IOTA · The IOTA team conclusions • For IoT to reach its full potential it needs to be fully...
Transcript of IOTA · The IOTA team conclusions • For IoT to reach its full potential it needs to be fully...
IOTA
Decentralized Economy of Things platformA Distributed Ledger Technologywww.iotatoken.com
The Team
David Sønstebø
Management & Strategy
Sergey Ivancheglo
Development & Cryptography
Serguei Popov, Ph.D
Math & Cryptography
Dominik Schiener
Development & Strategy
Cloud Limitations
● Significant
investment
● High Latency
● Network congestion
● Inevitable Downtime
● Vulnerable to privacy
leaks and attacks
● Struggling with
exploding IoT traffic
“20 Billion Devices
Will Be Connected To
The Internet Of Things
By 2020” - Gartner
The IOTA opportunity
● The team behind IOTA recognized the problem of the cloud and founded their hardware startup at 2014 focused on bringing cost-effective processing to millions of devices in Fog/Mist environments
● During their work, they realized the lack of economic backbone for IoT
● Due to their cryptographic experience, they seen an opportunity and requirement for a Fog/Mist platform
“IOTA came about as a
necessary software evolution
for IoT hardware solutions” -
David Sønstebø, Founder of IOTA.
The IOTA team conclusions
• For IoT to reach its full potential it needs to be
fully interoperable
• Infrastructure resources are scarce and the
demand always increasing
• None of the established centralized payment
processors able to enable the IoT economy
“About 40% of IoT potential can be realized through
interoperability. Average fees on transactions by
processors exceed the average micro-transactions of
IoT” - McKinsey and Gartner
The solutionRethink from scratch
A revolutionary new
distributed ledger
designed for Machine-to-
Machine interactions,
making security an integral
part of the technology and
remove the fees.
So what is IOTA?
● Decentralized data transactions - Core feature of IOTA is the ability to transfer data through the Tangle. IOTA gives you several
options to do so, making it possible to establish secure and authenticated communication channels between devices/sensors . All
data which is transferred through IOTA is fully authenticated and tamper-proof - making attacks impossible
● Micro transactions and zero fees - For the first time ever true micro and even nano-transactions are enabled due to the unique
IOTA Tangle architecture, providing developers with a brand new set of tools for their applications in both IoT and Web. This
nurtures machine to machine payment and brand new business opportunities for companies that prohibitive fees has kept in the
realm of the impossible until now.
● Everything as a service - While the whole world has adopted the ‘Sharing Economy’ in areas like driving and accommodation,
IOTA enables a whole new realm where anything with a chip in it can be leased in real time. Most of our belongings stay idle for
the vast majority of time that we possess ownership of it, but through IOTA a lot of these things like appliances, tools, drones,
bikes, etc. and resources such as computer storage, computational power, WiFi bandwidth, etc. can be turned into leasing-
services effortlessly.
● Scalable distributed ledger - The distributed ledger revolution has only barely begun, the vast majority of use-cases has not even
been thought of yet, and with the next generation ledger - Tangle which IOTA is created on, developers will be able to invent even
more solutions.
● Masked messaging - As the first extensible module of the IOTA core, MAM enables nodes to exchange data through the Tangle,
fully authenticated and encrypted. This means that your devices can transmit valuable and sensitive data with quantum-proof
security through the Tangle, ready to be analyzed later. MAM makes it possible to share data with multiple parties easily, similar to
a radio, multiple parties can simply tune in on your frequency and get the broadcast data.
What is Tangle?
● Bundles all transactions in a tangle
● Validates transactions only on-demand
● Completely self-regulating, consensus no longer decoupled
● Uses low overhead Proof-of-Work to prevent spam
Tangle
Weather forecast for IoT:Cloud, Fog and Mist
IOTA Weather forecast for IoT:Foggy, with chance of Mist
Fog Solutions
● Distributed processing stations close to devices
● No single point of failure
● Greatly decreased latency
● Removes network congestion
● Enable faster analytics and optimization
Mist Solutions
● Mist is next step in
IoT decentralization
● Embed or extreme
proximity of
infrastructure
● Allows for immediate
real-time analytics
and optimization
● All those Mistclouds can communicate and transact directly through IOTA
ED
GE
CO
RE
IOTA Economy of Things
Step 1
What is Economy of Things?
● The synergy between finance and machines is accelerating
● Every device, sensor or equipment will be able to create and receive monetary transactions
● Enabling machines to settle payments among themselves and creating a new M2M-based economy
IOTA Enabling Sharing Economy
A brief history of the modern ‘Sharing Economy’
AirBnBEvery empty room is a potential
rental for the night.
UBEREveryone with a driver’s license
and a car can be a taxi.
Bikes and cars
Your bike and car is idle most
of the time, no reason not to
make money on them
Everything and M2MPower tools, appliances, sports
equipment etc.
● Most of your things are idle most of the time. (95%+ of the time)
● In the near future virtually every device will have microchips in them
● Can be turned into a leasing device effortlessly
● IOTA real-time microtransactions make it possible to only pay for the exact usage of whatever you lease, no more and no less. 100% fair and without fees
● Turn anything you own with a chip in it into a profit-making machine and improve the environment by doing it!
● IOTA has no complex integration. Plug and play. Any developer can implement it.
Sharing Economy 2.0Anything with a chip in it can be leased Devices trade resources among each other
Idle bikes millions of them
● Bike rental parks like
these are increasingly
popular worldwide
● Pay upfront X amount
of hours you think
you’ll use the bike
● Not optimal if you only
need it for 10 minutes
● Requires a central
payment station
● Launch ‘bike locator app’
● Get on bike
● Automatically starts deducting iotas from wallet for exact usage in real time
● Automatically stops when you lock and abandon bike
● Next person who needs it can pick it up where you left it and the cycle repeats
● A lot more accessible and effortless
Other use cases include:
● Compensated storage sharing
● Compensated bandwidth sharing
● Real-time data trade from any kind of sensors and even wearables
● Autonomous ordering (fridge ordering groceries or machine ordering new parts)
● Automated insurance claims (e.g. based on the weather)
● Automated parking meters
● Automated charging stations for EV cars
● Self-discipline / Rewarding wearables
● ANYTHING you can imagine
● Full release with API (Soon)
● Release Proof-of-Concepts
● Help projects building on IOTA get funding
● Keep growing the ecosystem
● Releasing beta in the coming days
● Bringing more and more projects on board
● Assist established companies that want to experiment with the technology and run pilot projects
Present Future
www.iotatoken.com
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