other projects is that IOTA came out of real necessity. One of the major differences of our origin stories vs. IOTA itself came out of a stealth hardware startup, which is working on a new trinary microprocessor with working title ‘Jinn’. Every technology in this space today is a Proof of Concept - even Bitcoin.Īll of the founders of IOTA (David Sønstebø, Sergey Ivancheglo, Serguei Popov, Dominik Schiener), have been in the Blockchain space since 2010 to 2011. electricity, bandwidth, computation) from one machine to another, when transactions fees are often unpredictable?Įven though we’re seeing a lot of R&D in this area, the overall conclusion is that Blockchain is not production ready, and most of the use cases that are being discussed right now cannot be executed at scale. How much money will you end up making from selling one resource (e.g. Having uncertainty about how much money you will end up receiving in a monetary transaction means that you have uncertainty if your business model even works (after all, you want to make a profit.). Especially when it comes to micropayments and enabling a thriving Machine Economy, this question is no longer just a disadvantage listed on a Powerpoint presentation but it’s a prohibitive factor that renders many of the use cases useless. The question of “Who is going to pay for it?”, arises regularly. Bitcoin’s mean transaction fees have already risen above $1. ![]() The biggest issue next to scalability is transaction fees (they are largely intertwined). Now all of us are obviously excited about permissionless distributed ledgers and their potential especially in the corporate world, which has up until now only adopted private Blockchains for their use cases. If you’re a large corporate, you don’t want to wait, pay a higher fee, or bear with the uncertainty of not getting your transactions through. This is cumbersome for users, and means that the majority of use cases cannot be executed, simply because you will never get your transactions through. Over 200.000 transactions were unconfirmed at the time of writing. In Bitcoin we’re already seeing the consequences of a protocol that is inherently limited, but is (intended to) being used by a wider audience. The two major problems that I want to elaborate on in this post are scalability and transaction fees. The technological limitations are apparent to everyone (including consultants) at this point. The simple reality when it comes to Blockchain + IoT (or Blockchain and anything else), is that we’re simply not there yet. We’ll write an in-depth blog post on “Why IoT Needs a Ledger”, but the obvious reasons are: M2M Payments, Security of Things (including identity) and automated execution of processes. Not only has IoT a tremendous potential since it’s going to be everywhere (after all, it’s an ubiquitous computing and sensor platform), but it also has a whole range of problems where distributed ledgers could be the solution. ![]() ![]() One of the areas that most excites us and many others is the Internet of Things. The exploration of Blockchain-related use case has been actively pursued by pretty much everyone in this space (corporates, startups, researchers, individuals) over the last 4 years. This blog post will be a bit more comprehensive (expect a ~15min read), but it’s clearly divided into sections so you can just skip the ones which are not relevant to you. If you want to hold a presentation about IOTA at a local meetup, feel free to use the content below, or even reach out to us so we can provide further assistance. Since this meetup was recorded (and the video will be available on Youtube soon), I thought I would write up a quick blog post that accompanies the presentation so that other people can read through it and have an overview of what IOTA is, where we come from and where we’re going. ![]() I recently gave an introductory presentation to IOTA at the IoT and Blockchain meetup in Berlin.
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