however, is yet to be implemented. 

Who is behind IOTA? 

The IOTA platform was launched in 2015 by David Sønstebø, Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. Sønstebø and Schiener both serve as co-chairman of the board of directors. Ivancheglo departed from the organization’s foundation in June last year in seemingly amicable terms, but as the IOTA community came to discover, there was a ton of intrigue going on behind the scenes. See the full team here

Concerns About IOTA 

IOTA has faced criticism for its use of several new technologies instead of tested and tried technologies. Technology experts question if IOTA will really work to scale and if it will stand up to attacks even after more nodes join the network. 

Michigan University’s Digital Currency Initiative published a paper outlining serious flaws in Curl, the network’s hashing function. After testing the hash function, they discovered it produced the same output when fed with two different inputs – a situation known as Collision and one that denotes a faulty hash code. The team added that a malicious actor could have manipulated the flaw to bring down Tangle or steal user funds. The IOTA team has since addressed the loophole.

Ethereum’s core developer Nick Johnson published a scathing article in which he delineated why he thought IOTA’s platform lacked “good technical judgment,” disregarded “cryptographic best practices,” is “a bad actor in the open-source community,” and that its integrity guarantees lack rigor.”

Tokenomics of IOTA

As of May 27, 2020, IOTA was trading at $0. 195231, at a market position of #24 and with a market cap of $542, 649, 121. The coin had a 24-hour volume of $14,089, 509. IOTA’s circulating supply is 2, 779, 530, 283, with a total and maximum supply of the same value. The currency’s all-time high was $5.69 (December 19, 2017), while its all-time high was $0.079620 (March 13, 2020). 


The IOTA project takes the progressive idea of IoT and proposes to make it even better with distributed ledger solutions. For now, the project is far from perfect, or even near full-blown implementation. If everything goes as planned, IOTA will be an unstoppable idea, not just in the distributed ledger space, but in the world.

Crypto Daily Topic

Blockchain vs Tangle: All you need to know

The issue of blockchain’s scalability is as old as blockchain itself. If you’re the tiniest bit familiar with the technology, chances are you’re aware of the blockchain’s inability to support millions of transactions at a scale that would enable it to compete with current money transfer systems such as Visa. 

When you wade deeper into the scalability debate, you’ll soon hear such terms as IOTA, Tangle, and directed acyclic graphs (DAG).  What do these terms mean, and is Tangle a threat to blockchain? 

In this piece, we’ll explain what Tangle is, how it stacks up to blockchain, and whether we can see a future where it replaces Bitcoin or becomes its formidable match. We’ll also give our verdict on which technology is currently more superior.

What Is Tangle?

The Tangle is a network that aims to achieve the same purpose as blockchain:  facilitate transactions in a trustless and decentralized environment. Tangle is an implementation of the directed acyclic graph (DAG) – which is also a distributed ledger like the blockchain. Also, much like the blockchain, DAGs do not have intervening authority or entity such as a bank or a government.

 This is where the similarities end. Tangle has special features designed to facilitate the ‘Internet of Things’ (IoT). IoT is a  universe of interrelated devices that can interact with one another through a multitude of little unique identifiers to enable them to execute the functions they were designed for without requiring human or computer intervention.

Unlike how it sounds, the internet of things is not that complicated a concept. Imagine a shower switching itself on 5 minutes before you arrive, or a coffee machine that makes coffee 5 minutes before you wake up, or a washing machine setting itself on – all without any sort of input from you.

If this technology is to work as it’s meant to, there must be an underlying network that can handle a  massive amount of transactions- from facilitating exchanges, to transferring data,  to sending of signals – all in a seamless, secure and fast network. 

Enter Tangle. This technology is based on DAG, which is designed to support a plethora of data interactions but will facilitate the IoT in a way that the blockchain cannot.  These features are like the following: 

No miners: Unlike the blockchain, there are no miners in the Tangle network.  This eliminates the need for fees, or miners being able to block some transactions.

More relaxed data transfer rules: This makes Tangle more agile than the blockchain and thus better for handling a vast amount of transactions.

Scalable data units: This feature facilitates the transfer of training bits of data, enabling Tangle to process micro-transactions.

