Will IOTA replace Ethereum? Schiener announces groundbreaking feature

  • In an interview with BlockTV, Dominik Schiener announced that IOTA will enable the tokenisation of digital assets in the future.
  • Schiener further describes that the community and business partners are satisfied with the security measures taken as a result of the Trinity Hack and that the entire team is optimistic about the future.

IOTA restarted the tangle a few hours ago after the coordinator was switched off almost four weeks previously. This measure was necessary after the hack of the Trinity wallet to limit further losses and to work out a remediation plan. After a long four weeks, some important milestones could not be further developed, but a groundbreaking project is in the pipeline.

IOTA will implement asset tokenisation on the tangle

Dominik Schiener, co-founder of IOTA, announced in an interview with BlockTV that IOTA is pushing the development of GoShimmer and will also introduce so-called “Colored Token”. Colored tokens (CT) are purpose-built tokens that are supposed to be able to represent any kind of real world assets in a tamper-proof way based on the IOTA Tangle.

The main purpose of these tokens is not to tokenize monetary values but to regulate ownership. Furthermore, CT can only be based on value transactions, since zero value transactions cannot be owned. CT should cover a large part of today’s smart contract solutions and be able to prove ownership of an asset.

In the real estate sector, a CT can be used to certify the ownership of a house, commercial property or land for a person or institution. Other conceivable areas of use include the redemption of vouchers or access authorizations to events or buildings. E-votings could also be realized via Colored Token.

CT is part of the introduction of a new signature scheme called Ed25519, which will be integrated parallel to the existing WOTS scheme. Schiener sees great potential for IOTA-based tokens and assets based on the tangle:

This opens up an exciting new future of IOTA where tokens such as digital and physical assets, stocks, Central Bank Currencies, etc. can benefit from the IOTA ledger and have a secure environment for their tokens to be transferred.

However, the industry and the community will not see and test the full potential of IOTA until GoShimmer is fully completed. GoShimmer is the name of the prototype node software that is currently being developed to allow nodes to reach consensus without the coordinator. Schiener further describes that although the roadmap is to present a first prototype by the end of the first quarter, this release will be delayed a bit due to the last four weeks.

The launch of the alpha test network is planned by the end of the third quarter of 2020 and the test network is expected to be activated by the end of the year. It remains to be seen, however, whether this schedule can actually be met. The full white paper with further technical details can be viewed here.

Hack did not have a major impact on IOTA price

Schiener states that in his opinion the past hack did not have much influence on the price of IOTA. The market shows a downward trend in general, so that the current price development correlates with the rest of the market. According to Schiener, IOTA’s business partners are satisfied with the measures taken and the community continues to stand united behind the project.

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About Author

Collin is a Bitcoin investor of the early hour and a long-time trader in the crypto and forex market. He's fascinated by the complex possibilities of blockchain technology and tries to make matter accessible to everyone. His reports focus on developments about the technology for different cryptocurrencies.

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