IOTA is a revolutionary cryptocurrency and a platform that was created from the concept of the Internet of Things. Its technology is based on a new distributed ledger, the Tangle, which solves the inefficiencies in the current Blockchain networks and introduces a new way of reaching consensus through a decentralized peer-to-peer system.
IOTA foundation describes its system as: “A permissionless distributed ledger for a new economy” being built to power the future of the Internet of Things with feeless microtransactions and data integrity for machines.
So, What Exactly is the Tangle?
The Tangle is a data integration and transaction settlement layer built on the Internet of Things (IoT). Tangle functions as a series of individual transactions linked to one another and stored in a decentralized network node of the participants.
The Tangle leverages a data structure referred to as a Directed Acyclic Graph (DAG). Every transaction that occurs on the IOTA’s network approves two previous transactions enabling the system to accomplish operations at a much faster rate compared to blockchain. On the platform, transactions are being performed in parallel which makes the platform scale much better.
In the recent months, IOTA has been partnering up with various institutions that are looking to exploit the innovative capabilities of Tangle technology. The following write up covers the top institutions that have partnered with IOTA in an intent to integrate the Tangle in their system to enhance their service delivery.
IOTA announced that it had partnered with Microsoft Cooperation in November 2017. The focus of the partnership was to monetize data, which is the leading resource on the Internet of Things. The partnership would enable users to share and monetize their data securely.
Commenting on the partnership, IOTA’s co-founder stated that any data can be monetized. However, IOTA Foundation released a statement in December 2017 saying that it had reached a consensus with Microsoft on a formal partnership.
Microsoft blockchain specialist Omkar Naik, however, rejected the report stating:
“We are excited to partner with the IOTA Foundation and proud to be associated with its new data marketplace initiative. This next generation of technology will accelerate the connected, intelligent world and go beyond blockchain that will foster real-world innovation solutions, applications, and pilots for our customers”.
While the partnership is not official yet, the two companies are collaborating on several technological innovations that use the IOTA’s Tangle network.
IOTA Foundation partnered with Fujistu, a leader in the supply of IT products and services. The partnership saw Fujistu integrate IOTA’s Tangle technology into its system to improve it. The new Fujistu Tangle-based system was showcased at the most significant industrial trade fair in Hannover Messe, Germany, held on April 23rd.
Fujitsu’s head of Central Europe business described IOTA as being “a new protocol standard when it comes to IT products and services.” He further said that Tangle was able to overcome restrictions synonymous with the blockchain technology- “The new tech is energy efficient, offers feeless transactions and scales extremely well. All these make it well-suited to becoming the industry standard of automated systems and a wider machine-to-machine economy.”
IOTA Foundation partnered with Audi in an attempt to develop a permissionless mobility ecosystem. Audi’s Think Tank technology, code-named Audi Denkwerkstatt, was the subject of the partnership.
The partnership between the two companies was intended to explore different use cases of Tangle Technology by building a low-level prototype and also gather customer feedback. Through IOTA’s Tangle technology, Audi is set to standardize and develop new DLT solutions for its vehicles.
SinoPac and the IOTA Foundation signed a Memorandum of Understanding in June 2018, where the two companies agreed to explore IOTA’s Tangle technology jointly. SinoPac, based in Taiwan, is one of the biggest financial holding companies in the Asia Pacific region.
Through the Memorandum of Understanding (MoU), the two companies agreed to explore blockchain and distributed ledger technologies through the IOTA Tangle. SinoPac has also implemented Tangle Technology on its latest product called iCertificate, which also has data immutability capabilities.
ENGIE Lab CRIGEN
ENGIE Lab CRIGEN is a branch of ENGIE Group dealing with corporate research. The research center signed a Memorandum of Understanding (MoU) with IOTA to create a joint program in experimentation with the IOTA Tangle in the energy and related IoT domains. Following the partnership, IOTA also agreed to explore and test the possible use of Tangle technology and how to improve ENGIE’s business processes.
Research Lab Manager at ENGIE Lab CRIGEN, Philippe Calvez, stated that the institution would continue collaborating with IOTA Foundation on various projects that require Tangle technology.
AKITA Blockchain Solutions
AKITA Blockchain Company partnered with IOTA Foundation in a move to use the IOTA Tangle network in the Smart Machine Agents (SMA) that were powered by distributed ledger technology.
The Tangle network enables the three SMA solutions (a car, a virtual government tax entity, and an approaching parking system) to accomplish real-time automatic, micro-transactions that are based on milliseconds and Bluetooth RSSI.
Alliander is a Dutch electricity supplier which uses proof of concept consensus to obtain meter readings. The firm partnered with IOTA Foundation to utilize a feature of the Tangle technology referred to as Masked Authenticated Messaging (MAM).
This feature allows individuals to publish and fetch encrypted messages. The MAM feature can also be implemented for data integrity access and control.
The Tangle technology enables the company to standardize key exchange and key rotation and also improves the speed of proof-of-work (PoW) for publishing MAM data messages.
Avery Dennison deals with the supply chain. The company partnered with IOTA Foundation to leverage Tangle technology to drive supply chain transparency.
The system implements Tangle enabling consumers to trace products from the manufacturer. It provides consumers with information regarding the entire supply chain. Consumers can know the authenticity of the products they are purchasing. In the long run, this system will eliminate fake products.
The partnerships between IOTA Foundation and other institutions looking to leverage the Tangle network are mutually beneficial. For IOTA, these partnerships increase the usability of the platform and also increases the value of the MIOTA cryptocurrency. For instance, MIOTA gained by 500% in December 2017 following the partnership between Microsoft and IOTA Foundation.
Institutions using the Tangle network benefit from the immense speed and scalability of the platform. Other companies that have partnered with IOTA Foundation to use the Tangle network include IBCS Group, FIWARA Foundation, and Parascom Games.