What is IOTA?
IOTA is a German based cryptocurrency building a next generation distributed ledger. With some of the world’s biggest brands appearing on the list of IOTA partnerships, it can not be ignored. The currency has been designed for the internet of things, But what is IOTA?
IOTA is a decentralized form of distributed ledger which doesn’t use a blockchain. Instead they use a technology called the Tangle, which is a third generation distributed ledger technology (DLT), which will be powered by machines all over the world known as the Internet of Things (IoT).
What is IOTA going to do differently? The main difference is that unlike the blockchain, transactions can be made without fees! This has been a sticking point in blockchain technology being adopted more universally and IOTA hopes to bring their technology to the hands of more users given this key benefit. IOTA and the tangle has a number of other key differences between blockchain technology. Some of which are below.
- IOTA is based on a directed acyclic graph (DAG) aka the Tangle, not a Blockchain
- IOTA has no mining, no blocks, no difficulty
- IOTA has no transaction fees
- IOTA is much more scalable than most other present blockchain technologies (almost infinitely)
Latest IOTA News:
What is IOTA looking to achieve? The platform will allow businesses and projects to build decentralized apps with the benefit of decentralized control and complete interconnection between the network. The aim is to build a decentralized network connecting ‘The Internet Of Things’ (IoT) using the token IOTA as the store of value and token of exchange.
IOTA has some very exciting partnerships, and big plus point for both investors and the general cryptocurrency industry. The Internet of Things is a rapidly growing industry and IOTA is looking to be both the currency and interoperability protocol that solves the problems of the IoT.
What is IOTA Tangle?
“IOTA’s unique public Distributed Ledger architecture, called Tangle, is a form of Directed Acyclic Graph in which every transaction or data transmission validates two previous ones, which in turn each referenced two previous ones before them, and so on. This means that validation of the network is an intrinsic property of the network and is thus no longer decoupled from the usage of the network, as is the case with regular blockchain architectures. This removes fees entirely on transactions and data transmissions, thereby removing the real-time, fine-granular payment obstacle. It also ensures costless data integrity, which resolves the security concerns tied to data trading. Additionally, this design means that the network remains entirely decentralized, unlike blockchain architectures which centralize around mining-farms which then further centralize into mining-pools.”
What is The Internet of Things (IOT)
The Internet of things has actually been around for sometime now but is becoming somewhat more of a reality now. Put simply the internet of things is the network of physical devices, vehicles, home appliances and just about everything electronic which is connected through the internet. The connection that these objects have allows them to share and transmit data which is slowly creating a world in which everything and anything is connected… The Internet of Things
IOTA is Data Driven
“The backbone of IOT is here” boasts their official website, “Scalable, Decentralized, Modular, No Fees”
They hope to win the support of companies and form partnerships in order to make all products connected through the IOTA Tangle. The tangle is referred to as a ‘next generation distributed ledger’ which instead of requiring expensive mining operations to scale, the businesses benefiting from the technology would actually be serving as nodes on the network.
It’s an exciting project in theory, and while the team are working hard in the background to bring everything to fruition, they are also reporting some very exciting projects.
One of the most important factors in connecting the internet of things is data. Data is the new oil as IOTA put it. So what is IOTA’s data marketplace?
The largest obstacle preventing the fulfillment of the grandeur envisaged by ‘Big Data’ is the fact that the overwhelming majority of data remains locked in what is called ‘Data Silos’. Data silos do not, or at best very rarely, share its data outside its own closed environment. This leads to enormous quantities of wasted data, often over 99% is lost to the void, (source: McKinsey 2015) that could potentially contain extremely valuable information if allowed to flow freely in data streams that create an open and decentralized data lake that is accessible to any compensating party.
Prior to the internet, important data was locked away in the companies who collected it’s files. Now, companies can be incentivised to share their data and enable innovations and technological advancements to happen at an even faster rate.
The IOTA Data marketplace is rapidly growing and acquiring vast amounts of data which will help toward creating the future of tech.
IOTA Use Cases:
IOTA have many big players on board using and benefiting from the technology.
The news about the VW IOTA partnership was announced in January 2018. Jungwirth is in charge of leading Volkswagen through the inevitable digital transformation.
The skills, connections and influence Jungwirth can bring to the German based IOTA foundation could prove to be very significant.
Volkswagen‘s Chief Digital Officer (CDO) Johann Jungwirth has joined the IOTA foundation’s supervisory board at IOTA and is helping the company integrate IOTA’s technology. As we reported in June 2018, VW’s proof of concept of IOTA went live!
Japan’s leading tech company, Fujitsu also showcased IOTA recently, performing a live demonstration at the World’s Leading Trade Show For Industrial Technology!
Fujistsu demonstrated IOTA using a miniature scaled down production line set up at their booth at the event, with robots moving components back and forth.
During the production of very high value products, the process that goes into manufacturing them is vitally important. Consistency is crucial, and when products are being manufactured in sites all around the world, it’s vital things are done exactly the same every step of the way.
Fujitsu aim to use the IOTA tangle to store measurable data being fed back from these robots. The data will be stored on the tangle and then accessed anywhere in the world almost instantly, all completely automated.
During an introduction to the main live demo, Program Manager of Industry 4.0 at Fujitsu, Leopold Sternberg made it clear just how closely the company and others are working with IOTA.
“IOTA is the next generation distributed ledger which has been developed together with the industry.” He says