Friends, if our tea is ready, can we start IOTA knowledge?
Let's say it as soon as we begin. IOTA IS NOT A BLOCKCHAIN TECHNOLOGY. Therefore, it is neither similar to Bitcoin nor Ethereum. Comparing them is absurd.
Uses IOTA Tangle technology. Without explaining Tangle, it is necessary to explain Blockchain a little so that the subject can be understood.
Blockchain is actually this: We have data (transfers). We put them in boxes (blocks). Then we connect these blocks together. We write down all the data in this long blockchain on a piece of paper. We keep a record of the paper. We distribute them to everyone. Here is your blockchain.
Now there is a problem here. The capacity of the blocks is clear. As the number of transfers increases, the data that wants to enter the blocks wait. This limits the data processing capacity of the blockchain.
Let's not distract.
There is no box in the tangle. Tangle says, why do we put these transfers in boxes or why do we need approval to process the boxes? Let every transfer confirm each other. If the transfer is increasing, there is no problem. The more transfers are approved.
(Each of the squares is a transfer.)
Since IOTA does not need this confirmation mechanism in the blockchain, the transfers themselves directly join the network;
1. Every transfer is free. (Miners, Stakers are not needed.)
2. Blockchain's limits are not in IOTA.
This idea created an EXPLOSION in crypto in 2016.
Let's take a journey in history. If IOTA looked so perfect here, the chain of disasters would begin.
It was 2016 when the idea for tangle was first introduced. My friends, all IOTAs were sold at $ 0.00017 each. After this time, the biggest hype in crypto history started.
In 2016, IOTA was not even on stock exchanges. Zero cost transfer, complete elimination of miners, IoT Technology, smart cities, houses, etc. It exploded in such a way that it was unprecedented in crypto history. IOTA was seen with the eye that it would definitely end Bitcoin.
As if this much Hype wasn't enough; News began to appear that Bosch was on the radar of German giants like VW. On top of that, when that awesome Altcoin season of 2017 knocks on the door, a CRAZY IOTA FURIA HAS BEGUN. The future started to be seen as IOTA. IOTA made x33470. (No joke)
But things were not like that at all.
EVEN IOTA WAS NOT WORKING.
So far I haven't done a fundamental analysis.
First of all, I need to know how transactions are approved in a decentralized network.
Consensus means DECISION. You bought a wafer from the grocer and the grocer gave you this wafer. There was a grocery consensus. He thought your money was a profitable trade, not a fake, and the exchange took place. The consensus mechanism here is Grocery. In decentralized networks, NODES make this decision.
Decentralized nodes come to a joint decision and the transfer is confirmed. There was no such decentralization in IOTA. Transfers were not validated by nodes when confirming each other. A center called the "Coordinator Node" approved the transfers. Things were not messed up yet.
Everyone has heard of SHA256 in Bitcoin. This is an encryption mechanism. In IOTA, this is the Curl-P-27 Hash function. In September 2017, this Hash function was said to be absolutely insecure. However, the investor did not listen. The madness continued. The IOTA Foundation didn't care.
In January 2018 (Taurus market finished) and IOTA experienced the biggest hack in history. It was hacked due to the $ 20 million IOTA Hash function vulnerability. IOTA was hit hard. The IOTA Foundation took action immediately. Switched to Kerl Hash function.
Is it over, of course not.
We talked about the coordinator. Criticism to IOTA has increased. But he said that the IF Coordinator is only a mechanism that checks approved transactions. A blow to IOTA also came from here. IOTA wallets were hacked by hacker who attacked the Coordinator in 2019.
The inevitable end came when the IOTA Foundation noticed the Hack. To stop the hacker, they stopped the Coordinator node on February 12, 2020. The network has completely stopped. The founders of the IOTA Foundation started to fight. There were separations. March 2020 Covid collapse has arrived. The price has bottomed. (-97%)
IOTA history is full of such fiascoes. So am I crazy? Why did I buy IOTA. My friends took the IOTA Foundation course. He fired the executives who saw IOTA as just advertising. And Serguei Popov took the first important step:
-Coordicide
This is the Coordicide update aimed at destroying the above coordinator node. They realized that the IOTA network, which did not work before that, should now be ROOTED, and they open a whole new page with Chrysalis.
So IOTA changes its shell.
I watched for updates. I repeat, IOTA is the place of big fiasco. However, they started doing what they promised. So I gave it a chance. Maybe they won't succeed again, but I'm starting to believe in IOTA. That's why I collected IOTA in October 2020.
Why did I tell so many events? Learn all about a project without losing your money. I gave an example from IOTA. IOTA was a non-working network and blind believers paid for its diet.
BASIC ANALYSIS IS SO MUCH! Read on!
Be a close follower of developments. Finally, tomorrow IOTA 1.5 (Chrysalis) comes to life. I will inform you from time to time. Let's see what will happen. Will IOTA succeed or will disappointments in the past continue?
