Harnessing the Power of Distributed Ledger Technology (DLT)
In the most basic of terms, Distributed ledger technology (DLT) is a digital system for recording and validation of transactions and their details in multiple places at the same time. A peer to peer network is required as well as consensus algorithms to ensure replication across nodes is undertaken.
One form of DLT is the blockchain system, which can be either public or private. But not all distributed ledgers have to necessarily employ a chain of blocks to successfully provide secure and valid achievement of distributed consensus: A blockchain is only one type of data structure considered to be a distributed ledger.
Why Bitcoin and Ethereum Blockchain are limited for applications in Internet of Things (IOT) , Energy and Carbon
Common blockchains cannot be adjusted to a no-fee settlement layer because the fees are integrated by design, as a monetary incentive for miners and thus operating as protection for the network.
Considering the potential of millions of micro-transactions each day, these blockchains would generate an enormous amount of fees, just for conducting transactions. Further the mining of traditional blockchains requires enormous amounts of electricity adding great costs which ultimately prove unsustainable.
Our Philosophy is Profitable Disruption in IOT, Energy and Carbon
We view DLT , centered on large, complex problems, as a critical component of the acceleration from centralized networks to peer to peer networks. In order to create these types of solutions and applications a DLT is required that goes beyond traditional blockchain.
Our search led us to IOTA, an innovative DLT designed to be the backbone of the Internet of Things (IOT) and machine to machine economy. IOTA, was developed in 2014 and is a DLT which operates without mining and transactions fees, allowing for the processing of scalable micro transactions between IOT devices and enterprise applications. It provides a robust platform to create enterprise solutions for the decentralization of energy through micro-grids, reducing global green house gases through and monetizing IOT data streams.
Miners are replaced by users of the network who validate two transactions (via proof of work) in order to be able to conduct one of their own transactions. No one receives a reward and no one has to pay transaction fees.
Furthermore applications such as pay on demand energy, micro-payments, and machine to machine communication like sensor technology and connected smart cities can be created as an application layer on top of the IOTA DLT.