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Just wanted to alert people to some really interesting tech, IOTA, which many of you already know about. I'd like to keep up with what's happening over there so I thought this could be a thread we can add related articles too. I think it's a potential rival to Ripple in some ways, in other ways not so. I find the project really fascinating with great ambitions and scope, and some amazing people on the team.

NOTE: I do not own any IOTA tokens, but I would like to; currently seems a bit complicated to get some as it's still in early production. 

Here's the best intro bits I could find:

http://www.iotatoken.com

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THE ECONOMY OF THINGS

As Internet-of-Things keep expanding the need for interoperability and sharing of resources become a necessity. IOTA enables companies to explore new business-2-business models by making every technological resource a potential service to be traded on an open market in real time, with no fees.

LEDGER OF THINGS

In this new autonomous Machine Economy IOTA will be the backbone. The Tangle ledger is able to settle transactions with zero fees so devices can trade exact amounts of resources on-demand, as well as store data from sensors and dataloggers securely and verified on the ledger.

THE TANGLE

Service layerData formatApplication layerTransport layerConnectivity layerStackTrinary/binary, JSONIoT applications, Device managementIoTMAM, MQTT, XMPPIOTAHTML, XML, JSONWeb applicationsWebMAM, HTTP, DNS, TLS/SSLIOTAWifi, LoRa, Bluetooth etc.Wifi, LoRa, Bluetooth etc.

The main innovation behind IOTA is the Tangle, a revolutionary new blockless distributed ledger which is scalable, lightweight and for the first time ever makes it possible to transfer value without any fees. Contrary to today’s Blockchains, consensus is no-longer decoupled but instead an intrinsic part of the system, leading to decentralized and self-regulating peer-to-peer network. Read our Whitepaper.

MICRO-TRANSACTIONS

For the first time ever true micro and even nano-transactions are enabled due to the unique IOTA Tangle architecture, providing developers with a brand new set of tools for their applications in both IoT and Web. This nurtures brand new business opportunities for companies that prohibitive fees has kept in the realm of the impossible until now.

DATA TRANSFER

Core feature of IOTA is the ability to transfer data through the Tangle. IOTA gives you several options to do so, making it possible to establish secure and authenticated communication channels between devices. All data which is transferred through IOTA is fully authenticated and tamper-proof - making attacks impossible.

VOTING

Although IOTA is uniquely suited for the Internet-of-Things, the Tangle enables a variety of different use cases that involve secure data transmission, especially for eGovernance. An important part of this sector is e-Voting. The exploration into this field of use-cases has already begun by several companies and academics.

MASKED MESSAGING

As the first extensible module of the IOTA core, MAM enables nodes to exchange data through the Tangle, fully authenticated and encrypted. This means that your devices can transmit valuable and sensitive data with quantum-proof security through the Tangle, ready to be analyzed later. MAM makes it possible to share data with multiple parties easily, similar to a radio, multiple parties can simply tune in on your frequency and get the broadcast data.

EVERYTHING AS A SERVICE

While the whole world has adopted the ‘Sharing Economy’ in areas like driving and accomodation, IOTA enables a whole new realm where anything with a chip in it can be leased in real time. Most of our belongings stay idle for the vast majority of time that we possess ownership of it, but through IOTA a lot of these things like Appliances, Tools, Drones, eBikes etc. and resources such as computer storage, computational power, WiFi bandwidth etc. can be turned into leasing-services effortlessly.

ANYTHING THAT NEEDS A SCALABLE LEDGER

The distributed ledger revolution has only barely begun, the vast majority of use-cases has not even been thought of yet, and with the next generation ledger that IOTA created developers will be able to invent even more solutions.

 

More info:

https://medium.com/@DavidSonstebo/iota-97592581f985#.w5vy7hut4

Here is there last "year in review" type blog:

https://medium.com/iotatangle/iota-year-in-review-year-in-preview-6de510696e02#.xcj0gajio

Some quotes from various sources I found particularly interesting (bold mine): 

Quote

Bitcoin has inspired numerous powerful projects that have built on the vision of distributed ledgers. These projects tackle a wide array of different problems in technology and society. And while some of them will certainly play a key role in the sharing economy of IoT, so far none of them has the ability to provide true real time micro-transactions that is necessitated by the sheer magnitude of this economy. This is due a fee structure that make these transactions too costly as well as current blockchain incarnations not being able to scale to a high number of transactions per second, withstand unstable infrastructure or run on extremely lightweight hardware.

This gave birth to IOTA.

[...]

Furthermore unlike old blockchains where it costs money to send/store data, it is entirely free in the IOTA network. Similarly in the old blockchain architecture data transfers bloats and slows down the network, in IOTA’s Tangle it actually strengthens the security of the network and makes it even more efficient. Finally due to the unique architecture of the Tangle ledger it allows for partitioning of the network, meaning that you can branch off clusters from the main-Tangle and establish local networks that still ensure data integrity without having to worry about continuous internet connection.

