Multicoin Capital: IOTA Overestimated and Unsafe
January 25, 2018
Multicoin Capital hedge fund, headquartered in Ostin, Texas, has made public its IOTA analysis. The fund focused on the currency cost and studied the project’s basic drawbacks as Multicoin Capital see it.
The key problem mentioned by the experts is that IOTA Coordinator providing attack protection is centralized while the currency itself is not. Real security level of the Coordinator hasn’t been tested independently for it is a closed source.
Another point underlined is about current lacking of actual currency use. One of the reasons for that is present day IOT devices demanding hardware update for using IOTA net. Analysts consider this as the top priority problem for the project’s future.
Reviewing the arguments, IOTA has been developed with critical vulnerabilities. The team was aware of them, yet community was not until recently. Even after software weaknesses were found it took months to get official statement on it from the IOTA team.
Let us recall that IOTA is not Blockchain-based like its competitors yet employs alternative “distributive ledger” system called Tangle. IOTA poses itself as the first market with “Internet of Things” basis (IOT).