What is the IOTA project?
IOTA is a micro-transaction crypto-token that will facilitate the architecture involved with IoT. It is a distributed ledger technology that wants to be the backbone for the emerging Internet of Things (IoT) ecosystem.
The IOTA protocol uses an innovative mwthod which the IOTA team dubbed Tangle to achieve more versatility. Tangle has similar functionality to blockchain yet acts more like an emulated version because of the usage of a protocol known as the Gossip protocol
IOTA uses Tangle to create its own immutable ledger instead of the traditional blockchain other crypto currencies make use of.
IOTA doesn't need nodes and miners. Tangle's gossip protocol makes use of users existing in the network to confirm transactions, creating a self-sustaining system.
Theoretically, the more users in the network, the faster the network becomes
Lets dive into the SWOT analysis now that we know what IOTA is.
STRENGTHS
scalability, offline transaction and transaction costs.
Tangle also works offline with the concept of subtangle. The subtangle can work on its own in an offline environment. The whole network gets updated when the network connection is available. A whole lot of institutions or industries can take advantage of this offline environment. An example is the supply chain industry.
Also, as mentioned earlier, IOTA transaction fees will be free because blocks do not need to be minned unlike the traditional blockchain system.
Partnerships
IOTA is all over the news. Its price surged more than 500% last month, making it a lucrative option for investment if you are looking for that kind of thing.
Their latest association with Microsoft started bull run for IOTA token prices as more and more people have started paying attention to it. It is also not the first time relevant corporations have shown an interest in IOTA or are even partnering with IOTA.
WEAKNESSES
Buggy Code and Vulnerability
The Tangle technology is new and there is a lack of testing or peer review for IOTA
Little Focus on Security
IOTA token holders seem not at all embarrassed by the fact that the platform was focused on such issues as system stability to division and the possibility of conducting micropayments, to the detriment of resistance to attacks.
Just like blockchain, if anyone holds more than half of the computing power, they can control the transactions within the network. This is known as the 51% attack. Tangle is slightly different in this aspect as it only requires 34% of the network computing power to attach illegitimate transactions in the ledger.
IOTA is currently bypassing this problem by using a centralized solution known as “Coordinator.” IOTA plans to decentralize it when the network users increase and it is not possible to own ⅓ of the network's computing power.
OPPORTUNITIES
First of it’s kind
If IOTA can manage to pull off the project ambitions and the Tangle technology goes mainstream and becomes more preferable
to the blockchain, IOTA will have first mover advantage and definitely capture a huge market share just like bitcoin did. Bitcoin is the king of cryptos not necessarily because it offers better features than other newer blockchain cryptos but because it had first mover advantage thanks to Satoshi Nakamoto.
IOTA can do the same too and become the main driving engine for the Internet of Things (IOT)
THREATS
IOTA has no serious market threats that other blockchain technology do not have right now. It also does not have a competitor right now in the market (although it is rumored that Hyundai is creating one for it)
CONCLUSION
IOTA, although a decent project, is an ambitious project that is attempting to tackle the distributed ledger goal using another approach: Tangle. Should it become successful (ie really become main stream), early adopters will be glad they did. But this is a big "if". If you are big on taking risks and adopting or at least testing out new technology, then IOTA is one of those ambitious projects to keep an eye on.
IOTA is still in it’s infancy and so it is not exactly telling if it will be a successful project so if you are a risk taker and you like the project and what it promises, you might want to get yourself some IOTA.
THANK YOU FOR READING