[...]

In short quantum computers threaten to upend virtually all cryptography used to ensure security in 2015.

Academics and NSA alike repeatedly and increasingly voice concern over the very real possibility of scalable quantum computers in the coming decades. This will disrupt most cryptographic protocols used today, rendering them insecure. Anastasia Marchenkova has a great article covering this more indepth.

IOTA deploys 2 separate mechanisms to safe-guard against this imminent ‘quantum threat’. The first is exclusively using quantum proof algorithms to prevent brute force attacks. Secondly the Tangle works in such a way that obtaining consensus through a Proof-of-Work attack conducted by a quantum computer via Glover’s Algorithm is rendered invalid. Read more about this in the Tangle whitepaper.

[...]

the world’s first Directed Acyclic Graph / Tangle based distributed ledger. The first DLT that goes beyond blockchain. Indeed IOTA is the world’s first digital settlement system without any fees which now got over 3 million successful transactions in it.

[...]

2017 will be the year where IOTA is truly ‘launched’ and real world adoption via deployments start occurring. There are a lot of projects going on with companies that are now very close to being revealed, some dating back to 2015. Now that the networking is nearing a stabilized state we are already preparing the official exchange launch date

[...]

We are approached by VCs on a weekly basis that want to know how to invest into the IOTA ecosystem through start-ups.

[...]

Disconnects and power outages are still going to be inevitable in the foreseeable future. The way IOTA tackles this challenge is by being highly adaptable and resilient in the face of the internet disconnects for whatever reason. As long as these devices can still communicate via a local connection such as Bluetooth, Z-wave, ZigBee or LoRa, the economy can continue uninterrupted, and when the mainnet comes back on this isolated thread of the tangle seamlessly gets interwoven.

[...]

IOTA should not be considered an alternative coin (altcoin) to existing cryptocurrencies such as Bitcoin, rather it is an extension of the growing Blockchain ecosystem. It’s meant to work in synergy with these other platforms to form cohesion and symbiotic relationships. IOTA is designed to provide one solution that no other crypto does: efficient, secure, lightweight, real time micro-transactions without fees.

Given that IOTA is primarily meant to act as the transactive token without ‘heavier features’ such as Turing complete smart contracts, it’s designed such that it can communicate to these other blockchains. This means it can trigger smart contracts such as smart property via acting as an oracle for platforms like Ethereum or Rootstock . On top of this it can provide additional securities for these platforms via checkpointing the transactions in these networks.

I also asked around on the Slack channel about speed / confirmation time of transactions. I was told the more people use it the faster it potentially goes, and eventually a large-scale network effect means transactions settle in "seconds". So it possibly rivals Ripple/Stellar for speed too, once it's deployed properly. 

For me it's further interesting because they've got Gideon Samid from BitMint onboard. My "hunch" right now is (and correct me with a cane if I'm off) that IOTA is going to be another testbed for BitMint's idea of tethered (fiat) digital money, or they're working together closely to co-produce something pretty big. So presumably there's a way to issue any token on the IOTA network (tangle), like Ripple issuances, and/or, the network can be forked and changed to accommodate central banks / mints / banks who issue or govern the issuance of fiat currencies. Very interesting if so!

Would love to hear you guys' thoughts...

RipDig

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Is IOTA inflationary? Can I mine IOTA's?

All IOTA's which will ever exist have been created with the genesis transaction. This means that the total supply of IOTA's will always stay the same and you cannot "mine" IOTA's. Therefore keep in mind, if you do Proof of Work in IOTA you are not generating new IOTA tokens, you're simply verifying other transactions.

What is the total supply of IOTA?

The total supply of IOTA is (3^33-1) / 2, which equals to a total number of IOTA's of 2779530283277761. IOTA is specifically designed for machines, so this high supply makes IOTA optimal for tiny nanotransactions while still keeping efficiency in mind. It also nicely fits into the MAX_SAFE_INTEGER value in Javascript.

 

2,779,530,283,277,761

2.7 quadrillion.  This is going to be an interesting token when the price is listed!   Ripple could've done that with drops, but they knew enough to put the decimal place at a Ripple.   

I like the no mining, of course - kudos to them for taking that approach - good for the environment! 

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Yo @Haydentiff I think you might be interested in this particular aspect of IOTA:

https://medium.com/@bitmintnews/iota-identity-self-vetting-for-immigrants-and-refugees-to-alley-western-fears-ppv-peer-powered-d640f7584578#.ccn7noh7b

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IOTA-Identity: Self Vetting for Immigrants and Refugees, to Alley Western Fears (PPV: Peer Powered Vetting)

My recent blog promoting the use of IOTA technology to establish an evolving identity has brought in many interesting responses. One query in particular deserves immediate publicity: The US State Department indicated that the seven countries mentioned in Trump’s immigration ban have no established national record-keeping, and there is no practical way to vet applicants. This challenge is a perfect match for our work at BitMint for evolving identity protocols. This will allow for a spontaneous coagulation of a chain of trust. An unknown young Somali, for example, will get testaments from people he knows, and from his cyber activities (chats, blogs, cookies). The people he knows may not be all that trustworthy themselves, but they will also be in the network calling on people they know, and adding their cyber events. It is what peer-to-peer networks do so well: rippling away from that young Somali; eventually creating a flow of trust from the network to the Somali. It would be the robustness of the IOTA paradigm that will reassure embassy officials of the credentials of the applicant. So rather than apply the sledge hammer immigration ban, we can stop the evil doers and allow the humanity-contributors to join the quest for a better world.