The pros and cons of Tangle: 


  • Zero fees
  • Faster transaction times
  • Scalable


  • The technology is not yet tested and proven
  • Does not support decentralized applications
  • Arguably less secure
  • Centralized – Tangle relies on a ‘central coordinator node’ that checkpoints valid transactions

What Is Blockchain?

Blockchain is the technology that supports cryptocurrencies such as Bitcoin, Ethereum Litecoin, and so on. Blockchain is a ledger that holds transaction blocks – which are linked to each other and secured using cryptography. Each block has a reference to the block that came before it, hence a ‘chain.’ 

Each node (miner) independently verifies the authenticity of a transaction – meaning that transactions are agreed upon via group consensus. The miner who confirms a block of transactions receives block rewards or a fraction of the transaction fees.  Miners usually invest considerable sums of money in a special mining computer known as application-specific integrated circuit (ASICs). 

Blockchains, like the Ethereum blockchain, can facilitate the creation of a special type of applications called decentralized applications (DApps). DApps are, unlike today’s applications (such as Facebook or Google), under no one’s authority or censorship. Also, DApps grant users the complete autonomy of their personal data – which is the complete opposite of how legacy applications handle users’ data.

Bitcoin’s Scalability Issues

The current blockchain architecture faces serious scalability issues. The fact that each node must verify transactions before they are added means confirmation is slow. The limited size of blocks, e.g., 1MB for the Bitcoin blockchain, is another bottleneck since a very limited amount of data can fit in each block. 

Now, as more people transact on the blockchain, the more clogged it becomes.  This means longer waiting times and increased fees, which leads to unsatisfied users. This has led to several hard forks of the Bitcoin blockchain –   all which sought faster transactions and lower fees.

Let’s take a quick look at the pros and cons of the blockchain. 


  • A proven history of reliability
  • A secure system that is difficult to compromise
  • Layer 2 Solutions such as the lightning network are being explored to remedy the scalability problem


  • The blockchain is not scalable on its own
  • High fees and long waiting times

Differences between Tangle and Blockchain

While only a few technical differences distinguish blockchain and Tangle, those differences are significant nevertheless. Let’s take a look: 

Structure – blockchain comprises a series of cryptographically connected data blocks. Tangle, on the other hand, consists of a group of data nodes that flow in just one direction. Also, blockchain can double back on itself in a circular manner, but Tangle can only move in one direction. (This means that Tangle can more rapidly transfer data.)

Security– blockchain offers better security thanks to its extremely meticulous block confirmation process that involves solving computational puzzles and verification of transactions via group consensus. On the other hand, Tangle’s security feature entails validating the two most recent transactions before confirming the next.  By this measure, blockchain is more secure than Tangle.

Decentralization – blockchain is undoubtedly decentralized since it operates on thousands of computers around the world, with no single authority overseeing transactions. Tangle is also billed as decentralized, but it utilizes a safeguard that it calls a ‘coordinator node.’  The presence of the safeguard renders Tangle centralized, one way or another. It’s hard to say that the tangle framework is entirely autonomous.

Tangle fans argue that the technology’s less detailed node addition protocol might make it less secure than blockchain, but it also makes it more agile. They stress that this makes Tangle better equipped to handle massive volumes of IoT interactions. But this uncertainty and its security, as well as its centralization problem, means the technology is far from ripe to fulfill its intended purpose, let alone compete with blockchain.

What is IOTA?

Tangle’s only application to date is the IOTA cryptocurrency. IOTA is named after IoT, which it’s designed to facilitate.  IOTA can handle a multitude of tiny transactions, which makes it ideal for the micro-transactions that run an internet of things.

As of March 30, 2020, IOTA is trading at $ 0.142212 at a market rank of 24 with a $ 395, 282, 148 market cap. 

For its part, Bitcoin is trading at $ 6, 316.03, and it ranks at number one with a market cap of $115, 552, 963, 908.

Blockchain Vs. Tangle: Which Is Better?

As the debate about which of the two technologies is better rages on, it helps to look at the specifics. To begin with, Tangle is yet to be proven as opposed to Bitcoin, which has been a mainstay for ten years now. Also, it doesn’t have nearly half of the number of users on the Bitcoin network.

