With crypto media’s current preoccupation with AI and the Metaverse, another critical new technology – the Internet of Things (IoT) – has seen less coverage dedicated to it. This field, however, is a major area where blockchain technology is highly applicable. IOTA (MIOTA) is the most notable crypto project specifically focused on IoT. IOTA stands out as a unique project that aims to revolutionise the entire IoT ecosystem. With its innovative distributed ledger technology, IOTA has gained attention for its potential to transform the way devices and humans communicate. German automobile stalwart Volkswagen and Taipei City are early adopters. More organisations will undoubtedly note the potential of this innovative IoT crypto platform.
Understanding IOTA's Technology
Unlike traditional blockchain-based crypto projects, IOTA utilises a Directed Acyclic Graph (DAG) called the Tangle. The Tangle represents a decentralised, “blockchain-like” network in which each transaction verifies two previous transactions. This structure removes the need for miners, enabling faster transactions with no transaction fees.
IOTA’s DAG-based structure makes it unique among well-known crypto projects. Besides IOTA, only a small handful of minor platforms use the DAG network instead of the classic blockchain structure.
Scalability and Efficiency
One of the core advantages of IOTA's Tangle is its scalability. As the network grows, the Tangle becomes more efficient, unlike traditional blockchains, which often face scalability challenges due to their linear structure. With IOTA, the more participants and transactions on the network, the faster and more secure it becomes.
Moreover, IOTA's feeless transactions make it an attractive option for microtransactions, enabling a new economy of value transfer between connected devices. This feature is particularly relevant in the context of IoT, where a large number of devices need to communicate and transact with minimal transaction costs.
Industry Partnerships
IOTA’s great fit for IoT use cases was recognised in the industry soon after the project’s launch in 2016. In 2018, IOTA signed partnership deals with Volkswagen and the Taipei City administration.
Partnership with Volkswagen
IOTA's partnership with the automotive giant Volkswagen is a testament to its potential impact on the future of transportation.
In September 2018, Volkswagen and IOTA announced a collaboration to explore the utilisation of Tangle technology for car performance data tracking. By leveraging IOTA's Tangle, Volkswagen envisions a future where vehicles can securely share data, pay for services, and interact with their surroundings in real-time.
Collaboration with Taipei City
IOTA's collaboration with Taipei City showcases the project's capabilities for smart city initiatives. In January 2018, the Taipei City Government announced a partnership with IOTA to transform the city into a blockchain-powered smart city.
The goal of this collaboration is to implement IOTA's technology in various aspects of city life, such as transportation, waste management, and energy distribution. By integrating IoT devices and the Tangle, Taipei City aims to enhance efficiency, reduce costs, and provide better services to its residents.
For instance, through the IOTA-powered smart parking system, drivers can easily locate available parking spots and make payments seamlessly using MIOTA tokens, IOTA’s native cryptocurrency. Additionally, IOTA's technology can be utilised to monitor waste management systems, optimising collection routes and reducing costs.
Future Prospects and IOTA's Potential Impact
The partnerships with Volkswagen and Taipei City are just a glimpse of the potential impact IOTA can have on various industries and sectors. As the IoT ecosystem continues to expand, IOTA's feeless transactions, scalability, and lightweight architecture position it as a promising solution for machine-to-machine transactions and data transfer.
Beyond transportation and smart cities, IOTA's technology has the potential to revolutionise supply chain management, healthcare, energy distribution, and more. Its feeless transactions make it an attractive option for micropayments, enabling new business models and facilitating the growth of the sharing economy.
IOTA – Sleeping Giant
After the early enthusiastic uptake by the industry, IOTA’s progress slowed down. The project operates in a specific niche and has largely kept a low profile past the 2018 deals. Mind you, IOTA is not a minor player in the crypto world – it is in the top 100 cryptos by market cap (currently in 82nd position), the largest DAG-structured network, and the 2nd highest capped crypto in the IoT category, as listed by Coingecko.com.
The project that Coingecko.com placed above IOTA in this category – VeChain (VET) – is a general purpose blockchain network, with IoT being only one, and not the top, among its use cases. Among projects specifically dedicated to IoT, IOTA is the absolute leader.
