An open-source distributed ledger and cryptocurrency designed for the Internet of things (IoT)
The Tangle is IOTA's network. It immutably records the exchange of data and value. It ensures that the information is trustworthy and cannot be tampered with nor destroyed.
What is Tangle ?
Tangle is Described as the Successor of Blockchain :)
Tangle, a directed acyclic graph (DAG) structure, to store the transactions occurring on the public ledger. It does not incorporate blockchain technology, thereby attempting to address the issue of transaction costs by using the Tangle storage system.
The working mechanism of Tangle requires a new transaction to approve the previous two transactions. Essentially, Tangle forces a transaction issuing-participant, or node, to contribute towards the agility and security of the network by making him/her approve earlier two pending transactions. The nodes also ensure that there are no duplicate transactions leading to double spending, and there are no conflicts among the various transactions as per the Tangle transaction history.
Source : IOTA
What to say about IOTA use cases !
1.Mobility & Automotive:
The amount of data and financial transactions that will be produced by connected mobility devices is staggering. How to securely collect, evaluate, and use this information to benefit people, cities, manufacturers, and mobility providers is a critical question in the industry today. With IOTA, data and financial transactions generated by connected mobility can be processed securely, privately, and without additional transaction fees.Traditional business models in the mobility space are being challenged on a daily basis.
While technological breakthroughs have enabled vehicles to be connected, electric and increasingly autonomous, many new players are entering the market and the industries’ business models need to change accordingly. Cars are turning into digital platforms. They will be able to pay autonomously for parking, charging their batteries, tolls, and other services. But cars will also be able to make money, by selling the data they generate or the power stored in their batteries during periods of high energy demand. IOTA enables peer-to-peer data and financial transactions without central intermediaries.
IOTA makes it possible to build tools and applications for simple communication and payments between vehicles and their immediate connected environments.
2.Trade And Logistics Information Pipeline:
Today’s trade is still based on paper documents and outdated processes.
IOTA’s technology is set to radically transform international trade and supply chains with a permissionless distributed ledger technology (DLT), which improves visibility, control, and efficiency.Global trade and supply chains are highly complex and involve many actors – both public and private.
Information is pushed between actors re-keyed into new systems leading to loss of data integrity and authenticity. Emails, phone calls and uncertainty are the daily details of moving goods.The supply chain of the future is supported by DLT. Original documents and events are reported in real-time and made available to authorized actors. This way, everyone has access to the original data instead of duplicated data in multiple siloed systems.
3.Unifying Digital Identities:
IOTA Identity builds on the W3C's proposed standards for a digital identity framework. This framework includes three roles.Decentralized Identifiers serve as a reference to a DID Document. This document contains data such as public keys, enabling the holder to prove ownership over their personal data.
Verifiable Credentials are statements about the holder. They can be verified online or in person, and the holder decides who to share them with.
This framework has various use cases, including: Address validation, Age verification, Authority login, etc.
Opening Data For Smarter Communities, City infrastructure can provide endless amounts of data and insight. The solutions leveraging that data need to benefit the people living in the city.IOTA opens city-data silos, giving visibility to residents over how the city is working to improve their quality of life.
5.Industrial IOT and smart manufacturing:
IOTA is uniquely suited for Industry 4.0 - a platform for trusted exchange of data and secure exchange of value, with low resource requirements and no fees. With principles of full transparency and permissionless innovation, IOTA forms the open & neutral base for organisations interested in Industry 4.0 to build upon.
6.Enabling Privacy And Control Of Healthcare Data:
Unlike paper records, digital records can easily be copied or changed. Through cryptography, IOTA technology secures this data on the Tangle and puts control of personal data back in the hands of the patient, making it the basis of trustable decision support systems.
Health sensors provide great insight into a patient's health between clinic visits. This data can be analyzed as it is created, leading to faster and more accurate analysis without recall bias. But securing and actioning these data streams remains problematic.
Together with modern healthcare interoperability standards, IOTA Streams can secure these streams of health sensor data and help integrate them into traditional healthcare records. The distributed nature of the protocol also allows for new types of patient-controlled personal health records.
The next big thing about IOTA we will discuss in next blog :)