Dan Simerman, the head of Financial Relations at the IOTA Foundation, believes that the Distributed Ledger Technology that IOTA uses is superior to other blockchains in the enterprise sector as we are reading today in our IOTA latest news.
As he stated in an interview, Dan Simerman believes that the heavy influence of the coronavirus and the advantages of IOTA Over other blockchain solutions, make it preferable to other solutions. There could even be two converging forces that drive up the use of digital assets as a direct result of the COVID-19 pandemic. On the other hand, the fear of another outbreak could force governments around the world to digitize money which could also benefit cryptocurrencies. Governments will use the COVID-19 pandemic as an opportunity to study the alternative economic possibilities and the most promising use case will be the interaction between people and machine economies.
— Dan Simerman 🤖 (@DanSimerman) June 10, 2020
Traditional blockchain architecture doesn’t really support two really important elements for true adoption such as Feeless microtransactions and scalability. By offering the possibility to scale the network as participation grows, IOTA will create use cases to secure the data and value what is being sent between humans and devices in future corporate networks. Simerman also explains that the technical, regulatory, and legal infrastructure has come catching up to do when compared to the traditional financial world. His focus is mostly set on how to build an infrastructure that will allow people or organizations to make broad use of technology.
Simerman believes that the biggest obstacle to broad adoption will be creating a feel-good factor through legal framework conditions:
“Comprehensive legal and regulatory guidelines – many companies that want to use digital assets are still waiting for guidance in the form of formal legislation. Until that happens, it will probably be the more risk prone groups that start to incorporate digital assets into their business models.”
IOTA Will be able to offer companies higher feel-good factor than Blockchain-based solutions thanks to the IOTA Tangle which will allow organizations to implement real world-use cases:
“For most blockchains, data and value are stuck on the same ‘thread’, meaning that you cannot send data without paying a fee to the network. This makes data heavy or data-centric applications nearly impossible for large corporations to adopt.”
There’s a good chance that digital assets will use Distributed ledger technology and could even end up becoming securities because of their initial raised funding. Companies won’t accept holding a digital asset that could be security for paying for data transfer.
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