- IOTA, a distributed ledger technology designed for IoT, offers benefits like free transactions, scalability, high security, and decentralization, making it ideal for micropayments and various applications.
- IOTA’s Tangle technology is expected to play a significant role in the future of mobility, enabling self-driving vehicles to transfer and communicate data seamlessly.
In addition to pioneering the electric car market, car manufacturer Tesla is changing the automotive industry in a big way, considering the smart car solutions that it’s building right from autopilot to other innovative things. As the automotive industry undergoes a major transition, a large part of car operations in the future will depend on IoT (Internet-of-Things) technology.
IOTA is one such distributed ledger technology specifically designed for the Internet of Things (IoT). It uses a directed acyclic graph (DAG) architecture instead of a blockchain which makes it more scalable and efficient. Due to the DAG structure, there are no blocks, no miners, and no fees for using IOTA’s DLT technology.
The IOTA DLT has multiple applications in the IoT space. It could be useful for tracking the movement of goods in a supply chain, providing secure data storage, or managing smart contracts.
Let’s take a look at some of the benefits that IOTA offers and is particularly useful for the IoT industry:
IOTA transactions are completely free which makes it ideal for micropayments. Microtransactions in the IoT industry are ample and shall happen in real time. The IOTA DAG structure is perfectly capable of handling it.
Also, IOTA is easily scalable to millions of transactions per second, thus catering to the requirements of the IoT industry, IOTA also offers high-end security using a unique cryptographic algorithm. Lastly, the IOTA network is completely decentralized thus eliminating the chances of a single point of failure.
IOTA and Mobility
As per ABI Research, nearly 8 million vehicles will have self-driving capabilities by 2025. Furthermore, with advancements in IoT, cars will be easily able to transfer and communicate their data using the IOTA Tangle technology.
Also, the cars of the future will have fast payment technology for parking, tolls, battery charging, and other services. IOTA’s DLT Tangle technology will also track vehicle usage and ownership while enabling fraud prevention, pay-per-use, and other usage-based insurances. All this shall happen in a completely decentralized environment over the IOTA DLT there’s ensuring the security of data and that it remains tamper-proof.
As of date, roughly 10 percent of supply chain goods are fraudulent. The supply chain industry of today lacks transparency, traceability, and access. IOTA’s Tangle technology is capable of plugging loopholes and addressing them effectively.
Another major application of IOTA in Mobility is smart charging. Energy is a vital application for IOTA and the Tangle. By emphasizing the machine-to-machine economy, distributed ledgers enable the decentralization of the power grid, promoting clean and efficient energy flow.
An excellent illustration of this is smart charging, where vehicles and charging stations connect using IOTA software and hardware, enabling independent charging and discharging.
