Analysis: IOTA


The backbone of IoT is here.

1. What is it? 

Internet of Things (IoT), a revolutionary technology expanding at a great rate invites the needs for interoperability and resource sharing. IOTA proposes a new business-2-business model where a company can leverage its technological resources to fulfill requirements of other companies. This resource trade will be carried out in an open market in real time without any fees. IOTA is a 3rd generation cryptocurrency which is quantum-proof and works on Tangle, a blockless distributed ledger unlike most of the cryptocurrencies which work on the blockchain technology. Tangle technology involves less effort which makes it faster than the blockchain technology. Tangle ledger is used to settle transactions of on-demand resources and services in the autonomous machine economy for ‘Zero’ transaction fees. Additionally, data from sensor nodes and data-loggers can be stored and verified by the ledger.

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2. FIT Test (F: Future updates; I: Innovation; T: Trends): FIT Test enables us to check the uniqueness, alignment with respect to the current trends and future update of the fundamentals of the corresponding cryptocurrency.

A) Innovations:

i) IoT: Internet of things is evolving. This gives rise to the autonomous machine economy. Basically, IOTA promises a network of machines which can trade resources and services and pay for the same amongst themselves autonomously.

ii) Tangle: This is the major innovation behind IOTA. It is a secure, scalable and lightweight distributed ledger which powers an economy with micro-transactions and even nano-transactions with zero transaction fees. A blockchain’s security could be compromised using quantum computing which seems non-existent at the moment but given the ability of powerful imagination and the strength of introducing it to the realm, preparation is the only defense against such threats. Tangle uses cryptography which is quantum-resistant which makes it futuristic. So unlike uncle blockchain, Tangle can conduct micro payments and it does not fear quantum computers.

iii) Masked Authentication Messaging(MAM): MAM, IOTA core’s first extensible module, allows data exchange across nodes with full authentication and encryption. Every bit of your data stream is transceived with quantum-proof security. MAM also enables a host to broadcast data to multiple parties.

iv) Everything as a service: The ‘Sharing Economy’ model is being adopted by the whole world – Airbnb, Car-pooling, etc. IOTA makes it possible to lease anything with a chip effortlessly and in real time. Leasing services could include resources like computing power, storage bandwidth and appliances like e-bikes, drones and other tools.

v) Scalable ledger revolution: IOTA proposes a distributed ledger which inherits only the better of the blockchain technology. This unleashes a wide spectrum of possibilities out of which only a very few use-cases have been thought of yet. This encourages developers to use such technology to provide real world solutions. One of such use-case is proposed by IOTA themselves. IOTA’s next generation security appeals its usability in the field of e-governance. E-voting is one of the many use-cases which is being explored by different organizations at this stage.

B) Trends: Internet of things, Micro-transactions, Quantum-proof security, Tangled network.

C) Future updates: IOTA released a GUI Wallet v2.3.1 earlier this month. IOTA’s core team and developers have proved that the project’s number one priority is real world adoption. IOTA is focusing on the development of clients in different languages so which would invite developers to make specific deployments in the language of their choice. They plan to include clients to support JAVA (Development complete), C++, Rust, Go. They have rolled out Lightclient and are performing active research on Swarmclient. Active developments are observed to include Automatic snapshotting functionality.


Decentralized Internet-of-Things token


3. Community:

A) David Sønstebø: Founder of IOTA and a connoisseur of blockchains and cryptocurrency has managed to introduce the revolutionary blockchain less technology.  David likes to be heavily involved in Internet-of-Things, distributed ledger/blockchain/tangle technologies, Smart Cities, Digital identity, e-governance and innovative hardware design. He believes in any kind of technology that drives the human progress.

B) Sergey Ivancheglo:  Apart from being a self-adoring personality, Sergey is a self-made multi-millionaire. ‘Come from beyond’, as he likes to call himself, founded IOTAtoken and Jinn, he has also been a lead developer of NXT and an early adopter of bitcoin.

C)  Sergei Popov: A mathematical expert, a professor at Unicamp University in Brazil and a member of the NXT community provides a scientific guarantee to David’s and Sergey’s ideas at IOTA.

D) Julie A. MaupinAn advisor to IOTA on incorporation and governance set-up of the foundation, Julie also sits on the Fintech advisory board of the German Ministry of Finance and the G20 Digital Economy Experts Task Force. She is also considered to be a key resource person for the UN Internet Governance Forum. She holds research appointments at global major institutes for blockchain technologies and international governance innovations.

E) John Edge: John launched Europe’s first direct market access trading business for capital markets using applications based on algorithmic trading. He co-founded RedKite, a technology company that anticipated the increase in budget and demand for RegTech solutions in financial markets. They launched world’s first enterprise real-time trade surveillance system for capital markets. John recently co-founded ID2020 a principal driven Public-Private Partnership designed to address the market failures that have led to the vulnerable, especially women and children, being unable to receive protection under the international and local law through lack of recognized identity. With decades of experience, John brings a lot of value to the table.

F) Alexander Renz:  Alex can be considered as a corporate knight by looking at his experience in the fields of mobility and transportation. He collaborates to evangelize and drive the adoption of distributed ledger technology in the fields of mobility and transportation particularly in the Pacific northwest and broader west coast.

G) John D. Halamka: A Professor at Harvard Medical School and Chief Information Officer of the Beth Israel Deaconess System John sits on IOTA’s advisory board. He aims to use distributed ledger technology in conjunction with other technologies to deliver safe and futuristic solutions for the e-health sector.

4. Downside/Risks:

a. IOTA lacks a marketing expert or and a community manager. The core developers of the team interact with the community. They may be talented programmers but they might simply lack a sense of social and business development.

b. IOTA cannot be mined. Petabytes of IOTA have already been mined. Exchanges sell IOTAs at price per million. The price of IOTA that you see at exchanges is for a million of those which are indicated as ‘MIOTA’.


5. Future:  IOTA is the first and the only company to use blockchain less technology which makes them quantum-resistant. Their market debut on Bittrex exchange observed a record breaking capitalization of USD $1.5 billion. Integration of blockchain less technology with IoT and their vision to use distributed ledger technology in the fields of transportation, mobility, e-governance, e-health, etc. makes them a strong and a long term player in the market.

6. Technical analysis:

IOTA coinigy graph

Technical Analysis of Siacoin indicates that it has corrected itself roughly by 60% which is a usual threshold before a further surge. This makes the current price of IOT quite appealing. Risk/Reward ratio is 1.51 which could  further increase by about 25% if the investment is made at 0.00009180 BTC.

Following are the statistics inferred from the technical analysis:

i) Risk/Reward Ratio: 1.51

ii) Optimal Trade Entry (OTE): 0.00009180 – 0.00009520 BTC

iii) Market Cap: $739,088,220

The ideal Risk/Reward Ratio tends to 2.

7. Comments: IOTA uses revolutionary technology which could be mapped into many real world applications. It definitely has a lot of value attached to it. The community is far more widespread than we could mention it in this post. They are getting into various fields and finding solutions using the distributed ledger technology. IOTA promises long term growth.


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