There’s a new cryptocurrency on a block and it’s called IOTA. Technically it’s not a new cryptocurrency it’s been around for a while. recently it’s been listed on Bitfinex and it’s got a lot of attention – so it’s as good as new. It took seventh place in terms of market capitalization in terms of cryptocurrency
Third generation cryptocurrency:
How Iota achieves free transactions
Iota has an important technological change over classic cryptocurrencies like Bitcoin and Ethereum – and that’s the fact that it doesn’t use blockchain. Instead, Iota uses Tangle, a new way of achieving network consensus. To understand Tangle and the benefits of Tangle we need to understand how transactions are verified on the Bitcoin network. Bitcoin uses Blockchain technology to create a consensus ledger – that is a database of transactions that everyone on the network agrees upon. ledgers of transactions being formed and linked to each other. Instead of having a single chain of transactions, Tangle has a mesh of transactions and verifications. The beauty of tangle is that every time a transaction is sent you verify two other transactions behind you. Even Ripple has a transaction fee to prevent spam – it has a very low transaction fee but it’s still there.
Internet of things
Internet of Things is going to be huge – smart machines and smart living via an interconnected network of minicomputers. The interesting part of iota is that not only can humans use iota but machines can use iota too. This is because iota has completely free transfers fees and even small machines can use it. This allows a machine-to-machine economy to form. For example, a vacuum robot might be able to request a taxi service from a nearby drone and get transported to a different building. This creates a whole entire world of possibilities for the future of mankind – or even machine kind.
Quantum computers are coming this year and they can do one thing that traditional computers can’t – the can use Shor’s algorithm to break the cryptography used in Bitcoin and other classic cryptocurrencies. Whilst the current generation of quantum computers are powerful enough to run the calculation, future medium sized quantum computers potentially can. This means that Bitcoin might not be secure in the future as it might be possible to break into someone’s wallet. Iota is Quantum proof by design.
ICO fever is in full swing! Basic Attention Token (BAT) initial coin offering generated 35 Million USD in under 24 sec. That’s more than 1 Million USD per minute – a feat that would make any startup in Silicon Vally Jealous. It took less than 3 blocks to complete the sale, with many senders adding a heavy premium in terms of gas to participate in the sale. The crowds were so excited that the amount of traffic to etherscan caused DDoS lag times site response.
This is the current status of the market – there are a lot of investors looking for the next best coin. This year there are less and less pre-mined coins and ICOs are the new rage. Gnosis ICO sent the company skyrocketing with a valuation more than 300M.
Sold out in 24 Seconds
Large Buyers – Single transactions of over 10,000 ETH played a large role in the sell off.
Large Transfer fees – Largest gas spent was over 20 ETH
Ethereum just keeps on growing with no end in sight. It was only yesterday that I was dreaming of Ethereum hitting $200 in 3 months – but it seems like we reached that goal already. I initially thought $130 was reaching the moon, so today I think we have reached Mars.
A lot of this rise is due to the surge of popularity of ETH in Korea. If you look at coin market cap, you can see that Korea accounts for nearly 40% of all ETH trades. In fact, the Korean exchange Bithumb has surpassed Poloniex in ETH trade volume. ETH is in such demand in Korea right now that it’s trading at $266 on Bithumb.
Why the recent surge in popularity?
The surge in Ethereum popularity can be attributed to a few reasons:
Global rise of Cryptocurrency – Recent political and corporate events has made cryptocurrency the next “IT”, leading to huge amounts of new investors.
Ethereum as a development platform– Never has Ethereum gained so much attention from developers. With ICOs of Ethereum based apps happening every day, more and more developers are dreaming of new ways to use smart contracts. And with that comes even more applications.
Enterprise Ethereum Alliance (EEA) – Recently 86 big enterprises have signed up for the EEA, with names like Samsung, Merck and DTCC. Enterprise interest in Ethereum is happening.
Ethereum Roadmap– The roadmap for the future of ETH is amazing, with zk SNARKs and Proof of Stake being proposed.
It was only yesterday that Ethereum (ETH) broke the $100 mark. And after a series of rapid growth spurts, ETH is now sitting at $183. It is now rapidly approaching the $200 mark at a speed faster than even Ethereum promoters anticipated. Ethereum’s transaction volumes have now reached around 161,000 a day.
No Sleep for Poloniex Traders:
With prices changes every single minute, traders are getting no sleep tonight. There is just too much action and speculation in the market.
Updates and Proof of Stake
The Ethereum network is constantly being improved and at a very rapid pace. Plans are underway to bring Proof of Stake consensus algorithms to Ethereum, potentially making the network faster and less energy consuming. The Metropolis update will the next upgrade to the network.
Enterprise Ethereum Alliance
The Enterprise Ethereum Alliance has more than tripled in size, with the group announcing 86 new members, including
Now that Segwit has been locked in for Litecoin. it’s about time to take a closer look at what Segwit is and how it improves Litecoin. Here is a very brief introduction of what Segwit – it is please forgive me if it’s a little bit too simplistic but I want to try to summarize it in very easy to understand terms.
What is Segwit?
If you consider of Bitcoin miners as accountants that process all the transactions that happen on the network and bundles them up into a ledger called the blockchain. Then the Segwit is a change to the ledger. Think of it as a tax form. It’s the act of removing of a signature from the form and placing it into a separate form. That’s all it is. Segregation of witness – the removal the signature on a form and placing it elsewhere. By taking out the signature, you create addition room on the ledger to fit more transactions.
Why Adopt Segwit?
Segwit is vital for the Bitcoin network where transactions are taking a long time because there isn’t enough room on each ledger (block) to place all the transactions. Litecoin doesn’t have this problem. Instead, Segwit was adopted to allow for technologies such as the Lightning Network.
Segwit is a technological upgrade, and I can see why miners will go crazy over this. Especially when miners are the ones who decide to adopt this or not. Consider like an association of tax accounts trying to approve a new form. Accountants don’t like each other already, and the must all agree on a substantial change to a tax form. It turns out for Litecoin it was possible to persuade the miners to agree with each other, whilst for Bitcoin, it’s not yet possible as there is much more drama.
The Post-Segwit World
Now that Segwit is locked in for Litecoin, there are substantial changes in currency price (generally in the upward direction). Of course, must take this with a slight grain of salt. Litecoin prices are susceptible to financial manipulations such as the good old pump and dump. Litcoin is getting a lot of media attention. This means there will be a lot of new investors that still don’t understand the consequences of Segwit or how Lightning Networks work. Some will overvalue it while others are indifferent. The most important thing is to understand what Segwit is and learn more about the Lightning Network.