German car manufacturer Volkswagen recently announced its collaboration with top IoT-based blockchain project, IOTA, over Twitter this week, as the two companies prepare to present a new proof of concept utilising IOTA’s tangle network.

The concept aims to solve a core problem of how to distribute transparent, incorruptible software updates securely ‘over the air’ (OTA) to a network of autonomous vehicles. Due to the current centralized nature of data ownership, there would be no guarantee that information delivered around each vehicles is honest and untampered with unless a distributed ledger or some kind was used.

Also, as the world of autonomous vehicles expands there is a pressing need for a system that can not only keep a decentralized record of each update, but one that can also scale to the necessary proportions needed to handle the increasing network throughput. Security will be another huge factor to consider as well, particularly once vehicles become more dependent on software for basic and safety-related functions.

Using the unique IOTA tangle network, Volkswagen’s Chief Digital Officer and member of the IOTA Foundation Supervisory Board, Johann Jungwirth,  affirms that this decentralized DLT method will provide the perfect trustless, secure ecosystem that Volkswagen requires to move forward with its autonomous vehicle project and applauds IOTA as a,

“Great example how distributed ledger technology can be used in the future”.

Despite this recent news however, IOTA still remains in double-digit losses against the US dollar today as uncertainty around Bitcoin’s price pins down the rest of the market. Will this be yet another IOTA partnership that does little to ignite new bullish support? I guess we’ll find out after the Cebit Conference is over on Friday.