IOTA Co-founder Dominik Schiener on Launching a Crypto Comeback

Summary

The founder of IOTA reflects on a decade of adaptability and growth within the blockchain space. He discusses IOTA's evolution from pioneering DAG technology to making strategic decisions around programmability and real-world adoption. Emphasizing pragmatism, he shares how the project navigated challenges, including adapting its technology to accelerate time-to-market. With a focus on becoming a top layer-1 protocol, the founder is committed to driving IOTA's long-term success, particularly in the US market, amidst changing regulatory landscapes. His vision centers on the project's unique real-world use cases and its future as an infrastructure standard in the digital economy.

Takeaways

• 😀 Adaptation is key: The speaker emphasizes the importance of flexibility in business, particularly in the crypto space, to stay relevant and thrive in a constantly changing market.
• 😀 Long-term survival requires learning from mistakes: A key factor in IOTA's 10-year journey has been the ability to adapt, acknowledge mistakes, and evolve its strategies.
• 😀 Decentralization is a slow but necessary change: Shifting to decentralized models, like Ethereum's transition, requires time and careful communication to bring the community on board.
• 😀 Fast decisions are critical: The speaker explains that IOTA’s shift to more programmable protocols was made to accelerate time to market and respond faster to industry demands.
• 😀 Strategic pivots are necessary for success: Moving from IOTA 2.0 to a more standardized protocol based on SUI highlights the necessity of being pragmatic and fast to adapt for long-term growth.
• 😀 Real-world adoption is the focus: IOTA aims to become a top Layer 1 protocol by focusing on industrial adoption rather than market speculation or hype.
• 😀 The value of community feedback: The speaker mentions that decisions, like protocol changes, were shared and approved by the IOTA community, ensuring that the project moves forward with consensus.
• 😀 IOTA's unique position in the market: Despite past challenges, IOTA is now positioned well compared to other projects that failed because they were not focused on long-term, sustainable growth.
• 😀 Focus on institutional support: IOTA is looking to increase collaboration with governments and institutions, especially in the U.S., to drive further adoption and solidify its position in the market.
• 😀 Real-world applications will drive IOTA’s growth: The speaker highlights that IOTA is focused on creating real-world use cases and adoption, rather than speculative price movements.
• 😀 The speaker is committed to IOTA’s mission: The speaker expresses strong personal conviction in IOTA's future, underscoring that they are driven by belief in the project and not financial gain.

Q & A

What is the main factor behind IOTA's survival for over 10 years?

IOTA's survival can be attributed to its ability to adapt to changes, constantly evolve, and be flexible in response to market demands and challenges. The team's willingness to admit when they were wrong and make improvements has been a key factor.

How did IOTA approach the development of IOTA 2.0 and what were the challenges faced?

IOTA initially developed its own Directed Acyclic Graph (DAG) protocol in 2015. With the advent of new market needs and technological demands, the team shifted focus to IOTA 2.0, which aimed to introduce programmability. The challenge was balancing time-to-market with the technical complexity of introducing new features while staying true to the community's expectations.

What led to IOTA's decision to move away from its original protocol?

The decision to move away from the original IOTA 2.0 protocol was driven by the realization that the market had evolved and IOTA's initial approach no longer met the requirements of large companies. By adopting off-the-shelf protocols based on SUI, IOTA could speed up the development process and stay competitive.

What role does community involvement play in IOTA's decision-making?

Community involvement is crucial in IOTA's decision-making. For example, when the team considered a major protocol shift, they conducted a token vote, which passed with a large majority. This shows the importance of aligning with the community's expectations while making key decisions.

How does IOTA differentiate itself from other projects in the crypto space?

IOTA differentiates itself by focusing on real-world adoption and becoming an infrastructure standard for digitalization. Unlike other projects that are primarily technology-driven, IOTA emphasizes practical use cases and long-term viability in industries like IoT, automotive, and supply chain.

What is IOTA's long-term vision, and how does the team plan to achieve it?

IOTA's long-term vision is to be one of the top protocols in the market, adopted by real-world industries and serving as an infrastructure standard. The team plans to achieve this by executing a strong strategy focused on real-world use cases, continued innovation, and enhancing its adoption layer.

What were the challenges faced by IOTA compared to other projects that raised large capital?

IOTA did not raise large capital and did not have a large percentage of the token supply. This set them apart from many VC-backed projects, some of which failed or only focused on short-term gains. Despite these challenges, IOTA's long-term vision and ability to adapt have positioned it more favorably than others.

How does IOTA view its competition with other Layer 1 protocols?

IOTA views its competition with other Layer 1 protocols not purely in terms of technology but in terms of adoption. The focus is on building real-world use cases and creating network effects that drive long-term success.

What are IOTA's expectations in terms of value accrual and tokenomics for the future?

IOTA expects its value to increase as real-world adoption grows. The team believes that as more use cases and partnerships emerge, the value will naturally follow. They also plan to enhance marketing efforts and increase awareness of the project to further its growth.

How has the evolving regulatory environment in the US impacted IOTA's plans?

The evolving regulatory landscape in the US has accelerated IOTA's plans for expansion. With clearer regulations, there are new opportunities to work with the government and institutional players in the US, leading to increased focus on the region and more frequent visits by the IOTA team to foster these partnerships.