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- IOTA is an M2M and IoT focused blockchain project
KPMG Dubs IOTA One of the Most Innovative Projects
Germany-based blockchain project IOTA that uses its flagship Tangle solution to foster machine to machine (M2M) and Internet of Things (IoT) economies, has once again piqued the attention of one of the corporate giants. This time, it’s one of the “Big 4” of accounting and auditing world, KPMG.
In a report titled “Cryptocurrencies: Do they matter to corporate treasuries?,” KPMG highlights four most important cryptocurrencies today – bitcoin, ether, XRP, and IOTA’s native digital token, MIOTA.
The report highlights IOTA as “one of the most innovative cryptocurrencies at the present time.” MIOTA, which aims to become the cryptocurrency of the emerging IoT space, has, to date, forged multiple partnerships with heavyweights such as, Jaguar, Audi, and Bosch, among others.
According to the report, IOTA’s focus on fostering an automated M2M economy requires far more transaction processing for which “conventional, sequential blockchain technology” is not sufficient enough. In a bid to scale large volumes of transactions, the IOTA Foundation goes much beyond the traditional “blockchain technology” and has devised its own iteration of DLT called Tangle.
The project’s Tangle protocol requires every user (machine or object), to randomly validate two other transactions on the IOTA blockchain. This means that contrary to the functioning of a traditional blockchain network – where transactions are confirmed in a linear pattern – Tangle facilitates the validation of transactions in a non-linear and parallel manner. This approach to validation ensures the processing of multiple transactions in one-go.
With that said, one of the major Achilles Heels for IOTA is its centralized Coordinator. However, this could change soon as a recent announcement by the IOTA Foundation states that the Coordinator could well be on its way out.
Further, the KPMG report mentions that unlike other projects like Ripple’s XRP, Ethereum, and Bitcoin, the IOTA ecosystem is still pretty much in its infancy. However, should the project come of age, its potential could be unparalleled.