Category Archives: IOTA

Crypto-Casino or Crypto-World ?

Are you part of a new era of decentralized currencies and applications that will change the world as we know it or are you playing a crypto-bubble-game with no future.

Well… There is probably something in the middle of those two statements right now.

If faith and logic decide to get together at some point, we’re in a new era. And we should get there eventually, yet remains the question of when and how. Because for now, we’re in experimental mode. Let’s put the current situation into a simple perspective, focusing on bitcoin.

The main problem of bitcoin is that it’s broken and hard to use by design.

A quick case about what a bubble is before we jump to what makes bitcoin so weak: A bubble bursts when people realize that the underlying asset on which was supposed to be based the value of what they bought doesn’t actually exist. The value of Internet companies could only be realized as more and more users were browsing and buying online, The real estate value grew on the back of people who were taking loans they could never repay in a lifetime and that bankers hid in derivated products that they even leveraged several times.

The issue with bitcoin is that its value is growing alongside an insane use of electricity and in the meantime, the underlying isn’t growing as bitcoin is still very much under-used in real life transactions for goods and services. There is a velocity of circulation in a closed loop of investments where only more and more buyers come in… until they don’t anymore.

The volume of total transactions being insanely uncorrelated to the volume and growth of real life transactions, bitcoin is certainly in a weak position. And if I had to summarize the three biggest weaknesses of this protocol:

  • It takes ages and a lot of electricity to process a transaction, bitcoin simply doesn’t scale as a decentralized protocol.
  • It’s highly volatile and unstable, there is no case for the real economy at this point. There could be one if the protocol was acting differently or if a consensus of major merchants were accepting it on a small portions of all their transactions.
  • It’s only sovereign in the cloud, you would need more countries accepting it as a legitimate currency of some sort to make an appealing case around it.

As much as Internet is real, decentralized applications and currencies are real too. There is a case for crypto-currencies, no doubt about that. But what time is it in the crypto-world ? Well, it’s probably around noon, we’re halfway there. So what will it take ?

  • The technology doesn’t scale at the moment and blockchain-free applications will eventually become new standards to build scalable, fast and secure decentralized applications.
  • The distribution and growth model of crypto-currencies must evolve to allow more and more people to join the network without creating a bubble.
  • Merchants and authorities need to make a real life case out of these assets to make it more stable and truly useful.

You can buy bitcoins if you want, you can even make a profit or a small fortune in no times, but only until it bursts.

The Internet world bursted once. So will the crypto-world. Until it becomes more mature.

Keep calm and only invest money you’re ready to lose.

And btw, if you’re building a smart and simple protocol that will allow the network to effectively grow alongside its value, please ping me :)

Crypto-Casino or Crypto-World ?

Are you part of a new era of decentralized currencies and applications that will change the world as we know it or are you playing a crypto-bubble-game with no future.

Well… There is probably something in the middle of those two statements right now.

If faith and logic decide to get together at some point, we’re in a new era. And we should get there eventually, yet remains the question of when and how. Because for now, we’re in experimental mode. Let’s put the current situation into a simple perspective, focusing on bitcoin.

The main problem of bitcoin is that it’s broken and hard to use by design.

A quick case about what a bubble is before we jump to what makes bitcoin so weak: A bubble bursts when people realize that the underlying asset on which was supposed to be based the value of what they bought doesn’t actually exist. The value of Internet companies could only be realized as more and more users were browsing and buying online, The real estate value grew on the back of people who were taking loans they could never repay in a lifetime and that bankers hid in derivated products that they even leveraged several times.

The issue with bitcoin is that its value is growing alongside an insane use of electricity and in the meantime, the underlying isn’t growing as bitcoin is still very much under-used in real life transactions for goods and services. There is a velocity of circulation in a closed loop of investments where only more and more buyers come in… until they don’t anymore.

The volume of total transactions being insanely uncorrelated to the volume and growth of real life transactions, bitcoin is certainly in a weak position. And if I had to summarize the three biggest weaknesses of this protocol:

  • It takes ages and a lot of electricity to process a transaction, bitcoin simply doesn’t scale as a decentralized protocol.
  • It’s highly volatile and unstable, there is no case for the real economy at this point. There could be one if the protocol was acting differently or if a consensus of major merchants were accepting it on a small portions of all their transactions.
  • It’s only sovereign in the cloud, you would need more countries accepting it as a legitimate currency of some sort to make an appealing case around it.

As much as Internet is real, decentralized applications and currencies are real too. There is a case for crypto-currencies, no doubt about that. But what time is it in the crypto-world ? Well, it’s probably around noon, we’re halfway there. So what will it take ?

  • The technology doesn’t scale at the moment and blockchain-free applications will eventually become new standards to build scalable, fast and secure decentralized applications.
  • The distribution and growth model of crypto-currencies must evolve to allow more and more people to join the network without creating a bubble.
  • Merchants and authorities need to make a real life case out of these assets to make it more stable and truly useful.

You can buy bitcoins if you want, you can even make a profit or a small fortune in no times, but only until it bursts.

The Internet world bursted once. So will the crypto-world. Until it becomes more mature.

Keep calm and only invest money you’re ready to lose.

And btw, if you’re building a smart and simple protocol that will allow the network to effectively grow alongside its value, please ping me :)

IOTA — Confirm Pending Transactions…. “A How To”.

As everyone knows block-chains need to update and the same applies to the TANGLE. The TANGLE will be under going an update next week [The week of December 11th to the 18th] as the IOTA Foundation will take a snapshot. During this time, it would be in the users best interest to not have any pending transactions in the Tangle.

WHAT IS A PENDING TRANSACTION?

A pending transaction is when a user has sent IOTA from either their wallet, an exchange, or from someone else’s wallet, to another wallet and the IOTA does not arrive or show in their balance. The transaction has been sent and can be seen in the history tab, but the because the transaction has not been confirmed on the Tangle, it will not show in your balance.

So How Do You Push a Pending Transaction and Make It Confirmed ?

Step 1: Ensure you have the latest wallet which is seen below in the top header of your wallet, version IOTA Light Wallet 2.5.4 — IRI 1.4.1.2. The IOTA Foundation’s latest wallet can be downloaded on Github.

Step 2: Find the closest node to you with the least among of pings. You can find this from the IOTA.Dance. As you can see in the below screen shot Node: [88.198.230.98:14265] which has the least amount of Pings, the count of 71.

That means that you should use this node in your wallet to confirm a pending transaction.

Step 3: Now, you need to ensure your node is set to the above node displayed. In the IOTA Light Wallet click on Tools ->Edit Node Configuration. Input these settings:

Host: 88.198.230.98:14265 [Choose from the drop down link and find the node which has the least amount of pings which was found from IOTA.DANCE
Min Weight Magnitude: Ensure it is 14
Curl Implementation: Ensure this is CCurl Implmentation. Check the drop down box and select CCurl Implementation

Step 4: Close your Node Configuration and go to the History link in the wallet. Find your pending transaction and click: [Show Bundle]. Give it a few seconds, sometimes there is a lag. The following screen will appear.

Step 5: Reattach to Tangle.

In the Bundle screen scroll down to the bottom and find [Reattach]. Click the reattach to wallet link and let it attach. This may take multiple reattaches and I would at least re-attach five times.

Step 5: Confirm IOTA is in your balance.

After reattaching, check to see if the IOTA appears in your balance. If it has then you can move to Step 8. If not proceed to Step 6.

Step 6: If you have reattached with a node 5 to 10 times and your balance does not show the IOTA, change the node to a professionally managed node. Currently [nodes.iota.cafe:443] is a professionally managed node with a low ping rate. If the first node does not work, change to another node lower down on the list with a low ping rate. If there is a professionally managed one listed this is preferred.

Step 7: Go to the history tab and click the ‘show bundle’ link. Now click the reattach link for 5 to 10 times until the IOTA is show in your wallet.

NOTE: REQUEST ERROR

If and when you reattach, you receive a [REQUEST ERROR], simply click the reattach / request error button again. After one or two times is should reattach again.

Step 8: Confirm that the transaction is indeed confirmed. In the history link, you can look to see if your transaction is confirmed. Some transactions will be shown as pending; however, if your IOTA is shown in your balance then there should be a confirmed transaction in the history tab. This means that your transaction is confirmed.

So What Happens If A Transaction is Pending When The Snap Shot Occurs?

Nothing will happen to the transaction. After the snapshot is completed all pending transactions will be returned to their original wallet.

We, from the IOTA community are trying to help prevent someone getting hacked. If a person has sent more than one transaction from the same address, they are susceptible to being hacked if they have a pending transaction during the snapshot. If a person is unsure if he or she has sent a transaction more than once from the same address, then he or she should should for sure ensure that there are no pending transactions before the snapshot next week.

Always remember! you must create a new wallet address, [re-attach to tangle link in the receive tab] every time you send a transaction, or ensure you have created a new address from an exchange before sending any IOTA to another wallet.

Conclusion. If you have never used the same address twice, then you shouldn’t worry that much about the pending transaction.

However, For me and in my own opinion, I like to play everything safe.

Even though I have never used my address more than once, I will still make sure all of my transactions are confirmed and have reached their destinations. I want to play it safe to avoid any issues after the snapshot.

