The purpose of this paper is to have an economical view on cryptocurrencies in the industrial context. A cryptocurrency is a digital or virtual currency with a mostly decentralized, shared and cryptographical payment system. The definition of the European Banking Authority is: "Virtual currencies are defined as a digital representation of value that is neither issued by a central bank or public authority nor necessarily attached to a Fiat currency, but is used by natural or legal persons as a means of exchange and can be transferred, stored or traded electronically." If we are talking about Bitcoin, there is also always the speech of blockchain. Blockchain is the technology behind the Bitcoin and must be separated from the cryptocurrency. These are two different things, the blockchain and the cryptocurrency. There are cryptocurrencies without a blockchain and a blockchain without a cryptocurrency. Beside the blockchain, there is an alternative technology, called the tangle.
Table of Contents
1 Introduction
1.1 What is a cryptocurrency?
1.1.1 Block chain
1.1.2 Tangle
1.2 Where does the cryptocurrency come from?
1.3 What kind of cryptocurrencies exist (an overview)?
2 IOTA as cryptocurrency in the industry
2.1 Current situation
2.2 Companies investing in IOTA
2.2.1 VW and the goal of VW
2.2.2 Fujitsu and the goal of Fujitsu
2.2.3 Bosch and the goal of Bosch
3 The effect of using IOTA in the industry
4 Conclusion
Appendixes
ITM-Checklist
References
Objectives and Key Topics
The primary objective of this paper is to provide an economic analysis of cryptocurrencies within an industrial context, specifically focusing on the emergence and application of IOTA technology. The research explores how distributed ledger technologies can transform industrial operations, facilitate machine-to-machine economies, and influence traditional manufacturing and automotive sectors.
- Fundamental principles of Blockchain versus Tangle technology.
- Economic potential of machine-to-machine (M2M) payments and micropayments.
- Strategic implementation of IOTA by major industry players like VW, Fujitsu, and Bosch.
- Impact of IoT-driven data ecosystems on industrial turnover and business models.
- Transformation towards sustainable "sharing economies" and machine-centric production.
Excerpt from the Book
1.1.2 Tangle
The tangle is designed as a cryptocurrency for the internet-of-things. It shall be the next evolution step of the block chain. Furthermore, it has properties to enable payments between machines, so-called machine-to-machine payments. The same underline conditions as in section 1.1.1 are also valid for this section. It will only give a rough information about the working principle, and not a detailed information about the Directed Acyclic Graph or why it is Quantum Proof.
The tangle system does not consist of single “blocks”, as it is the case within the block chain. It consists of transactions. If a user would like to do a transaction, he has to approve two other transactions before. Furthermore, the transactions are handled in parallel.
This leads to the fact that the tangle has a much higher transaction speed compared to the block chain. Furthermore, the scalability of the system is given. The more participants are in the system the better, respectively faster, it works.
Summary of Chapters
1 Introduction: Defines cryptocurrencies and distinguishes between basic blockchain technology and the specialized Tangle architecture used by IOTA.
2 IOTA as cryptocurrency in the industry: Analyzes the core operational features of IOTA and details how specific multinational corporations like Volkswagen, Fujitsu, and Bosch integrate the technology into their Proof of Concept projects.
3 The effect of using IOTA in the industry: Examines the broader economic impact of IoT in Germany and discusses potential future scenarios for machine-to-machine economies, including cost reduction and increased efficiency.
4 Conclusion: Summarizes that the global economy is shifting towards a machine and sharing economy, necessitating that both high-tech and traditional manufacturing companies adapt to these new digital realities.
Keywords
IOTA, Tangle, Blockchain, Cryptocurrencies, Internet of Things, IoT, Machine-to-Machine, Micropayments, Volkswagen, Fujitsu, Bosch, Industry 4.0, Sharing Economy, Data Marketplace, Digital CarPass
Frequently Asked Questions
What is the fundamental scope of this research paper?
The paper examines the economic implications of cryptocurrencies within the modern industrial landscape, with a particular focus on how IOTA technology is applied to improve efficiency and data transparency.
What are the core industries examined in this work?
The study primarily focuses on the automotive and manufacturing sectors, highlighting how these industries are integrating IoT and distributed ledger solutions.
What is the primary research goal regarding IOTA?
The goal is to understand why large corporations like VW, Fujitsu, and Bosch are investing in IOTA and how they utilize its technology as a standard for machine-to-machine communication.
Which technical methodology is contrasted with the blockchain?
The paper contrasts traditional blockchain technology with the "Tangle" architecture, emphasizing the latter's suitability for IoT because of its scalability and fee-less structure.
What topics are covered in the main section of the paper?
The main sections cover the technical definitions of ledger technologies, a current assessment of IOTA's market position, and practical business case studies from automotive and technology firms.
Which keywords best characterize this work?
The work is characterized by terms such as IOTA, Tangle, Industry 4.0, Machine-to-Machine economy, and digital transformation.
Why are there no miners in the IOTA network?
Because all IOTA tokens were generated in the Genesis Block and the system uses a transaction-based approach where users validate others' actions, eliminating the need for traditional mining rewards.
How does the "Data Marketplace" mentioned in the paper function?
It acts as a decentralized platform where companies can offer and trade sensor data, providing a new way to monetize data generated by machines and industrial equipment.
What significance do "micropayments" hold for the industry?
Micropayments allow for extremely small financial transactions between machines (e.g., a car paying for electricity), which would be economically unviable using traditional banking systems.
What conclusion does the author reach regarding the future of manufacturing?
The author concludes that production factories will become smarter and more service-oriented, with robots and infrastructure being shared among companies, significantly reducing overhead costs.
- Quote paper
- Anonym (Author), 2019, Cryptocurrencies in the Industrial Context. The Usage of IOTA in Different Industries, Munich, GRIN Verlag, https://www.grin.com/document/1382639
