IOTA: Pushing through the FUD to dominate the Internet of Things

IOTA, currently the #10 largest cryptocurrency by market cap, has been withstanding a barrage of bad press and FUD (Fear, Uncertainty, Doubt) over recent months.

IOTA coinmarketcap

There are a number of reasons for the FUD surrounding the IOTA project, so let’s go over them.

1) Problems with the IOTA Wallet

Bitcoin.com released an article about a month ago titled “IOTA Attacked for Subpar Wallet Security Following $4m Hack”. This title alone is a FUD-bomb.

What’s interesting to note, is that this is the ONLY article about IOTA on Bitcoin.com. Can you say “Conflict of Interest”?

As IOTA is potentially one of the largest long-term competitors to Bitcoin and other major cryptocurrencies, it’s safe to say these journalists have some sort of bias towards IOTA’s success.

Debunking the Bitcoin.com FUD

Neither the wallet nor the Tangle (IOTA’s ledger) are in any way at risk — people lost their money because they used phishy internet sites to create their seed for IOTA’s wallet.

Although IOTA’s tech is in no way at fault for the investor losses, it is true that it would have been better if the wallets generated their own seeds for users.

In the latest update, the IOTA Wallet now displays a warning for users to not use online seed generators.

IOTA Don't use online seed generator

As an actual user of the IOTA Light Wallet myself, I have to say it is one of the worst user experiences out of many different wallets I’ve used for different coins.

Overview of the Light Wallet

You can download the latest versions of the IOTA Light Wallet here at their github for Windows, Mac, etc. You must install the wallet to your computer and generate an 81-character seed with only the letters A-Z and the number 9.

Why they excluded the other eight numbers is beyond me, but an 81 character seed with 27 options for each character is still strong. There are 80 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000* possible combinations for an IOTA seed.

(*combinations calculation corrected thanks to u/bambinka)

Once installed, here is what the light wallet looks like once you’re inside.

IOTA Wallet

If you’d like to send IOTA from an exchange like Binance to the wallet, you’ll need to click the “Receive” button and generate an address to attach to the tangle.

Attach to Tangle

To receive IOTA in the light wallet, you simply attach the generated address to tangle by clicking the purple button and copy this address over to your exchange wallet to send the funds. Simple enough.

Light Wallet Updates and Disappearing IOTA Balances

Now here’s where things get a bit hairy for the IOTA Light Wallet. Whenever you update your wallet, you need to reattach all of your addresses to a new node on the tangle.

Upon opening an updated IOTA Light Wallet, many users are stricken with panick when they see their zero balances.

If you sent IOTA in separate amounts to your wallet, for example ten times, you will need to reattach each of those ten addresses and you will see your IOTA balances trickle in as you labor through the process.

Aside from the inconveniences, the IOTA wallets have never been attacked or compromised in any way.

2) The MIT DCI  Report

dci-vs-iota

Back in December there was major FUD about a report put out by the Massachusetts Institute of Technology’s Digital Currency Initiative (DCI).

On Friday, MIT Technology Review published an article on the cryptocurrency IOTA. The headline stated that the currency “could outperform Bitcoin.” However, we here at the MIT Media Lab have issues with the story. Specifically, my colleagues in the Digital Currency Initiative (DCI) recently uncovered a gaping hole in IOTA’s software. And while that flaw has now been patched, we certainly disagree with reporter Michael Orcutt’s assertion that IOTA is “secure.” As the Director of the MIT Media Lab, I felt it important we outline our specific concerns. 

One of the main attacks against IOTA in this DCI report was that IOTA’s high-profile business relationships, such as Microsoft are “nebulous”.

The partnership with Microsoft was super hyped in the media. However this was not IOTA’s doing. Microsoft clarified that this was not IOTA’s mistake and used the term “partner” themselves.

