IOTA to enhance machine-to-machine transactions in IoT

The next industry to take off is the Internet of Things (IoT). But what’s the next next thing on the list? The answer is Blockchain. And IOTA thinks it can enhance how machines talk to each other in the IoT space.

 

IOTA Background

IOTA’s name is not an acronym for Internet Of Things Architecture or what not. Instead it is taken from the 9th Greek alphabet. IOTA was selected because it is the smallest alphabet and hence represents the smallness possible unit. This makes sense as IOTA’s main focus is on micro payments and the Internet of Things.

Dominik schiener, co-founder of IOTA explains Tangle.

How IOTA is different from other blockchain offerings is that, it doesn’t use blockchain. Instead is uses a blockless distributed ledger architecture called Tangle. Box Mining gives an analogy of students’ homework in a classroom. In normal blockchain technology, a teacher will have to mark every students’ homework. In Tangle, each student marks each others homework. If all these sound alien to you, fret not. Extra resources will be linked at the end for further reading.

 

IOTA in IoT

“That’s nice and all, but where does the Internet of Things come in?” In terms of IoT, IOTA is touted to enable machine-to-machine transactions.

IOTA will power the Machine Economy.

Say for example, a machine can send electricity, computation or bandwidth to another machine and at the same time charge the other machine. That right here is on another level. I can’t quite wrap my head around it but i’m thinking of scenarios where my smart light bulbs could interact and carry out transactions between each other? Wow.

IOTA will sit between the Application layer and Connectivity layer.

 

New Territory

Blockchain with IoT is certainly very new territory. I personally can’t quite foresee or imagine how this will be utilized but I’m sure there will be many new use cases. Keep an eye on IOTA as it will be interesting to see how they will merge these 2 areas in the coming months and years. For more info, do check out the iota website, meet up in Netherlands, and the iota faq page

 

Source: IOTA, Youtube, IOTA FAQ