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What IOTA’s coordicide-update means for speculators

What IOTA’s coordicide-update means for speculators


If only I’d listened….

Following the foundation’s insane announcement, the DLT sector is changing, especially for investors.

Normally I don’t talk about the price development of IOTA, but that changes once for this happening. You can’t ignore this significant part. Investment is part of IOTA.
From the perspective of a convinced investor. Me.

What if your future-self travels back in time just to tell you that this one time you better would have listened? When we think about the speed of technologization, including advances in quantum computing and artificial intelligence, but also the exponential nature of this change, an event like this does not seem so abstruse.
After all, a problem that lasted for decades has also been solved and announced today: The scalability trilemma.

The Scalability Trilemma in none anymore

It seems so obvious to people involved that IOTA will overcome the sonic barrier of DLT’s, that I sometimes lack words, but I’ll give it a try.

IOTA is one distributed ledger asset of many and yet everything is different.
So let’s take a look at the brief overview and then to the more important part.

Advanced users should continue reading at point 2

1. The Past

Bitcoin, Ethereum, Dogecoin, Litecoin are blockchains.
Cryptographic protocols that aggregate transactions into blocks in time intervals, link them sequentially to previous blocks and share them with all participants in the network via a trust mechanism so that there is agreement on the status of the amounts in the global ledger -a secure and decentralized excel-table.
From the outside, this characteristic is ingenious, unbreakable without further effort, and is still innovative even after several years of existence. Supposedly.
But a closer look reveals small design deficits that grow into insurmountable hurdles when used for long periods of time.
The blocks are filled quickly, the intervals are too long, and the way the trust mechanism works is too expensive and too polluting, as electricity consumption can in most cases be compared with some countries.
This results in a further, yet even more serious problem. The “time and money factor” is one of the most important balancing acts in any technology.
Blockchains or distributed ledgers also share this problem, with the rest of the world of innovations because the actual use of the protocols is only possible if the trust mechanism (consensus) is provided by monetary incentives. In other words, an incentive to keep the network alive and expand with computing power – Mining. This mining costs the actual user fees, which are charged for each transaction in advance. As part of protection mechanisms, the more people use the network, the more money the miners will have to spend.
It is, therefore, easy to deduce that additional use is not necessarily desired.
How can you serve a mass market with that?
Rising fees, long waiting times during stressful periods and an environmental impact of a country does not sound like an innovation, does it?

And that’s exactly why we have to note that the blockchains, which are still regarded as innovative, are already outdated in their present form.

Yes, there are considerations about how to overcome these baked-in deficits, but it is difficult for developers to find efficient and goal-oriented solutions since their original protocol is not designed for this. You can equip a bike with a Porsche engine, but that doesn’t bring you far, nor is it sustainable and secure.
Concepts range from the so-called Lightning Network to Proof of Stake solutions, or rhetorical solutions that are none at all. Eg “Bitcoin is digital gold” -some people say without realizing the irony.

The fact that this approach is not well thought out should, therefore, be obvious even to an inexperienced user.

2) Present limitations

Why should IOTA have a solution?
Well, many people have already asked themselves this question and so far it was a good idea to remain skeptical, but in recent months it has become clear that the IOTA Foundation’s development forge around Hans Moog has achieved the unattainable.
A solution for the time/money problem.

Of course, we can go to the technical level and crash through consensus mechanisms, list the competition, ponder for an hour whether this might be implemented in the old prototypes Bitcoin or Ethereum, or, we can simply enjoy the thought that IOTA was the first to make the breakthrough.

The breakthrough of scalability, which in the DLT sector is regarded as a perpetuum mobile, the holy grail of network technology, the “YES- we are not alone in the universe”-moment. I can’t emphasize enough how big this really is.

The work has been peer-reviewed by independent scientists and will have to withstand attacks in a test network environment the next few months, but I have been told that there is no reason to believe that there is an attack vector that makes the network vulnerable.

Just to round it up: Why can’t other projects do that?

-Because other projects give financial incentives to maintain the network and thus have to take fees.

-or have sequential series of blocks that create a bottleneck.

-Because other projects were built on the foundation of only 30 peers and therefore always depend on their integrity.

-Or because most projects were simply badly designed and cannot offer this kind of solution. -which counts for the majority.

There is one rule of thumb that can be applied. The more people use blockchains, fewer people can use blockchains. Doesn’t sound very logical, does it?

