Next Generation: Blockchain – Good bye. IOTA – welcome.

My car is way too often around. Probably 23 hours a day and at night. My insurance is running around the clock. Whether I am on vacation or the vehicle slumbers in the parking lot. And of course when I am driving. Would be great if there would be an insurance that recognizes exactly when I participate in road traffic with the increased insurance risk. And then the increased traffic risk billed to the second and in the park „mode“ switches to a cheaper fare. This is exactly one of the use cases that the new technology has in mind. But what is innovation about? IOTA is a kind of cryptocurrency, which handles the direct payment process between machines. In my case, between the car and the calculator of the insurance, which calculates the time-bound premium and withdraws immediately from the car „account“.

Cryptocurrencies for machines and things
For cryptocurrencies, we all think of Bitcoin and Co. and the crazy price swings that can turn investors into millionaires in short time or ruin them. The promise behind most cryptocurrencies is the totally secure blockchain technology, which mostly eludes the regulation of state organs and exists in a digital sub-universe. It is about the transfer of digital money exchanged between people or organizations. But now the machines come into play. In the future, every machine, every vehicle, every refrigerator and every sensor will be equipped with an IP address, which assigns a unique identity to every thing. Connected to the Internet, we are talking about the Internet of Things (IoT).

Partnerships for IOTA
Would it not be great, resourceful developers have said, if the ever-growing number of IoT devices would allow them to exchange payments directly with each other. Without banks, without annoying transfers – very simple, comfortable and secure. That was the birth of IOTA. This fascinating technology is organized by a foundation based in Berlin, which can now look to a respectable circle of supporters. Rolf Werner, the Head of Central Europe of the technology group Fujitsu is one of them. But Bosch has also entered into a partnership with the Robert Bosch Venture Capital GmbH with the cryptocurrency. One possible application idea is that „autonomous, battery-electric vehicles charge directly via a secure, wireless IoT connection to the charging station via the new crypto-currency during a charging process.“

Public interest only for the obvious
In the coalition agreement of the “ big coalition“ in Berlin the term blockchain appears five times. Mostly in the context of future technologies, such as Quantum computing or the transformation of industries, such as the financial industry. There is nothing in the coalition agreement about IOTA. Perhaps the underlying technology is too fresh, too limited to be widely recognized. Cryptocurrencies based on the Blockchain enjoy high public interest. Stories about Bitcoin millionaires and adventurous price fluctuations are always more interesting than applications that have yet to be developed and implemented.

Use only for corporations?
Why then do the digital corporate strategists cheer about the new technology? The scope of the technology is enormous. When machines can do transactions and negotiate prices directly with machines, the new evolutionary stage of the Internet of Things has been reached. In an interview, the Chief Evangelist Data Center of Fujitsu, Udo Würtz, put it in a nutshell. When it comes to the industrial scale of applications that must be carried out at high speed with the best possible transparency, the IOTA technology is often superior to blockchain technology.

I see another, rapid growth of promoters and partners of IOTA technology. Simply from the fact that the networking of devices and services creates an enormous need for secure transactions. Whether they are applications of autonomous driving, simple energy transaction or payment of machine services. Over the next two years, on the way to 5G society, we will see a rapidly increasing number of applications unobtrusively evolving our everyday lives. What I want is a much broader public discussion and participation in the development stages of new technologies. Because they will change the way of living and working together, and for that we need more understanding of social and economic contexts. The sooner the better.

This article was written by Martin Puscher and translated by public IOTA. Martin Puscher is the managing director of PFG GmbH. The link to the original German article