Hope this [How to Helped] and if you have any trouble please visit us at the: Facebook IOTA Group Page and become a member. Many in the IOTA community are there to help if you need us.

What I learnt from my first purchase of $100 of IOTA cryptocurrency

Credit: opthek.com

Yesterday, I spent a good three hours trying to purchase the latest hyped cryptocurrency: IOTA. Here’s what I was surprised to find out.

  1. Purchasing Bitcoin and other cryptocurrencies is still a super complicated process, with poor UX. One of the big promises of virtual currencies is that they’re programmatic. Yet the UX of purchasing Bitcoin is often worse than exchanging fiat currencies (i.e. the USD or EUR we’re familiar with). To buy IOTA, I had to top up my Bitcoin or Ethereum via an exchange like Coinbase; then go through a lengthy sign-up process with Binance (an exchange that no one knows where is actually based, probably China) including taking a selfie with my driving license for verification purposes; downloading an IOTA wallet and more. It reminded me of the complexities of using torrents or any super-early stage internet technology, and mostly felt super dodgy.
  2. The fees are extortionate everywhere. I bought $100 worth of BTC through Coinbase. The fees included $3 by Coinbase for credit card top-up, or $10 for a wire (why so much?), which exclude the high fees of wiring via a US bank ($30 to Bank of America). Then to purchase BTC, Coinbase charges a whopping 1.5% which I was mostly able to avoid when I exhanged USD to BTC via their trading platform, GDAX. When I transferred it to Binance to trade for IOTA I had paid the usual ‘miner’ tax of an extra $3; then Binance charges 0.1% from each trade. So from a world of getting ripped-off by high-street banks, we’re moving into a world of getting ripped-off by either well-funded start-ups or by dodgy exchanges. Either way, the promise of purchasing virtual currencies seamlessly and on cheap is certainly far from becoming a reality.
  3. There’s very limited liquidity and velocity: it took me 2 hours to send the BTC to Binance. This is a known problem of Bitcoin: the more popular it gets, the slower it gets. Then Binance blocks at the moment any withdrawals of IOTA. It’s slow and illiquid, both of which are huge reasons for concern.
  4. More than ever, the valuations make no sense: as of today (2017-Dec-05) IOTA has a market cap of $8bn, but given that it has fewer than 1m users (it could be even fewer than 100k, no one really knows as people create multiple wallets), it feels like it could be a traditional pyramid scheme with a silly bubble valuation. Obviously the same criticism stands for Bitcoin, with fewer than 5m coin holders and $300bn market cap.
  5. Too vague, no transparency: take IOTA for example. It’s impossible to know anything about the credentials of its founders or other execs. Their partnership announcement seems to be somewhere on the spectrum between an exaggerated press release, to fake news, given that none of the partners acknowledged it on their websites. The Microsoft participation was the main thing mentioned in the coverage of their announcement, but I can’t find anything about it in Microsoft’s own channels and looking up the LinkedIn profile of the Microsoft employee who provided the quote makes one wonder how real this ‘partnership’ really is.
  6. This is all heaven for tax avoidance: If my $100 will turn into $1,000 in BTC and I then purchase something in BTC, it’ll be very hard for the government to tax me on my capital gain. I wonder if this is when of the main drivers for the money flowing in: avoiding any taxation on the gains.
  7. And given the point above — wouldn’t most of these currencies collapse when governments realize people just avoid paying tax on their investments?

So, would I purchase now another $1,000 worth of IOTA? Probably not yet. Something just doesn’t feel right. Putting it all on red would probably be more fun and less stressful an adventure. At least until I will find it in a few years I could have 100X-ed my money by investing in the right time.


What I learnt from my first purchase of $100 of IOTA cryptocurrency was originally published in Tech Chutzpah on Medium, where people are continuing the conversation by highlighting and responding to this story.

What I learnt from my first purchase of $100 of IOTA cryptocurrency

Credit: opthek.com

Yesterday, I spent a good three hours trying to purchase the latest hyped cryptocurrency: IOTA. Here’s what I was surprised to find out.

  1. Purchasing Bitcoin and other cryptocurrencies is still a super complicated process, with poor UX. One of the big promises of virtual currencies is that they’re programmatic. Yet the UX of purchasing Bitcoin is often worse than exchanging fiat currencies (i.e. the USD or EUR we’re familiar with). To buy IOTA, I had to top up my Bitcoin or Ethereum via an exchange like Coinbase; then go through a lengthy sign-up process with Binance (an exchange that no one knows where is actually based, probably China) including taking a selfie with my driving license for verification purposes; downloading an IOTA wallet and more. It reminded me of the complexities of using torrents or any super-early stage internet technology, and mostly felt super dodgy.
  2. The fees are extortionate everywhere. I bought $100 worth of BTC through Coinbase. The fees included $3 by Coinbase for credit card top-up, or $10 for a wire (why so much?), which exclude the high fees of wiring via a US bank ($30 to Bank of America). Then to purchase BTC, Coinbase charges a whopping 1.5% which I was mostly able to avoid when I exhanged USD to BTC via their trading platform, GDAX. When I transferred it to Binance to trade for IOTA I had paid the usual ‘miner’ tax of an extra $3; then Binance charges 0.1% from each trade. So from a world of getting ripped-off by high-street banks, we’re moving into a world of getting ripped-off by either well-funded start-ups or by dodgy exchanges. Either way, the promise of purchasing virtual currencies seamlessly and on cheap is certainly far from becoming a reality.
  3. There’s very limited liquidity and velocity: it took me 2 hours to send the BTC to Binance. This is a known problem of Bitcoin: the more popular it gets, the slower it gets. Then Binance blocks at the moment any withdrawals of IOTA. It’s slow and illiquid, both of which are huge reasons for concern.
  4. More than ever, the valuations make no sense: as of today (2017-Dec-05) IOTA has a market cap of $8bn, but given that it has fewer than 1m users (it could be even fewer than 100k, no one really knows as people create multiple wallets), it feels like it could be a traditional pyramid scheme with a silly bubble valuation. Obviously the same criticism stands for Bitcoin, with fewer than 5m coin holders and $300bn market cap.
  5. Too vague, no transparency: take IOTA for example. It’s impossible to know anything about the credentials of its founders or other execs. Their partnership announcement seems to be somewhere on the spectrum between an exaggerated press release, to fake news, given that none of the partners acknowledged it on their websites. The Microsoft participation was the main thing mentioned in the coverage of their announcement, but I can’t find anything about it in Microsoft’s own channels and looking up the LinkedIn profile of the Microsoft employee who provided the quote makes one wonder how real this ‘partnership’ really is.
  6. This is all heaven for tax avoidance: If my $100 will turn into $1,000 in BTC and I then purchase something in BTC, it’ll be very hard for the government to tax me on my capital gain. I wonder if this is when of the main drivers for the money flowing in: avoiding any taxation on the gains.
  7. And given the point above — wouldn’t most of these currencies collapse when governments realize people just avoid paying tax on their investments?

So, would I purchase now another $1,000 worth of IOTA? Probably not yet. Something just doesn’t feel right. Putting it all on red would probably be more fun and less stressful an adventure. At least until I will find it in a few years I could have 100X-ed my money by investing in the right time.


What I learnt from my first purchase of $100 of IOTA cryptocurrency was originally published in Tech Chutzpah on Medium, where people are continuing the conversation by highlighting and responding to this story.

peaq 프로젝트를 발표하는 nakamo.to

분산 장부 기술의 세계 포털

늦은 밤, 이른 아침에 각고의 노력과 계획, 소문 그리고 심사숙고와 극기 훈련을 보낸 몇 주 후, nakamo.to 팀은 마침내 peaq 프로젝트를 발표했습니다.

베를린에서 Space Shack 을 발표한 마이클 게이크는 블록체인과 ICO 가 장안의 화제인 것으로 보이지만 실제로는 아직 분산 장부 기술의 잠재력을 발휘하는데 아직 부족하다고 설명했습니다. 그는 nakamo.to 가 peaq 프로젝트와 어떻게 다른지를 설명하기 전에 업계가 초기 피크를 보인 주된 이유로 블록체인 자체의 내재된 한계를 지적하였습니다.

nakamo.to CEO and peaq founder, Robert A. Küfner

마이클은 peaq 를 ERC-20 에 필적하는 토큰 생성 프레임워크의 실용적인 측면과 IOTA 의 Tangle 네트워크의 혁신적인 특징을 융화시킨 ‘분산 장부 기술의 진화 과정에서 자연스러운 다음 단계’로 소개했습니다. ‘가치있는 것으로 여겨지는 아이디어와 자산은 초 단위로 전세계에 모든 것을 교환 및 전송할 수 있는 디지털 토큰으로 나타냅니다.’

peaq 프로젝트에 대한 마이클의 설명 뒤에는 Q&A 세션이 있었으며 peaq 창립자인 A. Küfner 와 Florian Reike 그리고 peaq 주도 개발업자인 Guillaume Ballet 이 참여했습니다. 해당 패널은 peaq 프로젝트의 기초가 되는 테크의 기본 사항부터 비즈니스 전망 및 사용 사례에 이르기까지 모든 것에 관하여 많은 사람들 및 온라인 커뮤니티의 질문에 답했습니다.

