On June 11, 2018, IOTA and Volkswagen demonstrated a Proof of Concept (POC) using IOTA’s Tangle for interconnected vehicles. IOTA’s Tangle is a sophisticated form of blockchain, a DAG, without blocks or miners, designed specifically for machine to machine communication. A Tangle is more suitable for microtransactions and has improved scalability, both of which are vital for a machine economy involving autonomous vehicles.
During the POC demonstration at the Cebit 18 Expo in Germany, Volkswagen was able to perform live software updates to the vehicle. Volkswagen aims to use IOTA’s Tangle and develop a new smart car economy with autonomous vehicles. By 2020, it is expected that there will be over 250 million connected vehicles in operation. With the increased numbers will come a more urgent need to perform live updates over the air in real time. Facilitating these updates on a large scale requires transparency, speed, connectivity, decentralization, and low fees, all of which are essential. IOTA’s Tangle, using Directed Acyclic Graph technology, is ideally suited, while typical blockchains may fall short despite their application in numerous other fields.
The technology will also ensure that faulty cars are reclaimed quickly and that any issues with the vehicles are swiftly tackled. It will also be useful for insurance, and statistical purposes as an accurate recording of what happened can be gathered from the records kept. According to the Chief Digital Officer of Volkswagen, Johann Jungwirth, “Distributed Ledger Technologies (DLT) are crucial for the future of trusted transactions. IOTA has great potential to become a DLT leader with the Tangle approach.”
While there is a long road from a Proof of Concept to full market implementation of a reliable network of autonomous vehicles, these demonstrations are a crucial first step. IOTA has its detractors, but it is leading the way in the machine-to-machine internet of things industry. Other notable blockchains that use a DAG-based architecture include IOT Chain and Nano. In China, CyberVein uses a sophisticated DAG architecture in the hopes of creating a new database paradigm and a revolution in the way data is stored and monetized. DAG technologies are here, and the race for adoption continues, with IOTA leading the way concerning market penetration.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.