More secure and effective than Blockchain: Israeli development in the crypto world

All credits to: Roy Katziri   – Original post: https://goo.gl/wn2MoX
Note this translation is not the best

 

The new IOTA research and development center, one of the world’s leading digital currencies with a market value of $ 6.5 billion, is located at Toi Lab, a development of technology toys in the heart of Tel Aviv. The complex was built by the architect Eyal Yona Segev, founder of the local embassy of Bitcoin, which is also not far from the site. The IOTA team’s study is surrounded by dozens of toys, which first look like tiny robots.

“We were looking for a place for our activity and finally settled on Toy Love because there is a deep connection between technology toys and the world  of cryptographic coins  ,  said Alon Almaliah, IAA vice president of technology, Whose activity started this month. Alongside Almaliach, the team includes Clara Schichlman and Alon Gal, who are involved in IOTA’s technological research, as well as Zvi Sabo and Gal Rogozinsky, responsible for software development. According to Elmaliach, they recruit more workers and expect the team to appoint 10 employees.

Visiting the new R & D center is a rare opportunity to peek into the cryptographic industry and recognize the people behind it. In contrast to the anonymity of developer  Bitcoin  , who after 9 years of existence is still behind the pseudonym Satoshi Nakamoto, major developers operating in Israel and other countries, and the founders of technology that manage the activities of the Berlin association.

Yes, this is an association that last November was registered in Berlin as a non-profit organization promoting the adoption of the software protocol and the IOTA digital currency, developed three years ago by the four founders – David Sonstabo of Norway, Russian Sergey Ivancello and Russian Sergey Popov, who were familiar with the development of the Blocchien platforms   in the past.

Bitcoin, the oldest and largest digital coin in the world, is still the king of the uncontested cryptography market, with a market cap of $ 180 billion and numerous references in the media and social networks. Last year, however, Bettkin’s share has declined, with almost all other types of digital currency being born every day. Bitcoin now accounts for about a third of the market, compared with 85% at the beginning of 2017.

 

With a current market value of US $ 6.5 billion, IOTA, which occupies the 11th place in the market (with a participation of only 1%), is one of the contenders of the title of Crown Prince of Bitcoin. However, it is an exceptional cryptographic currency, offering an alternative to Blockchain technology, based on almost all digital currencies. Instead of Blockchain, IOTA is based on a new data structure called Tangle. Tangle is represented by a graph driven instead of a block chain, so that each payment is carried out on it is a small block itself. There is no mining process in Tangle, and to establish consensus among the network participants, each transfer confirms two previous transfers. The lack of reactors allows IOTA to be transferred without commission and at a faster rate. Besides that,

Unlike Bitcoin, which was created as an alternative to the world’s Fiat coins, IOTA is defined as a Token Token, intended to be used in the IoT economy. According to Elmaleh, “Every IoT product has manufacturers, suppliers, service providers, merchants and customers, and today many agreements are needed among all market players so they can share information.” IOTA wants to create a protocol unified for all these players. Due to the speed and minuteness of the IOTA transitions, “the IOTA protocol fits into all machines,” he explains. “Our goal is to revolutionize the industry.”

If digital technologies are still in the early stages of development, and despite the media’s interest around these currencies, a limited number of users. However, the Internet industry  of things  – a network of objects, equipment or components that can communicate and exchange information between them using the software and sensors installed in them – have already passed the initial adoption phase and is developing at a rapid pace. According to a report by Gartner, Inc., in 2017 it became the world using 8.4 billion in IOT-related products – a 30% increase over 2016, and the number is expected to reach more than 20 billion by 2020.

“The automotive industry is ripe for our technology”

Protocol IOTA came on stream in mid-2016, and has since collaborated with pilot projects in large companies including the German telecommunications company  Deutsche Telekom , the German corporation technology corporation and information services company Accenture. Last week, the significant strengthening organization as digital director of its supervisory board joined the Volkswagen Group. Earlier this year he joined the IOTA Advisory Committee Dr. Jiang Hongquan, risk partner of Robert Bosch, and these appointments are made to strengthen the ties between the IOTA high-tech automotive industry and.

“IOTA solutions can be especially suitable for companies that manage large infrastructures, such as energy companies or water companies, which connect their networks to intelligent sensors,” says Almalsh. “In addition, the automotive industry is very mature in the use of our technology, so IOTA has been in contact with Bush over the past two years, among other things, producing spare parts and car systems.” According to him, the IOTA system is being tested in advanced stages in the automotive and infrastructure sectors in Germany. Yes, he notes, there are contacts with mobile phone manufacturers in East Asia about using the platform.

