As the financial industry moves towards adopting the ISO20022 messaging standard, many cryptocurrency enthusiasts are speculating on its potential impact on the value of IOTA. Some wonder if IOTA could see a surge in adoption and price, potentially hitting $100 in 2023.
Let’s dive in and see if IOTA is worth investing in 2023.
What is IOTA?
IOTA is a cryptocurrency designed for the Internet of Things (IoT) era. It is a decentralized network that allows devices to exchange data and value without fees. It works through a unique technology called Tangle, a Directed Acyclic Graph (DAG) that eliminates the need for miners and allows for scalable transactions instead of a linear chain.
The IOTA token is seen as a connective tissue between the human and machine economies, creating interoperability between the two. MIOTA is the crypto token used to facilitate transactions on the IOTA network and is also utilized as a reward for network participants and supporters.
IOTA was founded by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov in 2015. Since then, the company has grown massively.
In the Tangle, each transaction is verified by referencing two previous transactions. This leads to the creation of a web of unified transactions. As such, there is an elimination of the need for miners, making IOTA transactions feeless and scalable.
IOTA’s design aims to make it a more efficient and cost-effective solution for micropayments and data transfer in the rapidly expanding IoT industry.
Initially, IOTA used the Qubic system for the execution of smart contracts and other computations on the Tangle. However, on Apr 13, 2020, they moved away from it to focus specifically on the Smart Contract layer.
Enter Shimmer Network
On September 28, 2022, after two years of working on the Smart Contract layer, the Shimmer Network became a reality. This network came about as a solution to the decentralization problem inherent in IOTA. The blockchain uses Coordinators (clients that send signed messages called milestones that nodes trust and use to confirm messages) to validate the network and because the weight of these Coordinators is large, their involvement is considered a concern for centralization.
In the search for decentralization, which involved leaving behind these Coordinators, Shimmer Network was birthed. It is on Shimmer that improvement protocols called Coordicides are first tested before they can be integrated into the IOTA blockchain. If you are acquainted with the Polkadot ecosystem, Shimmer Network is the equivalent of Kusama.
Read more about Kusama here: Kusama: A Quick Guide
IOTA and ISO 20022 Messaging Standard
IOTA, a distributed ledger technology (DLT) platform, has proposed integrating its Tangle protocol with the ISO 20022 standard for financial messaging. Coming into the mix, IOTA has many advantages. One thing is that it has no transaction fees. There is no need to pay for gas or reward miners to complete transactions. Lacking miners or validators makes the network a fee-free data and value transfer protocol. For IOTA, it can also carry out up to around 1,000 transactions per second.
The network is designed to accommodate devices such as sensors operating in low-energy environments and has different use cases. IOTA’s 2.0 version is fully decentralized, becoming the preferred type of protocol in the industry.
ISO 20022 is a messaging standard used for financial transactions and is designed to provide a common language for financial institutions to communicate with each other. It aims to create a standardized messaging format for financial transactions, reducing the need for multiple communication protocols.
By integrating with ISO 20022, IOTA seeks to improve the interoperability of its Tangle protocol with existing financial systems. This will enable IOTA to facilitate secure and efficient machine-to-machine (M2M) payments and data transfers between different financial institutions.
IOTA’s integration with ISO 20022 will also enable it to support a wide range of use cases in various industries, including trade finance, supply chain management, and digital identity verification. With the integration of these two technologies, financial institutions and other industries can leverage the benefits of DLT and ISO 20022 to create more efficient and secure systems for their operations.
Besides, the change will be from the traditional banking and financial services, attributed to the shift from the traditional SWIFT messaging. The change to ISO 20022 could also dramatically impact the crypto industry. Incorporating coins that comply with ISO 20022 could lead them to be adopted into the traditional financial system. As such, it will help accelerate how crypto and fiat currency ecosystems coexist.
One thing that is so clear is how this may have an impact on the volume and price of compliant cryptocurrencies. As the international payment system, ISO 20022 will replace the existing international payments financial system, the volume of transactions the new system will handle will be unlike anything the cryptocurrency space has ever seen.
MIOTA Price
IOTA currently trades at $0.2108, with a 24-hour trading volume of $12,377,706. IOTA is down 1.38% in the last 24 hours. The cryptocurrency ranks 79 on CoinMarketCap, with a market cap of $595,447,041. Additionally, the cryptocurrency has a circulating supply of 2,779,530,283 MIOTA coins and a maximum supply of 2,779,530,283 MIOTA coins.
IOTA Price Prediction: Technical Analysis
IOTA (MIOTA) struggles under the 0.2340 level, acquiring some support near 0.20. The possibility of the price slipping further seems likely, with the double bottom level not yet fully formed.
Currently, IOTA is trading below the 50-day and 200-day moving averages, a sentiment of another slip in its price. The current Relative Strength index remains below the trendline but at around 49.3803, showing some neutrality in the sell or buy actions, which may show the price movement as speculation.
Therefore, IOTA’s outlook seems bearish. However, if the price breaks the $0.2340 level, it may rally to $0.36.
Conclusion
ISO 20022-compliant cryptocurrencies will become the foundation of a new international financial system, replacing the outdated SWIFT payment system. The proposed system will be based on blockchain technology for global central banking and cross-border payments.
FAQ
What is ISO 20022?
ISO 20022 is a global standard for financial messaging, and it provides a common language and data model for financial institutions to exchange electronic messages.
When will ISO 20022 be implemented?
SWIFT, the biggest international payment system, had planned to adopt the ISO 20022 standard by November 2022. However, they recently announced a delay in the implementation until March 21, 2023.