또한 팀은 Advanced Blockchain AG, nakamo.to, peaq 연관성은 어떻게 진행되는지 다각도로 다루었습니다. Advanced Blockchain AG 는 기업 프로세스를 담당할 것이며 nakamo.to 는 소프트웨어 및 개발에 중점을 두고 peaq 는 토큰 생성 프레임에 둘 것입니다.

peaq Lead Developer, Guillaume Ballet

peaq 는 Tangle 네트워크에 구축 될 첫 번째 토큰 생성 프레임 워크입니다. 이는 분산 장부 기술의 가장 진보된 형태에서 거의 모든 것을 토큰화할 수 있습니다. 해당 프레임워크는 예를 들면 트랜잭션 수수료, 확장성 문제, 지연, 보고, 높은 운영 비용 및 양자 컴퓨터 공격의 위험을 제거하여 여러가지 방법으로 기존 플랫폼을 향상시킵니다.

이는 분산 장부 기술 동향의 큰 도약이자 기업가, 창업자 또는 대기업이 블록체인 활동 분야로 진출을 고려하는 대단히 흥미로운 전망을 나타냅니다.

블록체인 혁명이 어떻게 세계에 영향을 미칠지에 대한 견해는 현재 인기있는 주제이지만 기술로 인해 생기는 내재된 문제로 인해 시작할 준비가 되지 않았습니다.

그렇다면 peaq 은 어떻게 변화할까요?

일단 토큰 생성 프레임워크가 완성되면 차세대 암호 즉, 차세대 디지털 시대이자 토큰 경제로 전환을 인도하여 분산 장부 기술의 막대한 잠재력과 현실을 연결시킵니다.

해당 이벤트의 영상이 곧 게시됩니다.


peaq 프로젝트를 발표하는 nakamo.to was originally published in nakamo.to on Medium, where people are continuing the conversation by highlighting and responding to this story.

IOTA Price Surpasses $0.57 Thanks to Major Pump With low Volume

TheMerkle IOTA Price Pump

Things have developed in a rather interesting direction for IOTA as of late. When this currency was initially launched, things moved in a good direction right off the bat. However, ever since the altcoin reached its all-time high of over $1 per IOTA, things have started coming down. Right now, the IOTA price is up by as much as 33.5%, which is pretty significant. This massive pump may eventually run out of steam eventually, though.

IOTA Price Gets a Massive Pump

It is evident there is some interesting momentum in the world of cryptocurrency right now. A lot of currencies are recovering some of its lost value over the past few days. Some currencies are more successful than others, which is only to be expected. Right now, the IOTA price is going through a massive pump cycle, as the value is skyrocketing out of the blue once again. The same happened when the IOTA price reached $1 not that long ago, although the momentum reversed shortly after.

The past seven days have been rather interesting for people keeping an eye on the IOTA price. More specifically, the IOTA price started out at $0.32 on November 3rd. A pretty solid value, as this has been the correct price point for IOTA for some time now. Ever since that time, however, we have seen a few attempts to successfully reach a higher price. The IOTA price got rejected at $0.4 several times in the past few days, but things have picked up steam over the past 36 hours.

More specifically, the IOTA price hit $0.436 on November 8th and has kept moving up after a brief dip ever since. Right now, one IOTA is worth $0.57, which seems to be a rather high value for this particular currency right now. Then again, there is a lot of momentum in this market, even though there is very little trading volume to back it up, which is pretty peculiar. Then again, we have seen cycles like these affect other cryptocurrencies as well, and IOTA will eventually come down in price in a few days from now.

Speaking of the IOTA trading volume, the market has seen $65.63m over the past 24 hours. For a cryptocurrency in the top 10 ranked by market cap, this particular number is anything but significant. Then again, we have seen altcoins gain even more value with less trading volume as well. A 33.5% gain with $65.6m in trading volume shows it takes very little money to manipulate this market in the right direction. This appears to be small market manipulation at its finest, although it remains to be seen when this trend will end.

One thing to keep in mind is how few exchanges effectively allow for the trading of IOTA. That is a bit strange, considering this is a top 10 cryptocurrency at the time of writing. Bitfinex is clearly dominating the trading volume right now, as their three markets generate a total of 83% of all IOTA trades. Binance is the second big exchange for this altcoin with 6.7% of all trades. No other major exchanges have listed IOTA so far, which means the currency can’t be found on Bittrex, Poloniex, or any other popular platform.

All things considered, this IOTA price pump is pretty significant for people looking to make some quick money. At the same time, people also have to realize this cycle will not last much longer. Furthermore, this pump makes IOTA look less appealing from a long-term perspective. If the only way for it to gain value is by a few people manipulating the price, things are not looking all that great. It will be interesting to see what the future holds for IOTA outside of the price momentum, that much is evident.

blockchain hashrate vs iota hashrate

blockchain (bitcoin)

Centralised mining farms doing most of the hashing and centralised mining pools(20). tinfoilhat remark: some pools are run by the same ppl to hide their central powers

DAG (iota)

in the future millions or billions devices doing small hashes only when they need to send info or iota. 100% decentralised. without the coordinator. Same hashing as bitcion today

just like in bitcoin at some point it becomes too expenisve to even try to outperform the hashing rate and we don’t need to COO anymore.

blockchain hashrate vs iota hashrate

blockchain (bitcoin)

Centralised mining farms doing most of the hashing and centralised mining pools(20). tinfoilhat remark: some pools are run by the same ppl to hide their central powers

DAG (iota)

in the future millions or billions devices doing small hashes only when they need to send info or iota. 100% decentralised. without the coordinator. Same hashing as bitcion today

just like in bitcoin at some point it becomes too expenisve to even try to outperform the hashing rate and we don’t need to COO anymore.

IOTA: Coordinator Down, Price Up

Because of a bug, the IOTA developers shut down the coordinator of the cryptocurrency. As a result, the official wallet of IOTA was not able to accept transaction confirmations for a few days. Today the situation seems to be ok; the price was not adversely affected by the drama.

IOTA is a relatively new cryptocurrency with a lot of passionate fans which believe that its tangle architecture makes IOTA by far the most scalable cryptocurrency. This enthusiasm and some industry cooperations helped IOTA to climb to rank 11 in the ranking of Coinmarketcap with a cap of more than $1 billion.

Recently IOTA received terrible news when some MIT researchers publicly voiced harsh and comprehensive critiques. The criticism has been partly appropriate, partly blown up, but caused a lot of drama in and around the community. In the past week, IOTA again faced agitation; the official wallet has not been able to confirm transactions for some days; deposits and withdrawals on exchanges have been suspended, and a major tangle explorer showed a frozen network as of October 25.

How an Attack forced the Developers to Shut Down the Coordinator

What is happening with IOTA? Since the basic architecture differs much from established blockchain networks like Bitcoin or Ethereum, it is not easy to say. However, there are indicators that the situation is not as worse as it seems at first sight.

Let’s start with how it began. Around October 20, there had been an attack on IOTA. The attack exploited a bug, which was “related to the key re-use issue from the previous snapshot.” This is all that the official post of IOTA says. Now, there is no clear description of the bug; the developers are still analyzing it. However, it seems to be clear, that the bug could result in some addresses losing IOTA tokens.

To prevent that the attack caused more damage, the IOTA developers shut down the central coordinator. Roughly said, the “coo” takes snapshots of the state of the network, which are accepted as milestones by the wallet. The coordinator protects the network against some attacks, which are possible in the early state of IOTA. Sometimes these attacks are referenced as “34 percent attacks,” because as long as IOTA is small, the tangle can be attacked with fewer network shares as needed for blockchain-based cryptocurrencies. However, the developers say that these attack opportunities will vanish once IOTA has grown to a certain size.

Currently, the coordinator is used to support the network to confirm transactions. As the explorer was shut down for several days, IOTA tangle explorers like iotasear.ch showed that there were no new transactions for nearly two days. This created the impression that the whole network had been down for some time.

Only the Official Wallet is Affected

IOTA developer Dominik Schiener commented in a chat, that “confirmations have been stopped, but the network did not shut down.” According to Dominik, IOTA remained fully operational the whole time.

He explained that the users can decide if they want to use a network with a coordinator, or without. Another IOTA developer, Come from Beyond, adds that only wallets which are based on the coordinator’s milestones had problems with confirmations, while other wallets, which use the whitepaper algorithm, were not affected.

The official IOTA wallet, which is released by the developers, only accepts balances if they are confirmed by the coordinator. However, this is more on the level of the Graphical User Interface (GUI). When you have the key to an address, you can access your token without a coordinator. To do so, you just need to take another wallet – which likely does not publicly exist – or change the code of the existing wallet. However, doing so can lead to a lack of double spending protection. For this reason, the IOTA developers required exchanges to suspend deposits and withdrawals.

Back to Normal, Funds Recovered

According to the IOTA blog, the coordinator was reactivated October 23. On October 25, the developers released a new IOTA client, with which the network “resumes to normal operation.” Balances, which have been on addresses affected by the bug, have been transferred to addresses controlled by the IOTA foundation. The owners can recover their coins, without risking them to be stolen by an attacker.

