IOTA v Ethereum Classic: With the direction that technology is taking, it is increasingly clear that IoT is the future. We are heading into a future where machine-to-machine communication aided by artificial intelligence will be the norm. As this future shapes up, there are two technologies that are aiming to make it possible, and that’s blockchain and DAG. Under these technologies, are two crypto projects that are going neck-to-neck in the IoT market. The two are, Ethereum Classic (ETC) and IOTA (MIOTA).
The primary selling point of IOTA (MIOTA) in this market is feeless transactions. IOTA is premised on the idea that when millions of devices are communicating with each other, micro-transactions in a feeless environment will be most ideal. On its part, Ethereum Classic is rooted on the idea that smart contracts are central to IoT communication. As such, the ability to create sustainable, self-executing contracts will be the basis of the success of the Internet-of-Things.
These two divergent technologies pretty much mirror the Videotape format war of the 1980s. In the 1980s, there was a battle to control the emerging home video market. While it was clear that this market had a huge potential, the problem was in the approach. Two technologies competing for this market were Betamax and VHS. Betamax was anchored on the idea that what consumers wanted was good resolution, and sound quality, while VHS was focused more on recording time. In the end, VHS won. It won because consumers were more interested in the ability to watch content without having to change tapes, than the supposed better audio and video quality of Betamax.
DAG and blockchain technology portray similar characteristics to VHS and Betamax. There is consensus that the Internet of Things is the future. The question is, will it be about smart contracts or fees? At this point, one can only speculate as to which one will win. IOTA (MIOTA) which makes use of DAG, is feeless, but it also has its own problems, such as the risk of being centralized, and insecure. On the other hand, Ethereum Classic (ETC) is highly secure, scalable, but it has its challenges too, especially that of fees.
But while it’s early to tell whether its fees or secure smart contracts that will be the future of IoT, there are indicators that the latter could be the answer. That’s because IOTA is also looking to create smart contract solutions through Qubic. This could be out of the realization that smart contracts are extremely important in IoT. It’s more of a convergence in the idea of how the future of IoT will turn out.
As such, there is a good chance that the two could very easily co-exist and dominate the IoT market together. With the growth of artificial intelligence and its ability to affect every aspect of life, the future of these two cryptos is bright. The market is big enough for both, which makes both of them great long-term investments.