It is important to understand the business ecosystem of IOTA in terms of the different components and frameworks that constitute it. This will provide an insight into the several use cases in data and the value transactions that they enable.
The IOTA Foundation builds open-source software to enable a new type of digital infrastructure that empowers people to live freely and securely in a digital world. To do this, the Foundation engages with many different initiatives, markets, and partners in academia, government, and businesses.
IOTA has issued an infographic of their business ecosystem, which will make it easy to know the dependencies of what they are doing.
It helps to get the complete picture of the different components from the bottom up beginning from the node software like Hornet, Bee, Wasp, Chronicle; The Tangle; IOTAs Parallel Architecture – Frameworks covering for digital identity, tokenized assets, streams, smart contracts, access, and IOTA stronghold; and of course, the firefly wallet. There are non-technical parts that the users should understand, which will eventually lead to a complete understanding of the machine economy and the connections of billions of persons, organizations, and devices.
IOTA Identity builds on the W3C’s proposed standards for a digital identity framework. This framework includes three roles of holders, issuers, verifiers.
Holders are the owners of digital identities. They have ultimate control over their data and choose how much and with whom they share their data.
Issuers are trusted third parties or authorities that generate and issue credentials to holders, such as health records or identity documents.
Verifiers are any third parties that need to verify the authenticity of a holder’s data. A verifier might, for example, need to validate that the holder is who they say they are.
Decentralized Identifiers serve as a reference to a DID Document. This document contains data such as public keys, enabling the holder to prove ownership over their data. Verifiable Credentials are statements about the holder. They can be verified online or in person, and the holder decides who to share them with. This framework has various use cases, including: Address Validation, Age Verification, and Authority login.
IOTA has a vision for the digital identity for Things, Organizations, and Individuals. Digital Identity of Solutions covers for Identity of things, self-sovereign identity, and regulatory compliance.
Devices have an identity that proves their capabilities, specifications, and authenticity to allow others to feel confident in transacting with them.
Individuals have a borderless digital identity that can be verified by anyone or anything in the world.
Organizations can use digital identities to follow regulations such as GDPR in a more cost-efficient way.