Can IoT and blockchain technology be combined? An ambitious project called IOTA is on the rise and promises it will attempt to marry the two technologies of the future.
The Internet of Things
IoT, short for the Internet of Things, is slowly but surely making its way into our everyday reality.
Smart devices are already an integral part of our lives, and smart homes provides us with the ability to automatically monitor things like utilities and security.
Quite a few of us have an Amazon Echo or similar AI device in our homes, and can get everything from news broadcasts, music and groceries delivered to us via voice command.
But the Internet of Things promises to take our online ecosystem to the next level.
Imagine your fridge detecting that you are almost out of orange juice, and ordering it online before you can run out of it.
Soon, everything in our lives will be connected via WiFi. But what does all this have to do with cryptocurrencies?
IOTA is a project that aims to utilise both blockchain technology and the Internet of Things. The developers behind the project are very ambitious in their vision.
They want to eliminate several issues that have concerned the blockchain community. Many transactions are both slow and expensive due to the lack of scalability. This is in addition to the incredible amount of energy mining consumes.
The co-founder of IOTA, David Sonstebo, said:
“The obvious thing is that [IOTA] is the first project that went beyond blockchain. Got rid of miners. In the process we solved the main pain points of transactions – no fees”
The project has a large number of investors and supporters, which has garnered the developers $2.7 billion in funding.
Not everyone is positive
Researchers at MIT have found what they consider to be a serious flaw in the coding of the IOTA project. They point to a hash function IOTA developers have made themselves, which is being used to secure the data.
A cryptography professor at John Hopkins, Matthew Green, has also tweeted that IOTA have not been able to explain why they do not view this as a security threat.
A researcher from Boston’s University, Ethan Heilman, also expressed concern over the lack of security. The response from the IOTA co-founders was to threaten the Heilman with legal action.
These concerns could be dismissed as baseless criticism of IOTA’s developers, if it was not for the fact that several IOTA users have lost millions of dollars due to there being no seed generator in in IOTA’s digital wallet.
A lightning network developer commented that this was a highly suspicious oversight, given the fact that including a seed generator requires very little work.
What do you think of IOTA? Are you an enthusiast or a skeptic? And what do you think of the criticisms levelled against the project?
Leave your comments below!