What is IOTA in a Nutshell

there’s a new cryptocurrency on a block and it’s called IOLTA well technically it’s not a new cryptocurrency it’s been around for a while but recently it’s been listed on bit cynics and it’s got a lot of attention and as actually took you know the seventh place in terms of market capital in terms of cripples currency so it instantly shut up Dutch top ten and now everyone’s interesting what it is this video is going to explain what is iota the key features of biota and some interesting things about how to trade at iota so let’s start off with what’s interesting about iota it’s marketed as kind of the third generation cryptocurrency okay that’s actually a really really huge claim like a third-generation cryptocurrency and why can offer that is that it’s actually has a few key features which is it has fast transactions and more importantly has no fees okay let’s just think about that it’s got no fees for transaction zero zero fees and lastly it’s actually quantum computing proof so this is like a future-proof cryptocurrency that has no fees that has fast transactions and that is actually what more can you ask right so I also the full attempt of being a new cryptocurrency and it’s got one very very important technological change and that’s the fact that it doesn’t use blockchain all right so let’s sink in on that for a second I mean blockchain is a huge word and a lot of cryptocurrencies are based on the technology including Bitcoin aetherium and they all create this kind of consensus ledger okay let me explain that to you about that in kind of this diagram iota uses something called Kengo it’s not blockchain and the easiest way to understand it I mean think about the easiest way to understand this and I’m going to take you back to school so back when in school when you did homework you give your homework to your teacher to mark to assess so the teacher would like take a look at your math homework and check every answer if it’s correct or not and that takes time and effort so you can look at that as kind of the blockchain so when you send a transaction you send it to kind of a node and in a give it broadcast to kind of mining miners and they kind of verify that this ranch strategy has taken place and they bundle it into a big database called the blockchain so this is equivalent I’m kind of giving you a homework to your teacher and then your teacher giving you a grade and the grade gets stored permanently something like that well smarter teachers do one thing and if they don’t want to do the work if they don’t want to do all that necessary work what they do is they tell you to mark each other’s homework so you mark your friends home mark and then you give each other a grade and then they don’t have to do any work see that’s the beauty of tangled so this is kind of this explains tangles so every time a transaction is sent you verify two other transactions behind you right so instead of cream that’s kind of overall one block after another kind of which is kind of what clipped on Bitcoin and etherium is doing and it’s required a lot of work it’s requiring actual proof of work and that’s why – get paid but with tango you just verify each other’s work right you’re like hey look you’re right I’m right okay chunk it down and I’ve taught it to somewhere else so it’s essentially that it’s essentially removing the miners or any form of state consensus out of the way it’s removing blockchain all together and forming this kind of like network of transaction verifications and that’s beautiful I mean that’s what the kind of the smart teacher would do in school you know get each to get the students marking each other’s work and then I have plenty of time on your hands and this is exactly what’s cool about tangled and tangle basically means that because you’re verifying each other’s work and you’re doing a calculation when you send the transaction it means that it’s fast it also means it’s free because you did the work already because you did what was required and now tango can be free so this is different from even ripple if you think a ripple ripple has a transaction fee to prevent spam so it has a very very low transaction fee but it’s still there to prevent spam because you know the system still need check your work and here you check your own work and now it can be completely free so I almost completely designed to be a cryptocurrency so it doesn’t have save advanced features like smart contracts or you know the ability to run the apps or create tokens so a size of being a cryptocurrency I also marketed as something that the Internet of Things can use and it is quite interesting to me because I’m a big Internet of Things fan you know I have a smart light bulb you guys and see that this is a light bulb that I can switch on with my mobile phone and I can change its color and I can actually program it to switch on at different times and it has a little microchip inside and it’s heavy and it’s got a Wi-Fi answer it’s got on a Wi-Fi receiver that’s how it receive signals so this is a smart um a smart I’m I’ve also got a vacuum robot this is also a smart back in robot it takes commands from my mobile phone and I can schedule cleanups off my room so um we’re definitely moving into a phase where Internet of Things is going