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Review on IOTA by Daniel Reinhardt
IOTA is an incredibly ambitious and interesting project. If it’s successful…
IOTA is an incredibly ambitious and interesting project. If it’s successful, it would be one of the first cryptocurrencies to not only lower the price of Bitcoin, but maybe to render it useless. Due to a large amount of question marks, in technical feasibility, vulnerabilities, and the lack of an open-source coordinator, and that’s a big IF.
Pros
- The idea is that due to the fact that IOTA is ”transaction-free” (explained below), machines can use their computing power + connection to the internet to be able to use IOTA as a decentralized communication system. On top of that machines could use that as a currency to transfer funds for goods or services that they are distributing, such as sensor data, control, or management of machines. Thus IOTA is specialized for low-power cpus that are primarily used to run IoT hardware.
Cons
- a premise of IOTA is that the devices in the IoT industry should be able to generate enough hashing power to deter any attackers when the network gets large enough. However this is very dangerous thinking since the sporadic transactions on an IoT network with devices having low GHz clock speeds with optimizations for battery life would not be able to outpace a committed constant attacker with specialized attack hardware. It is safe to say that a well-financed committed attacker could easily acquire those resources to outpace the computation power of the entire IoT industry’s devices in 2018 and believing otherwise is wishful thinking.
