Iota announced a collaboration with Germany-based ETO GRUPPE to produce hardware with integrated identity, micropayments, data integrity and smart agriculture. The ETO GRUPPE manufactures vehicle components like electromagnetic valves, sensors, modules, etc. In addition to this exciting partnership announcement, IOTA also announced that a Token LaunchPad service module of DAO market platform Soonaverse will start functioning on May 24. IOTA said that it expects many new tokens to enter its ecosystem with these updates, which could explain today’s price increase.
What Is Iota?
OTA is a distributed ledger offering faster speed than other conventional blockchains. The foundation behind this platform has also said that it is ideal for the Internet of Things ecosystem. IOTA charges no user fees as it is not a blockchain, and there are no miners. Hence, it can provide limitless throughput at a minimum cost.
It aims to be the de-facto platform for transactions between IoT devices that are expected to grow to 20.4 billion by 2024. The network was launched in 2016 by four co-founders: Sergey Ivancheglo, Serguei Popov, David Sonstebo, and Dominik Schiener.
The project team expects IoT to have numerous use cases in the future where IOTA could deliver digital identities, support in making digital smart cities, provide car wallets, smart charging, and manage natural resources more sustainably.
IOTA has partnerships with more than 100 organizations, including Jaguar Land Rover, Dell Technologies, Zebra, Ensuresec, and ClimateCHECk. Its solution partners are Tech Mahindra, Filancore, BiiLabs, and Neoception.
Iota and The Tangle
IOTA is a ledger designed to facilitate microtransactions on IoT (Internet of Things) devices. The smart contract platform handles payments and other transactions between devices connected to the internet. Some IoT devices include smart in-home devices like TVs, refrigerators, and internet-connected thermostats. Dan Simerman, the head of financial relations for IOTA Foundation, describes the platform as “a connective tissue between the human economy and the machine economy.” Often used interchangeably with IOTA, MIOTA is the cryptocurrency utilized to make platform transactions possible.
Unlike many other cryptocurrencies, IOTA functions outside of blockchain technology. Instead, IOTA uses the Tangle, a network that records the exchange of transactional data and value. Tangle uses a direct acyclic graph, or DAG, consensus algorithm to avoid the cost and scalability issues typically experienced with blockchain.
Should You Buy Iota Today?
By removing the friction of high transaction costs, the idea of a non-blockchain cryptocurrency has piqued the interest of investors. Advertising themselves as “the backbone of IoT,” IOTA seems to have cut out the “blockchain middleman,” resulting in some appealing promises.
IOTA lacks miners or validators, making it completely free of transaction fees. It can handle up to 1,000 transactions per second (TPS), placing it way above its blockchain competitors’ average of about 5 TPS. IOTA uses an open-source framework that allows access to control systems, making it adaptable to different use cases for large corporations. Lastly, the ledger is earth-friendly. Its energy-efficient design with low resource requirements allows devices such as sensors to participate in a low-energy network.
With our world continuously heading in the direction of smart homes, smart cars, and smart wallets, it’s no surprise that we see IOTA on the rise today. As a backbone to the IoT, IOTA aims to create a seamless bridge between human and machine, promising zero-fee and fast transactions, adaptability, and accommodations for low-energy IoT devices.