IOTA: The Internet of Things
IOTA Video Review
IOTA: The Internet of Things
In this video, we are going to explore a comprehensive guide about IOTA: the Internet of Things.
If you came to this video, its supposed you have the following questions in mind:
- What is the Internet of Things?
- What makes IOTA unique?
- What are its real-world use cases?
- And, who are their relevant partners?
So, stay tuned as we aim to answer all those questions and many more. Thus, you will have a clear vision on what to expect about the future of IOTA!
What is the Internet of Things?
IoT (Internet of Things) refers to the use of intelligently networked equipment, systems, and everyday objects. In the future, things will be networked with each other, data will be exchanged over the Internet, and cars and buildings will also be included. The IoT of the future will create a large digital ecosystem with a wide range of possibilities.
Experts predict that technological advances will grow exponentially and that IoT will spread rapidly in the coming years. It is estimated that more than 50 billion devices will be connected in just a few years.
The IoT of the future will unleash a new dimension of services with the potential to improve the quality of life for consumers over the long term. It will enable more efficient solutions in many areas of everyday life, affecting energy supply, banking, transportation, administration, security, health, education, and many other aspects of everyday life.
What is IOTA?
IOTA is a distributed ledger technology (DLT) based on the Internet of Things. IOTA describes itself as a “permissionless distributed ledger for a new economy.” The technology aims to integrate the Internet of Things (IoT) and Web3 with a human-created financial ecosystem to create a mechanized or automated economy. IOTA’s distributed ledger technology introduces itself as “permissionless” because it promises to be decentralized.
IOTA has raised that the existing blockchain is being hit by “slow transaction times and surging fees.” Certainly, part of the blockchain is centralized, and the strongest authority is moving to a handful of players in the system. This is also why independent technologies and altcoins are proliferated in decentralized cyberspace. IOTA Distributed Ledger has also made significant progress in this situation.
The IOTA Tangle, as the technology is called, uses a directed acyclic graph (DAG) structure for its distributed ledger. This means that instead of transaction blocks being linear like a blockchain, individual transactions are connected to each other in an ever-expanding web-like structure. In this way, IOTA claims that it can achieve greater scalability, faster transactions, and lower fees than a blockchain.
Moreover, IOTA does not use miners to validate transactions; instead, nodes that submit new transactions over the network must approve the two transactions that were made in the past. Therefore, transactions can be issued without fees, facilitating micro transactions. The network is now gaining consensus through a coordinator node run by the IOTA Foundation.
IOTA Story
IOTA was criticized for its unusual design, making it unclear whether it works. As a result, the Chrysalis (IOTA 1.5) network update started on April 28, 2021, and IOTA was rewritten from scratch. In this update, controversial decisions, such as ternary encoding and quantum-proof cryptography, were left behind and replaced by established standards. With the goal of releasing a coordinator-independent distributed network in 2021, a testnet was developed in late 2020 for subsequent updates called Coordicide, or IOTA 2.0. In addition, IOTA is ISO 20022 compliant, making it easier for businesses to use them.
IOTA Launches Shimmer Network for Zero Fee Asset Tokenization
Finally, in 2022 IOTA ecosystem continues to evolve and its latest development is the launch of the Shimmer network.
The Shimmer network officially launched on September 28th following two months of beta testing. The network is an extension of IOTA’s Directed Acyclic Graph (DAG) blockchain providing various solutions for the IOTA ecosystem. It will be used to test and validate product updates such as the IOTA 2.0 upgrade.
The Shimmer network will open up a lot of opportunities to tokenize anything from real-world assets to fan tokens natively without any fees. In addition, it will allow developers to build dApps capable of taking millions of users on journeys they’ve never been on before. To conclude, the Shimmer network aims to be Simple, Scalable, and Secure!
How IOTA works
IOTA transaction speed is determined by the number of Validators on a given node. The more transactions that are being verified, the faster each transaction is verified. The Tangle is constantly expanding, with new nodes added as more users join the network. This helps to increase the speed of transactions and ensure reliability across the entire network.
IOTA has created a unique way to reward its users for verifying transactions: each node that verifies two previous transactions receives an IOTA token as a reward. This means that users can earn tokens by verifying other users’ transactions. As such, IOTA incentivizes its own network growth as more and more users join to receive rewards for their work. Additionally, because IOTA does not rely on miners to validate transactions, no transaction fees are involved in using the platform.
IOTA wallet
IOTA tokens are stored in IOTA wallets protected by an 81-character seed, similar to a password. To access and spend the tokens, IOTA provides a cryptocurrency wallet called Firefly. In addition, a hardware wallet like the ledger nano can be used to keep credentials offline while facilitating transactions. So, the hard wallet enables users to protect their private keys giving secure access to their IOTA tokens.
Tech Giants and Tangle’s Tango
As per my research, there are about 13 billion IoT devices connected to the internet. IoT has become a major technological trend as the landscape of the Internet, and interactive devices spread.
The IoT adoption is growing fast. Experts expect that there will be 19 billion IoT devices in total by 2025 and it might triple in just a few years.
On the other hand, as a revolution in cyberspace, distributed ledger technology was supposed to converse with IoT. Against this background, the development of the IOTA decentralized ledger has emerged as a strong competitor for cryptocurrencies established in the market due to its technical viability.