 Microsoft partnered with IOTA

3) IOTA is not “tamper-proof” because it uses a centralized coordinator

The function of the central coordinator in early stages of the IOTA network was transparently communicated since day 1.

The IOTA team has explained that the coordinator is a temporary measure to bootstrap and protect the network during its infancy.

Once there are enough full nodes and transactions to secure and sustain the IOTA network, the coordinator will be removed.

4) IOTA’s hash function is vulnerable to attacks

The DCI’s attempt in creating a vulnerability is extemely unlikely, because the DCI group’s theoretical situation considers the victim is:

(a) BOTH dumb enough to follow obviously malicious instructions from an unknown attacker AND capable enough of coding IOTA transactions by hand

OR

(b) Dumb enough to enter their seed into a malicious piece of software provided by the attacker.. if you give someone your seed for ANYTHING, you’re screwed.

When confronted about the practicality of the attack, DCI decided to mislead the public into believing the IOTA network had a vulnerability, rather than address the practicality issue.

It’s also important to note, before giving any major weight to what is said from an organization attached to the MIT brand, that DCI is only very loosely associated with MIT.

MIT’s DCI: A group of academic fraudsters and Zcash shills?

DCI is kind of like a student club within a school. They don’t represent the official views of MIT.

What they actually accomplished with the IOTA report was academic fraud.
  • They presented a “vulnerability” using a scenario that is ridiculously unlikely.
  • They also refused to release the code as proof to the IOTA foundation.
You might wonder why DCI engaged in such academic fraud? Conflict-of-interest.
  • The researchers are involved in competing projects like ZCash
  • DCI gets funding from Bitcoin Club. 

IOTA: Pushing through the FUD towards dominance

Although the devs at IOTA are totally surprised that IOTA has met so much opposition, they are focused on moving the project forward to realize IOTA’s vision.

IOTA’s technology enables companies to explore new business-2-business models by making every technological resource a potential service to be traded on an open market in real time, with no fees.

IOTA is building a strong network of business partners

While some still try to discredit ’s research and development, those with a keen eye for what makes businesses succeed can see what the future has in store for IOTA. The IOTA Volkswagen Partnership is one example.

People tend to forget that VW is the biggest car company in the world. Here’s their portfolio of brands to remind you what we’re talking about here.

vw-brands

Volkswagen is the biggest car company in the world with a market cap of over $80 Billion USD. They manufacture over 10 million cars per year, that may well be suited with IOTA tech one day soon.

This is from the main stage at Bosch Connected World.

Volkwagen cooperation with iota

The city of Taipei partnering with IOTA to adopt the technology is also major news for the project.

 Conclusion: making sense of the FUD

Some coins and their development teams consider IOTA a real threat (why else would a BTC developer or LTC founder post such tweets?). Don’t underestimate the power of FUD. It’s a very powerful way to cast doubt on projects.

The people who do see IOTA’s potential want to buy as cheap as possible so they do what they can to bring the price down, including spreading FUD.

IOTA produces it’s own type of FUD with its disruptive potential

FEAR from those who do understand IOTA’s potential to impact their interests in other projects.

UNCERTAINTY because if IOTA succeeds, they may be poorly positioned.

DOUBT from those who believe they have safely invested in other coins but can see IOTA winning the race for IoT dominance.

For more on what IOTA is and how it works,  check out the iota foundation blog and the  whitepaper

IOTA DECENTRALISED INTERNET OF THINGS TOKEN
IOTA | Hold on For Dear Life T shirt on artist shop

Always DYour Own Research.

Is CPChain ($CPC) the killer tech the IoT industry has been waiting for?

Cyber Physical Chain, $CPC is a Chinese blockchain company focused on revolutionizing the internet of things (IoT).

This sounds familiar. In fact, there are a number of projects aiming for the same market segment, a couple of those out of China as well. Before diving into what CPChain is all about, let’s quickly put all the competitors on the table.

These competitors are targeting different sectors with different solutions to the same problem: “How do we best track physical assets in the digital space using blockchain technology?”

