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== History ==
== History ==
The community funded large corporate collaborations, community projects, and developer acquisition initiatives.<ref name="Ecosystem Fund">{{cite web |url=https://cryptoinsider.com/iot-operator-iota-launch-new-2-million-ecosystem-fund/ |title=IoT Operator IOTA Launch New $2 Million Ecosystem Fund |year=2017 |last=O’Higgins |first=Conor }}</ref>
IOTA began open beta testing on July 11, 2016. Trading took place [[over-the-counter (finance)|over-the-counter]] between users for 11 months leading up to the first exchange listing at Bitfinex on June 12, 2017.<ref name="Bitfinex">{{cite web |url=http://blog.bitfinex.com/uncategorized/iota-launch/ |title=IOTA Launch |year=2017 |last=Bitfinex Blog }}</ref>
IOTA began open beta testing on July 11, 2016. Trading took place [[over-the-counter (finance)|over-the-counter]] between users for 11 months leading up to the first exchange listing at Bitfinex on June 12, 2017.<ref name="Bitfinex">{{cite web |url=http://blog.bitfinex.com/uncategorized/iota-launch/ |title=IOTA Launch |year=2017 |last=Bitfinex Blog }}</ref>

May 2017, IOTA announced a $10 million ecosystem fund to promote larger corporate collaborations, community projects, and developer acquisition initiatives.<ref>https://blog.iota.org/iota-ecosystem-fund-2-million-f6ade6a4d8ba}</ref>


In June 2017, Outlier Ventures, a venture capital firm, invested 7 figures into IOTA, their first
In June 2017, Outlier Ventures, a venture capital firm, invested 7 figures into IOTA, their first
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[[Grover's algorithm]] dictates that a [[quantum computer]] would be very efficient at conducting brute force attacks. The process of finding a [[cryptographic nonce]] in order to generate a Bitcoin block is particularly vulnerable to such [[brute-force attacks]]. As of today, an average of around 2<sup>68</sup> nonces must be checked to find a suitable hash, and this trends up over time.<ref name="Bitcoin Difficulty">{{cite web |url=https://en.bitcoin.it/wiki/Difficulty |title=Bitcoin Difficulty |last=wiki |first=bitcoin }}</ref>
[[Grover's algorithm]] dictates that a [[quantum computer]] would be very efficient at conducting brute force attacks. The process of finding a [[cryptographic nonce]] in order to generate a Bitcoin block is particularly vulnerable to such [[brute-force attacks]]. As of today, an average of around 2<sup>68</sup> nonces must be checked to find a suitable hash, and this trends up over time.<ref name="Bitcoin Difficulty">{{cite web |url=https://en.bitcoin.it/wiki/Difficulty |title=Bitcoin Difficulty |last=wiki |first=bitcoin }}</ref>

== Exchanges ==
Trading of IOTA for local fiat currencies, ETH and BTC, is available on the following online exchanges:
[[Bitfinex]]<ref>https://www.bitfinex.com/posts/206/</ref>,
[[Binance]]<ref>https://support.binance.com/hc/en-us/articles/115001827791-Binance-Lists-IOTA</ref>


== References ==
== References ==

Revision as of 13:55, 11 November 2017

IOTA
Latest foundation logo
IOTA logo
Unit
SymbolIOTA, MIOTA[1]‎
Denominations
Superunit
 103KiloIota (Ki)
 106MegaIota (Mi)
 109GigaIota (Gi)
 1012TeraIota (Ti)
 1015PetaIota (Pi)
Demographics
Date of introduction11 June 2016 (2016-06-11)Initial Coin Offering
User(s)Worldwide
Valuation
Supply growthFixed supply of 2 779 530 283 277 761 units

IOTA is an open-source distributed ledger (cryptocurrency) focused on providing secure communications and payments between machines on the Internet of things. Using directed acyclic graph (DAG) technology instead of the traditional blockchain, IOTA's transactions are free regardless of the size of the transaction, confirmations times are fast, the number of transactions the system can handle simultaneously is unlimited, and the system can easily scale.[2][3] IOTA was found in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov. It began beta testing in the summer of 2016.[4] As for November 2017, the market capitalization of IOTA is over $1.5 billion, making it the 10th largest cryptocurrency in circulation.[5]

IOTA is a founding member of the Trusted IOT Alliance, which includes the companies Bosch, Conensys, USbank, and Cisco.[6]

Units

The smallest unit of account on IOTA is an Iota, after the smallest letter in the Greek alphabet. Larger unit names are created by adding metric system-like prefixes to the word Iota. Hence a thousand Iota are called a KiloIota. In order of size, unit names[7] are:

KiloIota (Ki) = 1,000 Iota
MegaIota (Mi) = 1,000,000 Iota
GigaIota (Gi) = 1,000,000,000 Iota
TeraIota (Ti) = 1,000,000,000,000 Iota
PetaIota (Pi) = 1,000,000,000,000,000 Iota

History

IOTA began open beta testing on July 11, 2016. Trading took place over-the-counter between users for 11 months leading up to the first exchange listing at Bitfinex on June 12, 2017.[8]

