The founder of IOTA talked about why he thinks that Bitcoin and Ethereum aren’t decentralised in a recent interview
IOTA was created to tackle some of the biggest hurdles that blockchain faces in an attempt to fix some of Bitcoin’s perceived failures. Bitcoin’s blockchain has the capability of solving just seven transactions per second, as well as costs increasing during times of peak demand, in comparison to other blockchains.
The founder of IOTA, David Sønstebø, thinks that there is a lot of room for improvement.
In a recent interview, Sønstebø commented, “…blockchain itself was what I would call a prototype. It’s what you build a minimum viable product. It works. It proves the different concepts, but it doesn’t really work when you want to scale it.”
Because it uses a Directed Acyclic Graph (DAG), IOTA seemingly has unlimited scalability and charges no transaction fee whatsoever.
IOTA is a different approach
Both the Bitcoin and Ethereum blockchains operate via mining. In a mining-based (proof of work) blockchain, transactions are verified by solving complex mathematical problems. According to the person behind IOTA, this difference leads to the centralisation of both cryptos; as sophisticated, expensive equipment is needed.
Sønstebø stated that in any proof of work (PoW) ecosystem, if an entity has enough resources to mine on a large enough scale, it would have a major influence on the network.
“In reality, it’s just five or ten big operators that control the whole network. That’s Bitcoin. That’s Ethereum. That’s how they operate, and they will always operate this way. It’s the only way that they can operate.”
New ways to make decentralised systems
IOTA uses an architecture it calls a “tangle” to validate transactions on its network. Before a transaction can be made, the entity that wants to make a transaction must approve two prior transactions.
According to Sønstebø, the tangle will allow IOTA to overcome some of blockchain’s biggest drawbacks, “You can have scaling, or you can have decentralization, or you can have a low cost. And in IOTA, we’re able to solve all three of them. And that’s a huge, huge, bold promise.”
Despite offering an interesting answer to some of blockchain’s biggest challenges, it would appear that markets aren’t rewarding IOTA’s innovation yet.
Although it has recovered from the crypto sell-off earlier this year, IOTA (MIOTA) still trades for well under $0.30, well below the highs it hit in late 2017. Additionally, it also seems to be underused by DeFi developers, who are using the Ethereum blockchain in large numbers.
Steve Vallas, who was appointed to the top spot this month, speaks about the importance of revamping the perception of blockchain, its utility in the post-pandemic world, and more
Blockchain Australia, the end to end Blockchain Consulting and Technology company, recently appointed Steve Vallas as their Chief Operating Officer (CEO). In an interview with Coin Telegraph, the newly-appointed CEO explained his vision for the future of Blockchain Australia and the future direction of the industry.
Vallas said that building up public confidence in blockchain and improving the image of the technology among businesses and governments across the world topped his to-do list.
Steve Vallas replaces Nick Giurietto, who led Blockchain Australia for the last five years in the top spot. Vallas, who is a qualified lawyer and blockchain technology strategist, has worked as an industry coach and mentor for multiple universities and accelerator programs.
He is also the founder of the Australian marketing firm Honey Digital. Vallas has previously been part of the advisory team for governments on blockchain technology.
His main focus will be in improving the confidence of key industry leaders on blockchain technology by presenting it as a stable and well-developed solution. “It comes down to people’s definition of blockchain. Their views were formed during the 2017 period where a lot of scams and [poorly planned] projects failed,” he stated.
Vallas elaborated that blockchain is often considered synonymous with cryptocurrencies, but the use of the technology across different sectors is difficult to explain. Even today, many don’t understand how blockchain can benefit the supply chain, retail or legal sectors.
The pandemic presents a unique opportunity for the blockchain sector and the industry must take full advantage of it, Vallas claimed. He said that, “it [COVID-19] has highlighted the flaws in current systems” and the need to keep systems running without the constant need for human intervention.
Disruption in supply chains over the past few months has led organisations to be open to unorthodox solutions. Blockchain Australia must seize the opportunity to contribute to a post-pandemic future, he added.
The Australian Ministry for Industry, Science, Energy, and Resources, formulated a national strategy for capturing the potential of blockchain engagement in businesses called the National Blockchain Roadmap, earlier this year.
Vallas said that he aims to bring industry leaders, government officials, and other relevant parties to the same page with the new initiative. He added that the National Blockchain Project is viewed as a clear indication that the government is willing to work with blockchain leaders to develop a sustainable plan.
Public Mint features tokenisation tools for fiat currencies and has big support from established companies
After two years of development, Public Mint has launched its “fiat-native” public commercial blockchain. It facilitates the tokenisation of fiat currencies, allowing almost anyone to create tokenized fiat assets.
The innovative new platform could propel the integration of blockchain technology with financial institutions. Instead of using a stablecoin, a bank can create its own tokenized assets and have a greater degree of confidence in their underlying value.
What is Public Mint?
Businesses that choose to use Public Mint have the flexibility to receive payment through various means, such as wire transfer, credit cards or auto clearing house payments (ACH). For now, the platform only supports US dollars and is working to open its platform to other currencies as well.
