What is IoT, or Internet of Things?
A wide range of innovative technologies were created in the early stages of the digital revolution of the 1950s. Initially, the industry became known in limited circles of the community, but the speed of its development changed this factor, and most innovative technologies began to go out into the world and become more accessible.
The convergence of varieties of innovative devices (such as RFID chips, sensors and the Internet) and their increased availability eventually gave rise to the concept of the Internet of Things (IoT). IoT technology has brought a significant shift in the computer age, which previously only allowed computers to connect to the Internet.
History of IoT
IoT technologies were first used at the Massachusetts Institute of Technology (MIT), where students used low-cost sensors to monitor and replenish cola supplies. More progress in the Internet of Things came in 1994, when a magazine article written by Reza Raja proposed the idea of moving data packets to automate homes and businesses.
In the 90s, Microsoft, along with several other companies, began experimenting with similar ideas, and since 2002, many media began to discuss IoT breakthroughs, such as the use of smart devices connected to each other and at the same time connected to an information monitoring system. And yet, 2008 is seen by many as the official birth year of the IoT industry, when the number of Internet-connected electronic devices exceeded the number of people.
How does IoT work?
Basically, IoT technology is the internetworking of multiple physical devices and objects, complemented by a network of sensors and non-computing devices that communicate with computers and/or devices over the Internet. This may include: the use of thermostats, heart rate monitors, sprinklers and home security systems. Innovations in IoT technology enable remote monitoring, control, automation and status checking of a wide range of devices and sensors that can be used in smart homes and self-driving cars.
IoT for personal and household use
IoT technologies can be implemented in different directions for personal and household use. A typical example is home automation, where multiple devices will allow you to monitor the status and control lights, air conditioners, heaters and even a security system. The devices can also be connected to other personal items, such as smart watches and smartphones, or to smart hubs that connect other smart products (such as smart TVs and refrigerators).
Automated homes have a significant chance of improving the quality of life of older people and people with disabilities by providing them with assistive technology, especially for those with vision, hearing or mobility problems. For example, the use of real-time sensors can notify other family members of their relative's abnormal heart rate. Another interesting example is the use of smart beds to detect bed usage, and some hospitals are already testing them to track patients who may leave their beds despite their doctor's instructions.
IoT for commercial and industrial use
Examples of industrial uses include sensors for monitoring environmental conditions such as temperature, humidity, air pressure and quality. IoT devices can be used by farmers to track the amount of water and food in their livestock, or by manufacturers to know how soon an important ingredient will run out. Moreover, automatic machines can be configured so that they will request a certain component if it is reduced to a certain threshold.
Restrictions
The Internet of Things is bringing a lot of exciting innovations and is definitely here to stay for a long time. However, coming to grips with the limitations, one of the challenges of using IoT systems for both businesses and homes is the increasing number of devices that need to be monitored and connected (and many of them may be dependent on an Internet connection). If implementation is not done properly, businesses and homeowners may need to access multiple apps to monitor different devices. Which makes IoT more labor-intensive and less attractive to potential customers.
For this reason, some companies such as Apple and Lenovo have created applications that allow you to control devices in the iOS environment, even using voice commands. Other IoT platforms work on hubs (activity centers) that do not rely on Internet or WiFi access. Examples include platforms such as Amazon Echo and Samsung SmartThings Hub. Thus, IoT works with devices connected to a sensor, which is often connected either to the Internet itself or to another WiFi receiver, allowing central control, programming and monitoring.
Cryptocurrencies for IoT
It is likely that many IoT systems will depend on financial micro-transactions between digital objects, and this will require connecting IoT devices in a way that enables the so-called “machine-to-machine” (M2M) economy that allows exchange information (in this case money) between non-human devices. In such a context, the demand for IoT-compatible currencies is growing and cryptocurrencies are certainly a viable alternative.
In the beginning, many believed that blockchain itself would be the core framework for the M2M economy, as it is suitable for micropayments and is widely used with cryptocurrencies. However, many blockchain development services networks have limited performance in terms of the number of transactions per second they can process. Currently, most blockchain network implementations based on Proof of Work and Proof of Stake consensus algorithms have limited scalability potential, making them unsuitable for processing M2M microtransactions on a large scale. However, it is worth noting that many blockchain projects are working on scalability solutions such as Bitcoin Lightning Network and Ethereum Plasma .
IOTA
IOTA (Internet of Things Application) is a project that is largely focused on solutions based on IoT technology and aims to become the basis of the developing M2M economy. It is an open-source distributed ledger protocol that, unlike Bitcoin and other cryptocurrencies, does not require miners to verify transactions. IOTA is not based on a blockchain network, but on a stream of interconnected transactions, which they call a tangle.
Tangle is a network where transactions can be verified directly by users who request them, as long as they have completed two other transactions beforehand. The limit of transactions per second that can be processed is directly related to the number of users on the network.
IOTA is a complex and still experimental cryptocurrency, and currently the only one using the tangle architecture. Many technical problems have been found, and the tangle structure has yet to prove its effectiveness. However, the project has put forward some interesting, innovative concepts, and if developers can overcome the potential limitations, it could be a suitable solution for the IoT and M2M economy.
Final Thoughts
Ultimately, the Internet of Things (IoT) will enable automation, monitoring and control of devices on a massive scale, leading to improvements in everyday human life and increasing the efficiency of various industries. There is a strong possibility that cryptocurrencies will become part of the IoT revolution, serving as digital money for micro-transactions and the M2M economy. There are currently a limited number of crypto projects targeting the IoT industry. We'll likely see many more new projects in the near future as technology continues to advance at a rapid pace.
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