A new peer-to-peer network creates a machine-to-machine world without transaction fees
Imagine a future where machines are our new customers and transaction fees have been removed from the economic value chain. If that sounds like something from the world of sci-fi, the reality is that it’s not very far away. At innogy Innovation Hub, we’re already testing the next generation of the internet and blockchain to enable secure peer-to-peer transactions.
The innogy Innovation Hub is exploring a new technology called IOTA that goes far beyond one-dimensional blockchain. With a completely new architecture based on cryptographically secure machine identities and a “tangle” protocol layer for validating transactions, IOTA is a key enabler for the ‘Machine Economy’. In simple terms, it means that machines can have their own wallets and transact automatically with other machines. And as a result, new machine-centred business models are rapidly emerging.
It´s more than just another Blockchain idea
How does IOTA differ from conventional blockchain? A big factor is that instead of having blockchain “miners” acting as dedicated validators, each IOTA network participant is actively involved in the validation of transactions. A further difference is partition tolerance. While blockchain requires all users to be in synch to make a transaction, IOTA Tangle allows clusters, so that transactions can happen offline.