IOTA: New coordicide wallet lays basis for adoption in IoT

By June 28, 2020Altcoins
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  • The new wallet to be released together with Coordicide promises major innovations that will advance IOTA especially in the area of usability compared to other cryptocurrencies.
  • In addition, a Euro-Gateway from Omoku could significantly promote the adoption of IOTA in the IoT economy.

As the official roadmap reveals, the IOTA Foundation has been working on a new wallet since last year, which is expected to be completed together with Coordicide at the end of this year. The speculations about this or the information already presented suggest that the new wallet could be a huge step forward, especially in terms of usability compared to any other cryptocurrency and its wallet software.

It is currently clear that the fundamental changes to the IOTA protocol by Coordicide require a completely new wallet architecture. Furthermore, the public roadmap shows that the wallet specifications and the wallet library are still in the research phase. A Rust-based library called Stronghold is being developed for the secure storage and management of the seed.

However, in addition to this information from the official roadmap, there is more information, all of which promises major innovations, which the website IOTA Beginner’s Guide has compiled. Due to the introduction of a second signature scheme, which allows reusable addresses, there will probably be two signature schemes running in parallel, the quantum robust (Winternitz-OTS) and the new one for reusable addresses. In a blog post from early February David Sønstebø wrote about this:

The network will therefore allow for both quantum resistant one-time signatures and a more commonly used signature scheme allowing re-use of private keys. This will dramatically reduce transaction size, and consequently allow a significant increase in TPS.

Trinity V.2 may also include an end-to-end encrypted messenger with payment functionality called Matrix Chat. Using the messenger and IOTA Streams technology, sending IOTA will become as easy as sending a text message. This would allow the wallet to follow a similar approach to the WeChat app, which is popular in China and accounts for 30 percent of mobile payments in China.

In terms of user-friendliness, this would be a significant step forward, as the wallet could greatly simplify the problem of the complicated addressing of crypto-currencies. In addition, the decentralized identity, which is currently being developed, could also be integrated into the wallet. This would enable users to verify their wallet with verifiable data and legitimize the transfer of cryptocurrencies with regard to KYC information.

As the website also suggests, third party modules for exchanges or banks could play an important role as a basis for the integration of the Tangle technology to open up new services and application areas. Especially for the use on the Internet of Things (IoT) economy, exchange transactions from Euro to IOTA could be of great importance.

The prerequisite for this, however, is that the wallet has a module with a banking license and thus direct access to the banking system. A candidate for this is probably Omoku, as the company blog shows:

The cornerstone of the Omoku product backlog is our vision to connect the IoT economy with the banking infrastructure. The resulting simplified exchange between IOTA and the Euro should support the introduction of IOTA and alleviate the problem of large price fluctuations for various stakeholders.

[…] Despite the continuing great scepticism, we have been observing significant developments in the Swiss banking sector for some time now towards a convergence of companies that want to offer regulated financial services in the DLT sector. This was an important reason for our move to Switzerland. In terms of timing, we expect to see significant progress in this regard this year and next.

For more detailed information about the IOTA Trinity Wallet V.2.0 and IOTA in general, we highly recommend the German language website IOTA Einsteiger Guide!

Last updated on June 28, 2020

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