Internet terms such as “Cryptocurrency” or “Blockchain” technology are definitely an unavoidable part of the forefront media outlets’ catalog, but ar
Internet terms such as “Cryptocurrency” or “Blockchain” technology are definitely an unavoidable part of the forefront media outlets’ catalog, but are these terms just enough to be also an unavoidable part of our everyday-life scenarios?
For the newbies in the scene, I’ll share a couple of stories so you better understand what’s really going on behind the scenes, while for the crypto-veterans this article will look like an anachronistic checkpoint with a dosage of gentle irony.
Modern historical data
In-between late 2016 and early 2017, the Distributed Ledger Technology (DLT) scene started to attract major attention in the form of excessive funding from accredited individual investors who previously mocked cryptocurrencies, central banks who insisted cryptos can never replace ‘the paper’, and even government organizations who believed anything related to cryptocurrencies is most likely to be a Ponzi-scheme (or a Pyramid business in folks tongue).
Indeed, there were thousands of attempts in the scene to develop decent and operational platforms for the future generations that solve economic, secure data transmission, and non-disclosed contract problems, subject to third party authorization, and limited technology of the past, prior to that of blockchain.
Nevertheless, most of them were scams. I mean clearly, if you’d invest in something called ‘Jesus Christ Coin’ and expected that it will change your life forever, you probably were asking for it.
Just right where academia, banking, and monetary institutions, among other governmental organizations, started to show a hopefull amount of trust in cryptos, we got slammed by a series of ‘John McAffee style exit scams’, when he’d convince people on Twitter that the ‘whatever-coin’ he just posted to promote is the next big thing!
Then we got the famous Bitconnect (BCT) exit scam, which will probably remain in history as one of the most tragic, yet successful scams in the DLT scene.
Pyramid-schemes didn’t stop popping up since then, and there are more than half DLT-based projects today that will probably end the same way. That kinda sucks, but it is also the reason governmental bodies and industrial titans started to research in-depth the technology behind the famous Bitcoin (BTC).
In 2018, the G20 compiled a special task force to deal with cryptocurrencies’ integrity and viability, while the European Union’s respective Commission launched the Blockchain Observatory & Forum in order to better understand, and regulate if applicable, cryptocurrencies as well as the underlying technology behind them.
Swiss financial watchdog FINMA said that some cryptocurrencies and more specifically ICOs can be now treated as securities, but not yet as viable currencies.
Up until 2018, there were minimum industrial investments in the scene, and the war against crypto generated by several governments all over the globe did not make things easier.
Major industrial players such as BOSCH, Volkswagen Group, Daimler, Porsche, Orange, and Samsung among others, started to do their own research, and after several resolutions were posted by government bodies both in the West and East, Deutsche Bank started to post official statements about the future of the economy and explained why cryptocurrencies are necessary, specifically talking about IOTA (MIOTA).
Several tech companies followed right after, as they had to understand the technology, comprehend the code of conduct, and vision of a respective project and finally choose their partner for the future economy. All of the above-mentioned companies also have chosen IOTA for reasons to be explained further in this article.
Now, before we continue and reveal why all these government officials, industry experts, and banking officers choose IOTA as the most promising concept of the digital economy, we must understand some objective facts about cryptocurrencies in general:
- Cryptocurrencies do not require a third party to authorize a transaction, might that be a monetary transaction, or simply an intelligence exchange protocol (messaging), as long as the ending points of a transaction have agreed to a common deal.
- Cryptocurrencies do not require cutting trees/printing paper.There is no comment that could explain this better than the headline.
- Cryptocurrencies do not require a physical-level transfer of funds, logistical operations, storage, accountants, and all the fancy-tie employees a traditional banking system needs in order to operate with integrity.
- Finally, cryptocurrencies do not care if you have your cousin working in the bank, you want a free meal at McDonald’s because your niece is working at the cashier, or you want to buy something from the internet, and then claim your money back (as you do with PayPal). The algorithmic-based protocols behind cryptocurrencies make sure that decent and kind users get rewarded, while malicious users get punished, no strings attached, and regardless of their social status.
Back to the point
After excessive research, the so-called “officials” understood one thing: most of the cryptocurrency projects out there are literally copy-pasting Bitcoin’s code, with minimum variations, meaning that they are not really trying to solve anything or create a better future. They are abusing a public “business-plan” as they treat it for their own centralized benefit.
There were several coins that made a difference tho, and it was clear how and why. Among them, Stellar (XLM), backed by IBM, Ripple (XRP), backed by the Bank of America, Western Union, and tens of Japanese and Korean central and major banks, and of course IOTA (MIOTA), backed by Volkswagen, BOSCH, CISCO, Porsche, St. Petersburg Polytechnic, Government of Thailand, Norwegian Center for e-Health Research, Government of Netherlands, Government of Taiwan, and the list goes on…
Why did all these ‘fancy-tie people’ join the IOTA train?
- IOTA (MIOTA) operates on a unique in-house conceptualized and crafted protocol and network called “The Tangle“. (This is important because no one has ever copied the Tangle with functioning-level accuracy unlike Bitcoin, which is copied every day).
- MIOTA (The Tangle’s native currency) is pre-minted, which means that there is absolutely no need for mining ‘third-parties’ to promote your transactions inside the network. Instead inside the Tangle, each transaction promotes two previous transactions and awaits to be promoted by the next transaction, eliminating the need for third-party authoritarian miners.
- IOTA is the only proven alternative economic system that has literally 0 (zero) transaction fees. Yes, if I want to send 0,01 cents to my car, the car will receive exactly 0,01 cents worth of MIOTA, and I will only lose 0,01 cents. No banking fees, no card fees, no mining fees, etc. You might wanna read this one again.
- IOTA is specifically designed to interact with the Internet Of Things (IoT), a new generation network where smart machinery are interconnected and can perform micropayments between each-other, without any human interference. Big companies are aware of that, and they put their stake on IOTA simply because they’ve already invested hundreds of billions in the development of IoT. Isn’t that lovely?
- Finally, the Tangle has infinite scalability. Simply put, blockchain technology is on its verge, but it is also very limited due to the number of transactions that can be performed per second. Inside the Tangle: more users means more transactions and equal to a faster and more secure network.
“The possibilities of decentralized and secured applications based on IOTA Tangle as a Distributed Ledger Technology are immense. They go far beyond machine-to-machine payment and include, for example, tamper-proof monitoring of the supply chain and secure identity management, just to name a few. I’m delighted to join the IOTA Foundation Supervisory Council (Stiftungsrat) to accompany a journey which will be meaningful for lots of industry sectors worldwide.” – says Mr. Werner from Fujitsu, who joined IOTA Foundation’s Supervisory Council.
Yeah, well, we had to pass through the Ponzi-scheme era, all the way to the government raid-boss-like fight against cryptocurrencies, in order to end up in the era, where governments and industry truly understand the technology, where it came from, and where it eventually leads.
We have people who invest in Bitcoin because Donald Trump tweeted about it, and people who do that extra mile of research to finally realize that there is only one DLT project that’s future-proof and tailored to the needs of the machine economy.
A quick look at the chart below shall indicate why investing in IOTA (MIOTA) this specific period could potentially be your best decision through the next decade.
We’re are now at the point where not only governments and accredited institutions are accepting and using blockchain technology and cryptocurrencies, but they also show us the path towards projects that really mean something and are not based on thin-air and speculations.
Eventually, there will be several cryptocurrencies left in the near future, based on the current regulatory acts on a global scale, and if anything, projects like IOTA are clearly among them.