IOTA has partnered with a corporate group led by industry behemoths Cisco Systems, Samsung Group, and Volkswagen to build a reliable data marketplace, Reuters reports, citing IOTA co-founder David Sønstebø. Chinese networking and telecom giant Huawei Group is also involved in the project.
Berlin-headquartered IOTA provides a distributed ledger system created for the Internet of Things but applicable in other areas as well, for example data sharing. Despite operating with DLT, IOTA does not use traditional blockchain but a system dubbed Tangle, which represents a complex data structure called a Directed Acyclic Graph (DAG).
Sønstebø told Reuters:
“The data marketplace is a completely separate project that simply utilizes the underlying IOTA protocol.”
The goal of the project is to launch a marketplace for data that organizations could trade. IOTA’s token will become the key instrument for monetizing data.
According to IOTA, over 2.5 quintillion (2.518) bytes of information are generated on a daily basis, and the figure registers exponential growth every month. Still, nearly all of it (99%) is lost because there is no safe place to exchange and share this data securely.
“In 2017 more data was generated than in the past 5000 years combined, and this will be 10 folded in less than a decade. We are truly living in the era of data.”
Sønstebø went on to tell Reuters:
“Any kind of data can be monetized. If you have a weather station collecting wind, temperature, humidity, and barometric data, for instance, you can sell that to an entity that is doing climatic research.”
He said that IOTA’s system could collect data onto its decentralized ledger so that it cannot be tampered with in any way. The companies taking part in the project will provide data from their industry.
“The goal is to enable a very diverse and open data marketplace...which incentivizes a free flow of data between entities,” Sønstebø added.
Interestingly, IOTA’s official announcement does not include VW, Cisco, and Samsung in the list of companies involved with the project. Instead, we could find over 20 other names, among them Accenture, Fujitsu, Bosch, and Orange.
IOTA also issues a cryptocurrency with the same name but traded as MIOTA (1,000,000 IOTA). Currently, the digital currency is in the top 10 by market cap, with over $4.1 billion.
Since Monday, IOTA’s token has gained around 87%, going from $0.80 to $1.50, and the announcement has been the main driver.
In his emailed responses to questions from Reuters, Sønstebø explained:
“IOTA is kind of the first distributed ledger that goes beyond the blockchain. We got rid of the blocks and we got rid of the chains, which has resulted in getting rid of the major pain points or limitations of the blockchain such as fees, scalability, and centralization.”