to be huge and that’s what’s coming that’s that’s what’s hot this year so this is the interesting part so which not only can humans use iota but machines can use iota let’s just think of that for a second so machines can now start trading of each other I how he’s saying is that because transactions are free and because there’s so many authors around machines can do utilize these micro transactions and start trading with each other and my mind is completely blown up about the implications of this and I’m not sure if I like it or not technically with I also my vacuum robot can buy a drone and get moved from room to room you know or get get moved from you know building to building to start sweeping you know technically these machines can have an intelligence of their own and start you know communicating with other machines and paying them for various services and I mean this is just super futuristic stuff this reminds me of the Terminator this reminds me of the start of you know Skynet even ah machines I think and can pay each other can and can do each task for each other and I can see why that’s cool but I’m also kind of scared you know like if if machine can ping each other then they can page how to kill me you know like technically you know at night my lightbulb might explode and cause a fire because some machine hated me right oh-oh-oh joking aside up on fun stuff aside I still see it to be a very interesting inclusion into the internet settings Network I’m still interested to see where it goes and I’m definitely an early adopter for internet things and I’m actually quite excited to see how this can be included into these smart devices 10 to 12 20 years down the road or maybe in which is five or two years down the road this is just technology is moving so fast and it’s even outpacing at how fast I can think about it I do want to say an interesting note is that iota is quantum proof as well so if you guys heard about quantum computing and its potential threat to the Bitcoin network well right now with the Bitcoin network it’s possible maybe in the future when a big quantum computers build that they can actually brute force a password and brute force into an account into Bitcoin account and steal funds so that might be you know possible 20-30 years but I also completely quantum proof so for Bitcoin to kind of adapt to the quantum threat so it’s called they actually need a protocol upgrade and that’s going to take you know some time at my threatened network but I also because its generation 3 it’s actually got that pre-built inside already it’s actually quantum proof so that’s kind of interesting there’s also a fixed amount of i/o totals out there so the total amount of that I also is just massive I’m going to let’s list it here not now I’m going to try to list that number out it’s probably somewhere in the pata pata range so something very very massive I do want to note that I’ve been talking about this yesterday as well because the amount is so large because there’s so many iOS coins out there the exchanges are listing it as a million so they’re actually listening as a mega iota my own so if you want to call it that so when when people say you know and iota is worth you know 54 cents that’s actually a mega that’s actually a million i otters are worth 54 cents so you guys really need to keep that into account when you’re looking at things and they made this adjust them as well so right now when you look at the market cap they actually adjusted it in terms of mega iota and this is something that a few people pointed out on Reddit as well that you know if you get sent one iota don’t pay 50 cents for you got you got to have a million first and all the exchanges use mega iOS’s as a default currency so they’re not telling you that they’re listing this as M iota but this is actually its case and even a quite market cap and on this index they’re actually listing it as a mine what they’re using what they’re calling I also is mega iota so it’s a million iota units so don’t go on an open market you know buy in a thousand iota for you know 50 cents apiece because you’re going to get ripped off you know like that’s you’re going to pass you have to have millions for it to be worth something guys I hope you enjoyed this video it is a very very fast summary of the key points I’m definitely going to talk more about the tangle algorithm I do want to ask you guys have any questions you want to ask about iota and your thoughts about it this is a really really breakthrough technology and I’m interested to see where it goes I hope you know it can go somewhere because right now we have Bitcoin we have aetherium but nothing that’s really generations 3 nothing that’s really using the tango algorithm but that’s it of course to actually you know directly implement this and to actually reach this kind of critical mass either through kind of Internet of Things or for different people using it that’s going to be a huge huge challenge in the years ahead thank you so much for watching this video if you guys like other videos about crypto various cryptocurrencies or cryptocurrency news do remember to subscribe to my channel because I make tons of that and thank you so much for watching see you next time

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