Published on July 23, 2024
By: Ertix Truepatch
There’s a realm that seamlessly intertwines with the world of cryptocurrencies, one we’ve scarcely touched upon. It’s the Internet of Things (IoT), a concept denoting a network of interconnected physical devices capable of collecting and sharing data. These networks span from everyday appliances like household gadgets to more sophisticated machinery, such as medical devices or industrial sensors. The ultimate aim is to streamline human interaction to its bare essentials, enabling seamless data collection to enhance efficiency and decision-making.
How do IoT and the crypto world connect? Consider a practical scenario: envision an intelligent electric vehicle, equipped with sensors to monitor its status, battery charge, and real-time location. This vehicle could feature an integrated crypto wallet, which, through its sensors, detects a parking spot with an electric charging point… Subsequently, the car could autonomously pay for the service using the wallet.
In an IoT environment, devices can autonomously conduct financial transactions. Cryptocurrencies gain significant relevance here, ensuring the security and authenticity of such transactions. This combination opens up a world of possibilities, particularly in logistics, energy, and supply chain management. The realm of e-commerce, which we are deeply interested in, also fits seamlessly into this disruptive blend.
“The Internet of Things will not only transform how we interact with our devices but also how they interact with each other. Cryptocurrencies are poised to play a fundamental role in this new era of connectivity, enabling secure and efficient transactions among autonomous devices”.
-Andreas M. Antonopoulos.
E-commerce, IoT, and cryptocurrencies? Absolutely! Need an example? Consider an online platform that harnesses IoT technology to manage its inventory seamlessly. Each product is equipped with an IoT device, which tracks changes in availability in real time, facilitating efficient restocking… Owners of such stores could reap the benefits of integrating cryptocurrencies as a payment method and could use smart contracts to offer enticing rewards programs. The possibilities are virtually limitless.
It’s crucial to highlight that many of these applications are still in their early stages, indicating that technical resources are being developed to address challenges and considerations. Security remains paramount, especially in the integration of IoT and cryptocurrencies, where a vulnerability could compromise transaction integrity. Therefore, it’s imperative to devise solutions to safeguard both cryptocurrencies and IoT devices, alongside conducting regular audits. Additionally, establishing open standards and interoperability protocols to facilitate seamless communication between IoT devices and different blockchains is essential.
“Addressing the challenges that arise during this process (integration of IoT and crypto) and continuing to develop standards and regulations to ensure an effective and secure combination is crucial. Through this path, IoT can reach its maximum potential, evolving not only in how devices communicate but also in how we trust that communication”.
-Paulo Spacca, President of ABINC (Brazilian Association of Internet of Things).
IOTA: a one-of-a-kind cryptocurrency.
There’s an interesting project I’d like to discuss: IOTA, a cryptocurrency initiative centered around the Internet of Things (IoT). Unlike traditional cryptocurrencies such as Bitcoin and Ethereum, which rely on Blockchain technology, IOTA uses a system called Tangle: a network of interconnected transactions. In the IOTA network, each transaction must validate two prior transactions before being confirmed. The IOTA network operates without miners and transaction fees.
In late November last year, IOTA experienced a 43% surge following the registration of the Iota Ecosystem DLT Foundation in Abu Dhabi, the UAE capital. As per the press release, the foundation will receive $100 million worth of IOTA tokens over four years for funding. The initiative’s leaders aim to foster the burgeoning cryptocurrency community within the Abu Dhabi Global Market (ADGM), a hub dedicated to financial sector growth and economic diversification in Abu Dhabi and the UAE.
It’s worth noting the insights of Hamad Sayah Al Mazrouei, the Chief Executive Officer of the Registration Authority (RA) within the ADGM ecosystem. To clarify, the RA, a key component of the ADGM zone, oversees the issuance of licenses and the establishment of regulatory frameworks for companies operating in the Blockchain and DLT (Distributed Ledger Technologies) sector.
“Welcoming IOTA, one of the most established and well-respected blockchain protocols into ADGM’s DLT regime exemplifies our ambition to position Abu Dhabi’s stature as a prime location and ADGM as the leading jurisdiction for the blockchain industry. It is a strong validation of ADGM’s progress with its new and revolutionary DLT Foundations Framework. Working with companies like IOTA, ADGM aims to move towards a future characterized by setting global benchmarks in the ever-evolving blockchain and Web3 landscape”.
The inclusion of cryptocurrencies in the IoT sector is revolutionizing our daily interactions by driving automation and efficiency. Projects like IOTA, leveraging its Tangle technology, unlock a plethora of innovative applications across various sectors including logistics, energy, supply chain management, and, notably, e-commerce. Stay informed with Purse.io by subscribing to our Newsletter. Also, don’t forget about our ongoing work on Hamza.biz, the pioneering Web3 e-commerce platform powered by the Loadpipe protocol and the LOAD token. Click here to explore the roadmap for Hamza.