Internet of Everything: To the Moon!

A mysterious report by Infoholic Research LLP predicts a market volume for the Internet of Everything (IoE) of about 24 trillion – in the next four years.

The report itself is available for a paltry 3500 bells, which is why Research and Markets, who distribute this report, asked if there could be an abbreviated version or at least a summary so that one could verify the authenticity of such a daring thesis.

Unfortunately Research and Markets cannot do that, they are only allowed to sell the report, which is why they forwarded such requests to Infoholic Research, the makers of this report. Whether Research and Markets is taking measures to verify or authenticate the reports distributed was also not answered.

Infoholic itself did not comment on this either. The company itself does not look like a fake, but the risky claims of the report could not yet be confirmed.

So far, so bad. However, at Cisco, a quite trustworthy company, one could look through some free reports. According to the information available there, the IoE market in the private and public sectors is expected to grow by 19 trillion dollars within the next decade.

Internet of Everything – the network of the future Bitcoin evolution

The IoE market is a term that summarizes everything that is connected to the Bitcoin evolution: smart grids, smart homes, smart cities, smart contracts, smart currencies such as Bitcoin and Ethereum. It also brings together technologies such as the cloud, data mining and data analysis like this A street lamp that is more responsive than today’s models and reacts spontaneously to its surroundings with data from the Internet – i.e. not just to the time of day, but to nearby road users – would be an example of the Internet of Everything.

An infrastructure is currently being built that will make such things possible – in other words, everything will be connected to the Internet. Electricity, heating at home, entire offices and, of course, the machines in production lines – all this is gradually being connected to the Internet.

According to the Cisco report, ten billion devices are connected to each other all over the world – only 200 million in 2000. Growth by a factor of 50 is incredibly high, but still very low when you consider that around 1.5 trillion things worldwide could be connected to the Internet – and more are being connected every day.

The strong growth of “smart” devices opened up many possibilities, which were considered futuristic just a few years ago, thanks to the likewise extreme growth of storage space, bandwidth and computing power at ever lower costs.

Internet of Everything – the rise of the machines

One of the most interesting trends is the monetary automation of everyday life, in which devices work independently of people via machine to machine (m2m ) communication. Instead of paying the electricity bill every month, the domestic electricity grid could use a process that uses smart contracts, cloud computing, data processing and blockchain platforms such as Ethereum to calculate the kilowatt hours required itself and immediately pay the appropriate price for the urban electricity grid, optimized for the current circumstances.

Another example, for which RWE has already built a prototype (we have touched on the subject in the interview), is an intelligent charging station for electric cars that, with the help of Ethereum, immediately calculate the price and initiate the transaction.

Over time, the charging station can become a Decentralized Autonomous Organization, a DAO. With the help of data analysis, the blockchain and the cloud, the DAO could implement the entire process, such as price negotiations, the conclusion of (smart) contracts with suppliers, the purchase of new charging stations and the establishment of supply chains with minimal human involvement: Electrical installers would still be needed to connect the charging station and DAO token owners. The latter would be able to decide how big the re-invested profit share is.

Many other examples could come to mind – my colleague Danny wrote about it. Refrigerators that automatically buy supplies that are flown by autonomous drones to the door (which in turn is opened via a draws a picture of a fully automated world. A world worth billions of dollars is already beginning to form today.

That not only sounds good, it is also grandiose. The keyword Industrial Revolution, however, also makes the dark sides of development present: The automation of the world will be

Bakkt Announces Bitcoin Futures

The crypto exchange Bakkt will delight the market with futures contracts in the future. According to a press release, the futures for the crypto currency Bitcoin are due to come this year. This announcement follows a recent personnel change.

Announcement after Bitcoin evolution

Bitcoin futures and their influence on the market should have been known since last December at the latest. The announcement and launch of Bitcoin’s futures contracts by the CME and CBOE (among other things) resulted in strong growth in the Bitcoin evolution price. The signal behind it: We are dealing with regulated, government-approved financial products, so they must be legitimate.