IOTA has partnered with technology providers one after another. In particular, there are many tie-ups with Bosch, Volkswagen, Fujitsu, etc. Such partnerships are securing technology as a future trend in blockchain scenarios. Tangle, the basic technology of IOTA, is evaluated and adopted by top manufacturers as distributed ledger technology development that meets their needs. At the same time, the consumer world is also realizing this kind of partnership as a technology amenity and upgrade.
Adoption of the IOTA Distributed Ledger
For example, in April, 2022, a smart charging station for electric vehicles using IOTA was established in the Netherlands. It was developed in collaboration with Dutch electric car charger manufacturer ElaadNL. The charger “can use real-world M2M (machine to machine) communications and micropayments, and IOTA can be used as a layer of security for these payments and data,” said Onoph Caron, CEO of the company. Caron believes that DLT technology may become popular in the near future.
Various industries have adopted IOTA as communication, distribution, and data security infrastructure. Bosch has adopted the IOTA Tangle in its new Cross Domain Development Kit sensor, which is expected to take machine-to-machine communication to a new level in automation. Volkswagen is also using this technology to secure the transmission of information from cars to cars on the road. This technology has also hit many other sectors, such as biometrics, data storage, identity management, micropayments, and even waste management and clean energy. IOTA has grown as a powerful and reliable cryptocurrency. In the future, it has the potential to become a public works project.
7 Key Factors that makes IOTA unique
IOTA has a number of key factors that make it stand out from the competition.
- Completely decentralized: As a globally distributed network, IOTA is resilient and robust against attacks. Without a coordinator, no instance will play a special role in the network. To be clear, once the coordinator is disabled, the IOTA Foundation cannot resume it.
- Permissionless access to the network: Anyone can join the network at any time to add and validate transactions. If other DLTs need to limit the number of nodes or if they need to implement a permitted approach for scalability, the IOTA approach includes additional nodes. The higher the number of honest nodes, the higher the percentage of honest votes, and the better the security of the network.
- Partition tolerant: A production-ready tangle is partition tolerant, which means that a part of the Tangle can be disconnected from the main Tangle for a period of time and continue to run without an Internet connection. When the Internet connection is restored, these parts can be reconnected to the main Tangle.
- Finality in seconds: The IOTA tangle provides the finality of transactions in seconds, compared to blockchains that take hours or days. This makes it suitable for real-time transactions.
- Scalability: IOTA can scale infinitely, meaning its throughput is not limited and does not need to compete with other transactions for resources.
- Low fee: Transactions that are conducted on the IOTA network are free. This makes it suitable for micro-payments and enables businesses to optimize their operations and reduce costs.
- Lean system: The IOTA network was created for devices, like sensors, that can function in a power-saving network.
So, these are the key factors that make IOTA stand out from other distributed ledger technologies.
IOTA Use Cases and Potential Fields of Application
The potential fields of application for IOTA are vast. Because of its scalability and low cost, IOTA could be used in a variety of industries, such as IoT, smart cities, healthcare, automotive, agriculture and more.
- IoT: With secure communication networks being available on the Tangle, sensors can send data securely and without transaction fees. This can be used in a variety of use cases, like tracking packages, managing energy networks, tracking assets or monitoring temperatures.
- Smart cities: IOTA could be used to create smart cities that are more connected, efficient and secure. Smart cities will enable citizens to access services such as waste management, energy management, transport and more.
- Healthcare: IOTA can be used to securely store and share healthcare data, such as medical records. This will ensure that the data remains confidential and secure. It can also be used for payments in healthcare services, like paying for a doctor’s visit or buying medication.
- Automotive: IOTA could be used for a variety of automotive applications, such as securely sharing vehicle data, tracking cars, and managing supply chains.
- Agriculture: IOTA could be used to track food from farm to table, helping farmers increase their efficiency and reduce costs. It can also be used in the smart farming industry, where sensors can collect data and relay it back to farmers.
These are just some of the potential use cases for IOTA. As more applications become available, this list is likely to expand. With its unique features, IOTA could revolutionize the way businesses operate and create a secure and efficient network for data exchange.
The Future of IOTA
IOTA fundamentals make it promising, as its potential applications are vast, and it has overcome many challenges that blockchains face. With a focus on scalability and low cost, IOTA is well-positioned to become the backbone of the internet of things.
As more developers get involved in creating applications for the Tangle, the potential of IOTA will be further explored. With its combination of low-cost, scalability and secure communication networks, IOTA is likely to become an integral part of industries such as IoT, smart cities and healthcare in the near future.
It remains to be seen how IOTA will evolve in the coming years, but it is clear that it has the potential to revolutionize the way data is exchanged and stored.
So, these are some of the key features of IOTA and its potential use cases. With its focus on scalability and low cost, IOTA looks like a promising technology for the future. As more applications are created for it, we will see whether it lives up to its potential.
Conclusion
IOTA is a revolutionary distributed ledger technology (DLT) that has the potential to revolutionize the way data is exchanged and stored. Its focus on device-to-device transactions, scalability and low cost could become an integral part of many industries. With its ability to securely store and share data, IOTA could become the backbone of IoT networks in the near future. So, while it remains to be seen how IOTA will evolve in the coming years as its potential is undeniable.
So, we hope you enjoyed it and learned something new.
Let us know in the comment section below if we have missed any relevant information about IOTA.
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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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