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IOTA: A tangled mess

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11–20 of 253 posts

Re: IOTA: A tangled mess

#11
post #3

why would you dump $2,000 dollars into a crypto coin you don't understand

The author dumped a lot more than $2,000 into IOTA. They mention buying 26,000MI at $0.85, which would be a $22,100 investment. Just 5,600MI was worth $28,000 at $5/MI. Why anyone would put that amount into a cryptocurrency they don't find trustworthy is beyond me.

> Why anyone would put that amount into a cryptocurrency they don't find trustworthy is beyond me.

The richer you are, the more likely you'll consider 5k small change. Same reason why the big bet poker tables have non-experts sitting there.

Re: IOTA: A tangled mess

#12
Heh, this article barely even touches on the full insanity of IOTA. https://medium.com/@neha/cryptographic-vulnerabilities-in-io... has a decent rundown on some of it. It's centralized on a central coordinator because it fundamentally can't work in a decentralized manner. It used a homebrew hash function that was vulnerable to trivial attacks. It uses ternary math just-because of some extremely doubtful efficiency claims for a lot of things, including the mentioned hash function. (Some fun not mentioned in the article: They later replaced the homebrew hash function with SHA-3 ... wrapped in ternary.) Also, it's centralized. That means it has the downsides of a centralized service (entirely halts if the central authority server has connectivity issues, including from DDOS attacks, or if the company ever decides it's not worth it to keep running; central authority could also censor transactions) without any of the upsides of a centralized service (centralized service could work with dollars instead of an artificial currency; centralized services don't need to broadcast transactions to the entire network to work; no kind of mining at all needs to exist; basically think Paypal) because it's a weird frankenstein made somewhat in Bitcoin's image.

When the obvious vulnerabilities about their homebrew hash function came out, the responses on many cryptocurrency forums were disturbingly cult-like. Plenty criticized the people making the announcement as biased. There were many posts calling out people involved with other cryptocurrencies for spreading FUD because they're supposedly scared of competition from IOTA's "innovation". Apparently no one recognized Bruce Schneier; I saw posts calling him out as a small-time snake oil salesman. I've had at least a half-dozen people try to explain to me how IOTA is paving the way forward with ternary computation, optimizing their software for future ternary hardware. ... Man, if you thought general fandom sites were bad with blind frothing fans, then you should see what it's like when money is involved like this.

>My next step was to go to the GitHub repository and take a brief look at the source code. The IOTA source code is written in JAVA instead of C++ like most professional cryptocurrencies are. That did not instill me with confidence.

Heh, this is probably the only positive thing about IOTA I'd agree with. Using a memory-safe language like Java makes it exponentially harder for developers to accidentally write remote-code execution vulnerabilities, and makes it harder for malicious developers to hide remote-code execution vulnerabilities. Most cryptocurrencies are in C++ because they're forks of Bitcoin, which so far thankfully seems to have developers that can keep those issues out and review each other's work. (Granted, if IOTA were just a Bitcoin fork, they probably wouldn't have gone through the effort of making so many insane design choices of their own.)

Re: IOTA: A tangled mess

#13
> RULE 3: ALWAYS wait for a transaction to be confirmed before sending anything else.

> Rule #3 is just another admission of a broken network. Really not much else to say.

It sounds like an admission of vulnerability to double-spending.

Re: IOTA: A tangled mess

#15
>The IOTA source code is written in JAVA instead of C++ like most professional cryptocurrencies are. That did not instill me with confidence.

This made me lose any confidence in a person's capabilities in evaluating the coin. If anything, Java is way more (or any language with modern memory management) robust choice than C++ where security is concerned.

In any case, I am highly skeptical of the IOTA as well.

Re: IOTA: A tangled mess

#16
I've been tracking the IOTA controversy in the LinkedIn 'IoT Security' group in this thread[¹]. The centralized nature of the technology is a worry especially because they position themselves as a decentralized solution for IoT.

Many other currencies suffer from implementation problems (buggy wallets, etc) but at least in BTC the used cryptography is well tested. In IOTA's case they managed to both reinvented the crypto (e.g. "Curl" / "Kerl" hashes) in a broken way AND made some very dangerous assumptions in the meaning of "decentralization".

[¹] https://www.linkedin.com/groups/4807429/4807429-634451121504...

Re: IOTA: A tangled mess

#17

The post mentions the psychology today article but I’d like to say it’s actually a pretty okay article: https://www.psychologytoday.com/blog/mind-in-the-machine/201... (Author should disclose if he owns IOTA however)

That's an interesting article into the psychology and mind-tactics of crypto fans.

Not sure why you've been downvoted but the article is worth a look.

Re: IOTA: A tangled mess

#18

>The IOTA source code is written in JAVA instead of C++ like most professional cryptocurrencies are. That did not instill me with confidence. This made me lose any confidence in a person's capabilities in evaluating the coin. If anything, Java is way more (or any language with modern memory management) robust choice than C++ where security is concerned. In any case, I am highly skeptical of the IOTA as well.

Me too. He may well have valid points but, as someone who has written mission critical software systems in Java, this destroys the credibility of the article for me.

Re: IOTA: A tangled mess

#19

>The IOTA source code is written in JAVA instead of C++ like most professional cryptocurrencies are. That did not instill me with confidence. This made me lose any confidence in a person's capabilities in evaluating the coin. If anything, Java is way more (or any language with modern memory management) robust choice than C++ where security is concerned. In any case, I am highly skeptical of the IOTA as well.

I don't agree with your "way more robust" argument per se, but I also didn't buy that point in the original article. It's unclear to me why the choice of programming language -- unless it was a very obscure and rarely used one, or one that's specifically used in one (unrelated) domain -- should be of any significance.

Re: IOTA: A tangled mess

#20
What about the other DAG technologies like the one used by ByteBall? I’m not crypto-intelligent enough to analyze them but could DAG be a credible replacement for the blockchain? Iota is just a very well marketed option in that space. Their execution seems shoddy.
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