Launched in 2016, IOTA is an open-source distributed ledger and cryptocurrency designed for the Internet of things. It uses a directed acyclic graph to store transactions on its ledger. This network architecture allows for massive scalability to handle high-throughput data and value transfers while upholding the merits of decentralized consensus.
If there is a device that can connect to the Internet, chances are it could benefit from running on IOTA’s network. For example, IOTA has partnered with Jaguar Land Rover to integrate wallets into select models, allowing vehicles to earn money via micropayments in exchange for sharing vehicle-generated data as they are driven. Vehicles can also pay for tolls, parking, electric charging, and more.
Other potential uses can involve global supply chains or meteorology. Looking at global supply chains, over $4 trillion are lost yearly due to supply chain inefficiencies, which can potentially be cleaned up through the use of a web of interconnected smart sensors that would keep track of logistics. Additionally, the use of other sensor data would help to guarantee the quantity, quality, and status of a delivery.
Many types of devices can become IoT capable. For example, let’s assume there is a community of people in a given geographic area with smart weather sensors integrated into each of their homes.
These devices are responsible for collecting every aspect of the weather – what if weather forecasters could better understand patterns and microclimates by gaining access to these user-generated data points?
Everyone in this community could opt-in to sell weather data to the weather service, who would be willing to pay to improve their forecasting and weather reporting services.
Data ownership, with the ability to monetize on-demand, could result in a form of Universal Basic Income (UBI).