What is IOTA in a Nutshell

There's a new cryptocurrency on a block and it's called IOTA. Well, technically it's not a new cryptocurrency. It's been around for a while, but recently it's been listed on Bitfinex and it's got a lot of attention and has actually took, you know, the seventh place in terms of market capital in terms of cryptocurrency. So it instantly shut up to top 10 and now everyone's interested in what it is. This video is going to explain what is IOTA, the key features of IOTA and some interesting things about how to trade 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 I can offer that is that it's actually has a few key features, which is it has fast transactions. And more importantly, it has no fees. Okay. Let's just think about that. It's got no fees for transactions, 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, I mean, what more can you ask? Right? So IOTA is a full attempt at 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. 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 this technology, including Bitcoin, Ethereum, 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 Tango. It's not blockchain. blockchain and the easiest way to understand it. I've been thinking 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'll 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 then it gets broadcast to kind of mining miners and they kind of verify that this transaction has taken place and they bundle it into a big database called the blockchain. So this is the equivalent of kind of giving your 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 friend's homework 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 Tangled. So every time a transaction is sent, you verify two other transactions behind you. Right? So instead of creating this kind of overall one block after another kind of, which is kind of what crypto Bitcoin and Ethereum is doing, and it's requiring a lot of work. It's requiring actual proof of work. And that's why miners get paid. But with Tangled, you just verify each other's work. Right? You're like, Hey, look, you're right. I'm right. Okay. Chuck it down and then toss it to someone else. So it's essentially that it's essentially removing the, the miners or any form of state consensus out of the way. It's removing blockchain altogether 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 to market each other's work. And then I have plenty of time on your hands. And this is exactly what's cool about Tangled. And Tangled 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 Tangled can be free. So this is different from even Ripple. If you think of 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 needs to check your work. And here you check your own work and now it can be completely free. So I was completely designed to be a cryptocurrency. So it doesn't have safe advanced features like smart contracts or, you know, the ability to run dApps or create tokens. So aside from being a cryptocurrency, IOTA is marketed as something that the Internet of Things can use. And this is quite interesting to me because I'm a big Internet of Things fan. You know, I have a smart light bulb. You guys can 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. It's got a Wi-Fi receiver. That's how it receives signals. So this is a smart, a smart lamp. I've also got a vacuum robot. This is also a smart vacuum robot. It takes commands from my mobile phone and I can schedule cleanups off my room. So we're definitely moving into a phase where Internet of Things is going to be huge. And that's what's coming. That's what's hot this year. So this is the interesting part. So 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 with each other. How insane is that? Because transactions are free and because there's so many IOTAs around, machines can utilize these microtransactions and start trading with each other. And my mind is completely blown about the implications of this. And I'm not sure if I like it or not. Technically, with IOTA, my vacuum robot can buy a drone and get moved from room to room, or get moved from building to building to start sweeping. Technically, these machines can have an intelligence of their own and start 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 Skynet even. Machines that think and can pay each other and can do tasks for each other. And I can see why that's cool, but I'm also kind of scared. You know, like if machines can pay each other, then they can pay each other to kill me. You know, like technically, you know, at night, my light bulb might explode and cause a fire because some machine hated me, right? So joking aside, fun stuff aside, I still see it to be a very interesting inclusion into the Internet Things 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 even just 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 have 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 computer is built that they can actually brute force a password and brute force into an account, into a Bitcoin account and steal funds. So that might be possible 20, 30 years, but IOTA is 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 some time, and that might threaten the network. But IOTA, because it's generation three, 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 IOTAs out there. So the total amount of IOTA is just massive. I'm going to list it here. Not even going to try to list that number out. It's probably somewhere in the PETA 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 IOTA coins out there, the exchanges are listing it as a million. So they're actually listing it as a mega IOTA, okay? IOTA, if you want to call it that. So when people say, you know, an IOTA is worth, you know, 54 cents, that's actually a mega. That's actually a million IOTAs are worth 54 cents. So you guys really need to keep that into account when you're looking at things. And they made this adjustment 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 it. You got to have a million first. And all the exchanges use mega IOTAs as a default currency. So they're not telling you that they're listing this as M IOTA. But this is actually the case. And even on Coit Market Cap and on Bitfinex, they're actually listing it as M IOTA. What they're using, what they're calling IOTA is mega IOTA. So it's a million IOTA units. So don't go on an open market, you know, and buy, you know, a thousand IOTA for, you know, 50 cents a piece because you're going to get ripped off, you know, like that's, you're going to have, 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 Tango algorithm. I do want to ask if 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 Ethereum, but nothing that's really generation three, nothing that's really using the Tango algorithm. But that said, 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.