IOTA users report that everything is working fine again. Some say, their node remained operational for some parts while the coordinator was shut down. Exchanges like Bitfinex, for a while, did not process deposits and withdrawals, but it is said that Bitfinex booted its IOTA node again.

No Panic, No Loss of Trust

It’s not entirely clear what happened in detail, and how the coordinator, the bug, the attack, the nodes, and confirmations interacted. At least, for outsiders. Also, it is still to be said, what you should make of the observation, that the developers are able to shut down important parts of the system and to “rescue” balances by transferring them on addresses controlled by themselves.

Most members of the IOTA community resisted panic. They did not lose trust in the developers; most seemed to be happy how they handled it, and are still waiting on official statements regarding an analysis of the bug. There have been no reports of users losing funds due to the incident.

Therefore the price did not react strongly to the temporary shutdown. Like all altcoins, the price in bitcoin fell on October 23 to a low – around 5314 satoshi’s – but recovered in the following days. It’s a little bit weird to see that IOTA had one of the most robust recoveries of all altcoins, reaching 8000 satoshi’s again, while still being in a state of partial shutdown. But no one ever said that crypto markets are rational.

IOT-BTC (Bitfinex) – Large upward move from Oct. 20, IOTA starts to fall around Oct. 25.

The post IOTA: Coordinator Down, Price Up appeared first on BTCMANAGER.

Daily technical analysis: IOTA — October 12 (IOTA/BTC)

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Note that this report is written on: Oct 12, 2017 03:46AM GMT

Technical Summary IOTA: STRONG SELL

Moving Averages: 1 BUY / 11 SELL | Technical Indicators: 1 BUY / 7 SELL

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IOTA Smartphone — The First Blockchain Smartphone

Sirin Labs

Sirin Labs, the company behind a $16,000 luxury Solarin phone, has just announced the new smartphone project based on blockchain technology.

The first blockchain technology smartphone — IOTA smartphone — will be significantly cheaper to its predecessor, priced at $1,000. It is designed for blockchain/cryptocurrency followers, and the feeless IOTA technology will support it.

‘Finney’ is aimed at a niche, crypto orientated audience of early adopters who are expected to be lured by its bulletproof security features.

The smartphone project from Sirin Labs is just a beginning of creating an entire family of ‘Finney’ devices that will be a secure, open-source, electronics for the blockchain era customers.

The phone will be named after the scientist Hal Finney who was the first recipient of a Bitcoin transaction. The new smartphone will be based on an open-source, secure network that will run on a blockless Tangle technology, powered by IOTA.

Sirin Labs

Unlike most smartphones, ‘Finney’ will come with a 256GB internal memory, 16-megapixel camera and impressive security features. Thanks to blockchain technology, the security measures will be more robust than traditional smartphone protection, it also guarantees a much higher memory capacity.

The phone will be equipped with a physical security switch, a behavioural-based intrusion detection system and blockchain-based inference system. So, in theory, the phone will be almost impossible to hack.

The smartphone will be the first product to come from underneath the ‘Finney’ family. There are already plans on building a PC that will be capable of wireless data sharing, battery power and processing power.

Sirin Labs is launching a crowdsale in October 2017 with a hope to raise funds for the network development. It will operate without mining centres and blocks that can clutter and slow down the data transaction process.

By using the default SRN token as a native currency, the network will run on a Sirin operating system, designed on purpose to support blockchain applications, cryptocurrency wallets, with an extremely high level of security. Only SRN token holders will be able to purchase the device.

IOTA is the newest blockchain technology invention, focused on free machine-to-machine payments that fuel IoT. If you don’t own IOTA yet, you can buy it with USD or BTC on Bitfinex.

Once built, the devices will revolutionise the everyday use of blockchain technology and cryptocurrency. Helping the same with the mass adoption of blockchain and cryptocurrency.

The crowdsale details of IOTA smartphone should be released later on this month.

Originally published at bitemycoin.com.

Quantum IOTA

IOTA appears as having a most versatile solution to the challenge of asynchronous trust, avoiding the bitcoin blockchain bottleneck. And as such it is the most attractive platform for the vision of quantum trust building. Its robust validation history will be a collapsed option selected from a superposition of the same. And unlike quantum physics where the superposition generating laws are fixed, in designing a network, the applicable platform law (rule) itself may be a collapsed option from a super position of applicable laws. Reverse engineering should be exponentially difficult. A good quantum simulation can be achieved via the BitFlip protocol.

Уязвимость в коде IOTA или почему курс обвалился на 25%

Многие, наверно, заметили обвал курса IOTA сегодня (08 сентября 2017).

Произошло это после публикации статьи Neha Narula, директора Digital Currency Initiative at the MIT Media Lab (DCI). В статье она рассказала о том, что ещё 14-го июля её коллеги нашли в коде IOTA уязвимость. Об этом было извещено руководство IOTA. Уязвимость была устранена посредством выпуска патча. И уже 7-го августа DCI официально подтвердили отсутствие уязвимости. Только после этого новость была опубликована публично. Сама статья Neha, как на меня, немного “хейтерская”. Думаю, можно было бы и по сдержанней быть.

Кому хочется вникнуть в суть произошедшего могу порекомендовать опубликованную переписку одного из основателей IOTA Foundation Сергей ИВАНЧЕГЛО и команды DCI. Там всё очень подробно и в красках, правда на английском. Ещё интересная статья .

Мой вывод — IOTA “объявила распродажу” сегодня -25% ))) Почему так, да потому, что уже месяц как нет причины сегодняшней новости, а курс упал только только сегодня. Уверен подымется так же стремительно…

Авторы получают вознаграждение, когда пользователи голосуют за их посты. Голосующие читатели также получают вознаграждение за свой голос.Зарегистрируйтесь сейчас, чтобы получить БЕСПЛАТНЫЕ Голосa

Originally published at golos.io on September 8, 2017.

Curl disclosure, beyond the headline

As part of an on-going conversation between the IOTA Team and security researchers from Boston University and MIT DCI, the teams published their report on a vulnerability in Curl today. On August 8th, the IOTA Team implemented a safety precaution by switching Curl with Keccak-384 (wrapped as “Kerl”, as a tongue-in-cheek homage to what it was replacing), but no user funds were ever at risk prior to the upgrade.

We greatly appreciate the disclosure made by the researchers as this will further help to bring IOTA into production-readiness and mainstream adoption. We do, however, have some comments to make on the otherwise strongly worded publication by Narula et al.

As many may already know, we have already discussed this at length for months, and the network uses KECCAK-384 for signing purposes.

Regarding the practicality of attacks

The attacks presented in Narula et al.’s paper, while being valid academic criticisms of the latest public version of the Curl hash function, do not represent valid attacks on the IOTA cryptocurrency. Here’s why:

Forging signatures on IOTA payments

The “waste money” and “steal money” attacks primarily rely on Eve being able to goad Alice into signing bundles crafted by Eve and then being faster in getting her bundle confirmed than Alice’s:

Firstly, none of the existing IOTA wallets offer this functionality of signing foreign bundles — Alice would therefore have to be a proficient programmer to manually sign a bundle using existing libraries and naive enough to sign a bundle she did not create.

Secondly, for Eve to be able to generate such a bundle in the first place, Eve would have to know which addresses belong to Alice. Eve can not calculate addresses belonging to Alice from knowing just one of Alice’s addresses, so this attack would require prior seed compromise by Eve (making the entire attack moot) or Alice leaking her address to Eve in the first place.

Thirdly, only one of each of Eve’s bundles can exist on an IOTA node at any given time. Without Eve having better network propagation than Alice or executing a successful eclipse attack against Alice, Eve would not be successful in being able to see her malicious bundle confirmed before Alice’s bundle is confirmed. However, the mesh network characteristics of the IOTA network make such an eclipse attack very hard to implement.

These requirements are exceptionally unlikely to occur in practice, making the presented attack impractical — even less so when combined with the earlier points.

However, the work of Narula et. al. is a valuable addition to the growing work of a number of academics that are reviewing the Tangle network.

Still, systems with few moving parts provide excellent subjects of study for an analysis of this depth. The IOTA Cryptocurrency is not one of those systems and thus context is very important when claiming a practical attack on a system.

Onward and Upwards

The necessity for greater collaboration between academia and the Crypto-Currency community is of paramount importance. Only by working together, leaving any conflict of interest aside, can we build better systems to serve mankind (or the Machine Economy). For an outsider, it can sometimes be difficult to access the academic community and get the necessary support on sensitive subjects. The IOTA Team has previously reached out to several renown cryptographers in this space, many of whom (including researchers from this publication) have been unable to work with us, often due to conflicts of interest.

We have since formed stronger partnerships with several large academic institutions around the world, and will continue to do so. As for Curl, the IOTA Foundation has already subcontracted a team of 5 world-class cryptographers, as well as 3 independent ones to come up with a final design of Curl and then start the long peer-reviewed process, as was always the plan. No change.

The IOTA Team will continue to work diligently (and tirelessly) to make IOTA the first production-ready distributed ledger protocol. When it comes to security, you can never be safe enough. We hope that researchers, whether independent or from academic institutions, will continue to join us on this path to build a protocol that is scalable, sound and secure.

