IOTA and IoTeX: What’s the Connection?

Blockchain technology has managed to disrupt a wide range of industries over the years. The real-world use cases of blockchain tech skyrocketed with the introduction of smart contracts. 

Supply chain, healthcare, logistics, and many more industries have been improved by blockchain. One industry that benefits greatly is the Internet of Things (IoT). The reason is that smart contracts allow the automation of communications between devices. 

Two projects — IoTeX and Iota — have been trying to capture market share in this niche. This article analyzes these cryptocurrencies and their underlying blockchains. We hope to provide you with fundamental information regarding their future potential. 

What Is IOTA?

Iota is a decentralized ledger project. It aims to provide the IoT industry with immutability, verifiable data, and linear scaling. To achieve this, this project relies on a proprietary technology called Tangle. 

Tangle is not a blockchain in the proper sense of the term. It doesn’t create blocks of transactions linked through cryptography. Instead, it uses the Directed Acyclic Graph (DAG) technology. This provides a secure and lightweight solution to the IoT industry for handling immutable databases. 

The MIOTA cryptocurrency is used to facilitate transactions and incentivize participants in the network. 

What Is IoTeX?

Similarly to Iota, IoTex is a platform that is aimed at providing decentralized solutions for the IoT industry. It’s based on a standalone EVM-compatible blockchain. It means it can easily integrate existing dApps and platforms.

Moreover, it provides high scalability thanks to its innovative Roll-DPoS consensus. This allows for low fees and near-instant transactions. The goal of the IoTeX blockchain is to serve real-world devices ranging from smartphones to electric automobiles and allow them to communicate seamlessly with each other. 

IOTA vs. IoTeX: Key Differences

Even though these two platforms attempt at servicing the same industry, they have some key distinctions. Let’s have a look at IOTC versus IOTA in terms of differences. 

IOTA vs IoTeX: Technology

As we briefly touched upon in our introduction, Iota is not a blockchain. Instead, it uses Tangle and Directed Acyclic Graph (DAG) technology to provide immutability for its decentralized ledger. 

Consequently, Iota doesn’t have miners or blocks in its database. Transactions are confirmed once at least two transactions have taken place on the network.

IoTeX, on the other hand, has a more typical approach to the way it handles data. It uses a DPoS consensus mechanism where nodes compete to validate blocks of transactions.  

IOTA vs IoTeX: Architecture

The main difference between IoTeX and Iota resides in their architecture. Where IoTeX conserves the linear creation of blocks, Iota’s DAG and Tangle mechanism allows it to grow much faster. 

Iota relies on Tips, which are new transactions that are to be confirmed by the network’s protocol. The nodes help the protocol carry out the algorithmic search and selection of Tips and validate them on the network. New transactions search for Tips and are inscribed onto the digital ledger in perpetuity. 

IOTA vs IoTeX: Protocols and Consensus Mechanisms

IoTeX uses an EVM-compatible smart contract platform that relies on nodes. It employs an innovative Roll-DPoS consensus, running more than 100 delegates globally. This ensures decentralization. 

In the beginning, Iota used Coordinators, which set milestones and controlled the network. However, since the implementation of Iota 2.0, it has operated as an auto peering node network. This new version of Iota is entirely decentralized. It relies on nodes communicating with each other without any interference. 

Future Prospects for IOTX and MIOTA

Technology advances and smart devices become an inevitable part of our lives. This means blockchain technology has a chance to thrive in this industry. Immutability and decentralization are two pillars of the IoT industry, and Iota and IoTeX both serve this narrative very well. 

As highly scalable platforms, they can onboard millions of users and devices simultaneously. They also offer users constant access to immutable data on the decentralized ledger. These platforms will be vital to preventing data tampering in IoT devices. 

Consequently, we can expect a huge amount of growth from these projects in the future. Investors would be smart to purchase MIOTA and IOTX on an online cryptocurrency exchange.