In a rather surprising development, IOTA price and its market cap have more than doubled in a matter of few hours to $2.60 and $7 billion respectively.
The cryptocurrency is now ranked fifth according to its market cap with trading volumes reaching a high of $1 billion. Statistics indicate that much of the trading action is being seen on Bitfinex at $500 million followed by trading in South Korea close to $200 million.
There is not clear indication why IOTA has registered so much of an increase – at least for today when it has seen a near 20 per cent jump. The gradual rise over the last few days can be attributed to the launch of a data marketplace in collaboration with Microsoft, Fujitsu and a number of other global corporations.
Currently the marketplace is in its proof of concept stage that will last for around 60 days with sensor data, secured by IOTA’s network, being shared, sold and bought. The data marketplace will enable anyone to share and sell or buy car sensor data, weather data, or any other information, through IOTA’s network, which uses a new method of verifying transactions.
The way transactions are verified with IOTA is different. They have got rid of the blocks and chains that were the main pain points and also led to fees, scalability, and centralization issues.
But IOTA is currently fully centralized in one coordinator, which in effect validates transactions. They say they have plans to make it more distributed “soonish,” however it remains to be seen whether that can technically be achieved while maintaining the same level of transaction throughput.
IOTA does not use a blockchain, but a tangle, where “every transaction or data transmission validates two previous ones, which in turn each referenced two previous ones before them, and so on.”
As it lacks any real mining or staking, its consensus method is centralized in one server, with IOTA’s capacity limited by the capacity of that one server, thus making the Tangle graph not trustless.
However, it is sufficiently unique from other digital currencies, so it stands in fifth position, somewhat neck and neck with Ripple.
Yet far behind the top two decentralized public blockchains, bitcoin and ethereum, and not really that close to even Bitcoin Cash at this stage.