By the end of 2017, as global interest in IOTA increased, there were also increasing criticisms in the Crypto community over IOTA technology. Criticado by Vitlik Botryn, founder of the Blu-ray Platform, which enables the creation and use of smart contracts whose digital currency, Athar, now has a market base of $ 110 billion (the second largest after Bitcoin). Boutrine sent a sting to the IOTA when he wrote in October: “I strongly adhere to many of IOTA’s technical decisions and see his behavior so scandalous as to go beyond negligence.”

How do you respond to the criticism of IOTA technology in the Crypto community?

Elmaleh: “Some of the comments on IOTA are relevant and some are not, but we have to take into account that this story also has an economic and commercial aspect, and there is a race between the different digital currencies in the world.

“In the current development phase, there is a coordinator in the system that helps protect the young network from attacks, such as the” support wheels “system,” he said. “Globes” asked whether the organization’s management or founders had the ability to intervene in the approval of IOTA transactions or currency trading. The organization can, along with network activists, propose a change that corrects the problem and saves the user money. This change must be agreed upon by the activists in choosing to upgrade. The software version they execute is also a technical issue in which situations can be corrected and which are not, and how true the community will decide. ”

Raising $ 500,000 in currency issue

“IOTA is the first non-profit organization in Germany whose capital is based entirely on cryptographic currencies and operates in a fully regulated field,” says Almaliah, “The goal of the organization is to promote IOTA worldwide as a free software system of open source. The organization itself currently holds 5% of all IOTA currencies. “At the current market value of IOTA, the organization’s share is worth about $ 350 million.

Elmaliach says that the founders of IOTA came to this project after having accumulated experience in the development of Blockkin. Before that, several of them worked on the development of the Nxt digital currency, but this project found it difficult to increase because it did not have an organized organization and did not bring sufficient funds for development. Therefore, it was important for the founders to establish an Amuta to manage the project. About a year ago, the founders of IOTA approached all the money holders and asked them to donate coins in favor of the association. In the end, the association reached 5% of all currencies.

The IOTA initial offer (ICO) was made at the end of 2015, and all IOTA currencies were issued for 1,337 Bitcoins. According to Elmaleh, the issue was conducted without major public relations, and almost all of its investors were technologists and activists in the Crypto community. It should be noted that the founders of IOTA had no rights on the issue and none of them purchased more than 0.8% of all currencies. At that time, the IPO reflected the IOTA total market limit of $ 500,000. Today, its market value is estimated at $ 6.5 billion (about 630,000 Bitcoins), that is, jumped 13,000 in 14 months.

“If we can increase the supply of IOTA coins through additional problems,” Sonestabo replied, “we can not in any way increase the supply of currencies or produce new currencies. This can be verified by testing the open source IOTA. Nor do we have the authority to do so. ”

Currency trading is conducted in MIOTA units, each of which is equal to one million IOTA. It is now traded in digital currency exchange at an average price of about $ 2.2 per MIOTA (about 0.0002 bitcoins for MIOTA). The total supply of IOTA coins issued at the end of 2015 is about 2.78 billion MIOTA. By comparison, Bitcoin’s maximum supply of coins, to be completed in 2140, is 21 million. Elmaleh explains that the capital created at ICO was used to build the IOTA system. The following year, the system was developed and tested in its beta version, and during 2016 the IOTA trading was conducted only “over the counter” – that is, directly between buyers and sellers. In June 2017, the possibility of currency exchange was opened for the first time in digital exchange exchanges.

Today, IOTA is negotiated in seven of these exchanges, mainly Bitfinex and Binance. In the second half of 2017, the price of the currency jumped almost 500% from 60 cents to MIOTA on the first trading day to $ 3.6 at the end of the year. But since the beginning of 2018, IOTA has lost about 30% of its value, according to the CoinMarketCap. In November 2017, the currency price hit $ 1 for the first time for MIOTA. In December, it jumped to a peak of $ 5 and is now around $ 2.2.

How can you establish a payment system in such a hectic currency?

Elmaliach: “Volatility is definitely an obstacle to the adoption of currency, which is a challenge for all digital currencies today, so the association is in negotiations with banks to create a tool that allows the fast conversion of Fiat coins such as euros or dollars. ”

“The concept is exciting”

Until about a year ago, Elmaleh (30) worked as an engineer at Intel, where he worked on chip development. “The work of Intel connects today to my work in terms of dealing with the challenges of a large and very complex system,” he says. “When I read about IOTA, I was excited about the technological concept and the idea that the system does not use BlockChain,” he says.

