Deutsche Telekom to Present Use Cases for IOTA
Hannover Messe, launched by German Chancellor Angela Merkel and Mexican President Enrique Peña Nieto, is the world’s largest tradeshow for industrial technology. It is being held in Hannover, Germany from April 23rd to April 27th. According to the IOTA founders, Deutsche Telekom, Fujitsu, Bosch, and a few other big name companies will discuss use cases for the public distributed ledger.
One of the main criticisms of cryptocurrencies, and platforms implemented using cryptographic algorithms, is that their potential use cases have not been fully developed. However, the IOTA platform appears to not only have established strategic partnerships, but also has many practical use cases. Before we discuss them, let’s go over what this platform actually is and does.
Tangle Based Crypto Platform
This crypto-platform uses distributed ledgers, but not a blockchain. The technology which forms the backbone of this crypto-platform is called a Tangle, which is implemented using Directed Acyclic Graphs. Using this approach does not require cryptocurrency miners, which are needed when using proof-of-work algorithms. With Tangle, the IOTA platform is still pretty much decentralized and there is no cost associated with using it.
On the IOTA network, participants play an equal role. Whenever a transaction is processed, the entity issuing it must authenticate two previously issued transactions. The issuer does not get to choose which transactions to authenticate. Instead, these transactions are randomly presented to the user to validate. Notably, this process can run on almost any device and allows for fast micro transactions.
You Can Make Small Purchases with This Crypto
Micro transactions can be of the smallest amount possible, even fractions of cents. If you compare this to Bitcoin and other major cryptocurrencies, many of which require miners to run, then it is not feasible to make small purchases such as buying yourself a pack of cigarettes. Moreover, as more people use the network, it becomes faster and more efficient. This appears to be in direct contrast to the Bitcoin network, because the more people that use it, the slower it becomes and transaction costs increase significantly.
Fujitsu and Deutsche Telekom Point out Use Cases for IOTA
Fujitsu, one of the companies that will present use cases for IOTA, which is reportedly able to integrate Internet of Things (IOT) on its network, has said:
“We demonstrate how component and process data can be tracked and unalterably saved to the IOTA Tangle in a Supply Chain Management context. Among other potential applications, IOTA can be deployed to ensure the use of original components, as well as for warranty management.”
Meanwhile, a Deutsche Telekom Executive noted:
“We think it’s a great opportunity for Deustche Telekom to investigate and prototype future blockchain-based, data-driven business models with different partners. Compliance with data privacy regulations has to be regarded at every stage, and IOTA provides the right tech, right now.”