Notes

Before we conclude this post, we would like to correct the following misrepresentations in the researchers’ post:

  • The transaction size is only 1.6KB at rest (not 10kb as stated in the document)
  • The replacement Kerl hash function is unmodified KECCAK-384 that only converts its input and output from/to 243 trits to 48 bytes using basic two’s complement. KECCAK-384 is well vetted and researched.

-The IOTA Team

The replacement Kerl hash function is unmodified KECCAK-384 that only converts its input and output from/to 243 trits to 48 bytes using basic two’s complement. KECCAK-384 is well vetted and researched.

The IOTA Team


Curl disclosure, beyond the headline was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

Breaking down the IOTA IRI Source

I decided I wanted to know more about how IOTA works, so I figured the best was is to “Use the Source Luke” and just look at the code. Like most software projects, it is desperately lacking in comments, so I’m going to have to make some guesses at how it works.

The IRI (IOTA Reference Implementation) is written in Java and is hosted on Github as an open source project under the GPLv3 License. The README has a pretty good getting started guide, so that won’t be covered here, I’ll just jump right in.

The Entrypoint

The main function is the entry point and can be found in src/main/java/com/iota/iri/IRI.java

The first thing that happens is parsing the command line arguments as defined in the README.

Next it configures the main business logic classes: Iota, IXI and API and initialises them. It also sets up a shutdown hook that is run when the process exists which seems to just do some cleanup on these classes.

iota = new Iota(configuration);        
ixi = new IXI(iota);
api = new API(iota, ixi);
...
iota.init();
api.init(); ixi.init(configuration.string(Configuration.DefaultConfSettings.IXI_DIR));

Interestingly the main function ends here without handing off to some sort of loop, so I assume that a separate thread or another process is running as a side effect of the init calls, which keeps the process alive. (Looks like this is done by the API Server, see below).

Breaking down the classes

As you can see from the code snippet above, the organisation of the code seems to be: the API depends on IXI and Iota classes, and IXI also depends on Iota, so I’ll break these down in the following order: Iota, IXI, API.

Iota

This class creates and initialises all of the core database and message passing functionality of the IOTA node. It uses ZMQ for message passing (seemingly this is used for analytics, but that is not obvious) and RocksDB to persistently store the transactions in the tangle. Mostly this is just further delegating initialisation to subsystems. It seems that this class just holds a bunch of other objects as public parameters and acts as a “God object” — a singleton that collects all the various services and managers that the rest of the program requires, such as configuration settings etc.

IXI

I think IXI stands for IOTA Execution Interface or something like that. It seems to be setting up a Javascript engine for scripting purposes. It looks like it creates a thread that watches the file system and reloads the scripts into the Javascript context when they change.

The attach method is doing the work of loading the script.

private void attach(Path pathToMain, String moduleName) {
Reader ixiModuleReader;
try {
ixiModuleReader = new FileReader(pathToMain.toFile());
} catch (FileNotFoundException e) {
log.error("Could not load " + pathToMain);
return;
}
log.info("Starting script: " + pathToMain);
Map<String, CallableRequest<AbstractResponse>> ixiMap = new HashMap<>();
Map<String, Runnable> startStop = new HashMap<>();
Bindings bindings = scriptEngine.createBindings();
bindings.put("API", ixiMap);
bindings.put("IXICycle", startStop);
bindings.put("IOTA", iota);
ixiAPI.put(moduleName, ixiMap);
ixiLifetime.put(moduleName, startStop);
try {
scriptEngine.eval(ixiModuleReader, bindings);
} catch (ScriptException e) {
log.error("Script error");
}
try {
ixiModuleReader.close();
} catch (IOException e) {
log.error("Could not close " + pathToMain);
}
}

The Iota object is added to the module’s binding (global scope?) when the script is loaded, along with a map called “API” to register commands (functions) against a command name (presumably from the API class), and a map called “IXICycle” for lifecycle functions which are called when the module has lifecycle changes (only “shutdown” is called at the moment).

private void detach(String moduleName) {
Map<String, Runnable> ixiMap = ixiLifetime.get(moduleName);
if(ixiMap != null) {
Runnable stop = ixiMap.get("shutdown");
if (stop != null) stop.run();
}
ixiLifetime.remove(moduleName);
}

The processCommand method looks up the command in the ixAPI map and calls it if it matches by module name, then subcommand. For example, if you have a module called “foo” loaded with a command “bar” registered in its API function, the command foo bar would execute that. The command is also given a Map<String,Object>which it uses as the argument to the function call.

public AbstractResponse processCommand(final String command, Map<String, Object> request) {
Map<String, CallableRequest<AbstractResponse>> ixiMap;
AbstractResponse res;
String substring;
for (String key: ixiAPI.keySet()) {
substring = command.substring(0, key.length());
if(substring.equals(key)) {
String subCmd = command.substring(key.length()+1);
ixiMap = ixiAPI.get(key);
res = ixiMap.get(subCmd).call(request);
if(res != null) return res;
}
}
return null;
}

Interestingly, the code doesn’t check that the subcommand exists in the API mapping, so passing a command that doesn’t exist could cause an error, maybe that is expected though.

API

This manages the JSON API for the node, utilising the Undertow HTTP server. The full API documentation can be found here.

Messages are sent as a JSON object to the / path of the server with a command key to specify the command to be executed and the remaining keys acting as parameters for the request. These are parsed in the process method to ensure that the required parameters are provided, and that they are the correct format, then the appropriate controller method is called. Mostly this consists of just calling methods on the Iota class’ various public member variables (most notably the Node one).

Any commands that are not recognised are passed to the IXI to be processed.

default: {
AbstractResponse response = ixi.processCommand(command, request);
return response == null ? ErrorResponse.create("Command [" + command + "] is unknown") : response;
}

Other Notable Classes

The above seem to be the main “entrypoints” into the code, with the API class being the core of the business logic to get the Node to do things, but I noted some other important classes.

Node

Handles neighbour connections and messaging parsing/broadcasting. When a new transaction comes in via the API, it is broadcast to the neighbours using the Node class. Additionally, the neighbours will send transactions they receive, which this node then stores and re-broadcasts to its neighbours.

Tangle

Maps interaction such as adding transactions etc to a set of PersistenceProviders. There is a RocksDB, FileBased and ZeroMQ persistence provider. The RocksDB one seems to be the only one that actually provides persistence however, the other two just write out update logs to a file and a ZeroMQ topic.

TipsManager

Creates a thread that scans the Tangle every x seconds to find the current set of Tips (transactions that have no approvers). Marks tips that now have approvers as solid once they are found. Provides methods for selecting random tips (presumably for finding transactions to approve when creating a new transaction).

General Comments

The code is what I would consider “okay”. It utilises a God object instead of Dependency Injection and uses a lot of thread synchronisation instead of utilising serial worker queues and asynchronous code, which would improve the thread safety of the code. It doesn’t seem to use a lot of interfaces or even getter/setter methods, and some methods in the API class are doing too much and could be refactored into method calls on controller classes. There are also some pretty big issues around the imperative nature of the API. For example, the “ attachToTangle” command does the computation required to hash a transaction, but stores the hasher computation(PearlDriver) in a member variable — the “ interruptAttachingToTangle” command then cancels this object’s computation, but if you have called “attachToTangle” again in the meantime then there’s no way to stop the previous hashing computation. Really each hashing computation job should be given an ID that can be referenced in the “interruptAttachingToTangle” command.

Ideally the server would use a RESTful JSON interface instead of this adhoc RPC one.

Next Time

I plan on looking deeper into the node-to-node communication protocol, database layer and the intended purpose of the ZeroMQ server.

Welcome Jeremy Epstein to IOTA

Jeremy Epstein is joining IOTA as lead advisor to IOTA’s marketing / adoption team who is ramping up efforts to bring the vision, opportunities and technology of IOTA to the mainstream.

He has 20 years of international marketing experience, with a primary focus on helping to bring disruptive technologies to mainstream audiences. Most recently, Jeremy was VP, Marketing at Sprinklr, a “unicorn” which grew from a $20 million valuation and 30 people to $1.8 billion valuation and 1400 people in 4 years.

It’s not hard to find peers showering Jeremy in accolades:

Neeraj Agrawal, a partner at Battery Ventures and a perennial member of the Midas 100 said, “there only about 100–150 people in the world who have this type of experience.

Today, according to Joel Monegro, the former lead blockchain analyst at top-tier VC firm, Union Square VenturesJeremy is the only person in the world going all-in on blockchain+marketing”.

Jeremy was selected the marketing subject matter expert for the Blockchain Research Institute led by best-selling authors of the Blockchain Revolution, Don and Alex Tapscott. Jeremy is also a co-Founder of Crypto Explorers, a leading community for passionate individuals seeking to understand the decentralized future, with quarterly gatherings called “Crypto Valley Trips” to Zug, Switzerland.

In December 2016, Jeremy edited and published a collaborative eBook with 33 of the biggest influencers and thought-leaders called “Blockchains in the Mainstream: When Will Everyone Else Know?”. In February of 2017, Jeremy released “14 Rules for Successful High-Growth Marketing”. In July 2017, he published The CMO Primer For The Blockchain World: How This “Trust Machine” Impacts Branding, Customer Experience, Advertising and Much More.