Current IoT players:

  • IOTA (MIOTA): Focused on becoming the backbone technology for the internet of things and machine economy. Their roadmap also targets p2p micro-transactions.
    • Key Features: Scalability, Security, Lightweight, Economical (no fees).
  • Waltonchain (WTC): Targeting manufacturing and logistics using RFID technology with the blockchain to target multiple areas: Production, Warehousing, Logistics, Stores.
    • Key Features: Authentication of asset ownership, Product & Material Traceability, Streamlining existing supply chain ERP’s (Enterprise Resource Planning softwares) into one channel, Solving security issues tied to using RFID tech.
  • VeChain (VEN): A product ID management solution targeting both B2B and B2C. Manufacturers give products unique/encrypted ID’s on the blockchain which can be used in consumer apps and business supply chains to prevent counterfeiting and enable the tracking of inventory.
    • Key Features: Trust-Free, Transparency, High-speed value transfers, Unique Digital ID’s that can used with RFID tags, NFC chips, or QR codes
  • IoT Chain (ITC):  Often referred to as the “IOTA of China”, ITC is also focused on connecting the broader internet of things and machine economy.
    • Key Features: Assymmetric encryption, Scalability & Lightweight (uses DAG technology, similar to IOTA), Integrated plug-and-play solution for mainstream tech (possible advantage over IOTA).
  • Internet Node Token (INT): Also referred to as a possible “IOTA of China”, INT is focused on the internet of things and machine economy as well. The use cases cited in INT’s white paper are focused on vehicles and infrastructure.
    • Key Features: Reduced development complexity, Scalable and ready for the IoT future, Consensus algorithm guarantees legal trustworthiness, Specific market focus & partnerships

As you can see there are some serious players establishing themselves in the IoT space and it’s easy to see why. The size of the prize for the internet of things is quite large, and expected to grow exponentially from here.

internet of things growth

What is CPChain?

CPChain, short for Cyber Physical Chain ($CPC) aims to revolutionize the internet of things (IoT) ecosystem in China and abroad. Described as “The killer tech that the IoT industry has been waiting for,” CPChain uses blockchain to improve the usefulness of IoT networks.

How does CPChain work?

CP-Chain uses blockchain as a backbone for IoT. Blockchain is used to speed up, scale, improve security, and reduce transaction costs for the IoT industry.

CPChain - how it works
CPChain – how it works

“CPChain is a new distributed infrastructure for next generation IoT. CPChain intends to build a fundamental data platform for IoT system in combination with distributed storage, encryption computation and blockchain technologies, providing the whole process solution from data acquisition, storage, sharing to application.”

Today, the CPChain digital token (CPC) is priced at around $0.23 USD per token, which is about a 50% discount from the ~$0.36 it was trading at the first couple days on exchanges after the ICO.

CPChain on coinmarketcap

Sorry to those who purchased post-ICO on etherdelta and got rekd. It happens to the best of us… Pink Wojak Crash

Potential price drivers: what’s next on CPChain’s Roadmap

The beta chain for CPChain is expected to go live in Q3 2018. A sample app is planned for summer of 2019. By the beginning of 2020, CPChain plans to have a fully viable and functioning protocol with a number of live commercial partners.

Does CPChain have their own secret sauce?

secret sauce

CPChain’s core feature is to realize the transmission of value across cyber-physical systems. To do that, CPChain is creating a systematic scheme that addresses scalability needs for the IoT industry. CPChain addresses those needs using blockchain technology, with blockchain technology being used to solve problems like data storage and computation protocols.

Since we already have platforms like IOTA that aim to revolutionize the IoT space, what makes CPChain unique?

CPChain’s 3 Key Features:

1) Parallel Distributed Cloud Storage Architecture: CPChain will deploy parallel distributed cloud storage architecture to solve the scalability problem created by large-scale data storing and sharing.

