IOTA plans automated data market place for IoT devices

The cryptocurrency is working with several device manufacturers to create a platform where devices can automatically buy their required data.
IOTA, the cryptocurrency which currently ranks 8th on the list of the world's top 10 most lucrative cryptocurrencies, recently announced that they would create an online marketplace in collaboration with several reputable companies worldwide, including Bosch, Microsoft, Fujitsu, and Samsung.

The concept behind the marketplace is to enable all IoT devices to automatically take data from the marketplace to fuel the application’s online requirements. Each “transaction” would be subject to a nominal fee. To use an example, this could allow smart city sensors to gather their required data to run their data-required applications, such as pollution alerts. Alternatively, it could enable Bosch-manufactured automotive parts to automatically obtain data to power the increasing amount of smart car features.

The IOTA team is still tight-lipped about the marketplace, and so far it appears that their collaborators are doing most of the heavy lifting. However, according to the IOTA team, the marketplace could prove to be a success based on a micropayment business model. In turn, this system could encourage other similar apps related to several budding industries, including AI, smart cities, as well as general supply chains. In their announcement, the IOTA team stated that this will allow all IoT devices to safely acquire its necessary data, using a convenient, effortless, and permissionless system.

IOTA was found and is currently managed by a German non-profit, the IOTA foundation. The cryptocurrency started after the British Outlier Ventures invested in the cryptocurrency.

While IOTA is categorized as a cryptocurrency, it is technically not based on blockchain technology, but an alternative form of it known as a directed acyclic graph (DAG), or as IOTA refers to it, the Tangle. Unlike blockchain technology, the DAG does not use blocks. This has several implications for the mining industry, which essentially translates into quicker and more free transactions, compared to Bitcoin or Ethereum. The difference in the underlying technologies could make IOTA the perfect catalyst for its planned marketplace.

Just like its other cryptocurrency counterparts, IOTA has enjoyed significant growth in the last few months. Currently, the cryptocurrency is using centralized servers, something which could cause an array of issues. While centralized servers were decided on during IOTA’s beginning phases, it undermines cryptocurrency’s decentralized feature. In addition, it is possible for the servers to shut down.

Besides this very real obstacle, another challenge faced by the team is whether or not they can upgrade all IoT devices’ curl hashers in order to support IOTA. The curl hasher would allow every individual device to hash thousands of transactions per second, which would greatly enhance the cryptocurrency’s scalability. However, it is still unclear whether these upgrades can be implemented in every single device.

So far, the confirmed partners in this venture include, Orange, DNV GL, Cisco, Schneider Electric, Daimler, PwC, Accenture, Deutsche Telekom, and EWE. The firm aims to target several more companies in different industries all over the world as well.

The specifics of IOTA still remain vague. There is no clear pricing plans or official launch dates. According to IOTA co-founder, Dominik Schiener, the service would be available on a subscription basis. The firm intends to launch in December and then expand its supported devices in the future.

According to Schiener, any individual will be allowed to purchase the marketplace service using IOTA tokens. Currently, the suggested ecosystem is undergoing beta testing, while the marketplace is in its pilot phase.