Jeremy is a frequent contributor on the topic of blockchain-driven innovation from a marketing perspective in outlets such as VentureBeat, Bitcoin Magazine, and Distributed Magazine, as well as a regular guest on the Bitcoin Podcast and Cryptoverse.

He is the author of It’s All On The Blog: Don’t Buy The Book, has presented to hundreds of audiences in 15 countries, and blogs like a fiend at his site, www.neverstopmarketing.com

As an advisor, Jeremy has worked with other leading decentralized projects in this space such as OpenBazaar and Storj.

Jeremy on joining IOTA

I have a vision of a world where people get paid to do what they want to do anyway; where purpose, passion, and profit are in harmony. I believe decentralization is one of the best ways to do that. My mission then is to do whatever I can to bring that future to the present as quickly as possible. I believe IOTA represents one of the best technologies to achieve the goal.

We are very happy to be able to add a hardcore marketing expert with genuine in the field experience with distributed ledger technologies our ranks to raise awareness of IOTA and its vision to the wider audience. As we are entering the era of adoption and have A LOT of great progress to report it will be good to have Jeremy’s expertise in ensuring that everyone notices. Give him a warm welcome!


Welcome Jeremy Epstein to IOTA was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

Welcome Jeremy Epstein to IOTA

Jeremy Epstein is joining IOTA as lead advisor to IOTA’s marketing / adoption team who is ramping up efforts to bring the vision, opportunities and technology of IOTA to the mainstream.

He has 20 years of international marketing experience, with a primary focus on helping to bring disruptive technologies to mainstream audiences. Most recently, Jeremy was VP, Marketing at Sprinklr, a “unicorn” which grew from a $20 million valuation and 30 people to $1.8 billion valuation and 1400 people in 4 years.

It’s not hard to find peers showering Jeremy in accolades:

Neeraj Agrawal, a partner at Battery Ventures and a perennial member of the Midas 100 said, “there only about 100–150 people in the world who have this type of experience.

Today, according to Joel Monegro, the former lead blockchain analyst at top-tier VC firm, Union Square VenturesJeremy is the only person in the world going all-in on blockchain+marketing”.

Jeremy was selected the marketing subject matter expert for the Blockchain Research Institute led by best-selling authors of the Blockchain Revolution, Don and Alex Tapscott. Jeremy is also a co-Founder of Crypto Explorers, a leading community for passionate individuals seeking to understand the decentralized future, with quarterly gatherings called “Crypto Valley Trips” to Zug, Switzerland.

In December 2016, Jeremy edited and published a collaborative eBook with 33 of the biggest influencers and thought-leaders called “Blockchains in the Mainstream: When Will Everyone Else Know?”. In February of 2017, Jeremy released “14 Rules for Successful High-Growth Marketing”. In July 2017, he published The CMO Primer For The Blockchain World: How This “Trust Machine” Impacts Branding, Customer Experience, Advertising and Much More.

Jeremy is a frequent contributor on the topic of blockchain-driven innovation from a marketing perspective in outlets such as VentureBeat, Bitcoin Magazine, and Distributed Magazine, as well as a regular guest on the Bitcoin Podcast and Cryptoverse.

He is the author of It’s All On The Blog: Don’t Buy The Book, has presented to hundreds of audiences in 15 countries, and blogs like a fiend at his site, www.neverstopmarketing.com

As an advisor, Jeremy has worked with other leading decentralized projects in this space such as OpenBazaar and Storj.

Jeremy on joining IOTA

I have a vision of a world where people get paid to do what they want to do anyway; where purpose, passion, and profit are in harmony. I believe decentralization is one of the best ways to do that. My mission then is to do whatever I can to bring that future to the present as quickly as possible. I believe IOTA represents one of the best technologies to achieve the goal.

We are very happy to be able to add a hardcore marketing expert with genuine in the field experience with distributed ledger technologies our ranks to raise awareness of IOTA and its vision to the wider audience. As we are entering the era of adoption and have A LOT of great progress to report it will be good to have Jeremy’s expertise in ensuring that everyone notices. Give him a warm welcome!


Welcome Jeremy Epstein to IOTA was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

Welcome Jeremy Epstein to IOTA

Jeremy Epstein is joining IOTA as lead advisor to IOTA’s marketing / adoption team who is ramping up efforts to bring the vision, opportunities and technology of IOTA to the mainstream.

He has 20 years of international marketing experience, with a primary focus on helping to bring disruptive technologies to mainstream audiences. Most recently, Jeremy was VP, Marketing at Sprinklr, a “unicorn” which grew from a $20 million valuation and 30 people to $1.8 billion valuation and 1400 people in 4 years.

It’s not hard to find peers showering Jeremy in accolades:

Neeraj Agrawal, a partner at Battery Ventures and a perennial member of the Midas 100 said, “there only about 100–150 people in the world who have this type of experience.

Today, according to Joel Monegro, the former lead blockchain analyst at top-tier VC firm, Union Square VenturesJeremy is the only person in the world going all-in on blockchain+marketing”.

Jeremy was selected the marketing subject matter expert for the Blockchain Research Institute led by best-selling authors of the Blockchain Revolution, Don and Alex Tapscott. Jeremy is also a co-Founder of Crypto Explorers, a leading community for passionate individuals seeking to understand the decentralized future, with quarterly gatherings called “Crypto Valley Trips” to Zug, Switzerland.

In December 2016, Jeremy edited and published a collaborative eBook with 33 of the biggest influencers and thought-leaders called “Blockchains in the Mainstream: When Will Everyone Else Know?”. In February of 2017, Jeremy released “14 Rules for Successful High-Growth Marketing”. In July 2017, he published The CMO Primer For The Blockchain World: How This “Trust Machine” Impacts Branding, Customer Experience, Advertising and Much More.

Jeremy is a frequent contributor on the topic of blockchain-driven innovation from a marketing perspective in outlets such as VentureBeat, Bitcoin Magazine, and Distributed Magazine, as well as a regular guest on the Bitcoin Podcast and Cryptoverse.

He is the author of It’s All On The Blog: Don’t Buy The Book, has presented to hundreds of audiences in 15 countries, and blogs like a fiend at his site, www.neverstopmarketing.com

As an advisor, Jeremy has worked with other leading decentralized projects in this space such as OpenBazaar and Storj.

Jeremy on joining IOTA

I have a vision of a world where people get paid to do what they want to do anyway; where purpose, passion, and profit are in harmony. I believe decentralization is one of the best ways to do that. My mission then is to do whatever I can to bring that future to the present as quickly as possible. I believe IOTA represents one of the best technologies to achieve the goal.

We are very happy to be able to add a hardcore marketing expert with genuine in the field experience with distributed ledger technologies our ranks to raise awareness of IOTA and its vision to the wider audience. As we are entering the era of adoption and have A LOT of great progress to report it will be good to have Jeremy’s expertise in ensuring that everyone notices. Give him a warm welcome!


Welcome Jeremy Epstein to IOTA was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

Proof-of-Humanity Networks (Honest Bitcoin)

Bitcoin, Ethereum, IOTA and their likes, are all vulnerable to “fake nodes attack” — harm done by nodes that pose as valid traders, and bona fide transactional entities, while in fact they are “empty identities” — nodes that are established by an abuser in order to exploit the singular source of power of the network: nodes count, nodes majority. Bitcoin (and the others) claim to fame is in the notion that the protocol prevents any minority of nodes to take control of the network. Indeed, whether you go with proof of work, or with proof of stake, or with proof of past, or alike — the power lies within a community of nodes. And so, any network in which nodes can be “faked”, where a single manipulator can readily concoct hundred, thousands, and more nodes mimicking a crowd of bonafide traders, is a network that will fall prey to such node inflation abuse.

Say then that to defend any network protocol based on decentralized power, it is necessary to eliminate fake nodes. When it comes to trading money, we need to develop a “proof of humanity”, proof that any participating node is associated with a verified human being. Some humans could have more than one node, but all their nodes will be associated with their singular human being, allowing the protocol to account for that.

What about corporations? They will have to be listed per a human representative. Even today the lion-share of financial fraud is due to fake corporations, and other non-human owners of money, hiding the identities of their human controllers.

One way to accomplish this “proof-of-humanity” (PoH) is to associate every node with a partial bio identifier, which may be hashed or encrypted, and that will serve as a secret key, Kid. One cross verification solution calls for nodes to frequently identify themselves with their GPS coordinates, to allow near-by nodes to challenge their Id upon a specially developed inspection protocol. Id Challengers/Inspectors will be rewarded. The inspection protocol developed by BitMint will not identify the person, only his or her humanity.

An abuser could register a cluster of close-by fake-nodes, that would cross-verify each other. To prevent this, the network will have a rule that in the event that a node is found fake, then all the nodes it verified are declared fake, and all their money holdings is pooled for community purposes. This will make it too risky for an abuser to build a cluster of fake nodes, and will motivate any bonafide node to counter-verify its verifier.

