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
The Ethereum network is set to eventually not need mining anymore. The question then is what happens to Genesis Mining Ethereum Contracts. The contracts currently are set for 2 years, and if Ethereum adopts Proof Of Stake (a system of verifying transactions without mining) there is a worry that the contracts end prematurely. We contacted Genesis mining regarding this issue, and here is the response:
If I buy Ethereum contract today and the Ethereum network goes full proof of stake next year. What happens to my 2-year contract
Thank you for contacting us.
The Ethereum team would like to switch to PoS for sure, however, it is uncertain if PoS is safe enough, and it is technically possible to implement. Therefore, no one knows how long it might take if it happens in the end. PoW and PoS could even be run in parallel for a while. In any case, GPUs are very flexible and can be used to mine various algorithms and coins such as XMR, ETH and ZEC. In case Ethereum actually switches to proof-of-stake, we will do our best to make the most profitable GPU-mined coins available to our customers.
Genesis Mining Customer Service
The official response establishes two things. Firstly, it points that that Ethereum will not discard the current mining system immediately. Both systems, Proof of Stake (PoS) and Proof of Work (PoW) will co-exist for a while. This means mining will still be valid and used to secure the network during the transition. More importantly, if eventually, Ethereum doesn’t use Proof of Stake entirely, Genesis Mining would allow contract owners to switch to mining other Coins. This is because the underlying hardware (Graphics processors) can be used to work different algorithms like Monero or ZCash.