May 2017, IOTA announced a $10 million ecosystem fund to promote larger corporate collaborations, community projects, and developer acquisition initiatives.[9]

In June 2017, Outlier Ventures, a venture capital firm, invested 7 figures into IOTA, their first direct investment into a distributed ledger technology.[10]

In July 2017, SatoshiPay announced a transition from use bitcoin to use ITOA as the transactions costs of bitcoin increased.[11]

In August 2017, the IOTA Foundation forged a partnership with REFUNITE, the world's largest missing persons database, in order to use IOTA technology to help reunite families during and after conflicts.[12] Additionally, IOTA's Flash Network (supporting extreme high speed, instantaneous nano payments) became active, ahead of Bitcoin an Ethereum's versions.[13]

November 9 2017, Sopra Steria announced a partnership with IOTA to create a framework to optimize security between devices on the Internet of Things. [14]

Design

IOTA tangle Each square box in this diagram represents a transaction being sent. For each new transaction, two random, unconfirmed transactions are validated in the tangle. Each validation (n) of a transaction increases the likelihood of a transaction being genuine, up to a threshold of (c). In this figure, red boxes indicate transactions where n > 0, but below a certain confirmation threshold, n < c. The grey boxes represent transactions where n = 0. The green boxes represent transactions that have been validated a sufficient number of times, in order to be accepted as confirmed by the recipient address, n >= c.

For an IOTA user to send out a transaction, the user must validate two other, randomly selected transactions. A sent transaction must accumulate a sufficient level of verification (i.e. must be validated a sufficient number of times by other users) in order to be accepted as “confirmed” by its recipient. IOTA works with a single administrator called the Coordinator which confirms all transactions in a set of released milestones. Without the Coordinator, the IOTA DAG is not considered sufficiently secured in its early stages. The Coordinator is meant to be removed when network is sufficiently large.[2]

Instead of using a blockchain, IOTA uses a directed acyclic graph (DAG). IOTA’s DAG is colloquially referred to as the "tangle”, and is a generalization of the block chain protocol (a blockchain is a special case of a DAG [7]).

IOTA uses Winternitz hash-based cryptography signatures instead of elliptic curve cryptography (ECC).[15][16] Not only are hash-based signatures much faster than ECC.[17]

Grover's algorithm dictates that a quantum computer would be very efficient at conducting brute force attacks. The process of finding a cryptographic nonce in order to generate a Bitcoin block is particularly vulnerable to such brute-force attacks. As of today, an average of around 268 nonces must be checked to find a suitable hash, and this trends up over time.[18]

Exchanges

Trading of IOTA for local fiat currencies, ETH and BTC, is available on the following online exchanges: Bitfinex[19], Binance[20]

References

  1. ^ "Coin Market Cap - IOTA (MIOTA)". 2017.
  2. ^ a b Aitken, Roger (2017). "IOTA's Bitfinex Listing Surges To $1.5B Record-Breaking 'Crypto' Capitalization On Market Debut".
  3. ^ https://cointelegraph.com/news/future-of-digital-currency-may-not-involve-blockchains
  4. ^ https://iotasupport.com/whatisiota.shtml
  5. ^ https://coinmarketcap.com/currencies/iota/
  6. ^ https://www.trusted-iot.org/membership
  7. ^ a b https://iota.org/IOTA_Whitepaper.pdf
  8. ^ Bitfinex Blog (2017). "IOTA Launch".
  9. ^ https://blog.iota.org/iota-ecosystem-fund-2-million-f6ade6a4d8ba}
  10. ^ Aitken, Roger. "IOTA's Bitfinex Listing Surges To $1.5B Record-Breaking 'Crypto' Capitalization On Market Debut". Forbes. Retrieved 2017-08-18.
  11. ^ https://cointelegraph.com/news/micropayment-company-ditches-outdated-bitcoin-for-iot-technology
  12. ^ https://cointelegraph.com/news/iota-blockchain-to-help-trace-families-of-refugees-during-and-after-conflicts
  13. ^ https://www.cryptocoinsnews.com/iota-unveils-flash-network-allowing-for-true-nanopayments/
  14. ^ https://www.soprasteria.com/en/media/press-release/blockchain-and-the-iot-sopra-steria-partners-with-iota
  15. ^ Buchmann, Johannes; Dahmen, Erik; Ereth, Sarah; et al. "On the Security of the Winternitz One-Time Signature Scheme" (PDF). {{cite web}}: Explicit use of et al. in: |last4= (help)
  16. ^ Hopwood, David-Sarah (2010). "Merkle-Winternitz-HORS signature scheme for Tahoe-LAFS".
  17. ^ Rohde, Sebastian; Eisenbarth, Thomas; Dahmen, Erik; et al. "Efficient Hash-Based Signatures on Embedded Devices" (PDF). {{cite web}}: Explicit use of et al. in: |last4= (help)
  18. ^ wiki, bitcoin. "Bitcoin Difficulty".
  19. ^ https://www.bitfinex.com/posts/206/
  20. ^ https://support.binance.com/hc/en-us/articles/115001827791-Binance-Lists-IOTA
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