The true of power of blockchain technology has yet to be seen. The term Internet of Things (IoT) has been around for years now and the move to the space has been increasing on a yearly basis. As such, businesses have taken notice and ramping up their budgets in this space in R-amp;D, marketing, sales and development and other relevant departments to meet the upcoming needs.
The Internet of things is being integrated into various aspects of our daily lives at increasing pace and it is said that the amount of business to business transactions’ and spending in this space will reach above $250 billion by the year 2020.
With these internet-connected devices will come a rapid increase in the transmission of data, and as this increase in data transfers occur, one will have to account for how to make sure it happens in a distributed and scalable manner.
As data is the key function of IoT, it will allow for information to be passed which will allow companies to cater to customers in a more targeted and relevant manner, knowing exactly what they will need and why they will need it, having hard data that is instantly transmitted to back their customer-centric business approach.
Data driven insights and the resulting actions that will take place are all the rage these days and will continue to heat up as the days go by.
A foundation that is located in Berlin, called the IOTA foundation, which has deployed a virtual currency to prepare for this big trend that will occur in the IoT industry, has looked into the space and has found potential applications for data monetization and extended solutions. They have deployed a micro-payment based data marketplace that is powered by a technology known as tangle is an alternative to blockchain.
Project -amp; Partners
They are working with various partners in this space, to date, they have 20 international organizations that are onboard. The partners that will be involved include people such as Deutsche Telekom, Bosch, PricewhaterhouseCoopers, Accenture, Fujitsu, Microsoft and more. They are also working researchers and important universities that will help move the project forward.
The project that they are seeking to deploy would provide connected devices with the ability to safely transfer, purchase and sell fine-granular and diverse datasets with the objective of providing for the access to data that frequently could sit underutilized.
This means that the data from your fitbit or from your fridge could provide value to someone, somewhere. The idea of being able to provide this data to that party, would open up a world of possibilities. On a larger scale, this could contribute other growing technologies like predictive analytics, IoT and machine learning.
It’s a simple but very powerful idea, to be able to provide a marketplace for parties to access data and utilize that data and create accordingly.
Data management is the bedrock of supply chains, concepts such as smart cities, power and energy as well as healthcare and production. Over the course of the project, various sectors are to open up data streams for access through sensor based information relay.
““The goal is to enable a combination of a business-to-business data economy, as well as enabling researchers and even hobbyists to participate. The beauty of enabling fine-granular trade access is that we really don’t know who or how it will be used, except that we know it is a completely new paradigm.
IOTA uses tangle, a system that they believe is an improvement on the blockchain technology. Tangle is a distributed ledger technology, it is decentralized, permissionless and secure.
What’s so interesting about Tangle?
Currently, a large number of blockchains are set up in such a way, it necessitates the entity of miners. Miners must continuously mine to open new blocks to minimize congestion and to minimize fees which ensures one’s place in the block to get their transaction confirmed. Network congestion and network fees are positively correlated, (the higher the congestion, the higher the fees). So, an inherent problem of blockchain is scalability, if the miners don’t mine quickly, the congestion (unconfirmed transactions) build up, the network becomes slower and fees become higher.
The tangle solves this problem by eliminating blocks. No blocks means no need for miners, so it eliminates the blockchain problem of scalability from the start. Tangle makes it to where the next transaction will confirm the two prior transactions, the higher the transactions, the the higher the possibility of your transaction becoming confirmed, rapidly, leading to minimal or no fees.