Today we are taking a look at why The Internet of Things, and its network and cryptocurrency, IOTA, could change the world in a way we never imagined.
As we speak cryptocurrencies, blockchain technology and decentralization are solving longstanding problems within our society. One problem it has not been solving however, is our increasingly dangerous carbon footprint. In fact, older blockchains like Bitcoin just contribute to this footprint. And this footprint is causing scientists and meteorologists to, basically, write off the human species. In other words if things continue on this trendline, the exciting new world decentralized networks are contributing to, may not be around for that long.
Which brings us to IOTA.
What is IOTA?
IOTA is the blockchain that creates the decentralized network for the Internet of Things. It is an open-source distributed ledger with a key capability. Unlike other blockchains which store transactions in blocks which form sequential chains, IOTA has developed what they call ‘the tangle’. Where individual transactions are entangled together. This provides an extremely high level of scalability, because it means that the more transactions that take place at a time, the faster the network operates.
This is a clear contrast to Bitcoin and some other cryptos that are presently unable scale fast enough for the growth we are seeing in the crypto space.
What ‘the tangle’ also makes possible is zero fee transactions. The Mecca of cryptocurrency efficiency. And a standard that traditional institutions find very difficult to complete with.
Economist Identifies IOTA as Having the Potential to Save the World
In his documentary talk, world renowned economist Jeremy Rifkin identified IOTA as being a vehicle of change that could potentially save the world. That’s some mighty big talking there. And why are we listening to this guy anyway?
Perhaps because he was the man that Germany’s Chancellor Merkel consulted upon coming into office on how to revive Germany’s economy. Jeremy Rifkin advised the Chancellor that there was no way Germany’s economy could experience significant growth while being fueled by oil.
His reasoning behind this is that oil is has peaked, and is now on a steady and inevitable long term downtrend. If you are a trader, then you know. Nobody wants to be invested in a commodity that is in a long term downtrend!
Jeremy Rifkin advised the Chancellor to look to green energy as a the new fuel for her economy. Besides that, his advice is that green energy needs to be harvested by individuals as well as companies, and stored on a decentralized grid.
The ramifications of this plan are revolutionary. Literally revolutionary, which is why Jeremy Rifkin is terming it the beginning of the Third Industrial Revolution.
IOTA Meets Green Energy = Sustainable Decentralised Power Grid
With access to a decentralized energy grid, and rapidly improving renewable energy technologies, anybody could potentially link up and trade their energy in and out of the grid. This eradicates the need for personal battery banks, which decreases cost and increases efficiency.
The big question of course remains, are our renewable energy solutions powerful enough to actually meet society’s needs? One would think not, judging from how small a part they are playing in the power production scene – which is predominantly still carbon and nuclear based.
Germany however, after following Jeremy Rifkin’s advice, is currently producing 33% of its energy from renewable sources. And on New Year’s Day, of this year, they had a very windy day, and produced 100% of the demand for that day. It probably helped that many people were asleep thanks to the previous night’s festivities, but it indicates just what a windy day can produce.
Green Energy’s Decreasing Cost Per Unit
There are also hints and whispers leaking out that in some areas, sustainable energy sources have now become cheaper per unit than oil. Watch the clip and judge for yourself.
IOTA Also Has the Potential to SAVE Energy
With its vision of extreme connectivity and data gathering, IOTA has the potential to optimize our energy consumption. Which means that we do not have to produce quite as much in order to meet our needs.
Quite nifty considering that IOTA can also non-biasedly manage the entire decentralized power grid more efficiently than most energy companies do. The cherry on the cake is that this can happen permissionlessly by anybody wishing to contribute.
Combine this with renewable technology’s increasing affordability and viability, and we may just be off to the races.
Will IOTA Carry Through
As things stand right now, there is no obvious reason why IOTA is not poised to play a key role in this massive economical and environmental change. Of course, even the best projects can run into difficulties. However IOTA is much more than a simple project at this point with partners like Microsoft Azure (informal), Volkswagen, Bosche, The United Nations and Porsche to name but a few.
To sum things up, time will tell as to whether or not IOTA is the tech that will implement this incredible new vision. But what is almost undoubtedly certain, is that blockchain has the potential to save the species.
Things are looking up folks!