Cryptocurrency for IoT

The Internet of Things (IoT) is a system of internet-connected devices receiving and transferring data over a wireless network with minimal human intervention. IoT has several applications, including making homes safer and more comfortable. For instance, smart homes use IoT to automate everything from their HVAC systems and lighting to security and entertainment.

While IoT has experienced several advances in recent years, it still has its limits. One of the largest limits is paying for products or services. Fortunately, several solutions have started emerging, and IoT crypto (cryptocurrency) is leading the charge.

Use Cases of Cryptocurrency for IoT

Cryptocurrency is an encrypted and decentralized form of digital currency. The most popular cryptocurrency is Bitcoin, and like most other cryptocurrencies, it uses blockchain technology.

Centralized banking and government regulations have minimal control over cryptocurrency, meaning you can use cryptocurrency in ways that you can’t use traditional currency, such as using it to perform IoT transactions.

A simple to understand IoT crypto use case is restocking your fridge. Several IoT devices have options for making purchases and do not require physical currency. If you set up your smart home to buy groceries or pay your cable bill at certain times of the month, using IoT crypto as a payment option makes the process far more seamless.

If you run a company, you can also take advantage of blockchain technology to secure how your IoT handles data. IoT involves continuously sending data back and forth from various devices, and its centralized network is not the most secure. Since blockchain technology is cryptographically secure and decentralized, incorporating it into IoT makes transferring data safer and more efficient.

Existing IoT Cryptocurrencies

Aside from GadgetCoin, there are other cryptocurrencies to use for an Internet of Things transaction. If you are considering using IoT crypto to your advantage, below are options.

IOTA

Of all the cryptocurrencies, IOTA (MIOTA) was the first to take advantage of devices in an IoT network to generate crypto units. Compared to Bitcoin, IOTA does not have scalability issues, and it facilitates free micro-transactions between IoT devices. IOTA coin is based in Germany and can be bought from the safe and secure Binance Exchange.

IOTA is currently the preferred option of many big data organizations because this IoT crypto is a convenient and fee-free option for purchasing the data generated by IoT-connected devices.

Other advantages of IOTA include:

Versatility: It can operate on a wide variety of devices, including ones with minimal processing power. Being able to operate on various IoT devices eliminates the need for human miners. Not using miners reduces operating costs, which is how IOTA stays fee-free.

Quantum proof: It uses hash-based signatures, which are faster than elliptic curve cryptography (ECC). Simplifying the signing process makes verifying transactions quicker and less complex.

High levels of scalability: IOTA uses a directed acyclic graph (DAG) called Tangle to process each transaction individually. Traditional blockchain technology groups transactions into blocks and processes them together. If the current transactions can’t fit into one block, delays occur as each created block undergoes processing one at a time. The Tangle’s simplified method allows it to accommodate countless device transactions.

IoTeX

Unlike IOTA that uses Tangle technology, IoTeX (IOTX) operates as a private blockchain-within-a-blockchain. IoTeX’s Roll-DPoS consensus technology combines Proof-of-Stake with a sidechain infrastructure to create a privacy-centric blockchain that is fast and scalable.

It eliminates many of the problems associated with the mass adoption of IoT technology, including lack of functional value and high operating costs. Below is a closer look at the features that give IoTeX an advantage over other IoT cryptos:

Separation of duties: Since different IoT applications have different needs, putting every IoT node into a single blockchain can cause computations to become bloated and slow. IoTeX solves this problem by creating sidechains for each IoT function. Each sidechain only operates when needed, which increases the overall blockchain’s efficiency.

Integrated privacy: Having separate sidechains increases privacy because each sidechain handles a different function, and the sidechains only interact when necessary. IoTeX further optimizes user and transaction privacy with ring signatures and relayed payment codes that hide each transaction receiver’s address.

Lightweight and simple: IoTeX’s lightweight design minimizes energy usage, which means requiring fewer resources for mining. Also, it keeps processes fast by providing each device with what it needs to complete a process. It is simpler than connected devices relying on a single blockchain for necessary resources.