What is IOTA? - Facts and Fiction

Hey Steemit community, another day another story!

This time I bring thee some facts on IOTA accompanied by my thoughts on the subject.

FACTS:

-- IOTA was created in 2015.

-- IOTA is supposed to be an innovative new distributed ledger technology which would function as the backbone of the Internet of Things.

-- IOTA is NOT a Blockchain.

-- IOTA has no mining, no blocks, no difficulty, no transaction fees.

-- IOTA is fee-free system - you can check the whitepaper here:

http://www.tangleblog.com/wp-content/uploads/2016/11/IOTA_Whitepaper.pdf

-- The underlying technology for IOTA, the Tangle, is a third-generation Blockchain-technology, based on a directed acyclic graph (DAG).

Main differences from the Blockchain systems we already know:

-- IOTA is based on a directed acyclic graph (DAG) aka the Tangle, not a Blockchain
-- IOTA has no mining, no blocks, no difficulty
-- IOTA has no transaction fees
-- IOTA scales almost infinitely, unlike Blockchains
-- IOTA is not solely made as a currency but as an interoperability protocol that solves the problems of the IoT
-- IOTA wants to enable the machine economy
-- IOTA is lead by the IOTA Foundation, an NGO registered in Germany

My opinion on the matter:

I'm an enthusiast of mining - I've always loved the idea that one can help the Blockchain system by working towards a common goal - plus it's very fun to build a rig and SUPER rewarding to know you're doing your part!

So for me, IOTA has a huge downside which is no mining, since there are no blocks to mine.

The transaction fees I somewhat agree with - you see, I reckon we need to help out a bit when mining and interacting with the system through fees - it keeps the game interesting for everyone in the community - although I would like to pay fewer fees every now and then - I'm looking at you wallet and mining pool masters.

Whilst IOTA isn't just a currency - and by the way neither is Ethereum - I have yet to see a dedicated crew working towards building something on top of it - might be me though.

And the last topic I'll approach for now - IOTA wants to enable the machine economy - basically, a system where there is no greed involved since a machine regulates itself and the system.

The main problem with this last topic is that it will centralise the whole process and system - and while this may be better than the institutions we have today - what happens when you store all of the gold in one place?

This is it for now, if you have any comments and or liked this story:

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