The distributed ledger platform known as IOTA is an open-source protocol which doesn’t use the typical blockchain concept. Instead, it uses the blockless system known as “Tangle,” which is based on DAG technology. DAG stands for directed acyclic graph. Four developers created IOTA in the year 2015. Their names were Serguei Popov, Dominik Schiener, Sergey Ivancheglo, and David Sønstebø.
The IOTAFoundation is the operator of the token, which has its base headquarters in Berlin, Germany. This is a nonprofit organization which works to coordinate the development through raising funds. Their goal is to create ecosystems of the token which will speed up its development and have the technology accepted for commercial use. Then it can be released as an open-source technology.
What is great about the IOTA Tangle is there are no transaction fees and no limit to the number of transactions the network can confirm each second. This allows the network to grow faster as the activity increases. Since there is no blockchain structure being used here, the token does not separate the validators and the users. Instead, the ledger is used for validation so that centralization can be avoided.
When the token was first launched in 2015, it promoted a crowdfunding page which helped it raise over 1,300 bitcoins. This helped it get the platform off the ground and it has continued to stay in the game ever since. One of the biggest breakthroughs came 2 years later in 2017. This was when a British micropayment transaction company named SatoshiPay made an announcement that they would stop using Bitcoins in order to start using IOTA. The reason for this change had to do with the increasing transaction costs associated with Bitcoins.
By the end of December 2017, there are over 30 companies which are active in the IOTA marketplace. Some of these companies include Samsung, Cisco, Microsoft, Volkswagen, and Huawei. In fact, Robert Bosch Venture Capital had reportedly bought large amounts of IOTA tokens by the end of last year. This could explain why the value of 1 token increased to $4 in mid-December.
The momentum apparently didn’t last because the value gradually declined throughout January of 2018 and the price for 1 token fell to $2.