IOTA Pay explained
In the last few weeks I have been promoting a solution to solve the ‘donation use-case’ for the cryptocurrency IOTA. In short: IOTA Addresses can only be spent from once. At the moment you expose your address it becomes unsecure the moment you spend from it. Resulting that you always have to re-issue addresses all the time.
There has been other solutions proposed so solve this but here is my take on it.
https://ecosystem.iota.org/projects/iota-pay
NOTE: This is not just an idea it already works and people are testing it!This is for example my personal reference: https://iota-apy.herokuapp.com
/#/IOTAPAY000AKRRYXDOVKRPXH9KUBEATTKWYLUJATXLKRPXWP9ZQIDUAHWENCMGQKOLHETNMAMXHPOZBVGBTWOCAOCUS
To break it down we see below a so called IOTA Pay reference:
IOTAPAY000AKRRYXDOVKRPXH9KUBEATTKWYLUJATXLKRPXWP9ZQIDUAHWENCMGQKOLHETNMAMXHPOZBVGBTWOCAOCUS
With this reference we can use the IOTA Pay js api to retrieve an address from the tangle that is still unspent and was pre-exposed by the reference’s owner(me in this case).
This process is 100% tangle based, just like MAM.
So check, we got a unique reference and a 100% decentralized solution. But how does the IOTA Pay ref even gets created and can we validate that the address that is exposed is not some random address from a hacker?
If we look at the reference we will see 10 letters to start with IOTAPAY000, the observant eye will see that the 000’s are non-trytes, this is to make any action on the tangle directly to this reference invalid. So no mistakes you cannot send your funds to the reference directly.
However the rest of reference is just a standard IOTA address:
AKRRYXDOVKRPXH9KUBEATTKWYLUJATXLKRPXWP9ZQIDUAHWENCMGQKOLHETNMAMXHPOZBVGBTWOCAOCUS
In essence what I created is an alternative means on the tangle to proof that an address is yours. IOTA Pay is just a first application of this technique.This however could potentially be used to create transferable assets on IOTA!
But in a nutshell:
