IOTA

Decentralized Economy of Things platformA Distributed Ledger Technologywww.iotatoken.com

The Team

David Sønstebø

Management & Strategy

Sergey Ivancheglo

Development & Cryptography

Serguei Popov, Ph.D

Math & Cryptography

Dominik Schiener

Development & Strategy

Cloud Limitations

● Significant

investment

● High Latency

● Network congestion

● Inevitable Downtime

● Vulnerable to privacy

leaks and attacks

● Struggling with

exploding IoT traffic

“20 Billion Devices

Will Be Connected To

The Internet Of Things

By 2020” - Gartner

The IOTA opportunity

● The team behind IOTA recognized the problem of the cloud and founded their hardware startup at 2014 focused on bringing cost-effective processing to millions of devices in Fog/Mist environments

● During their work, they realized the lack of economic backbone for IoT

● Due to their cryptographic experience, they seen an opportunity and requirement for a Fog/Mist platform

“IOTA came about as a

necessary software evolution

for IoT hardware solutions” -

David Sønstebø, Founder of IOTA.

The IOTA team conclusions

• For IoT to reach its full potential it needs to be

fully interoperable

• Infrastructure resources are scarce and the

demand always increasing

• None of the established centralized payment

processors able to enable the IoT economy

“About 40% of IoT potential can be realized through

interoperability. Average fees on transactions by

processors exceed the average micro-transactions of

IoT” - McKinsey and Gartner

The solutionRethink from scratch

A revolutionary new

distributed ledger

designed for Machine-to-

Machine interactions,

making security an integral

part of the technology and

remove the fees.

So what is IOTA?

● Decentralized data transactions - Core feature of IOTA is the ability to transfer data through the Tangle. IOTA gives you several

options to do so, making it possible to establish secure and authenticated communication channels between devices/sensors . All

data which is transferred through IOTA is fully authenticated and tamper-proof - making attacks impossible

● Micro transactions and zero fees - For the first time ever true micro and even nano-transactions are enabled due to the unique

IOTA Tangle architecture, providing developers with a brand new set of tools for their applications in both IoT and Web. This

nurtures machine to machine payment and brand new business opportunities for companies that prohibitive fees has kept in the

realm of the impossible until now.

● Everything as a service - While the whole world has adopted the ‘Sharing Economy’ in areas like driving and accommodation,

IOTA enables a whole new realm where anything with a chip in it can be leased in real time. Most of our belongings stay idle for

the vast majority of time that we possess ownership of it, but through IOTA a lot of these things like appliances, tools, drones,

bikes, etc. and resources such as computer storage, computational power, WiFi bandwidth, etc. can be turned into leasing-

services effortlessly.

● Scalable distributed ledger - The distributed ledger revolution has only barely begun, the vast majority of use-cases has not even

been thought of yet, and with the next generation ledger - Tangle which IOTA is created on, developers will be able to invent even

more solutions.

● Masked messaging - As the first extensible module of the IOTA core, MAM enables nodes to exchange data through the Tangle,

fully authenticated and encrypted. This means that your devices can transmit valuable and sensitive data with quantum-proof

security through the Tangle, ready to be analyzed later. MAM makes it possible to share data with multiple parties easily, similar to

a radio, multiple parties can simply tune in on your frequency and get the broadcast data.

What is Tangle?

● Bundles all transactions in a tangle

● Validates transactions only on-demand

● Completely self-regulating, consensus no longer decoupled

● Uses low overhead Proof-of-Work to prevent spam

Tangle

Weather forecast for IoT:Cloud, Fog and Mist

IOTA Weather forecast for IoT:Foggy, with chance of Mist

Fog Solutions

● Distributed processing stations close to devices

● No single point of failure

● Greatly decreased latency

● Removes network congestion

● Enable faster analytics and optimization

Mist Solutions

● Mist is next step in

IoT decentralization

● Embed or extreme

proximity of

infrastructure

● Allows for immediate

real-time analytics

and optimization

● All those Mistclouds can communicate and transact directly through IOTA

ED

GE

CO

RE

IOTA Economy of Things

Step 1

What is Economy of Things?

● The synergy between finance and machines is accelerating

● Every device, sensor or equipment will be able to create and receive monetary transactions

● Enabling machines to settle payments among themselves and creating a new M2M-based economy

IOTA Enabling Sharing Economy

A brief history of the modern ‘Sharing Economy’

AirBnBEvery empty room is a potential

rental for the night.

UBEREveryone with a driver’s license

and a car can be a taxi.

Bikes and cars

Your bike and car is idle most

of the time, no reason not to

make money on them

Everything and M2MPower tools, appliances, sports

equipment etc.

● Most of your things are idle most of the time. (95%+ of the time)

● In the near future virtually every device will have microchips in them

● Can be turned into a leasing device effortlessly

● IOTA real-time microtransactions make it possible to only pay for the exact usage of whatever you lease, no more and no less. 100% fair and without fees

● Turn anything you own with a chip in it into a profit-making machine and improve the environment by doing it!

● IOTA has no complex integration. Plug and play. Any developer can implement it.

Sharing Economy 2.0Anything with a chip in it can be leased Devices trade resources among each other

Idle bikes millions of them

● Bike rental parks like

these are increasingly

popular worldwide

● Pay upfront X amount

of hours you think

you’ll use the bike

● Not optimal if you only

need it for 10 minutes

● Requires a central

payment station

● Launch ‘bike locator app’

● Get on bike

● Automatically starts deducting iotas from wallet for exact usage in real time

● Automatically stops when you lock and abandon bike

● Next person who needs it can pick it up where you left it and the cycle repeats

● A lot more accessible and effortless

Other use cases include:

● Compensated storage sharing

● Compensated bandwidth sharing

● Real-time data trade from any kind of sensors and even wearables

● Autonomous ordering (fridge ordering groceries or machine ordering new parts)

● Automated insurance claims (e.g. based on the weather)

● Automated parking meters

● Automated charging stations for EV cars

● Self-discipline / Rewarding wearables

● ANYTHING you can imagine

● Full release with API (Soon)

● Release Proof-of-Concepts

● Help projects building on IOTA get funding

● Keep growing the ecosystem

● Releasing beta in the coming days

● Bringing more and more projects on board

● Assist established companies that want to experiment with the technology and run pilot projects

Present Future

www.iotatoken.com

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