June 5, 2018
IoT and Fintech Converge with IOTA
Most people conflate Bitcoin and cryptocurrency. While Bitcoin remains the first mainstream cryptocurrency, thousands now exist in circulation. With each new coin offering, known as ICOs, founders claim their coins fill gaps in the current marketplace and offer utility for a unique purpose. While investing in cryptocurrencies is still inherently risky, many view the sector as an important pillar in the future of Fintech.
What is IOTA?
In short, IOTA is a blockchain-approach project aimed at the internet of things or IoT. With an estimated 75 billion connected devices entering circulation by 2020, the founders behind IOTA stress the importance of maintaining data integrity and security.
Investors can purchase IOTA coins on cryptocurrency exchanges as they would Bitcoin or Ethereum. The currency supports transacting through IoT devices on the IOTA decentralized network known as Tangle.
IOTA foreshadows the likelihood of a machine to machine economy where devices can share resources and exchange value automatically.
The IOTA Philosophy
With a bevy of new connected devices entering both consumer and enterprise markets, broadband speeds will not keep up posing limits for the IoT world. Global data pipelines will become congested in the current infrastructure hampering progress in the space. IOTA aims to combat this through data transmission on their decentralized network. With zero transaction fees, devices can share resources in a local decentralized network avoiding centralized data bottlenecks.
IOTA also plans to overhaul the sharing economy. The sharing economy mitigates waste by allowing people to share either their personal or communal assets. With IoT enabled devices on IOTA, users can be charged by usage for items they may only seldom need.
IOTA claims making the sharing economy more intelligent through IoT will also lead to sustainability, “Individuals and machines pay for exactly what they consume when they consume it. With the shift toward a market where consumers pay for usage rather than ownership, it incentivizes manufacturers to construct products that last and are easily recyclable. In short: IOTA plans to make planned obsolescence obsolete. The result of this is entirely new value chains and a more sustainable supply chain and accompanying economy.”