Open source non-profit organization IOTA is intending to grow its distributed ledger technology by launching a $2 million fund. The technology is a derivative of blockchain technology that is targeted towards the Internet of Things.
The IOTA Ecosystem Fund is for developers who would like to contribute and be part of the next generation of the distributed ledger technology. For example, you could be part of projects like adding sensors to a Raspberry Pi.
What is the idea behind the IOTA ecosystem fund?
The goal is to expand and shape the IOTA ecosystem. It will do this by using cases, tools, hackathons as well as libraries. According to IOTA founder David Sonstebo, it is important to have a thriving ecosystem in order to have longevity and success. Additionally, the fund is meant to open opportunities for the developers and researchers, and take the IOTA ecosystem to the next step.
IOTA is based on Tangle, and with this technology, you will have to work to approve other transactions. Furthermore, the Tangle ledger will be able to settle transactions with no fees. Devices can trade accurate amounts of resources immediately, and it can store data from sensors and dataloggers safely. It will be verified on the ledger, and it could move on from real-time services.
What makes it different?
Tangle is a third-generation blockchain technology that is based on a directed acyclic graph. A basic blockchain needs miners to complete groups of transactions to get cryptocurrency like Bitcoin.
According to Steffen Marburg, he wrote in the Tangler blog that Bitcoin and almost all other cryptocurrencies weren’t made to work as the network of the IoT. He also says that because there will be thousands of nano-payments every day in the future, the blockchains would create a huge amount of fees. These fees are just for conducting transactions, while nano-payments costs don’t match the fees.
The goal is to extend the services to the IOTA eXtension Interface (IXI) , and also to contribute to the distributed ledger technology. It is supposed to be a simple and efficient system, instead of building an “all-in-one” universal solution. However, developing the new IXI modules are time consuming because of the research required. If you would like to research topics and writing whitepapers instead of coding, you will be eligible for funding through the IOTA Ecosystem Fund.
The Ultimate Goal
Moreover, the organization wants to make IOTA development simpler, and expand to libraries, along with the aid of the Internet of Things. It is encouraged if anyone with ideas for libraries, which could be beneficial to society should apply for funding.
Applicants must fill out a form that includes questions, and submit a budget needed for the project. Applicants will also need to write a description and timeline, as well as the scope of the project. Community representatives will respond and they will ask additional questions and define the deliverables of the project.
The IOTA Ecosystem Fund is meant to open many opportunities for researchers, and it will allow companies to explore new business models. It will do this by making every technological resource a service that can be traded on an open market in real time, and you won’t have to pay fees.