 

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http://www.coindesk.com/new-iot-cryptocurrency-tech-evolved-beyond-blockchain-creators-say/

Zerpkiller?

Quote

"With specific focus on the Internet of Things and machine-to-machine payments, the platform is positioned to become the standard layer for real-time settlements and data integrity," the startup says, adding that the tech is scalable, modular and has no fees.

 

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Thanks for the insight @rippledigital! I'd just like to add that IOTA is not the only Crypto using a DAG instead of a typical block chain. Byteball is also another promising crypto with its own DAG implementation, but its direction is more about consumer use and not IoT.

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Hi guys! Nice to see you got interested in IOTA :P The article above got removed bec the author didn't bother to do research at all, but another in depth article will come soon. I'm just a IOTA community member, but if you are interested to learn more, this site is helpful: www.iotasupport.com

Edited by moodledidoodledi
Link done properly

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34 minutes ago, moodledidoodledi said:

Hi guys! Nice to see you got interested in IOTA :P The article above got removed bec the author didn't bother to do research at all, but another in depth article will come soon. I'm just a IOTA community member, but if you are interested to learn more, this site is helpful: www.iotasupport.com

Hi @moodledidoodledi ( what a name :) ) - Thanks for clarifying. Looks like you guys have a really interesting idea. I might be wrong be for me it seems like it's not direct competition with Ripple, but targeting something very different. In short I would say something like Ethereum but with the possibility of usage without the native token and using external tokens/currencies for value transfer. Do you also see IOTA connecting to ILP as a gateway to other ledgers? From this side it would be really interesting to see if and how there might be some synergy between Ripple, Interledger and IOTA.

Edited by kanaas

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Aye haha :D That name is available on every forum and never taken. But now, concerning connection to ILP I suggest you ask a member of the foundation if thats an option/planned. For now, IOTA is looking into IOT use cases where micro payments with high speed are necessary (using the native IOTA token  for value transfer). That means we are not trying to compete with blockchain use cases (yet), but basically IOTA can be applied for any use case where blockchain works. That said, here are two of the very latest announcements:

1. The innogy (a german energy company, Carsten Stöcker is a member of the foundation) Innovation Hub is working with IOTA: https://innovationhub.innogy.com/news-event/3lj6DX6LS0C4SyKmgEOiQq/meet-our-future-customers--machines-with-wallets

2. Ubuntu working with IOTA on micro payments for the IOT: 

https://insights.ubuntu.com/2017/02/20/iota-iot-revolutionized-with-a-ledger/?utm_source=Twitter&utm_campaign=3) Device_FY17_IOT_Event_MWC2017&utm_medium=Post

https://insights.ubuntu.com/2017/02/17/mwc17-the-future-of-wireless-networks/

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3 minutes ago, moodledidoodledi said:

Aye haha :D That name is available on every forum and never taken. But now, concerning connection to ILP I suggest you ask a member of the foundation if thats an option/planned. For now, IOTA is looking into IOT use cases where micro payments with high speed are necessary (using the native IOTA token  for value transfer). That means we are not trying to compete with blockchain use cases (yet), but basically IOTA can be applied for any use case where blockchain works. That said, here are two of the very latest announcements:

1. The innogy (a german energy company, Carsten Stöcker is a member of the foundation) Innovation Hub is working with IOTA: https://innovationhub.innogy.com/news-event/3lj6DX6LS0C4SyKmgEOiQq/meet-our-future-customers--machines-with-wallets

2. Ubuntu working with IOTA on micro payments for the IOT: 

https://insights.ubuntu.com/2017/02/20/iota-iot-revolutionized-with-a-ledger/?utm_source=Twitter&utm_campaign=3) Device_FY17_IOT_Event_MWC2017&utm_medium=Post

https://insights.ubuntu.com/2017/02/17/mwc17-the-future-of-wireless-networks/

Understand. Personally I like the idea of IOTA as they have a clear vision and use case on IoT (compared to Ethereum where the vision for real usage is way to vague and unclear). I also doubt IoT and micropayments between machines is or was a target for Ripple as they are more focused on Xborder and IOU markets. That's way different from what IOTA seems to be doing. OTOH having IOTA ILP enabled IMO makes sense as it can unlock IoT machines and systems to Financial (fiat) ledgers with something like RCL enabling XBorder movements.

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