However, it is important to remember that there are other kinds of projects, as well, not quite made to be currencies, but neither are the members of these three trends.
These are the projects that were around for years now, aiming to solve real-world problems by using blockchain technology in new, innovative ways, and using cryptocurrencies as a method of processing information and transactions.
Good examples of this are IOTA and IoTeX — two coins created to solve problems of a specific industry — the Internet of Things (IoT). However, even though they are meant to solve issues in the same industry, they differ in a number of ways. This stems from the fact that they are run by different companies, and as such, have different rules, prices, and market caps; however, the differences run even deeper than this.
Thanks to their relatively similar names and the fact that they are both targeting the same industry, things might get a bit confusing for investors, which is why we wanted to see what exactly makes them so different.
What is IOTA?
IOTA is different, not just from IoTeX, but from most of the crypto industry due to the fact that it doesn’t actually use a blockchain. Instead, it uses a proprietary technology called Tangle, which is a system of nodes used to confirm transactions. It is like blockchain, but it is not really blockchain, and IOTA uses it because it has certain advantages, such as the ability to be much faster than regular blockchains.
The IOTA Foundation has been claiming for a long time that this kind of tech is necessary to run IoT applications, but since there is no real blockchain, there is also no need for mining cryptocurrencies. With no mining, there are also no fees, which puts the expenses of using it to a minimum. Meanwhile, the project offers a near-limitless throughput.
What is IoTeX?
Meanwhile, IoTeX comes as a decentralized, open-source platform whose goal is to empower the open economics of machines. It creates an ecosystem in which people and machines interact with guaranteed free will and trust, and it does it by offering a system filled with economic incentives.
IoTeX emerged in 2017 as a cryptocurrency project, and while its team has been small at first, it quickly started attracting attention and developers who believed that the project has a great potential to change the world. IoTeX was created on the EVM blockchain using the Roll-DPos consensus, and its system has been run combined by over 100 delegates from all over the world.
Its blockchain is also quite good when it comes to interoperability, which opens up additional opportunities for its network, and it means that it could easily join, and even participate in the creation, of Web 3.0.
IOTA vs IoTeX: The Similarities
The two projects have numerous similarities. For example, what they have in common is that they are both crypto platforms, as well as the fact that they are both targeting the crypto sector. Both are also leading platforms for digital identities, and they are both capable of connecting and powering countless machines that can run anything, from smart homes to entire smart cities. They both have their native digital currencies, MIOTA and IOTX, with both coins having their own price, market cap, liquidity, the ability to be used in trading, and alike.
Which is best for IoT?
Deciding which cryptocurrency is better is often difficult, or even impossible, even in cases where we examine fairly similar coins meant to achieve the same thing. In the end, it all depends on the user, what their needs are, and what solution they see as better. These are not coins intended to make the investor rich, but to power a network that aims to solve a problem, and while their approaches do differ quite a bit, ultimately, both are valid and legitimate, and so far — they both seem to be working.