A few years ago, IOTA was one of the cryptocurrencies that many investors wanted to get rich with. The project caused a massive hype in the bull market in 2017 and brought the cryptocurrency up to number 4 of the cryptocurrencies by market capitalization. But in recent years, IOTA has disappeared from the top. How is IOTA in 2022 and could the cryptocurrency get back to the top of the market?
What is IOTA?
IOTA is a cryptocurrency that was developed in 2016. Behind the cryptocurrency is the IOTA Foundation, which is based in Berlin. German Dominick Schiener is one of the 4 founders of the network (along with David Sønstebø, Sergey Ivancheglo and Serguei Popov). IOTA wants to create the basis for the Internet of Things (“Internet of things”).
The “Internet of things” is a network that should enable devices to exchange immutable values and data with each other quickly and free of charge. The special thing about IOTA is that the network does not exist on the blockchain, but on a three-dimensional tangle.
What is the history of IOTA?
The IOTA Foundation has existed since 2015 and was established as a non-profit foundation with the task of promoting science and research. The IOTA Foundation created the basis for the formation of the network and the associated distribution ledger technology.
Of the original founders, Dominick Schiener still plays the most important role in the present. He now forms the sole board of the IOTA Foundation. For a long time, the project was on the verge of failure after its massive hype in 2017. The idea of the technical implementation of the tangle was difficult for a long time, and IOTA could not deliver the promised progress to investors and investors.
In the meantime, IOTA’s focus has shifted to the establishment of smart contracts. For this purpose, IOTA developed its own smart contract network called Assembly. This resulted in an airdrop of the assembly token. IOTA also introduced the Shimmer test network. At the same time as Assembly’s airdrop, the corresponding Shimmer token was issued. The Shimmer test network is to become a precursor to a completely decentralized network at IOTA.
What technology makes the network so special?
In contrast to the blockchain in Bitcoin or Ethereum, the IOTA network is organized by a unique technology. The tangle is a complex transport medium of data. The tangle represents an acyclic graph (DAG) connected by several paths. Each graph has a unique running direction, which can never return to the starting point.
The tangle offers some special advantages:
- high scalability with fast verification of transactions
- an efficient system that can also run on low-performance devices
- non-existent transaction fees
- a low computing power, which makes the tangle sustainable and environmentally friendly
- with a higher transaction load, the speed increases
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How has the price of the MIOTA token moved in recent years?
The IOTA token is the native token of the network and is responsible for the transfer of values within the tangle. The number of tokens is limited to the number 2,779,530,283. All of these tokens were already issued at the launch of the network and have been in circulation since then. Due to the massive number of IOTA tokens, these are considered Mega-Iota (MIOTA) specified and traded.
In the bull market in 2017, the MIOTA experienced a massive price increase, which brought the coin to the 4th place of cryptocurrencies by market capitalization. The reason for the hype around IOTA were several announced collaborations with large companies. The traditional German company Bosch was the cooperation that attracted the most attention.
Due to the lack of technical progress, the MIOTA token could no longer remain among the most valuable cryptocurrencies in the following bear market. In December 2017, MIOTA reached an all-time high of $ 5.69. In the bear market, the MIOTA fell to a price of $ 0.12. This was one of the most massive crashes among cryptocurrencies in the period from 2017 to 2019.
In the next bull market, the MIOTA could not reach its previous highs. Thus, he experienced 2 price peaks, one in the spring of 2021 and the other in the fall of 2021. Surprisingly, the price peak in the spring before the strong correction in the summer of 2021 was higher than in the fall.
What have been the important developments at IOTA in recent years?
As we have already mentioned, IOTA could not reach the heights of the bull market in 2017 in the following years. This was mainly due to the fact that the Foundation could not keep the big promises that the concept of a cryptocurrency for the Internet of Things and the technical possibilities of the tangle brought with it. Therefore, IOTA has had to reorient itself several times in recent years.
IOTA received some attention in December 2021, when the network launched the airdrops of the Assembly and the Shimmer token. The Assembly Network is your own network for smart contracts. Shimmer is a test network, which is supposed to be the precursor to an update IOTA 2.0.
The update of IOTA should finally make the network decentralized and thus finally competitive against other networks. An IOTA 2.0 is mentioned under the name Coordicide and has been promised by the developers for years. So far, a central coordinator has the position of last instance in the tangle. This undermines the fundamental principle of decentralization.
Optimists assume that after the successful testing of Shimmer, the update to IOTA 2.0 can take place in the next few months. Critics say that since 2019, the developers have not come closer to decentralization in principle.
What potential does IOTA have in 2022?
The concept of IOTA has a massive potential and, according to many experts, could now again be among the top 5 cryptocurrencies. But for this, the network would finally have to become decentralized. The lack of progress and the internal difficulties ensured that the MIOTA token is currently only in 57th place of the most valuable coins by market capitalization.
Due to its very low price, an investment in the MIOTA token represents a very good opportunity at the moment, which has few disadvantages. The potential of IOTA is still huge. If the network makes the move to decentralization, we could see a massive increase in value in the next bull market, which could even outshine the increases in 2017.
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