IOTA (MIOTA)

Volkswagen and IOTA will be partnering to launch a digital car pass in 2019. Through this partnership, Volkswagen will use the IOTA network to track vehicle data such as mileage among other parameters. The goal is for Volkswagen to use this data in enhancing the performance of the vehicles that they produce. While this use case does not necessarily require the IOTA (MIOTA) token, it plays a huge role to the growth of the IOTA ecosystem, more specifically in terms of security.

Most of the FUD about IOTA (MIOTA) revolves around the idea that it centralized since it makes use of a central coordinator. However, the reason why there is a central coordinator in IOTA is for security purposes, but as the network grows in usage and scope, the need for a central coordinator will dwindle.  The Volkswagen partnership marks the first step in the shift away from a central coordinator.

That’s because it would add a huge amount of transactions into the tangle, hence making it harder to attack. For context purposes, Volkswagen produces millions of cars, and if it were to use the IOTA tangle to track the mileage readings of each one of them, that would add up to thousands of transactions per minute. A few more players using the IOTA tangle would seal the deal and make IOTA the fastest, most scalable and feeless cryptocurrency in the market. It would give it the true leap into the IoT space.

But other players joining in is not a hypothetical scenario anymore. IOTA is already gaining in adoption by other companies that have equally high transaction volumes. For instance, a company like Fujitsu will add a significant percentage to the transaction rates on the tangle. The same goes for Audi, which is also working with IOTA in testing out how to apply mobility applications in the IOTA tangle.  Once the IOTA tangle becomes fully secure on the basis of its usage by mega corporations, the FUD about IOTA being centralized will die off, and people will begin to appreciate the true power of this technology.

The Volkswagen deal, and several others that have been announced recently, have pushed up IOTA’s value faster than most other coins in the market. This could be a precursor for bigger things to come. Once these deals begin to take shape, and investors see their impact on the IOTA tangle, more money will start flowing into IOTA, and its price could rise even further.  As things stand, IOTA (MIOTA), going by its use case, stands a great chance of breaking into the top 5 in the near future.

LEAVE A REPLY

Please enter your comment!
Please enter your name here