In order not to surrender identity via the bio-key, the network will allow partial data to be used. The early registrants will identify themselves with very little bio data. Later joiners will find in the general ledger that a previous node shared their same partial bio identification data, and then will add some more data for distinction. So gradually later and later joiners will have to surrender more bio data so that each node remains unique. But still even late joiners will surrender only very partial data, and keep their privacy in tact. Securing the humanity of nodes will allow for easing up some power-sharing protocols, and revitalize proof-of-work and proof-of-stake, etc.

The detailed solution proves quite complicated, so partners are welcome! (gideon@BitMint.com).

SatoshiPay phases out Bitcoin, partners with IOTA Foundation

PRESS RELEASE: IOTA

SatoshiPay, a blockchain-based nanopayments company that enables digital transactions on a micro-scale, today announced its partnership with the IOTA Foundation to explore replacing Bitcoin with IOTA as the company’s settlement network.

17 July 2017

Since its 2015 product launch SatoshiPay relied on the Bitcoin network to settle nanopayments. Initially Bitcoin transaction fees were negligible at below €0.01 per transaction of any amount. Due to Bitcoin’s rising popularity in 2017, combined with stalling scalability improvements, the network’s transaction limit regularly gets hit, leading to congestions and fees rising to uneconomical levels.

To sustain its business model based on frequent low-value payments, SatoshiPay is seeking to replace Bitcoin with a much more suitable distributed ledger technology.

SatoshiPay CEO Meinhard Benn said: “We love Bitcoin for its pioneering role in the creation of our industry, but some blockchain networks it inspired have evolved faster than Bitcoin itself, so we decided to move on to superior technology.”

The IOTA network, with its token listed as 8th largest cryptocurrency on coinmarketcap.com at a market cap of €460m, offers zero-fee transactions and does not limit the number of transactions per second, making it unique among cryptocurrencies and an ideal ledger technology for SatoshiPay’s future needs.

The IOTA Foundation and SatoshiPay agreed to work on a proof-of-concept project supported by the IOTA Ecosystem Fund, combining SatoshiPay’s frictionless content payment interface with IOTA’s scalable ledger technology.

The results of the joint proof-of-concept are expected to be presented in August 2017. Users of the upcoming project website will be given free IOTA tokens to try out instant payments for digital content like videos, images or downloads.

While corporates such as Innogy, Canonical, Bosch, Cisco and Microsoft are building IOTA prototypes focussed on the Internet of things, SatoshiPay is the IOTA Foundation’s first partner to build a purely web-based application.

“Working with the IOTA Foundation allows us to explore bleeding edge technology with a clear focus on massive scalability. We couldn’t be more excited and expect plenty of exposure and new opportunities to open up” said Benn.
David Sønstebø, founder IOTA Foundation commented: “SatoshiPay pioneered the micropayment business model, while IOTA supplies the technology that makes it a reality, therefore this collaboration is a natural fit.”

About SatoshiPay
SatoshiPay is headquartered in London with development lead through its office in Berlin. Angel funding for SatoshiPay Ltd was supplied by Axel Springer Plug & Play and Henning Peters. Seed funding was raised through Jim Mellon, Huiyin Blockchain Venture and publicly listed company Blue Star Capital (LON:BLU). Development of SatoshiPay’s nanopayment product started in April 2015 and its beta version was released in February 2016. Find frequently updated information at the company’s website https://satoshipay.io, its blog https://medium.com/@SatoshiPay and Twitter @SatoshiPay.

About IOTA Foundation
The IOTA Foundation is a non-profit foundation currently in formation in Germany, with the purpose of developing, maintaining and standardizing new open source protocols based on distributed ledger technologies (DLT). The IOTA tangle provides a revolutionary open source DLT which is scalable, lightweight and makes it possible to transfer value or data without any fees. Find more information about IOTA at http://iota.org or Twitter @iotatoken.

Contact
Meinhard Benn
Co-founder and CEO
meinhard@satoshipay.io
https://satoshipay.io
Twitter: @meinharrd

物聯網世界的基石-信任(二)

物聯網世界的基石 — 信任(一)

在上一篇的最後,我認為區塊鏈技術可能是 New Internet的基石。

去談一個New Internet可能會過於巨大,重新聚焦回萬物聯網的影響。

我們來看看萬物聯網的物聯網會有哪些特徵?

  • 低功耗
  • 需要廣泛的互通性(Interoperability)
  • 百億數量級的交易數量
  • 資料正確性

而在前一篇提到所謂New Internet的基石可能是區塊鏈有關的技術。

我這邊沒講就是區塊鏈而是跟區塊鏈有關的技術是有原因的。

現行的區塊鏈極有可能都只是通往未來的過渡,但從現在的參與確實有意義的

以我的技術合夥人Jim所整理的筆記來分類目前的區塊鏈技術

  • Generation 1.0 — Bitcoin and all the clones of it, i.e. Ethereum. [Blockchain with PoW]
  • Generation 2.0 — Peercoin, Ripple, NXT and all the clones of them. [Blockchain with PoS] — includes Ethereum if they switch to PoS one day.
  • Generation 3.0 — Simcoin, RaiBlocks, DAG-based coins, etc. [PoS without blockchain] — can include weird experiments, like eMunie, here too.

我們可以觀察到到了不久的未來,所謂的第三代區塊鏈技術是否還能叫做區塊鏈已經很難說,因為拿掉了”區塊”也拿掉了”鏈”。而更回歸是分散式帳本(Distributed Ledger)的技術。

從設計的角度來看

  • Generation 1.0 is proven to be viable, yet inevitably leading to centralization.
  • Generation 2.0 is in the process of being proved, and we already see difficulties with PoS, like Ripple’s consensus issues.
  • Generation 3.0 is not even technically working yet. It is at the proof-of-concept stage.

這演化就等於是從PoW -> PoS -> without Blockchain

區塊鏈的諸多特性包含

  • Decentralized 去中心化
  • Trustless 去信任
  • Collectively Maintain 集體維護
  • Reliable Database 可靠資料庫
  • Open Source 開放原始碼
  • Anonymity 隱私保護
  • Time Stamp 時間戳記
  • Asymmetric cryptography 非對稱加密

都是作為物聯網中物對物的匿名可信任資料交易中非常需要且又能可靠的。但現行區塊鏈為了創造出一個去中心化網路而用來創造”誘因”的”幣”卻也成了B2B企業應用中的困擾。

最好的例子就是作為開宗的Bitcoin,作為理想的去中心化網路示範,中本聰設計了幾近完美的機制,但卻在中國強大的算力之下被逼出了各種極限。

並且原本的全網認證和區塊都成了企業應用中的種種包袱,這樣的包袱在物聯網中真實狀況的資源有限更限制了既有區塊鏈技術的導入。

這時我們發現了一個有趣的技術 IOTA的Tangle

他的關鍵都寫在一開始了,

  • 沒有交易成本
  • 去中心化
  • 可彈性放大使用
  • 模組化(可做離線認證)

這些看似天書的特性用白話來說是什麼呢?

在物聯網中物對物的資料交易往往不是需要競逐算力,而是有其天生的責任,企業內的各種資料交易/交換也是,因此用算力認證的機制變成多餘。

而也因為物對物(M2M)或者企業應用,不需要如比特幣的誘因來建立節點網路。

這些在Tangle中都沒有了。Tangle的具象就像其字

Tangle

具體應用樣貌像什麼呢?

會很像我們生活體驗中的”標會”

我跟A借100萬,在實際的樣貌中,是否有需要搞到全世界幫我們記錄?似乎是太過小題大做,但究竟該多少人來幫忙作證呢?是同一個辦公室的人?還是同時在大安區的人,抑或是整個台北市?這部份就是IOTA的工作小組正在設計的邏輯。

其結構跟現行的網路更為接近,是一個網的概念,沒有區塊也沒有鏈也讓他的擴充性會更好處理。

有趣的是,IOTA的創辦人跟Ethereum的創辦人一樣都是二十歲出頭的年輕小伙子,等於證明了能夠顛覆未來的真的是年輕人所創造的一般。

回到區塊鏈帶來的價值,有些書會說這是讓過往儘是資訊交流的Internet變成價值可以轉移的技術。

透過各種區塊鏈技術,讓數位科技真正的成為與實體世界同步成為可能性,也就是真的達成了價值的轉移。

白話來說,過去我分享給你一首音樂,基本上就是我copy給你,你有我也有,於是例如Apple或者Spotify都在解決這一類的問題,於是創造了自己的封閉生態圈來達成這樣保護音樂資產的體驗。但這還是建構在其封閉生態圈內的。透過區塊鏈技術,就真的可以做到我分享一首歌給你,那其定義是

  1. 我借給你一段期間
  2. 我送給你

這兩個的真實意義就是你有的時候我是不會同時擁有的,這是實體世界擁有的特性,在過去的資訊網路世界中無法呈現這樣的特性也限制了數位世界的價值。透過區塊鏈技術等於同步了實體以及數位世界。

透過其可做匿名信任交易的特性,也會成為諸多物對物的物聯網世界安全交易的基礎。這也已經可以在幾個形成中的物聯網國際標準中見到蹤跡。

回應標題,為何會說物聯網世界的基石是”信任”?

