UNDERSTANDING IOTA NETWORK | 10% beneficial to tron-fan-club

INTRODUCTION

Bitcoin and Ethereum gas fee is very high and the gas fee varies depending on how busy the networks are. If you worrying about the insane gas fees of Bitcoin and Ethereum, you should consider IOTA cryptocurrency because it offers 100% free transactions. In other words, you can send and receive crypto without worrying about gas fees.

WHY IT'S NAMED IOTA

Some people believe that IOTA is an acronym for Internet Of Things Application. If you don't think internet of things, it is simply the advanced technology that lets you connect your home appliances such as your security camera, refrigerator, wrist watch and so on to the Internet. IOTA is a ledger that allows a very small amount of transactions to be sent fee.

HOW IT WORKS

It important I let you know that IOTA is not a blockchain by it is a DAG. Let me explain what a DAG is, a Dag is very similar to a blockchain but it is not a blockchain. Dags are faster than a blockchain and some people are claiming they will be the next evolution of blockchain technology. A Dag has several boxes and the boxes are known as nodes. Each node represents a single transaction. The nodes usually have a thing connecting one to another and the lines of the nodes are called Edges or Arcs.

The way a DAG works is different from how blockchain work because in the blockchain you have to wait for about 35 blocks until a transaction is finalized but for a DAG, the node has to wait till have at least two nodes to point. Another difference between a DAG and a blockchain is that the more people use DAG the faster it will become and that is not the case with Bitcoin.

IOTA uses a special technology called DAG to agree with the nodes in the network. The DAG can up to 1,000 transactions per second compared to Bitcoin 15 transactions per second. IOTA has no miners and that simply means that there will be no fees. There are no fees because you are the one that is doing the transaction, not the miners because all transactions are sent to the DAG.

MICROTRANSACTIONS

Of course, people love free things. Because it has no fee, millions of transactions could be carried out per day. It is just like there was no fee to pay for every $1 Pen bought, that means can do that over and over again because there is no fee and the payment method is fast.

SMART CONTRACT

The major IOTA DAG doesn't have any smart but the developer of IOTA is planning to add the smart contract in layer 2 and create a bridge from layer 1 to layer 2. The developer of IOTA is planning to design layer two in a completely different way. The IOTA layer 2 will have dApps, smart contract, and NFT.

HOW DO THEY PREVENT SPAM?

Because IOTA is free, fast, and easy to use, there will be spam. The big question is how do they prevent spam? They developed a congestion control algorithm that has a lot of technical terms like the blacklist, node model, scheduler, and AIMD algorithm. The network has a token called MANA and they have something very similar to PoS but it is not proof of state. You won't have to stake any MANA but the longer the period of staking your coin the more you earn MANA token and the MANA token can also give your transaction an advantage when the network is congested.

STORAGE

The IOTA tangle doesn't take more strange because you don't need the entire copy of the past transaction to add another transaction, not like the Bitcoin and Ethereum nodes. For you to be a node of Bitcoin and Ethereum you have to have a larger storage capacity and the sizes always grow every day.

TOKENOMIC

The total supply of IOTA coins is 2.7 billion. The IOTA team sold all their coin during their initial coin offering and the team raised about 500 million dollars.

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