Professionalism: The reason why IOTA will ultimately succeed
The full article was originally published by Chris Mueller on HelloIOTA. Read the full article here.
Many projects are facing severe problems due to the recent market situation. This article argues that this carnage will leave many crypto projects dead on the field – and few projects shining bright with IOTA leading the way.
Billions of dollars have been taken out of the crypto market. Months ago it was already clear that the majority of ICOs were practically dead. The remaining projects around the world are struggling now because the bubble has burst and the bottom has not yet been found. Again, Fear, Uncertainty and Doubt have taken the upper-hand among investors leading to the one question which too often seems to have been negated: Do Bitcoins and the likes have the power to be the “next big thing”?
I shall argue that 99% of the cryptocurrencies will fail over the coming months because they don’t add any value to the status quo. However, IOTA is set to be among the handful of projects which will see a breakout to heights never seen before with professionalism being the driving force.
I will first state my own reasons and afterwards address the most probable counterarguments.
Reason I: The history
From the start, IOTA has had a clear vision (read our article on the history of IOTA for more details). The founders of the IOTA Foundation (IF) went through really tough times, sometimes at the brink of financial failure due to unexpected costs (keep in mind that Dominik and David were only in their 20’s). However, they have proven to be wise analysts: Not only did they foresee the bubble 2017 (they won the “naked skiing bet”) but they also saw this big crash coming which would wash out the weak projects. They acted professionally in the sense that they did not openly attack other projects or participate in groups/associations denouncing other projects.
TL;DR: The team has proven fully focused on their project for years (!) and have proven to hold a wise estimation of this crypto madness.
Reason 2: The partners
Because there was not much buzzing around IOTA in the first couple years, it stayed under the radar for a long time. Today, however, IOTA has so many partners that it doesn’t make sense to introduce the 47 official partners here – you may read our articles on the likes of VW, the automotive industry and FUJITSU. IOTA strives to be the backbone of the Internet of Things, it wants to serve as the standardized data layer for any basically industry.
In order to achieve this, IOTA now has not only many premium companies as official partners, but also two world renowned influential experts (Dr. Richard Soley and Dr. Rolf Werner) as members of their supervisory board.
On top of that, recently announced partnerships prove that the IF has a clear vision of how to realize their goals: integration of the IOTA’s Tangle for sensors and machines via crypto chips and middleware (Riddle and Code) as well as partnering with “the only ISO/IEC-compliant industry standard, the worldwide reference-data standard for the classification and unambiguous description of products and services” show that IOTA is neither vaporware nor cheap talk. If IOTA lacked professionalism (be it with the people involved or the product itself), companies like those mentioned above would not invest a penny of wealth or a second of time.
TL;DR: Excellent partnerships don’t invest in unprofessional businesses – draw your own conclusion with regard to IOTA’s partnerships.
Reason 3: The legal background
The University of Luxembourg observed that most entities in the crypto industry take the easy way out when it comes to tax and legal regulation:
Data collated from the 80 largest ICOs, regarding funds collected, indicated that a quarter of the companies were concentrated around a few jurisdictions known for beneficial tax breaks, and included Curaçao, Mauritius, and St. Kitts and Nevis.
IOTA could have done the same and chosen an easy way to establish itself as a legal entity. But the founding team chose what might be the most difficult and rigorous path by being established in Germany. Ultimately, they have managed to become the first fully regulated not-for-profit foundation in Germany.
This opens up tremendous opportunities:
But subjecting ourselves to the onerous oversight of one of the world’s most respected governments, within the heart of the EU, will give IOTA an unparalleled legitimacy to pursue visionary projects together with forward-thinking public and private sector organizations and research partners across the globe. (source)
Imagine being the CEO of a large company. If you’re interested in cutting edge technology offered by two projects, one registered in the Bahamas and the other project in Germany, it seems pretty clear which one should immediately garner more trust.
In comparison to, for instance, the Ethereum or even Bitcoin Foundation, IOTA Foundation is a lot more transparent and accessible for the community (try to chat with ETH or BTC core developers like you can at the IOTA Discord channel; even finding members of their foundations is close to impossible).
Moreover, IOTA’s staff is approaching the 100 people milestone. This, of course, is not only about quantity, but also quality. Each of the people at the IOTA Foundation has an impressive CV and fits perfectly into the whole.
Many people means many projects and many possible misunderstandings and bottlenecks. A lot of 2018 has been spend on restructuring and refactoring the IF to make it more efficient. As Ralf Rottmann, Board of Directors member, put it in August 2018 on Discord: