While analysts continue to debate over the future value and practical applications of cryptocurrency, there is one firm that has created a cryptocurrency specifically designed for online transactions.
There seems to be a cryptocurrency for everything these days, those specifically designed to purchase cannabis (Potcoin) and those geared towards adult entertainment (Titcoin) to name but two.
Yet companies like the IOTA Foundation are currently establishing their crypto version of currency in order to bring both legitimacy and an online currency system recognized by anything internet-based.
Tangle Vs. Blockchain
IOTA is betting big on its cryptocurrency which uses a tangle or blockless system to record and implement each transaction. The benefits of tangle over blockchain technology lies in the fact that with a tangle system there are no restrictions or limits on how many transactions can be validated on a per second basis.
Mathematicians at the IOTA Foundation who helped design this blockless technology claim that it will help companies interested in receiving payments through cryptocurrency to manage a large number of micropayments on a day to day basis. A feat that is a major impediment with most blockchain cryptocurrencies at the moment.
No Mining, No Fees
The big boys, like Bitcoin and Ethereum, charge transaction fees to encourage mining. With IOTA, however, no such fees are required since there is no need for mining.
This is an important factor as the legitimacy of cryptocurrencies continue to increase and more online companies begin to accept them as a means of tender.
Ultimately, the number of micropayments per day will increase and so will the costs of cryptocurrency transactions that charge transaction fees. In this case, currencies like IOTA will become a preferred choice for most of the companies engaging in cryptocurrency transactions.
Venture Capitalists Betting Big On Tangle Technology
Robert Bosch Venture Capital, the investment department of Bosch Corp., has recently bought a large number of an IOTA-like cryptocurrency that also uses the same tangle ledger system as IOTA.
As more and more firms and online companies get used to the idea of cryptocurrency as a mode of payment it is likely that more venture capital and investment firms will jump on the bandwagon of cryptocurrencies using tangle technology, which will only increase its popularity and thus raise its value.
IOTA Number 6 Cryptocurrency
IOTA was recently launched in November of this year and currently has a market cap of roughly $14 billion.
In such a short span of time, it has managed to become the sixth largest cryptocurrency worldwide and should continue to rise up the ladder as more and more online companies and investors learn of its ledger system and feeless transactions.