More exciting news as IOTA adds Volkswagen to its list of partners and Vechain (now Vechain Thor) teams up with BMW. The list of prominent names turning their attention to the world of digital currency is growing, and this should help the technology continue to thrive.
When most of us think of blockchain technology, we think of digital currency, the exchanges, and the fluctuating value of bitcoin and ether, but what else does the technology have in store for the future besides peer-to-peer transactions?
Judging by recent developments there are a wealth of possibilities, and some well-known manufacturers are doing more than merely imagining what that future might be. They’re busying themselves with creating it
This might sound a little far-fetched, but hear me out. Thanks to blockchain technology we are witnessing the early days of a techno revolution, an upheaval. Before Satoshi Nakamoto published the bitcoin white paper, it’s doubtful that any of us had ever considered the impact of a technology that provides a system of transferring value, which also safeguards against inconsistencies in the ledger. But now this foundation is there. It is in everyday use, globally, and innovators are turning their attention to other concerns. They’re asking, what else can blockchain technology do?
To answer this question, some issues that are holding the technology back need to be addressed. For example, one of the best-documented problems with crypto is the issue of scalability.
IOTA proposes a solution to this problem, and that’s what makes it so exciting. It’s different to blockchain-based crypto – it uses a system called Tangle to deal with transactions. The issuer of a transaction must verify two others, and this means that the more subscribers Tangle has, the faster the system will be. Tangle is also free to use as there is no need for miners.
If this technology does indeed manage to resolve the issue of scalability, then IOTA’s claim of being the ‘backbone of the IoT’ might not prove too grand. A system like this could give innovators a starting point to radically change the world as we know it. There are more devices connected to the internet today than there are living people and we use them for a variety of things, including the exchange of currency. However, equally if not more important than that is the exchange of information or knowledge.
The technologies that have allowed P2P transactions have resulted in a wave of innovation in the financial world, but it will evolve and go even further. Companies like Volkswagen and BMW won’t be the last to get on board with this technology. Of course, it won’t just be vehicle manufacturers who take an interest, but soon your car could be freely exchanging data with other things – helping you avoid traffic, for example, saving you on fuel and repairs bills, or reducing your insurance premiums. Soon, your car might even be able to monitor your vital signs in the event of a crash and ensure paramedics have the information they need to save your life before they’ve even arrived.
Systems like blockchain and Tangle are creating a world where this is becoming a reality, and you can expect the list of companies recognizing the importance of crypto to grow.
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Michael is an English and Creative writing graduate of Liverpool John Moore’s University, a former editor of several magazines, and a crypto-currency enthusiast. He is mostly interested in crypto-legislation and the potential of decentralized technology to change the world.