As an investor, at this point, it makes no sense to invest in struggling projects that might be able to work on a non-perfect solution in the future, if IOTA can already do it on paper. It’s only a matter of time before “Shimmer” is integrated into the main network and can send all concepts from hundreds of companies into production in a single step.

3) The solution

The advantages of IOTA are almost unbelievable.

-No fees. Especially with sensor data markets, you can send the smallest amounts.
-There is no bottleneck on the protocol side.
-There is no pollution from incentivizing mining rewards.
-There is no centralization.
-There are actually no disadvantages at all.
– The full list is way more diverse, like modularity, etc. But one article isn’t enough for that beast.

Read the whitepaper and the coordicide page (posted above) if you want to understand all advantages.

This opens up new possibilities, which were certainly aspired during the creation of IOTA as part of the vision.
The interconnectivity of all communicable devices in the Internet of Things.
Since this sentence alone triggers fear and anxiety among many security experts, the security aspect of such a decentralized network is most important of all.
Values must not be changed from third-parties, data must not be accessed and the network must never go down.
These aspects of a DLT will be fully achieved, without limitation in just a few months. The expectational value of such a venture is beyond gargantuan!


Since all global players in the industrial sector are involved in the Internet of Things, it is only a matter of time before the advantages of IOTA become obvious.
Everyone can participate in the network, no one needs permission, no one has to resort to expensive middlemen, which charge fees such as Visa, Mastercard or Paypal and censorship is not possible.
In addition, data can be monetized and cannot be accessed from the outside.
There is no company that can ignore these benefits unless they want to take advantage of centralization and have complete power over a network, but that eliminates the guarantee of a network-outage and thus the entire idea of a DLT.

Part of our future is certainly that we must strive for a brutal energy transition. Energy guzzlers such as blockchains are, therefore, of course, superfluous if the carbon balance is further burdened. Even in the case of a sustainable energy-supply of Bitcoin, it is questionable whether the regenerative resources are not needed for other things, especially in transformation phases that will undoubtedly come.

IOTA as a lightweight is, therefore, the perfect alternative for environmentally conscious companies that have to comply with new regulations because the Paris Agreement will hardly be ignored in the near future.

Another point is that through IOTA’s free data and value transaction, an energy market can be created. Neighbors can exchange electricity and money without follow-up costs. And that in a sustainable fashion, locally, without a middleman.

These peculiarities of the protocol will become interesting in all applications.
Car sharing. Toll-payment, sensor data sales, energy trading, e-commerce, data integrity, SCADA systems, autonomous systems, etc. The list is as long as the different Industries of the planet and is extended every day.

The IOTA miota tokens (1 miota = 1 million iotas) themselves can be split into the smallest units. Values in the range of 0.00001 cents can also be transferred. A novelty. There is no other secure and scalable technology that can do that.

From an investor’s point of view, this expense is, therefore, a simple decision.
If you understand the impact.

4) My price-predicition

My personal price analysis knows no end.
If IOTA has disrupted the DLT sector, it will be easy to penetrate large parts of the industry and ultimately incorporate large parts of the global GDP.

Whether this opinion is somewhat pompous remains to be seen.
Some innovations are indeed incredible. Like IOTA’s Shimmer consensus.
And in global times of industrial upheaval into a totally interconnected world, but also a compellingly sustainable world, we need a safe, fast, free and environmentally friendly protocol, which can only be deployed in this form with IOTA. Yes, you can criticize this sentence, but try to find an alternative. There is none!
Not to mention that there is no other protocol that inherits other perks like trinary calculations (for energy-efficiency), an oracle machine like Qubic (to represent assets and to react according to changes) and a quantum-resistant algorithm. The non-profit foundation from Germany isn’t here to impress anyone but to solve actual problems.

Therefore, if IOTA still reaches the (partial) implementation of Shimmer in 2019, I assume more than $10, and in the following years significantly higher prices in the range of over $500 per miota.

Because if you believe in this vision, where do you draw the line?

Is the vision of a global data and value transactional layer in the IoT just worth $3,12? or 20c? or $70?
My personal idea of the vision of IOTA doesn’t stop there. And I’m in for the long run.

In my eyes, IOTA is the new “Google of investments”³.

If only I’d listened

This is my personal assessment and not an invitation to invest. Investments in cryptocurrencies are many things, but not risk-free. Invest at your own discretion and only after sound research.

Picture used:
What only exists in the mind” painting by Jeffrey Smith.
Buy his wonderful art!
Artstation:
https://www.artstation.com/ascendingstorm

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