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The DCI-IOTA controversy and IOTA’s new ‘donation address’ solution to keep bears at bay?

Prajit Mukherji



IOTA-DCI controversy
Source: Pixabay

IOTA, currently trading at $1.87 USD is a blockchain distributed ledger which is scalable, lightweight and makes it possible to transfer funds without any fees. But one of the major concerns of IOTA is their complication with a fixed reusable donation address due to the single-singing character of an IOTA address.

A user cannot simply post an IOTA address and spend funds even when the funds are exchanged at the same address.

IOTA’s current wallets are protected against key reuse. A new wallet address has to be added if a new donation is being made, which is nearly impossible in the blockchain technology and all of the users in its peer-to-peer network has to be updated if a new donation address is added. It becomes a time consuming and an unsafe process.

IOTA is trying to resolve this issue by introducing IOTA cheques, where the user can send their private address key directly to where the funds are stored. The receiver can access these funds and send them to their crypto-wallet address, keeping the donation address completely vacant. This exchange functions like sending an IOTA cheque.

Digital Coin Initiative made an announcement about IOTA in their report stating the defects in the transaction rate of IOTA, and how they have complexities in the wallet address related operations.

Co-Founder of IOTA, David Sonstebo has said that the Digital Coin Initiative (DCI) has run the biggest misinformation campaign in the history of cryptocurrency against IOTA. He has also discounted the entire story, calling it “a storm in a shot glass”

Ralf Rottmann Founder of Grand Centrix tweeted:

“Seeing some of the obvious envy, I am all the more believing into #IOTA‘s success. Some try to discredit, while others innovate and build. Love the IOTA community and being a part of it!”

David Sonstebo, says,

“As for IOTA token holders, there is certainly nothing to worry about. Even the unproven hypothetical vulnerability was resolved back in August 2017. Furthermore due to the misrepresentation by DCI’s report IOTA faced what would undoubtedly be considered the largest FUD [Fear Uncertainty Doubt] campaign in crypto history.”

This feud was about the complexities that IOTA faced around mid-year 2017 when they changed their hash from their in-house function called Curl.

This controversy is just getting started and reactions are biased towards IOTA. Is the IOTA team trying to whitewash people to not focus on their criticisms or is DCI blowing the issue out of proportion?

Ian Fisch a Twitter follower says,

“Lol so IOTA Foundation definitely didn’t want them leaked, yet their full contents have been on Tangleblog for days, and IOTA provides a direct link to it in their statement denouncing it. Give me a break. IOTA clearly leaked these and I’m wondering if they’re alterted.”

Reacting to certain Twitter critics who claim that IOTA lied about their “Microsoft Partnership”, Mike Stefan a Twitterati wrote,

“You apparently don’t trust Microsoft’s own words on that issue? MICROSOFT apologized for the wording including “partnership” THEIR employee used….. FUD’s over, pork chop. Move on.”

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Prajit has graduated from St. Xavier's Kolkata, his interests in blockchain and cryptocurrencies have led him to work with AMBCrypto as a News reporter.


Bitcoin’s [BTC] security is 100 times more than that of Bitcoin Cash’s [BCH], says Litecoin creator





Bitcoin's [BTC] security is more than a 100 times than that of Bitcoin Cash [BCH], says Litecoin creator
Source: Unsplash

Charlie Lee, Creator of Litecoin [LTC] and Managing Director of Litecoin Foundation, spoke about projects that allocate mining rewards to developers, in an interview with Laura Shin for Unchained Podcast. He also opined about whether Litecoin’s vision still remained the same or not.

On projects that allocate a percentage of the block reward to developers, Lee stated that it was “okay” as long as the project developers were transparent on this subject, adding that in some cases, this was “needed”. He further stated that it was hard to find developers for Litecoin since, there were not enough funds to pay these developers.

[…] we work on raising money and using money to pay for developers but unlike ICOs or other projects we just don’t have millions sitting from selling our ICO tokens to fund these developers. So, yeah I think projects that do that it’s kind of needed […]”

However, Lee stated that for cryptocurrencies such as Bitcoin and Litecoin that really want to become decentralized money, there cannot be any centralized actions like using mining rewards to pay developers.

This was followed by Lee speaking about Litecoin’s vision and the coin’s use case. On this, Lee stated that the current vision was still “very similar” to the old one, seeing Litecoin as a complement to Bitcoin. He added that Litecoin’s raison d’être was not to replace Bitcoin, unlike some other coins that claim to be the better version of Bitcoin.

“[…] I think it’s trade-off. So, a lot of people don’t talk about the trade-offs people talk about how they have fees are cheaper […] people in support of Bitcoin Cash constantly talk about how Bitcoin Cash transaction fees are like a hundredth of that of Bitcoin but, you get what you pay for right […]”

He further added that Bitcoin’s “security was more than hundred times” that of Bitcoin Cash, irrespective of the hash rate being more or not. Lee remarked that one cannot “attack Bitcoin,” whereas Bitcoin Cash could be “eas[ily] be attacked,” adding that this factor was very important and also the reason for cheaper fees.

“[…] same for Litecoin alright. Litecoin is cheaper and the security is less than Bitcoin […] so people who actually move lots of money they would want to use Bitcoin and I think that’s fine like Litecoin can compliment Bitcoin perfectly fine […]”

Lee stated that this was the reason he agreed with Lightning Network, arguing that it was good for both Bitcoin and Litecoin. He stated that Lightning not only helps them scale, but also enables cross-chain atomic swaps, allowing people to swap two different coins instantly and easily in a decentralized manner.

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