All fingers are pointing towards two revolutionary technologies; Blockchains and the Internet of Things (IoT). Both technologies are set to transform global industries into smart worlds. IOTA is the first company to link between cryptocurrency and IoT. The German company is looking forward to integrating its Tangle Blockchain with the automobile industry to further upgrade self-driving cars. The benefits are unbelievable; experts are concerned that as much as cryptocurrency projects are plummeting downwards regarding price valuation, IOTA remains one of those avenues that an investor should consider. With current trends in smart technology, IOTA seems to be signing all kinds of deals and partnerships. One deal that ultimately stands out is the Volkswagen partnership. The goal is to achieve autonomous automobiles of the future, and this is just one among a plethora of projects meant to propel the smart future of industries.
It is evident that the current price of IOTA (MIOTA) may be merely or scarcely higher than a dollar, yet this crypto could mean a lot in the future. Just a year into the invention of Bitcoin, One BTC was trading at $0.08, and it took two years for the crypto to attain parity with the dollar. We have all seen the BTC bubble bursting at $20,000. IOTA is hardly a year old, but its potential is far more attractive than an investor could have predicted for Bitcoin.
Instead of a Blockchain, Tangle is the core innovation behind IOTA. There is only one significant similarity between the Tangle and a Blockchain, and this is the use of a distributed ledger system with security features. Unlike the Blockchain, however, Tangle does not use blocks but the form of a Directed Acyclic Graph (DAG). The DAG technology is the reason behind IOTA’s infinite scalability, free cost transactions and the ability to initiate offline transactions.
From Tangle To Automobiles
Tangle’s core innovation could support offline communication between different machines. The invention of a self-driving autonomous vehicle calls for the need for a technology that could support a non-stop massive exchange of data. Industry stakeholders realized that if they were to integrate such a system with the existing telecommunication light technology evolution (LTE), the method would not be cost-effective. IOTA’s Tangle could be the best remedy for this situation. The fact that Tangle allows for an instantaneous offline exchange of data, the automobile’s core machines would communicate with each other for free.
How Tangle Works
Transactions in a Tangle form a block after they are verified by the initiators. The verification process validates only two transactions which allow the chain to continue. In the system, users and validators are the same makings the network inherently decentralized. For a user’s transaction to go through. Therefore it is mandatory to validate the two transactions. The two transactions form the cost of transacting in the Tangle, and it is for this reason, transactions are said to be zero-cost.
The above facts shed light on why Volkswagen is anxious to sign a deal with IOTA. The technology remains to be the future of the automobiles the world has been waiting. The good thing is that the Tangle technology could be integrated with other industries, for instance, factories and Smartphone devices. It is a guarantee that more companies are set to partner with IOTA in future.