Berlin-based IOTA Foundation today announced a partnership with startup studio Nova to create a seed fund that targets entrepreneurs working on distributed ledger technologies.
IOTA has developed its own distributed ledger protocol, called the Tangle, that it says is more secure and energy-efficient than standard blockchain technologies. One cofounder describes it as “blockchain without the block and with the chain,” because of the way transactions are confirmed.
IOTA has struck deals with Robert Bosch, launched a data marketplace with Microsoft and Samsung, and is testing a smart city program. The foundation’s protocol is attractive because it allows automated micro-transactions between devices and is being adopted in industries such as health care, mobility, supply chains, energy, and telecommunications.
Now it wants to also focus on encouraging more startups to embrace its protocol via the new program with Nova.
“The Tangle network overcomes many of the limitations and inefficiencies of blockchain technology and, as such, has huge potential to transform machine to machine transactions that are at the core of IoT,” said David Sønstebø, cofounder and co-chair at IOTA, in a statement. “Our partnership with Nova is about enabling that innovation by helping initial ideas come to fruition in the form of viable, scalable, and sustainable business models.”