Additionally, IOTA is at risk of a 34% attack, as opposed to Bitcoin’s 51%. This means that an attacker would only need to gain control of 34% of the IOTA network, rendering it less secure than blockchain.

As previously mentioned, IOTA utilizes a coordinator node that synchronizes data among all nodes, making it centralized.  This is in contrast with Bitcoin, whose nodes are equally distributed across the globe.

From these observations, it’s clear to see that blockchain maintains the upper hand in the battle between the two Technologies – at least for now.  This does not mean that IOTA’s completely written off. It is, on its own, a force to reckon with, as evidenced by its fiercely loyal community as well as a strong value proposition.

Crypto Market Analysis

Daily Crypto Update 20.06.2018 – Red Field

The market today is again in red with 92 of the top 100 in the negative territory, brief bullish signals are not enough to put the currencies in green and a successful attack on South Korea’s largest crypto exchange Bithumb can send the prices down again during this week.

General Overview

Market Cap: $283.698.523.519

24h Vol: $12.865.375.764

BTC Dominance: 40.0%


Cryptocurrency Market News

3 Hacks in 12 Months: The Reasons Behind Crypto Exchange Bithumb’s Failings
South Korea’s biggest cryptocurrency exchange Bithumb, which has been the most trusted digital asset trading platform within the country alongside UPbit, Coinone, and Korbit over the past few years, has been hacked for the third time in 12 months.

Australia’s Tax Office is Using a ‘100-Point’ Check System to Chase Crypto Traders
The Australian Tax Office (ATO) has cast a wide net to investigate crypto investors after classifying cryptocurrencies like bitcoin as ‘assets’, liable for capital gains taxes.

Siacoin Mining Malware Generates Nearly $1 Million in China-based Attack, 16 Arrested
Cryptjacking is fast becoming a popular way for cyber crooks to make money. For instance, around 5% of the cryptocurrency Monero currently in circulation is estimated to have been mined fraudulently, according to security firm Palo Alto Networks.

Retail Adoption of Crypto Would “Bring the Internet to a Halt” – BIS Report
The Bank of International Settlements (BIS) has leased a chapter from its forthcoming annual report that delivers a critical appraisal of bitcoin and cryptocurrency.




IOTA is trading positive in the last hours, very close to the critical price of $ 1.00 and has not been affected by the Bithumb hack that is considered as a bearish factor.

The next resistance for the pair is $1.21 and then $1.35 and $1.38 (R1 Pivot). On the downside, supports are in $1.00 S1 Pivot and psychological level, a breakout here could send the price to $0.94.

Market sentiment

4-H chart technicals signal a sell sentiment.

Oscillators are showing buy signals and pointing up.

Pivot points

R3 1.72
R2 1.59
R1 1.38
P 1.25
S1 1.03
S2 0.90
S3 0.69


ADA has lost 1.17% in the last 24 hours and continues to move within a narrow range in the last six days, the support at $0.1567 is still tested but the rebounds are permanent, the EMA-50 is still approaching the support and it is very likely that the price will break down.

Market sentiment

4-Hourly chart technicals signal neutral.

Pivot points

R3 0.2192
R2 0.2005 
R1 0.1801 
P 0.1614 
S1 0.1413 
S2 0.1226 
S3 0.1021


XRP has lost 0.55% in the last 24 hours and has not been able to move above the resistance at $0.5620, and the EMA-50 is also bouncing the price in the absence of strong buyers.

Market sentiment

4-Hourly chart technicals signal neutral.
Oscillators are pointing up.

Pivot points

R3 0.6805
R2 0.2005 
R1 0.5831 
P 0.5431 
S1 0.4858 
S2 0.4469 
S3 0.3896


Cryptocurrency Market News: The market is in a complete red dot today, the buyers are absent and nervous because they do not want to involve themselves in risks facing the possibility of new drops, I think the market will continue like this for the rest of the week without many bullish movements and in the control of the sellers.

