IOTA (IOT-USD) is a revolutionary project that seeks to solve problems of first and second generation cryptocurrencies by utilizing Tangle. Tangle technology has a number of benefits compared to the normal blockchain design that IOTA boasts: it’s fast, infinitely scalable and offers feeless transactions. It’s designed for the internet of things (IOT) and aims to be the backbone of Machine to Machine interactions and economy.
Looking forward, a bet on IOTA is a bet on Tangle (blockless DLT); and if this touted innovation can fuel IOT and Machine to Machine interactions. This functions similar to blockchain but there are key differences that IOTA purists think will help its technology win out in the long run.
1. Leading Banks Have Signed As Partners
A recent partnership between IOTA and Norway’s leading bank DNB ASA highlights the belief that IOTA’s technology is superior. The two aim to explore the many ways they can implement new processes and technologies made possible by Tangle.
DNB specializes in corporate banking, investment banking, and global markets. It’s also a global leader in energy, shipping, and seafood industries.
Commenting on the partnership, begun on May 31, Lasse Meholm, the head of DLT at the bank said:
“As the Internet of Things (IoT) and Machine to Machine (M2M) communication and payment for microservices seem to escalate in the future, we think engaging in a Distributed Ledger based technology like IOTA gives us valuable experience and know-how on future revenue streams and business models. We are looking forward to diving into the IOTA space.”
News of how the bank can and will implement Tangle technology will certainly hype IOTA believers and investors; especially if it can integrate into high-gross revenue streams.
2. The UN Has Partnered With IOTA Already
In another move of interest to the price of MIOTA (the currency that fuels the IOTA platform), UNOPS and IOTA recently announced a partnership that seeks to help the technical advisory arm of the United Nations. The goal is to cut off the middlemen and improve processes.
Commenting on the partnership, the UNOPS special blockchain advisor, Yoshiyuki Yamamoto said together the two organizations share a vision where people, devices, machines and sensors easily connect and communicate to each other.
This is a world of ‘industry 4.0’ which harnesses the technology for processes to work concurrently without needing intermediaries.
What really draws the interest of UNOPS in IOTA is the open tech which drives its blockchain. They see it particularly helpful when it comes to easing communication and handling supply chain bottlenecks; something an international organization like the United Nations faces often.
UNOPS services cover project management, infrastructure, financial management, procurement and human resource. It also needs to abide by the strict accountability standards put in place for the global organization—a fact that bolsters IOTA’s reputation. This is not an altcoin that signed on a few other startups.
3. It’s Positioning In The Heart Of The Future Of The Automobile Industry
IOTA has also attracted a number of leading automobile manufactures. BOSCH was the first last year when they purchased a piece of IOTA so that they could test Machine to Machine payments through an autonomous driving chip.
Then next was Volkswagen in June of this year who partnered the crypto platform to explore how Tangle can be used to securely transfer software over the air to vehicles.
BOSCH and Daimler are already working on a projects to bring the world’s first autonomous taxi in Berlin by 2020. They envision a car that will be able to pick and drop passengers to any desired location. The passengers could make their payments in MIOTA using their smart held devices.
IOTA has positioned itself positively with the partnerships listed above. But we’ve seen coin prices fall over 90% (from highs above $5 to a current price just below $.50. The market has been poor, but not every major coin has seen this fall. Is it reason to be concerned?
The take is no; that it’s just a reaction to the macro market and that IOTA doesn’t have immediate demand for its coin like others do. It’s a long-term bet, one that could pick up years from now with autonomous driving for instance.
Some analysis shows upside for IOTA. Here, for instance, in a LONG chart by TotoParasca:
As we see, IOTA is forming an upward trend coupled with significant defense lines. The altcoin is currently trading at $0.48 and when mass adoption is achieved it could shoot right past all-time high mark of $5.69 set on December 2017.
The name of the game will be adoption; since MIOTA depends on its use cases (example). As IOT and machine learning advances, the importance of IOTA will become more significant, and it tangle succeeds for enterprise solutions, it will drive MIOTA use straight upward.
In Tangle, IOTA possesses a revolutionary technology that could be the leading DLT system in the future; competing directly with blockchain big names like Ethereum, EOS, and NEO.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.