Having done my research about IOTA ( ) I think it is necessary to inform people out there about the FUD (Fear-Uncertainty-Doubt)-campaign against IOTA. ! thank you for more than 100,000 views for my articles in the first three weeks of January by the way! In the following, I shall argue that the FUD against IOTA makes sense because IOTA itself is FUD IOTA is FUD because it causes FEAR among those who can grasp IOTA’s potential; UNCERTAINTY among those who worry that if only half of what IOTA promises becomes true, they might be in a really bad position without it; DOUBT among those who think they have a safe investment with their other coins and are now unsure whether these will be needed at all. IOTA gives many people sleepless nights; of course, it makes sense for them to drag as much FUD as possible in IOTA’s way. Thankfully, many of these people have provided enough evidence for this daring statement. I would like to introduce you to the way these people try to stop IOTA from achieving its goals. Example 1: The DCI-attack Assertions which went viral and caused a lot of FUD: IOTA partnerships are “nebulous”, especially Microsoft would be a partner. not IOTA is not tamper-proof because it relies on a centralized Coordinator IOTA is not feeless IOTA’s hash function is vulnerable to attacks Simple explanation: ad 1.: The term “partner” (especially with regard to Microsoft) was hyped in the media. (see Dom’s quote ); Microsoft even clarified that this was not IOTA’s mistake here they (!) used the term “partner” themselves: ad 2.: IOTA Foundation’s answer: The purpose of the Coordinator in the infancy stage of the IOTA network has been transparently communicated throughout the history of IOTA. As the team has explained at , the Coordinator is a temporary measure to help bootstrap the network and protect it during its infancy. ( ) length Once there are enough full nodes and transactions to secure and sustain the IOTA network, the Coordinator will be permanently removed from the network. click ad 3.: purely semantic argument about the word “feeless” because of the Proof-of-Work needed. This argument will probably lose its ground once the kicks in. How would you call it if you send 1 cent around the world and the receiver gets 1 cent? IOTA hardware microprocessor ad 4.: The hashfunction was never intended to be a cryptographic function. The alleged weak spot was implemented on purpose for (CfB, IOTA’s CTO, with the NXT source code which wrote back then). copycat-protection invented this protection already years ago he (aka BCNext) himself Important update: 24hrs after releasing this article an important information has been released: MIT allegations as far as the vulnerability are concerned are debunked. Here is a simple explanation of the situation understandably explaining the flaw: The allegations were debunked quite logically for the average layperson. Their attempt in creating a vulnerability is not possible, because the DCI group draws a situation where the victim is: (a) BOTH naive enough to , follow obviously malicious instructions from an unknown attacker AND capable enough of coding IOTA transactions by hand in a code editor OR (b) Naive enough to , at which point the attack as originally described no longer exists because the attacker now has the seed directly (and access to funds on ALL addresses). enter their seed into a malicious piece of software provided by the attacker When confronted about the practicality of the attack, rather than address these issues, . DCI misled the public into believing the IOTA network had a vulnerability More detail: Here are the steps require in scenarios A and B 1. Attacker asks victim: “May I please have an unused address to send you money?” or “Would you please send me a transaction that uses an address generated from your seed?” 2. Attacker generates a new bundle (transaction), and sends it to the victim Scenario A 3. Victim opens up their code editor, downloads the IOTA libraries, enters their seed and the transaction information from the attacker, signs the transaction IN CODE, and sends the signed info back to the attacker. Scenario B 3. Attacker also sends the victim or convinces him to download “IOTA Transaction Booster.exe”, which prompts the user to enter their seed (ie phishing attack), at which point the rest of the attack is pointless as the seed has already been compromised. And funds from ALL addresses on the seed are compromised. (This is what led to this debunking: ) click Any honest reporter who has spread these wrong news should write a public apology; MIT-Team included! Who is behind it? Neha Narula DCI Director active role in Bitcoin’s development of the Lightning Network, a proposed / experimental solution for fast and inexpensive to solve Bitcoin’s problem of slow and costly on-chain transactions. supporting off-chain transactions Madars Virza DCI researcher and co-author of the IOTA vulnerability report co-author of the Zerocash white paper part of the behind the cryptocurrency protocol , a cryptocurrency with a $1.5 Billion market cap at the time of this writing. Zcash, through , claims to solve problems of in Bitcoin. leadership Zcash zero-knowledge proofs true anonymity Ethan Heilman Partner at DCI and lead author of the IOTA vulnerability report part of the leadership at , a for-profit company based in California that is working to build their own DAG-based protocol based on the . (SPECTRE also claims to enable ) DAGLabs SPECTRE white paper unlimited transaction scalability Joichi Ito Director of the MIT Media Lab (of which DCI is a tiny subdivison) authored the most recent critical article on IOTA published by DCI. Curiously, Joichi’s personal was updated immediately following publication of his article removing a for-proft board position at Helium Systems whose states that it “provides robust and secure .” COI disclosure page website IoT device connectivity for a fraction of the cost of our competitors You may draw your own conclusions from these backgrounds and the link to such an unsubstantiated article against IOTA; some people might call it a ... Add to this that there has never been an official answer neither to IOTA’s nor to David Sonstebo’s offer to have an / discussion about it ( by Amazon’s Joanna Bickley who herself almost fell victim to the FUD). Evil to him who evil thinks . . . severe conflict of interest official response open public which was even supported Example 2: “The Foundation has stolen