IOTA: A Cryptocurrency for the IoT
IOTA: A Cryptocurrency for the IoT by Ian Dyer – Banyan Hill
The amount of data in the world is growing at a pace never seen before. Companies have been rushing to be the first ones to store and manage it efficiently. In fact, it’s created an entire industry: cloud storage.
Twenty years ago, when the internet was just starting out, nobody could have imagined that there would be buildings dedicated to housing giant servers full of data. At least, not at this scale. For example, there’s a data center being built in Nevada that will be 7.2 million square feet when it’s finished. That’s over twice as spacious as the world’s tallest building.
A lot of this data has been generated over the Internet of Things (IoT). The IoT is the network that is made up by devices “talking” to each other by sending data. This is the future, and it’s called the “machine-to-machine economy.”
Right now, there are over 20 billion devices connected in the IoT. And by 2025, that number is expected to grow to 75 billion. So, the amount of data in the world is only going to go up, and at an exponential rate.
The emergence of blockchain technology since the invention of bitcoin has taken security to a new level. And as blockchain has continued to prove itself, companies have been showing interest in somehow securing data in it. The appeal of blockchain is that it’s decentralized, and therefore extremely hard to hack.
Now the IoT is about to take its level of communication a step further. Soon, machines will be able to purchase data from each other using a new form of cryptocurrency called IOTA
IOTA: Not Your Average Cryptocurrency
An example of IOTA being used would be a smart meter in a building selling its data on electric, gas and water usage to a utility provider. The buying/selling could be continuous or once a day. Or it could be a computer buying more cloud storage or computing power.
The transactions would be quick, and you wouldn’t have to do anything, hence the term “machine-to-machine (M2M) economy.”
And for a transaction to get confirmed, two other transactions that preceded it need to be confirmed before it. So, as it gets used more, there will be more transactions to reference, and the speed of payments, or “scalability,” will continue to get faster.