What is Iota in a Nutshell

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:

  • Fast Transactions
  • Zero Fees
  • Quantum Proof

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 proof

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.

 

Sources:

What is IOTA -Roundup

Basic Attention Token (BAT) Sold out in 24 Sec

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.

ICO Results:

  • 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
  • Transaction Backlog – Created a huge backlog of transactions that took hours to process

Decred and Hard Forks

The problem of hard and soft forks have been huge issues in both the Bitcoin (Bitcoin Unlimited, USAF, Segwit) and Litecoin communities. Decred has come up with their own solution to this and may be something that other coins look to going forward. In this article I’m going to explain what a hard fork is, how the voting process works, and why it is so important for the development of a coin.

Hard and Soft Forks

Let’s start off by explaining what forks are. In simple terms, these are updates to the main protocol of a certain currency. Hard forks describe an update that causes a permanent divergence in the block chain. Both block chains may continue to run but they will not be able to send funds to each other as they are using different rules and the coins are not compatible with each other.

Soft forks, on the other hand, are backward compatible updates that allow users to mine from both original nodes or updated nodes with the new rules. If by a certain time, a consensus is reached and a certain percent of the hash rate is mining from the updated nodes, then the new rules are implemented across the protocol and miners of the original nodes will basically be wasting their time.

Why Fork and Who Gets to Decide?

So the programming team decides perhaps they want to make a substantial upgrade to the network to enable a set of features. These features might be very important features such as lightning transactions which allow immediate transfer of currency. It’s important that the community keeps on developing these features because otherwise, your coin is going to be stuck in the mud.

While the development team can propose upgrades usually what happens is that the mining community decides whether to implement these or not. The mining community acts as the accountants of the system. They process transactions and they form new blocks in the block chain. Consequently, they have the power to decide how to build the next block.

One major problem with this is that the mining community decides what the future is and not the consumers – the people who actually use currency. One small set of people decide how upgrades should be processed and the other side that actually uses it, the majority of the users, get zero say in the matter.

 

Decred to the Rescue?

With Decred, they solve this problem by having the community vote on the blocks created by the mining community. If miners start implementing different upgrades the community can vote whether they want the upgrade to go on line or not. If the created block does not follow a certain protocol, they can vote it down and even refuse payouts to miners that don’t follow what the community wants.

So this, in essence, allows the community to actually keep an eye on what’s happening with the miners. We don’t have just one power that doesn’t represent the community. Rather, we end up with the user community sort of policing what’s happening with the mining community.

People who hold the coin should have the greatest say in how the future goes forward. Decred solves both hard forks and soft forks by allowing users to vote on the issues. Issues such as segwit and lightning transactions, which have caused many controversies in the Bitcoin and Litecoin communities. Decred is already trying to implement these changes this year and they may get these technological upgrades in advance of other coins.

Ethereum Hits $222 with the power of Korea!

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.

Korea Power

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.

Ethereum surges to $182 – Here is Why

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.

At this point, does the well even tell us anything?

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

  • Toyota
  •  Samsung,
  • pharmaceuticals giant Merck,
  • investor communications platform Broadridge

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