2) A New Hybrid Consensus Protocol: CPChain will implement a new hybrid consensus protocol capable of huge scaling while optimizing computing power.

3) Side-Chain Consensus System: CPChain will implement a side-chain consensus system focused on providing a high level of security while simultaneously allowing real-time, high-volume, concurrent transactions across the CPChain network.

Use Cases for CPChain

  • Big Data: CPChain can be used for big data aggregation and artificial intelligence applications. The sharing of data will be rewarded, and user data can be used to enhance business data.
  • Personalized Auto Insurance: Existing insurance programs have a very low level of customization. Risky drivers often pay the same rates as experienced, safe drivers. Insurance companies don’t have good ways to measure driver safety. CPChain aims to collect vehicle data through its IoT network, allowing the driver’s driving style to be analyzed by the network.
  • Intelligent Transportation and Logistics: CPChain can be used for applications like shared travel, where smart contracts can be used to complete a truncation between the driver and multiple parties. It can also be used for real-time traffic sharing, where IoT devices are used to measure traffic patterns throughout the city.
  • Drug Traceability: IoT devices can monitor every stage of a drug’s movement through a supply chain.

Overall, CPChain believes that its “aggressive roadmap” will place it at the forefront of IoT deployment within 3 years.

CPChain graphic

What Problems Does CPChain Seek to Solve?

  • Cost of Device Connectivity: Today’s existing IoT solutions have high costs. Many solutions are built for one single project, and each IT system has its own management tools and databases. This creates high costs and data isolation.
  • Privacy Concerns: IoT infrastructure needs privacy from the ground up. IoT devices reveal crucial private details about individuals. CPChain aims to implement private infrastructure from the lower levels.
  • Lack of Meaningful Ways to Access Data Value: IoT systems generate large amounts of data at all times. This data has tremendous value – yet we struggle to access this value.
  • Problematic Business Model: For many IoT manufacturers, the only “business model” is to sell user data. This infringes on user privacy and rights. It also inhibits the future development of IoT technology.

Who’s Behind CPChain?

CPChain has already partnered with major industry names like QTUM, VeChain, and HPB. The company has also secured investment from Torque Capital Partners.

Some of the key members of the team include Dr. Long Chengnian, PhD (co-founder and principal scientist). Dr. Long is a professor at Shanghai Jiao Tong University. He has over 40 published works and has a deep expertise in security, mobile IoT, MIMO wireless systems, and other technical IoT implementations.

CPChain-Team

The other CPChain co-founder is Dr. Zhao Bin, PhD, who has 12+ years of research and development experience across IoT, including 4 years of experience in the IoT department at Alcatel Lucent.

 

The team has relevant work experience, specifically the co-founders Dr. Long Chengnian and Dr. Zhao Bin. They’re well connected in the cryptocurrency space, securing investments/partnerships from Metaverse, HPB, QTUM and VeChain. Although the product has not been launched yet, the team has already completed most of their R&D and entering the implementation stage with a goal to launch version 1.0 of the platform in October 2018. There are millions of IoT devices and billions of transactions happening per second, if CPChain can act as the middleman to help monetize this data, it’ll be a huge success.

To sum up our positive outlook on CPChain:

  1. The team has a good idea and extensive IoT experience
  2. CPChain has strong strategic partnerships (QTUM, HPB, Metaverse, VeChain)
  3. The whitepaper is thorough and well-written although there is no current prototype for CPChain
  4. The ICO FOMO hype was strong enough to overwhelm the team

So what do you think? Is CPChain ($CPC) the killer tech the IoT industry has been waiting for? As for us, we believe it’s a good investment in the IoT space.

CPC is currently trading on IDEX and Bibox. This could be a good entry point before listing on major exchanges.

CPChain on etherdelta February 18
CPChain on etherdelta February 18

If we end up like the Pink Wojaks out there we will do what we do best; hold on for dear life.

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