Although Bitcoin and IOTA work on the same principle, when you dig deeper, you will find they are very much dissimilar.
To know-how, let’s plunge through the detail below.
A bitcoin transaction charges you an exorbitant amount. It involves a transaction fee of 0.001 BTC. Moreover, this amount is getting increased substantially, thereby making it unfeasible for a large number of people.
On the other hand, IOTA allows you to perform mining without any additional fees. Before initiating a transaction, you just need two microtransactions, and that’s it. It has no transaction fee, and you can transfer the amount even as small as 1 IOTA, which is worth $1.17.
With a market cap of $111 billion, undoubtedly, Bitcoin rules the world of cryptocurrency. By just stealing a few Bitcoins, hackers can get access to the surplus amount. Presently, with private key cryptography and P2P network, bitcoin facilitates secure transactions. But still, it is vulnerable to the brute force of Quantum Computers. However, up until now, there no evidence of to existence of highly capable quantum computers.
But to prevent future possibilities of hacking of such a huge network, it is wise to ready with quantum-resistant alternatives. That’s where IOTA has a prominent role. Unalike, blockchain projects, IOTA uses a complex encryption methodology that is resistive to the quantum cryptographic algorithm. Thus, when you want to know, IOTA vs BTC, in terms of security, IOTA outperforms bitcoin.
IOTA is based on tangle technology, whereas bitcoin is based on Blockchain.
Blockchain data follows an ordered series consisting of blocks of data attached in a vertical fashion that is ever-growing. Contrastingly, a tangle consists of a cluster of nodes following a single direction. Technically, blockchain is back-linked and can form a loop in a circular fashion. And the tangle can never double back due to it only moving single forward direction, thus, enabling it facilitates a more speedy data transfer.
IOTA uses DAS Directed acyclic graph, and Bitcoin uses a decentralized ledger. In IOTA each new transaction validates two old transactions, which result in the graph-like structure instead of blocks. Thus, this implies that as transactions increase the system speed and scalability also increases.
Whereas bitcoin uses a decentralized ledger and needs miner to approve transactions, this causes scalability issues, and an increase in transaction results in a significant increase in cost and time.
When you observe iota vs bitcoin chart for growth, you will come to know that Bitcoin enjoys the largest market share among all cryptocurrencies.
In terms of technology, the Blockchain is not that easy to incorporate with other programming languages. It requires redrafting entire systems. Whereas IOTA offers ease of integration as it can be incorporated with any programming language without the need for a rewriting system.
Transactions involving Bitcoin are appended only on the main Blockchain. However, for IOTA transactions can be done offline and can be appended later to the network.
IOTA is the newly launched cryptocurrency that is facing stiff competition from the Bitcoin. As of now, IOTA still needs to establish itself to deliver the promises it made. It needs to sustain itself amidst the growing pains and hurdles ahead of the path. So, even this emerging technology is able to persuade traders to capitalize on it, and there is still a lot of uncertainty nagging around its future prospects.
On the other hand, Bitcoin has established itself over the period and enjoys a good track record. Based on popular Blockchain technology, it has gained the trust of leading organizations. It enjoys exceptional confidence among traders as well as leading companies around the world. Due to its relative reputability in the market, Bitcoin exhibits credible signs of staying here as a tradable asset and an operable cryptocurrency.
So, when considering iota vs bitcoin investment with real-world adoption, IOTA may appear promising. Nevertheless, in terms of market strength and capitalization, Bitcoin is the dominant player and has a promising future.
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2019-12-26 07:41:15.437431 | 2 min