IOTA was created as a far related derivation of the
blockchain technology but is far more advanced and is already
recognized in the innovation-press like Forbes, Techcrunch,
International Business Times and Huffington Post.
Several universities already recognized the potential of
IOTA and decided to work with it. The whitepaper can be read
here: Whitepaper (Version 1.3 October 2017)
The Blockchain is a great invention but it’s also
stigmatized with pre-conceptions because the majority of
issues occurred through human failure. Blockchain’s as
such were never hacked, just the human-software interface.
The possibility of anonymous transactions is one of the
reasons that some malicious actors are using blockchain based
currencies in order to cover their tracks.
The functionality of blockchains and IOTA:
Most Blockchains rely on miners and validators, so to say
computing-power-farmers that boost transactions through a
synchronized peer to peer network and mine small parts
of the currencies with processor power.
The security of the network is of utter importance and is
ensured via a consensus mechanism where miners are
incentivized by rewards (blocks=small parts of the currency +
transaction fees), they receive when they find a block. The
combined network hash-rate then ensures the validation of
newfound blocks with the help of peers in the network, to
guarantee the legitimacy of the new tokens and information
that are added to the network.
This complex mechanism of mining, rewarding and validating
is the core principle of most blockchains that ensures upright
payments and data-integrity, because once approved by the
system, the values or information cannot be tampered with.
That is important because the field of application often lies
in financial systems to replace currencies ($, ?) -like Bitcoin.