IOTA as its name suggests is a project dedicated to creating a cryptocurrency having as its use case the upcoming technology called the Internet of Things (IoT).
This tech is being discussed a lot, for more than a decade and it is a concept that is closer to becoming widely used.
Every device will be connected to the internet and will be reporting to the owner useful information to make our lives easier by autonomously finding the best solutions in our homes but also in sectors of the economy as industries, agriculture, etc. An IoT device is any device that has the minimum capability to just communicate with a network and perform a simple task.
It can be a smart device, a smart home, or even a tiny electronic component with the ability to transfer data, with or without computing and processing abilities. IoT devices can also be non-technological objects on which IoT devices are attached, and there are suggestions that animals and even humans can become a thing in the Internet of Things since the technology of microchip-implants exists for many decades. In this case, a human that attaches an IoT device with a unique identifier with an implant or wearing a device in any way will become a thing in the Internet of Things.
Anyway, the post is about IOTA but I feel I had to cover a few essentials on the Internet of Things, as this is their main target.
IOTA hopes to be the currency used in services for the Internet of Things.
IOTA is not a blockchain project. Its ledger is called “Tangle” and it is a Directed Acrylic Graph (DAG). While both blockchains and DAG’s are decentralized distributed ledgers that have in their core a mechanism called consensus, they still have underlying differences in their mechanism it is believed by the IOTA team that they can achieve scalability which is not attainable by blockchains today’s standards.
This is mostly IOTA’s description of the model of the ledger they decided for their project. I won’t be too critical on IOTA’s ledger on this post, as there are many tech-savvy people that have a better knowledge of code and network systems like these. I will expand though the decentralization issue which was one of the most promoted features of IOTA since its release in 2017. IOTA was promoted as a no-fee cryptocurrency with low needed PoW for validating transactions.
Decentralization though was simply non-existent all this time in IOTA. The network was completely centralized and according to IOTA, the “Coordinator” was there to protect the network during its first years. The Coordinator was a node that was responsible for confirming all transactions in the IOTA network. A totally centralized feature that in February 2020, intentionally went offline and no transactions were validating for weeks. The network was totally shut down for a month as the team behind IOTA was trying to stop an attacker from stealing funds from their wallets.
The problem was that up until that point everybody in IOTA was claiming that the network was decentralized. It was written so in their whitepaper, it was promoted as such in their ANN thread on bitcointalk forum. A decentralized network does not have a killswitch. IOTA did have one. There are three conflicting features blockchain projects need and IOTA was supposed to be the solution. These features as explained by Vitalik Buterin in what is dubbed as the “Scalability Trilemma” are security, decentralization, and scalability. IOTA at this point has failed in security and decentralization and is untested in scalability.
I leave outside all the censorship I noticed since IOTA was presented to the cryptocurrency world exactly three years ago and instantly got a market cap of a Billion USD for no reason, and I won’t talk about the reaction of this team to criticism and how they were deleting posts and banning people that were asking honest questions. This approach was unprofessional and (from) beyond logic.
Anyway, IOTA is planning to get rid of the Coordinator as once again it was proven a centralized service is only trouble and they are now following the same marketing tactics of Ethereum and Tron by labeling their upgrade IOTA 2.0. Now if IOTA excels in something this is marketing. We were full of fake partnerships back in 2017 and with all the hype they obviously made quite a lot selling tokens. It was a joke back in ’17 in forums and chatrooms that IOTA was announcing partnerships just because they were using a paid service.
Anyway, my stance on IOTA has not changed one iota, and while there might be a few trading opportunities, I am happy I never liked this cryptocurrency and never supported them. I noticed that some bitcointalk members have opened a scam accusation against them which is currently being debated and I can only support this judging from what I’ve seen from IOTA all these years.
First published on Uptrennd (link)- Reposted on Publish0x