Which Cryptocurrency will we use for the "Internet of Things" (IoT)?
There are billions of devices connected to the Internet. These range from computers, smartphones, home security systems, doorbells and lights to urban infrastructure. These tools and systems can be controlled by connecting them to the Internet. We all have a growing number of these devices in our homes and around us. The Internet of Things (IoT) refers to this universe of devices that can be accessed, monitored and controlled via the Internet.
The Internet of Things offers great potential to make our lives easier and more efficient. A common example is controlling your home lights or temperature via your smart phone. However, the possibilities don't end there. In the near future these machines will not only communicate with each other via the Internet, but they will be able to seamlessly accept payments from each other. Where will we use this technology and what currency will machines use to "pay" each other? Examples include your electric vehicle communicating with tolls, charging stations and parking meters. Using IoT enabled technology your car could pay these fees seamlessly over the Internet. What cryptocurrency is likely to be robust enough to handle the potential trillions of transactions that will be occurring on the IoT? Bitcoin as been referred to as the "currency of the Internet". However, blockchain technology is slow and requires fees to process. Another issue is that processing slows down with increased users in the system. It is also currently energy intensive. One potential solution is a cryptocurrency called IOTA. It is similar to Bitcoin in that it is based on an online distributed ledger system. However, unlike Bitcoin it does not use blockchain technology. It uses a technology called tangle. IOTA cryptocurrency actually increases its speed of transactions a the transaction volume increases. This system seems ideal for the Internet of things. This innovative technology is already being implemented in cars like the Jaguar Land Rover on a trial bases.
The short video below gives a nice explanation of IOTA cryptocurrency and Tangle technology