IOTA or BTC? Tangle or Blockchain? What Has the Future?

February 1st, 2019 by Marko Vidrih on ALTCOIN MAGAZINE

IOTA and BTC are both cryptocurrencies — yet they could hardly be more different. Both cryptocurrencies have completely different goals, they are even completely different in structure. But what unites them is their innovation.

Bitcoin once revolutionized finance with its blockchain technology. The IOTA founders are making a difference by making the Internet of Things possible with their Tangle. Could the Tangle soon outrank the Blockchain? And is it worthwhile to exchange the two cryptocurrencies?

IOTA and BTC — Where are the differences?

Satoshi Nakamoto developed the blockchain and thus the basis for the cryptographically encrypted digital currencies. The blockchain is distributed decentrally via a network of nodes, which all store a version of the blockchain. The development is an open source and not centrally managed.

The BTC is a digital means of payment. It should offer an alternative to the Fiat currencies if not even challenge the system of central banks.

The blockchain uses the proof-of-work algorithm for mining. In the meantime, large server farms are needed to confirm the transactions and create new blocks for the chain. The mining of BTC consumes vast amounts of electricity.

Overall, it is 21 million BTC . This number will be reached in the year 2140. Until then, the cryptocurrency is constantly inflating, but more and more slowly.

. This number will be reached in the year 2140. Until then, the cryptocurrency is constantly inflating, but more and more slowly. A transaction can take up to 10 minutes and you have to pay fees. Scalability is a constant problem of the blockchain.

The coin is accepted as a means of payment by many shops on the Internet and there are more and more Bitcoin ATMs in the world. Most people have already heard of Bitcoin.

BTC is still considered the reserve currency for the other cryptocurrencies.

If things go uphill with the Bitcoin price, this usually has a positive effect on the other crypto coins and tokens. If it goes downhill, their courses also sink.

IOTA developed the unique Tangle. This is a web of nodes. The nodes mutually verify their transactions. All information is stored in Tangle. The IOTA Foundation, a non-profit organization, leads the development but includes the community.

The machines and computers of the Internet of Things should use the MIOTA to pay each other. The goal of the whole project is to create a cryptocurrency that can cope with the requirements of the Internet of Things.

MIOTA can not be mined. The individual nodes also use proof-of-work, but there are no fees. The workload consists only of the power consumed by the node to calculate the transactions.

In the beginning, the developers created 2,779,530,283 units of their cryptocurrency. For the time being, this fixed amount should remain the same.

their cryptocurrency. For the time being, this fixed amount should remain the same. IOTA is designed to scale infinitely. The more it grows, the faster the network gets. More participants within the network mean that more transactions can be confirmed. Transaction already takes less than a minute.

The MIOTA can be bought and sold like other cryptocurrencies, but it is not designed as a means of payment for everyday use.

Author: Marko Vidrih

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