According to IBM Digital asst Labs Director, Nitin Gaur: “By employing blockchain technology as a foundation and applying the benefits of programmability, real-time settlement and finality to business processes worldwide.”
Backed by over 200 banks at launch
Public Mint told media that there are 200 banks supporting its platform earlier this week. The company didn’t disclose which companies are working with the project except for IBM Asset Labs and Hyperledger.
Halsey Minor, the co-founder of Public Mint, commented: “The genesis of Public Mint was to allow regulated banks to hold funds which could then be tokenized or “minted”, allowing for the creation of applications and business processes around money without actually moving money between banks.”
Minor was a co-founder of CNET, a successful digital media platform. He went on to create Videocoin, a decentralized video media network. Minor is now working with Public Mint.
Strong support from DLT leaders
Public Mint did not disclose its blockchain’s technical specifications, but we know that it is a version of Hyperledger Besu with a different set of consensus mechanisms and fiat integrated fees.
So far, the platform has been backed by prominent people in the distributed ledger technology (DLT) industry. Brian Behlendorf, the Executive Director of Hyperledger, is glad to see the platform come online.
Furthermore, Gaur stated that: “Public Mint is addressing that initial promise so that all enterprises, from traditional well-established companies to new and innovative DeFI startups can pave the way for the rise of digital assets.”
Public Mint is still in its early stages, but the successful launch of the platform demonstrates that it is commercially viable, at least from a technical perspective. Time will tell if industry decides to use it to any great degree.
ImageWare, a “leader (sic) biometric identification and authentication,” has brought on Christopher Dickson as Vice President of Sales, according to a press release from June 30th.
Dickson has been a part of blockchain, security, and cloud-related programs for 25 years. Eighteen years of that time was with Computer Associates, and he had leadership positions in New York, California, Australia, and Switzerland.
Recently, Dickson held a sales position at The Bitfury Group and helped bring in the first Blockchain Software-as-a-Service platform as well, the release notes.
Speaking on the matter is Kristin A. Taylor, the President, and CEO of ImageWare, who had said:
“Chris brings a welcomed sense of urgency and focus to our Company and a network of key relationships in the tech sector. He applies his deep technical background to his role which gives us a vital sales edge as he guides us to achieve our revenue goals. His passion for building teams, collaborating closely with engineering, and product management are Chris’s strong suites.”
Dickson has also commented on the matter, and stated:
“With an organized focus, and new go-to-market strategies, I am certain we have the technology and team to help customers solve their identity management challenges leveraging ImageWare’s deep experience with biometrics. Multi-factor authentication that leverages Cloud-based biometric matching is fast becoming the new standard for ensuring and protecting access to data for both consumers, enterprises, and governments alike.”
Over the past few weeks, Ethereum as a network has seen a spike in transactions and active users.
Just days ago data from Santiment indicated that the number of daily active addresses passed a two year high. Simultaneously, the number of daily confirmed transactions ticked past 1,000,000, making many think back to the 2018 bubble.
Fees, though, have responded in kind, reaching a multi-year high.
Enter Ethereum 2.0, an upgrade slated to dramatically change how the network operates.
What is Ethereum 2.0?
In short, Ethereum 2.0 is a new iteration of the blockchain that will cast aside Proof of Work (mining) and the current virtual machine for a new system.
The new system will be based on Proof of Stake, which removes miners from the equation, sharding, and other technologies. In doing so, the speed, transaction throughput, and decentralization of the network will be increased. The amount of power Ethereum consumes will also be reduced.
At the March 2019 Ethereum Asia Supermeetup in Hong Kong, Vitalik Buterin said the following on the upgrade:
“[It is] a way to bring technical improvements, like PoS and sharding, together to improve the Virtual Machine, Merkle Trees, the efficiency of the protocol, and a whole bunch of small technical things that you have never heard of.”
It’s important to know that due to the changes being implemented, transitioning to Ethereum 2.0 is an arduous process.
It’s so arduous that technically speaking, there will be two blockchains running at the same and data will be transferred over in a multi-year process.
Bison Trails Backs Upgrade
To help ease the transition, firms are springing to provide products that allow one to interact more easily with Ethereum 2.0. One such firm is Bison Trails, a Libra Association partner that announced “support for Eth2” on July 1st.
According to the announcement, the firm will be offering a “suite of enterprise products.” These products will “make it easy to interact with the Beacon Chain, stake ETH, and automatically manage validators, validator clients, and beacon nodes.”
Bison Trails will also help its clients automatically manage their infrastructure in relation to Ethereum 2.0:
“Bison Trails’ autoscaling software will manage customers’ infrastructure automatically, as network requirements change and customers choose to add more validators. This innovation will enable Bison Trails’ customers to continue earning rewards without the hassle of manually managing participation.”
It is unclear which firms currently are looking for a service like this. Yet, it is important to point out that there may be individuals and exchanges incentivized to migrate to Ethereum 2.0 due to staking rewards.
Featured Image from Unsplash
Price tags: ethusd
Libra Partner Bison Trails Just Announced Support for Ethereum 2.0