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crates/iota-indexer/migrations/2024-07-23-075345_remove_reinvestment/down.sql
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ALTER TABLE epochs ADD COLUMN storage_fund_reinvestment BIGINT; |
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crates/iota-indexer/migrations/2024-07-23-075345_remove_reinvestment/up.sql
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ALTER TABLE epochs DROP COLUMN storage_fund_reinvestment; |
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--- | ||
title: IOTA Concepts Overview | ||
sidebar_label: Overview | ||
title: About IOTA | ||
--- | ||
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IOTA is different than other blockchains. The concepts explored in this section provide a background to the IOTA blockchain and web3 in general. | ||
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## Move | ||
The name IOTA is the ninth letter of the Greek alphabet (Ι, ι) and is used figuratively in English to mean a very small amount, reflecting its status as one of the smallest Greek letters. | ||
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When you read about IOTA in this documentation, it's referencing all the pieces of the system that comprise the blockchain. This includes the blockchain itself, its various networks (Mainnet, for example), the activity on the blockchain (transaction blocks), the distributed entities that verify this activity (validators), and the Full nodes that execute transaction blocks. The documentation refers to the entirety of these elements as the IOTA platform, or simply IOTA. | ||
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## The IOTA blockchain | ||
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IOTA is defined as a Layer 1 protocol blockchain. In basic terms, this means that IOTA performs its own consensus and validation for transaction blocks (activity) on its networks using its own native token (IOTA, in this case). Ethereum (ETH) and Bitcoin (BTC) are other examples of Layer 1 blockchains. | ||
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Layer 2 blockchains, by contrast, leverage the infrastructure of Layer 1 networks, relying on the Layer 1 blockchain to finalize transaction blocks. Polygon (MATIC) is an example of a Layer 2 blockchain that extends Ethereum. | ||
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## IOTA tokens | ||
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The native token for the IOTA network is IOTA. Transaction blocks on IOTA often deal with small fractions of the value of one IOTA. To make these transaction blocks easier to work with, IOTA provides NANOS. It takes one billion NANOS to equal one IOTA. | ||
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It costs money to provide computational power to process transaction blocks and store their results. The term for the cost of processing transaction blocks is "gas". You pay for gas and the cost of storing data with a blockchain's native tokens, in this case, IOTA (or NANOS). | ||
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To learn more about the tokenomics of IOTA, see the following topics: | ||
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<Cards> | ||
<Card title="Move overview" href="/developer/iota-101/iota-move-concepts"/> | ||
<Card title="Patterns" href="developer/iota-101/iota-move-concepts/patterns"/> | ||
<Card title="Package upgrades" href="developer/iota-101/iota-move-concepts/packages/upgrade"> | ||
</Card> | ||
</Cards> | ||
- [IOTA Tokenomics](./tokenomics.mdx) | ||
- [IOTA Token](./tokenomics/iota-token.mdx) | ||
- [Gas in IOTA](./tokenomics/gas-in-iota.mdx) | ||
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## Objects | ||
## Delegated proof-of-stake consensus | ||
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<Cards> | ||
<Card title="Object Model" href="about-iota/object-model"/> | ||
<Card title="Dynamic Fields" href="about-iota/dynamic-fields"/> | ||
<Card title="Transfer to Object" href="about-iota/transfers/transfer-to-object"/> | ||
</Cards> | ||
IOTA uses a delegated proof-of-stake (DPoS) consensus mechanism to validate on-chain transaction blocks. This means that validators on the IOTA network must have a certain amount of IOTA secured on IOTA Mainnet, either with their own funds or in partnership with IOTA Foundation, to prove their interest in the security of the blockchain. This approach aligns the interest of all validators with that of IOTA users (an efficient, secure blockchain), without the high energy-resource demands of earlier blockchains. | ||
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## Cryptography | ||
To learn more about consensus on IOTA, see the following guides and topics: | ||
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<Cards> | ||
<Card title="Transaction authentication" href="about-iota/cryptography/transaction-auth"/> | ||
</Cards> | ||
- [Validator Committee](../operator/validator-committee.mdx) | ||
- [IOTA Full Node Data Management](../operator/data-management.mdx) | ||
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## IOTA networks | ||
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IOTA has several networks available, each serving a different purpose. | ||
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- **Mainnet:** The network that processes production transaction blocks. When you trade IOTA or NFTs that are ultimately based on fiat currency, you are doing so on the Mainnet network of IOTA. | ||
- **Testnet:** Staging network to provide quality assurance that any planned changes to IOTA do not adversely impact performance. Developers can use this network to test their code before placing it in production. | ||
- **Devnet:** A more unstable network that is used to develop new features. Developers can leverage this network to code against the latest planned features of IOTA. | ||
- **Localnet:** You can run an IOTA network on your local computer. Developing on a local network provides an optimized workflow in an environment you control. | ||
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To learn more about these networks and how to interact with them, see the following guides: | ||
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- [Create a Local IOTA Network](../developer/getting-started/local-network.mdx) | ||
- [Connect to IOTA](../developer/getting-started/connect.mdx) | ||
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## Move | ||
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## Tokenomics | ||
The Move language provides the logic for all activity on IOTA, like trading NFTs, playing IOTA-integrated games (dApps), and all other transaction-based events. The IOTA platform uses a concept novel to earlier blockchains, where blocks on the chain are actually objects that define assets rather than simple key-value stores that define addresses. The increased programmability inherent with objects required a more robust logic engine to maximize the benefits of this new approach to blockchain technology. | ||
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<Cards> | ||
<Card title="IOTA token" href="about-iota/tokenomics/iota-coin" /> | ||
<Card title="Gas in IOTA" href="about-iota/tokenomics/gas-in-iota" /> | ||
<Card title="Storage fund" href="about-iota/tokenomics/storage-fund" /> | ||
</Cards> | ||
To learn more about Move, see [Move Concepts](../developer/iota-101/iota-move-concepts/iota-move-concepts.mdx). |
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