因為我認為若萬物聯網的New Internet是個會發生的必然性,那麼解決萬物聯網的各種基礎架構勢必得重新思考而非用過去的網路樣貌來設計,繼續用過去的方法簡單說,只是讓本來的網路巨頭掌握優勢進而大者恆大。反而去思考在其巨大中心化的作用力之下會產生的反作用力必然是新機會之所在。

Welcome John Halamka to the IOTA Foundation

John D. Halamka, MD, MS, is the International Healthcare Innovation Professor at Harvard Medical School, Chief Information Officer of the Beth Israel Deaconess System, and a practicing emergency physician.

He strives to improve healthcare quality, safety, and efficiency for patients,
providers, and payers throughout the world using information technology.

John has been and is continuing to be involved in spearheading a myriad of modern eHealth practices.

He has written 5 books, several hundred articles, and the popular and deeply fascinating Geekdoctor blog.

His professional biography is so extensive that if we were to list it all it would probably make up a book in size, so instead we’ll link to the article on wikipedia for further information on this seminal thinker.

He is also an organic farmer in Sherborn, Massachusetts, overseeing 15 acres of agriculture, animals, and cider/mead making.

On the importance of DLTs like IOTA

Public ledgers will be increasingly important as we unify electronic health records to improve quality, safety, and efficiency”

We are very happy to have John Halamka on board as advisor for the eHealth working group within the IOTA Foundation. Our vision and ambition is to utilize distributed ledger in conjunction with other technology at the forefront to make modern and future medicine safer and more efficient. Having a world leading expert such as John on board this effort with us is very encouraging and promising for the goal of this working group.


Welcome John Halamka to the IOTA Foundation was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Transparency Compendium

Preamble

Everything in this blog post has been public knowledge from day 1, but now that we are welcoming thousands of new people into the ecosystem it is a good time to summarize and elucidate each of these topics individually in one place. This makes it easy for new members to understand the technology and the current status of IOTA, as well as mitigate the wave of misinformation that inevitably arise whenever cutting edge projects go public.

Basics

Let’s begin with the common sense, IOTA’s Tangle is a significant leap forward from blockchain, which itself is still very much experimental tech, something that need to be highlighted and reiterated. Even though we now deem the software ready for the public to experiment and develop with, it has to be noted that IOTA is still beta software in continuous production, like all other public distributed ledgers at the moment. We are getting closer and closer every hour to a production ready version, and are already in conversation with standardization bodies about the ultimate goal of making it a standard, and beyond that be deployed in large scale ecosystems internationally. However, it’s important to still keep in mind for the time being that one has to take the necessary considerations into account and use precaution when utilizing it for anything critical at the moment. In short: use common sense.

Maturity

The IOTA client is currently available in a Java implementation, which is pretty much the equivalent of a ‘minimum viable prototype’, but work has commenced on a fully optimized C++ and Rust client, with more clients planned. Likewise the libraries are growing consistently and we have a lot of them on our roadmap. Likewise the vault of tutorials is continuously being expanded. There’s also a lot of cool tools being developed by the community. Finally it has to be emphasized that IOTA is an open source project, currently there are millions of dollars to collect by participating in all of the above. As with all software there are also still some bugs to be ironed out, and quite nice compensation for doing so. While the IOTA core and ecosystem is growing exponentially it is still very much in an early phase.

Coordinator = Temporary training wheels

Coordinator

IOTA is currently in what should be considered a ‘transition period’ towards large scale deployment and standardization. Like Bitcoin, Ethereum and all other distributed consensus protocols before it, the IOTA network need an onboarding mechanism to provide 34% attack protection in its early days. Due to the unique underlying architecture of IOTA this takes the shape of a ‘Coordinator’. The ‘Coordinator’ or ‘Coo’ for short, is essentially training wheels for the network until the amount of organic activity on the ledger is sufficient to where it can evolve unassisted, at which point the Coo is permanently shut off. This does not mean that the IOTA ledger is currently in any way centralized, the network is 100% decentralized, every node verifies that the Coo is is not breaking consensus rules by creating iotas out of thin air or approving double-spendings. In fact any talented programmer could replace Coo logic in IRI with Random Walk Monte Carlo logic and go without its milestones right now, so technically even at present the Coo is entirely optional. The only role the Coordinator serves is to protect against attacks in this temporary infancy stage of the Tangle ledger, if we shut the Coo down the network would continue to evolve as it will in the future when it is unassisted by these ‘training wheels’.

Curl

As IOTA was the first distributed ledger project that took the inevitable threat of scalable quantum computers seriously, we had to move away from standard elliptic curve cryptography. A few months later NSA validated our concerns by announcing official concern over the ‘quantum threat’. Since then there has been numerous quantum leaps in quantum computing, further validating this engineering decision we made. Beyond this concern we also had to follow a path that is optimized for the future landscape of Internet of Things. Curl is a new kind of hash function optimized precisely for these two things, it is based on well-studied sponge construction invented by the Keccak creators (SHA-3) and strictly conforms to all requirements described in their official paper. Though Curl has gone through reviews, it is naturally not as explored as older ones yet. Curl, like the rest of IOTA, is continuously being audited by more and more cryptographers and security experts.

Hardening the software with hardware

Hardware support

Even though IOTA works great and scales better than any other public distributed ledger already, in order for IOTA’s full vision and true potential to become a reality a ‘Curl hasher’ will need to become a standard component in CPUs deployed in IoT environments. In fact a specialized CPU for IoT and Distributed Computing was the precursor to IOTA. This is a trivial matter, just like Floating Point Units/math coprocessors was made a standard part of all CPUs in the 1990s once the demand for math intensive operations became a norm. Another example of this sort of hardware support being standardized due to software demand are integrated GPUs in phones once the UX/UI and increased game complexity demanded it. It’s the same thing here, as IoT grows and the demand for the distributed ledger technology increase, it will simply become ‘just another’ component in the tech stack, subsequently hardware will simply adapt to accommodate the new status uo, in fact this is already occurring.
This means that even small devices in the Fog/Edge of the network will be fully capable of carrying out their own hashing for hundreds/thousands of transactions per second locally without the need to outsource it. With hardware support the fundamental limit of IOTA’s scaling will be the laws of physics themselves. I.E how fast radio waves/photons can communicate data. It’s important to note that this hardware component does not add any extra cost either in price or size of the chip to the manufacturer and will be entirely open source.

In the comment section there will be some FAQs and community written elucidations on common misconceptions of IOTA.


The Transparency Compendium was originally published in IOTA on Medium, where people are continuing the conversation by highlighting and responding to this story.

Exchanges Bitfinex and BTC-e Under DDOS Attacks, As a Result Bitcoin Price Falls to $2424

Leading bitcoin exchanges report that they have suffered from cyberattacks this week.

On Monday, BTC-e exchange said its systems were attacked, which resulted in the website temporarily going down. The news was announced in the tweet that was later deleted and the website showed trades going through.

The next exchange that appeared under the threat is Bitfinex that yesterday informed about distributed denial-of-service attacks, or DDoS, that attempted to paralyze the system with a flood of information.

The attack followed a similar one occurred on Tuesday morning. Bitfinex needed one hour to solve the problem and the exchange returned to regular operation.

Chris Burniske, blockchain products lead at ARK Investments, explained that the attacks are “not surprising” taking into account the bull cryptocurrency market. “There’s a big difference between a denial of service attack, and a hack that causes clients to lose funds,” he said. “As of yet, we’re fortunately not seeing any of the latter.”

Indeed, we currently observe unprecedented boost of investor interest and record-breaking levels of fundraising for new cryptocurrencies. Experts are concerned that the largely unregulated cryptocurrency industry might not be able to manage the hype.

“Investors with assets on centralized cryptocurrency exchanges should be careful. The track records of these organizations are not good, and as the assets on the exchanges grow, so does the bounty for attacking or hacking them,” said Benjamin Roberts, co-founder and CEO of Citizen Hex, a digital currency trading start-up backed by three Canadian venture funds.

Roberts as well as other digital currency analysts warn that cyberattacks can allow the attackers to manipulate the bitcoin market. Since several major exchanges located around the globe set the bitcoin price, temporary disruption of a single exchange can allow a trader to take advantage of price differences.

Bitcoin immediately reacted to the attacks with its price falling by 12% to $2,424. Looking back on the beginning of June, the price was approaching $3,000.

The second popular cryptocurrency, Ethereum, has surged several thousand percent in that time.

“A speculative frenzy is never a good thing. I don’t think we’re there right yet,” Adam White, Coinbase vice president and general manager of its GDAX exchange, told CNBC in a phone interview. But “I do think the ICO or token generation events have … maybe a bit too much enthusiasm for them.”

When Bitfinex officially announced the IOTA token the other day, the transaction volume skyrocketed so that the servers briefly went down. “Moments after the IOTA launch,” Bitfinex representative Brandon Carps shared, “we were all hands on deck to load balance and ensure IOTA trading was back online and operating as expected.”

Remarkably, 4.44 Million Mega IOTA was traded with the IOT/USD pair only for the first three hours of trading. Even greater activity was observed in the IOT/BTC trades – 11.67 Million Mega IOTA was traded for the same time period.

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