The work for IOTA began after Elmaleh completed his studies in electrical engineering and computer science. “At first I volunteered at home, wrote a code for IOTA and donated them, and a few months later one of the founders approached me on Skype and suggested that I worked for them full time.”

After IOTA completed the long registration process as an association in Germany, Elmaleh was assigned to establish an R & D center in Israel, “The organization is run in Berlin, but the IOTA team is spread all over the world. The organization wants to bring the best brains in the fields of math, cybersecurity and cryptography, and he decided to establish a R & D center here because of the quality of Israeli developers in the cyber field. ”

Elmaleh says that “our research team is working in two areas: a theoretical mathematical study of Tangle technology, which examines parameters such as growth, transactions and system attacks, and simulations to test the effects of various parameters on the system. P2P (peer network) as well as the IOTA (beta) ready system. ”

Clara Schichlman recently joined the IOTA R & D center as a research scientist, and Schachleman, 29, is pursuing a doctorate in mathematics at Tel Aviv University and her fields of expertise are graphical and combinatorial theory. “I feel that the work here gives me the opportunity to influence the lives of many people by solving complex mathematical problems,” she says.

Shachalman: “My partner and I were interested in cryptographic coins, and we came to the meeting at the Bitcoin embassy in Tel Aviv where we met Alon and heard about him from IOTA. Technology interested me. Tangle offers a very elegant mathematical solution. ”

What is Tangle’s advantage over Blockkin?

“The main problem with LockCine is scalability – the system’s ability to grow to meet the increasing amount of work, so it’s not reasonable to use Bitcoin for many small-scale transfers, such as IOT. , Where a bottleneck can be easily created, but the Tangle is like a multi-lane road where traffic can flow more easily. ”

Who is currently using the IOTA platform?

Elmaleh: “The association has established the Data Marketplace project in collaboration with 40 organizations around the world, along with which we have created usage scenarios where the IOTA platform will be tested.”

The list of participants includes major electronics companies such as Fujitsu and Philips, as well as accounting firm EY, French communications conglomerate Orange and other organizations. The project site displays on the world map the locations of the sensors through which the data is transmitted to the participants. “The data market is a place where anyone with a device that collects information can sell that information flow,” explains Elmaliach. “If an organization wants to provide a weather service in the world, in this market it can acquire sensor information in different parts of the world.”

How do you expect IOTA to develop in the coming years?

Our goal in the coming years is to create an ecosystem, where projects will develop around IOTA. Next year, I would like to see projects that are at the proof-of-concept stage running on the IOTA network and see that our network is dealing with the challenges of growth. In terms of work speed, today our network can perform an average of 1.5 transactions per second (90 minutes per minute) and we want to reach 1,000 transactions per second when the system is stable. ”

By comparison, the Visa credit card company can now transfer up to 24,000 transactions per second while Bitcoin’s bit block is currently capable of processing only about 7 transactions per second and about 20 per day.

“I suppose in a year or two we will see a lot of active research in fields related to IOTA, both in the field of mathematics and in the field of application,” adds Schichlman. “I hope this platform disrupts more people and sometimes it surprises me that people tell me about IOTA with great enthusiasm without knowing that I work for the organization.”

I have an idea: Tangle

Unlike other cryptographic currencies, IOTA is not based on Lockcaine, but on a new data structure called Tangle. Tangel is represented by a directed graph instead of a block chain, so that each load is a small block itself. In Tengal there are no miners, and to establish agreement among the participants, each transfer confirms two previous transfers. The lack of reactors prevents conflicts of interest between the participants in the network and allows the transfer of funds without commission. The absence of blocks avoids the need to wait for mining to approve a transfer, allowing a much higher transfer rate

ID card

platform of distributed accounting system
digital currency: Miota (million units of IOTA) IQ
currency: ten 2015
currency price: $ 2.2 to Miota (January 31)
current market value: $ 6.5 billion
volume of business The maximum of currencies: MIOTA 2,779,530,283

 




One Reply to “More secure and effective than Blockchain: Israeli development in the crypto world”

  1. Guys, I just read the article and must say that it is written in a very negligence way. It seems like you didn’t even checked it before publishing. Besides of misspelling Blockchain (calling it blocchain) and using double space where inappropriate, you literally finished a paragraph with a sentence “Besides that,”
    Moreover, you are saying that there are 4 founders and name 3 of them. And there are more and more on your official website.
    Sincerely guys, even the mark “not the best translation” wouldn’t rescue you from such a carelessly done job.

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