IOTA is a non-profit and open source organization that extensively focuses on building IoT solutions having inspiration but not based on blockchain technology.
The fast growing popularity of virtual reality and other personal technologies have made it impossible for most of our day to day activities to happen without some interaction with technology. Consequently, many people are now embracing digital life and that can be seen in concepts such as smart homes and AI-based personal assistants. At the forefront of the technology revolution is the concept of Internet of Things, or commonly referred to as IoT. Internet of Things concept is based on the idea that even non-networked devices should have some connection to the internet so that they can enable remote monitoring.
Besides, the concept is gaining traction because it allows for convenience in applications such as smart homes since they make it easy and simple to control devices such as thermostats using smartphones remotely. Technology giants such as IBM and Qualcomm have heavily invested in research and testing of IoT capabilities. However, so far, the main challenge that IoT concept has posed how a fully connected digital life can be experienced without raising concerns of cross-functionality and data security.
David Sonstebo, the founder of IOTA Digital ledger organization, has looked at some of the challenges posed by IoT and has recognized that they can be effectively addressed using blockchain technology. As explained by David Sonstebo, IoT revolves around data and how it should be conveniently secured. A distributed ledger is considered a perfect solution except that some fees must be involved when transferring data. The other problem raised is the issue of interoperability. Even though IoT concept is sold on the basis that devices are connected and have leverage on each other, achieving that is near impossible unless some incentives are offered for different stakeholders for them to agree to sharing option.
IOTA is a non-profit and open source organization that extensively focuses on building IoT solutions having inspiration but not based on blockchain technology. David Sonstebo, IOTA founder, began working on IoT from 2014 when he met Serguei Popov, a professor and mathematician who has explored the possibility of having a direct acrylic graph as opposed to using the blockchain technology method.
IOTA’s aim is to provide IoT solutions that aim to leverage blockchain security and incentive options without having the limitations of transaction scaling and fees. According to David, there is a need to get rid of all the bottlenecks that lead to the scalability limit. However, the challenge is easier said than done and that is mostly true because getting the right DAG architecture that eliminates scalability and fee issue is a rough process.
The two big solutions
IOTA’s network referred to as the Tangle can achieve elimination of scalability and fee issue by relying on DAG architecture to build a self-reinforcing system. When a transaction is sent by a user, the user has to intrinsically validate the two previous transactions and without doing that, it becomes impossible to proceed with a transaction. That means validation doesn’t get to be decoupled from a transaction. Therefore, the Tangle works as a one-party system instead of a two-party system as utilized in blockchain technology.
IOTA’s Tangle thereby uses blockchain philosophy, that is, the distributed ledger methodology, but instead replaces the block structure with a direct acrylic graph. Therefore, no blocks exist and that means there is no limit on the number of transactions that can happen in a network. The more people use the network, more validations are passed and as explained by David, the system gets more efficient as more people join to use it. Consequently, system growth gets to be proportional to the network.
Serguei, David and IOTA team have created a highly innovative and unique method that utilizes the concept of blockchain to specific domains. With their extensive and deep understanding of how the concept of Internet of Things functions and their experience with blockchain technology, it is clear that the team is well-positioned in their attempt to marry IoT and blockchain technologies. With regard to the recent announcements of IOTA and Decentralized Identify Foundation membership with tech giants such as IBM and Civic, David Sonstebo and IOTA are making signs of being key players in the adoption and advancement of distributed ledger technology all over the globe. That is welcoming news for any persons who may show passion on how IoT and blockchain works.