- IOTA’s potential integration with ISO 20022 messaging standard could impact its adoption and value.
- Shimmer Network was introduced to address the decentralization issue in IOTA.
As the financial sector moves toward embracing the ISO 20022 messaging standard, numerous cryptocurrency enthusiasts are pondering its possible effects on IOTA’s value. Some speculate that IOTA may see increased adoption and price, potentially reaching $100 in 2023. Let’s examine whether IOTA is a worthwhile investment in 2023.
Understanding IOTA and Its Unique Technology
IOTA is a cryptocurrency developed for the Internet of Things (IoT) era, functioning as a decentralized network that enables devices to exchange data and value without fees. IOTA employs a distinctive technology called Tangle, a Directed Acyclic Graph (DAG) that removes the need for miners and allows scalable transactions instead of a linear chain.
The IOTA token facilitates transactions on the network and serves as a reward for network participants and supporters. It functions as a connective element between human and machine economies, fostering interoperability. Founded in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov, IOTA has experienced significant growth.
The Tangle verifies each transaction by referencing two previous transactions, creating a web of connected transactions. This process eliminates the need for miners, resulting in feeless and scalable IOTA transactions. IOTA’s design aims to provide a more efficient and cost-effective solution for micropayments and data transfer in the rapidly growing IoT industry.
Transition to the Shimmer Network
In September 2022, after two years of development, the Shimmer Network was launched to address IOTA’s decentralization issue. The Shimmer Network, akin to Polkadot’s Kusama, tests improvement protocols called Coordicides before integrating them into the IOTA blockchain.
IOTA and the ISO 20022 Messaging Standard
IOTA, a distributed ledger technology (DLT) platform, has proposed incorporating its Tangle protocol with the ISO 20022 standard for financial messaging. IOTA’s advantages include its feeless transactions, as it has no need for gas or miner rewards. With a capacity for approximately 1,000 transactions per second, IOTA’s network is designed for devices operating in low-energy environments and supports a variety of use cases.
Integrating IOTA with ISO 20022 aims to enhance the Tangle protocol’s interoperability with existing financial systems, allowing IOTA to enable secure and efficient machine-to-machine (M2M) payments and data transfers between various financial institutions. This integration will also support a wide range of use cases in industries such as trade finance, supply chain management, and digital identity verification.
Potential Impact on Compliant Cryptocurrencies
The shift from traditional SWIFT messaging to ISO 20022 could significantly affect the crypto industry. Integrating ISO 20022-compliant coins could lead to their adoption within the traditional financial system, expediting the coexistence of crypto and fiat currency ecosystems. This may significantly impact the volume and price of compliant cryptocurrencies.
ISO 20022-compliant cryptocurrencies will form the basis of a new international financial system, replacing the outdated SWIFT payment system. This proposed system will utilize blockchain technology for global central banking and cross-border payments.
IOTA Price Analysis
Currently, IOTA trades at $0.2108, with a market cap of $595,447,041, ranking 79th on CoinMarketCap. Its outlook appears bearish, but if the price surpasses the $0.2340 level, it may rally to $0.36.