Despite all its merits, IOTA has been less active in recent years in terms of new industry partnerships. Yet, the platform remains probably the most suitable environment for the efficient implementation of IoT, a major technological concept of today. IOTA - a potential sleeping giant and, at the same time, a hidden gem for investors, perhaps?
Understanding IOTA's Technology
Unlike traditional blockchain-based crypto projects, IOTA utilises a Directed Acyclic Graph (DAG) called the Tangle. The Tangle represents a decentralised, “blockchain-like” network in which each transaction verifies two previous transactions. This structure removes the need for miners, enabling faster transactions with no transaction fees.
IOTA’s DAG-based structure makes it unique among well-known crypto projects. Besides IOTA, only a small handful of minor platforms use the DAG network instead of the classic blockchain structure.
Scalability and Efficiency
One of the core advantages of IOTA's Tangle is its scalability. As the network grows, the Tangle becomes more efficient, unlike traditional blockchains, which often face scalability challenges due to their linear structure. With IOTA, the more participants and transactions on the network, the faster and more secure it becomes.
Moreover, IOTA's feeless transactions make it an attractive option for microtransactions, enabling a new economy of value transfer between connected devices. This feature is particularly relevant in the context of IoT, where a large number of devices need to communicate and transact with minimal transaction costs.
Industry Partnerships
IOTA’s great fit for IoT use cases was recognised in the industry soon after the project’s launch in 2016. In 2018, IOTA signed partnership deals with Volkswagen and the Taipei City administration.
Partnership with Volkswagen
IOTA's partnership with the automotive giant Volkswagen is a testament to its potential impact on the future of transportation.
In September 2018, Volkswagen and IOTA announced a collaboration to explore the utilisation of Tangle technology for car performance data tracking. By leveraging IOTA's Tangle, Volkswagen envisions a future where vehicles can securely share data, pay for services, and interact with their surroundings in real-time.
Collaboration with Taipei City
IOTA's collaboration with Taipei City showcases the project's capabilities for smart city initiatives. In January 2018, the Taipei City Government announced a partnership with IOTA to transform the city into a blockchain-powered smart city.
The goal of this collaboration is to implement IOTA's technology in various aspects of city life, such as transportation, waste management, and energy distribution. By integrating IoT devices and the Tangle, Taipei City aims to enhance efficiency, reduce costs, and provide better services to its residents.
For instance, through the IOTA-powered smart parking system, drivers can easily locate available parking spots and make payments seamlessly using MIOTA tokens, IOTA’s native cryptocurrency. Additionally, IOTA's technology can be utilised to monitor waste management systems, optimising collection routes and reducing costs.
Future Prospects and IOTA's Potential Impact
The partnerships with Volkswagen and Taipei City are just a glimpse of the potential impact IOTA can have on various industries and sectors. As the IoT ecosystem continues to expand, IOTA's feeless transactions, scalability, and lightweight architecture position it as a promising solution for machine-to-machine transactions and data transfer.
Beyond transportation and smart cities, IOTA's technology has the potential to revolutionise supply chain management, healthcare, energy distribution, and more. Its feeless transactions make it an attractive option for micropayments, enabling new business models and facilitating the growth of the sharing economy.
IOTA – Sleeping Giant
After the early enthusiastic uptake by the industry, IOTA’s progress slowed down. The project operates in a specific niche and has largely kept a low profile past the 2018 deals. Mind you, IOTA is not a minor player in the crypto world – it is in the top 100 cryptos by market cap (currently in 82nd position), the largest DAG-structured network, and the 2nd highest capped crypto in the IoT category, as listed by Coingecko.com.
The project that Coingecko.com placed above IOTA in this category – VeChain (VET) – is a general purpose blockchain network, with IoT being only one, and not the top, among its use cases. Among projects specifically dedicated to IoT, IOTA is the absolute leader.
Despite all its merits, IOTA has been less active in recent years in terms of new industry partnerships. Yet, the platform remains probably the most suitable environment for the efficient implementation of IoT, a major technological concept of today. IOTA - a potential sleeping giant and, at the same time, a hidden gem for investors, perhaps?