Crypto Market Analysis

Daily Crypto Update 12.06.2018 – Recovery

General Overview

Market Cap: $300,847,470,009

24h Vol: $14,745,555,309

BTC Dominance: 39.0%

From yesterday’s low at $291B, the evaluation of the cryprocurrency market capitalisation increased around 9 billion dollars, coming to around $300B.


The Crypto market is currently mixed in colour with an average percentage of change ranging from 0.5-2%. Biggest gainers are Loom Networking which surprisingly increased by 34%, Ethereum Classic 21.7%, Dropil by 17% Cyber Miles 12%. Those who are in red haven’t decreased more than 4%.


News that came out in the last 24 hours is mostly analytical in nature, as this last drop in price surprised a lot of the analysts and is considered as an event. There are also significant stories that can positively impact the market sentiment which may cause some temporary confidence.

For example, news that the cryptocurrency exchange Coinbase is going to list Ethereum Classic on their platform resulted in the ETC increasing in price by 21.7%. In the blog post they have stated:

Per this process, we will now begin the engineering work (Step 4) for supporting Ethereum Classic. As part of this process, customers can expect to see public-facing APIs and other signs that the asset is being added. When we reach the final testing phase of the technical integration, which we expect to occur over the next few months, we will publicly announce a launch date for trading via our blog and Twitter (Step 5).

While we are mentioning exchanges, another related major news story is that Binance is going to support fiat-crypto trading. 

Crypto exchange Binance announced plans to allow fiat-crypto trading this year through a separate Malta-based exchange, a Binance representative told Cointelegraph today, June 11

While Bloomberg reported today that Binance will “soon allow customers to convert digital tokens into fiat currencies”, a Binance representative clarified to Cointelegraph that “ is a pure crypto-to-crypto exchange.” They confirmed that crypto-fiat trading will only be offered through a separate local exchange the company is opening in Malta. Binance Malta will most likely begin fiat trading with a euro-Bitcoin (BTC) pair, the representative told Cointelegraph.

Yesterday at the Cebit ‘18 Expo in Germany, IOTA and Volkswagen demonstrated a Proof-of-Concept (PoC) that uses IOTA’s Tangle system for autonomous cars. This is significant as it may impact the price of IOTA positively in the following days, much like the prior news story did for Ethereum Classic.



From yesterday, the price of Bitcoin increased by 1.5% from 6724$ to 6822$ where is currently sitting.


Looking into the hourly chart we can see that the price broke out from the triangle in which it was consolidating and is currently on the rise. As the price broke out from the daily triangle two days prior, the price is likely going to continue going higher, probably in the form of an ascending wedge, and eventually reach its support which now serves as resistance at the 7126$ level.

Market sentiment 

Hourly chart technicals signal a sell.

Oscillators are on buy, and moving averages signal a sell.

Pivot points

S3 6262.1
S2 6531.4 
S1 6702.3 
P 6800.7 
R1 6971.6 
R2 7070.0 
R3 7339.3


From yesterday’s open, the price of IOTA has increased by 3% from 1.35$ to just slightly below 1.4$ where it is currently.


As you can see from the hourly chart, the price found support on the 0.236 Fibonacci level and is currently on the rise. I would expect the price action to form an ascending wedge or an upward channel.

Market sentiment 

Hourly chart technicals signal a sell.

Oscillators are on buy, and moving averages signal a strong sell.

Pivot points

S3 1.0946 
S2 1.2543
S1 1.3570 
P 1.4140 
R1 1.5167 
R2 1.5737
R3 1.7334


The price of Ethereum Classic increased 21.5% from yesterday’s opening – from 12.67$ to 15.4$ in the last 24 hours.

As you can see from the hourly chart, my targets which I have projected in the charting section last month have been met perfectly. After those lows have been tested, the fundamental news impacted the price positively and you can see the strong green candle proudly waving a bull flag. The price is currently consolidating inside a triangle and we are likely going to see the uptrend trend continue.

Market sentiment 

Hourly chart technicals signal a buy.

Oscillators are on buy, and moving averages signals a strong one.

Pivot points

S3 11.073 
S2 11.879 
S1 12.375 
P 12.685 
R1 13.181 
R2 13.491 
R3 14.297


Today we are going to see some recovery and some sideways action as the prices are going to recover from yesterdays lows.