The fact that this does not always have the desired effect for investors became apparent a few months later. The launch of the Bitcoin futures coincided with a (so far) incomparable bull run, which flattened out just as quickly. The air from the bubble escaped with high speed, many were alienated. The accusation of manipulation was not far off – according to studies, the Bitcoin futures had as much a share in the price rise as in the price fall. But as we now know, the brief bubble formation only led to the market now being more mature than before.

Physically Backed Bitcoin evolution

Now Bakkt is entering to bring a new product to the market: physically deposited Bitcoin Futures. In contrast to the common Bitcoin evolution review, you bet a little differently here:

“These are futures contracts, the fulfilment of which changes the asset (here: Bitcoin) or the ownership right to it the owner. This means that the short position undertakes to sell the previously determined quantity of Bitcoin to the counterparty at the previously agreed price after the expiry of the contract and to transmit it “physically” (if this can be spoken of at Bitcoin). Should the Bitcoin price at this time be higher than the agreed price, the short position has made a loss. The deal for the long position was accordingly good”.

Here you can find the explanation in detail.

The physically deposited Bitcoin futures were originally planned for November. Having recently received prominent support from Adam White of Coinbase, the Exchange announced in a press release the final date for the launch of the futures contracts: 12 December 2018.

What about Ledger: IOTAs Tangle and Hashgraph

After explaining the difference between the distributed ledger technology and the blockchain yesterday, today we are talking about two alternatives to the blockchain: IOTA’s Tangle and Hashgraph. Of a lot of data clutter and blossoming trees.

As popular as blockchain technology may be, there are always certain points of criticism that call the concept into question. Especially the Bitcoin blockchain with its proof-of-work process now takes quite a long time to confirm transactions. While the number of transactions to be processed is constantly increasing, the technology does not seem to lag behind in terms of speed, the memory required by the blockchain, the speed and the result are no longer in the right proportions. There are several approaches to this problem of scalability, two of which are Tangle and Hashgraph. Both systems will be examined in this second article of the series “Was zu Ledger”. We will again address the more advanced user.

Tangle – a neat tangle

Just like the blockchain, tangle is a peer-to-peer network. This means first of all that they are operated by equal actors. The IOTA team that developed the Tangle want to stand up to the blockchain with better scalability, faster and more secure transactions. As the name of IOTA (Internet of Things Association) indicates, the network is designed to provide a payment system for the Internet of Things.

For this purpose, the DLT under IOTA, the tangle, wants to be no blockchain. Instead of a blockchain, IOTA uses a directional, i.e. directed acyclic graph (known as DAG for short): Unlike the blockchain, whose data structure is a concatenated list, here a single data node has more than one child. Therefore, these nodes are loosely distributed. In contrast to the chain of the blockchain, the tangle is a tangle of nodes. There are other crypto currencies like Byteball, whose data structure corresponds to a directional acyclic graph.

This node network grows with each new transaction. Because the tangle does not grow in one direction, it promises a simultaneous processing of many transactions. Therefore, a part of the network can also act temporarily detached from the rest and be reunited with the tangle at a later point in time.

All beginnings are difficult

Tangle also wants to differentiate itself from the Bitcoin blockchain when checking transactions. Each new transaction checks two existing transactions. These are selected randomly using an algorithm. There are two main criteria for the check: No more tokens may be issued than are available. In addition, the transaction must be signed by the rightful owner.

Because each transaction represents two already validated transactions, the network theoretically becomes more secure with each new transaction.

However, all beginnings are difficult. The first transaction, called Genesis, had no transactions to fall back on. Therefore, the tangle currently still operates with a “coordinator” who confirms all transactions. It is precisely for this reason that IOTA is controversial in the community despite well-known cooperation partners such as Volkswagen, Innogy, Telekom and others. If the network is large enough, this “coordinator” should no longer be needed.

While the problems of the Bitcoin blockchain in terms of speed and energy performance are solved theoretically, doubts about the autonomy of the technology arise with the Tangle.