our funds” On the 20th of October, the Coordinator was shut down because of a serious attack and consequently transactions could not be processed anymore. Moreover, users’ funds had to be “frozen” because they were at risk of being stolen due to an attack on the network. IOTA Foundation’s words were clear from the beginning: […] the main reason for the shutdown was to from an ongoing attack on the network which could have had more serious consequences due to a bug that was swiftly dealt with. ( ) protect our users click As a consequence of this protection people with funds at risk could only see a 0-balance when opening their wallets/balances. — even if it was a bit later (January) than anticipated but in the months between the attack and the payback IOTA’s value rose from $0,42 to roughly $4 so even though some people could not claim their IOTAs in the meantime all of those people affected were compensated in a way. As promised by the Foundation people received their funds back Despite all this a huge FUD storm evolved which caused a dip in the short term: The price dropped 30% from 50ct back to 35ct as a consequence of the FUD Moreover, “IOTA foundation has stolen our funds” has survived as an argument until the time of writing — . despite the fact that funds have long been paid back Example 3: “News” at Bitcoin.com Assertion which caused a lot of FUD: . IOTA’s wallet is insecure which is why people lost more than $4 million Simple explanation: Neither wallet nor the Tangle (IOTA’s ledger) are in any way at risk — people lost their money because they used phishy internetpages to create their seed for the wallet. Fore more information please . click Who is behind it? Avi Mizrahi Journalist at bitcoin.com has been covering Bitcoin since 2013 has spoken about the at numerous financial conferences around the world, from London to Hong-Kong. (Note that ) promise of cryptocurrency and blockchain technology IOTA is not a blockchain but DLT The problem does not lie in Mizrahi’s 875 followers on Twitter, but that he spread such false FUD on one of the biggest websites for cryptocurrencies (231,000 Twitter followers). People trust such big websites: It is a shame that such “journalists” can spread their unfounded accusations on such a highly-esteemed website. Of course, Bitcoin.com is also not unhappy about such news for IOTA which is one of its biggest competitors. And by the way: This is the only article on bitcoin.com dealing with IOTA so far (as if there had only been such “negative news”). . . Example 4: Coinmarketcap.com Some days ago, coinmarketcap.com’s decision to exclude Korean prices from the currencies’ markets , because suddenly the prices changed and people thought the end is near. sparked a world-wide sell-off However, IOTA had been victim to this policy for months. IOTA’s price was kept lower than others artificially because the (higher) thus causing a lower marketcap for IOTA which led to the question ; I myself told CMC about it before the above-mentioned world-wide price effects: Korean prices were excluded why they would do that IOTA’s marketcap would have been siginficantly higher if Coinone’s prices had been considered… Example 5: Reddit Reddit is one of the — if not THE- most important information services in the internet. People can post (links to) news there which in turn can be upvoted to reach a broader audience. All of the cryptocurrencies make use of this service in order to drag people’s attention to great news. However, when it comes to IOTA on the /CryptoCurrency subreddit, reddit users seem to be really strict in terms of censorship (to say the least): Comments get locked immediately which chokes any discussion off right away (just some recent examples , , ). 1 2 3 Apparently, people report IOTA news as “spam” so the automod locks the comment section until a human mod opens it again. Or (which is likely more often the case) there are several people reporting about a new topic which causes the automod to flag the topic as “controversial” and disable the comment section. As a consequence, IOTA topics were flagged “controversial” or were even shut down completely — either way people could not really inform themselves about the good news. This is, of course, (although more staff members would certainly help) but it shows that many people out there do what they can to stop spreading IOTA’s good news. not Reddit’s fault Conclusion You might think that this sounds like a conspiracy theory and I must admit, it does. The devs have more than often expressed that they were totally surprised that IOTA has met such a lot of resistance. What could be reasons for this? As could be seen, many coins (or rather their dev teams) have reason to consider IOTA (why else would a or post such tweets?)— FUD is a powerful means to cast doubt among interested parties. a real threat to their own field of application BTC developer LTC founder People see IOTA’s potential and . In order to do so they help to drag down the price by all means — including FUD. want to buy as cheap as possible Either way, fudding IOTA makes sense. The good news is that IOTA is only learning to walk so guess what happens to all the FUD once the product is production ready ( ) equipped with the latest technology to keep funds safe and ? which is the goal for 2018 audited by the world leading lightweight cryptography and security company — until then everyone should dig a bit deeper than reading a random tweet or believing a reddit flag in order to challenge its truth and trustworthiness. We will see this soon If you liked this article or , I would be happy about a little donation ;-): my other articles IOTA: KGOZYHJRYVDBSXTUSECYJVEBLDVYFKCAKAWTPTCKXMBNOWNVRDRHRVSJNIVOQUFRODFPXWYSGROKRWKRZWJZTJOHSX : There is no such thing as intrinsic hatred among the IOTA movement directed against other coins, people, banks or whatsoever! Instead, one of IOTA’s main focuses is its . This article was written because a point has been reached at which you simply have to defend “your” project against unsubstantiated claims. Important note interoperability with other projects and technologies

Too Long; Didn't Read

Discover Saakuru: Web3 Mass-Adoption with 0-FEES

IOTA: Why the FUD makes sense

Too Long; Didn't Read

Chris Mueller

About Author

TOPICS

THIS ARTICLE WAS FEATURED IN...

IOTA: Why the FUD makes sense

Too Long; Didn't Read

Chris Mueller

About Author

TOPICS

THIS ARTICLE WAS FEATURED IN...

RELATED STORIES