IoT Tokens and Projects (Internet of Things) | Notum

What Is the Internet of Things?

The Internet of Things (IoT) integrates devices into a computer network and allows them to collect, analyze, process and transmit data to other objects through software, applications, or technical devices. The key feature is that not only computers, smartphones, and other sufficiently powerful computing devices can participate in the network, but almost any devices.

For the first time, IoT devices were talked about back in 1926. At that time, there was no such term or even a concept. Still, the famous scientist Nikola Tesla reflected on the possibilities of radio, saying that in the future, it could become a “big brain” to which other tools could be connected.

The first IoT device known to us dated back to 1990 and was developed by John Romkey. It was the world’s first smart toaster that could be connected to a computer and controlled remotely.

The term appeared only in 1999, but humanity was not yet ready for such innovative technologies. Until 2010, the Internet of Things sphere did not develop much. With the development of wireless technologies and the reduction in the cost of chip production, which was achieved due to the cooperation of international companies, IoT devices have become more accessible to the mass user.

IoT Nowadays

In general, we can say that the use cases for using the Internet of Things are unlimited. We suggest you consider several most prominent directions:

Crypto & IoT

One of the most significant problems faced by the IoT sector is data privacy and security. The IoT system can become a target for cybercriminals because it is a fairly fast way to distribute malware. Now, most of the IoT infrastructure is centralized; for example, Google Home, which by the way, has a market share of 48%. This is a risk both for the consumer (for example, if he uses several devices) and for corporations. Malicious devices connected to the IoT network can cause failures, and user data will be compromised or stolen. Decentralized public blockchains are resistant to unauthorized interference and can make the IoT infrastructure secure and reliable. 

Top 5 IoT Tokens

As of April 13, 2022, according to CoinMarketCap, there are more than 40 IoT tokens with a total market capitalization of more than $10 billion. Let’s analyze the most famous and popular projects:

• VeChain

VeChain is a blockchain-as-a-service platform that provides various useful solutions for businesses of any scale. The platform provides various blockchain applications focused primarily on logistics. VeChain users can use the platform to manage the supply chain, providing tracking, quality control, inventory management, and anti-counterfeit products. In addition, VeChain contributes to the development and modernization of the healthcare sector and allows customers to track their carbon footprint and manage carbon credits.

The service is top-rated among businesses around the world. The long list of VeChain partners includes famous companies like BMV Group, Croupe Renault, Walmart China, H&M, BYD, Haier, and many others.

The platform operates based on an eco-friendly and safe Proof of Authority consensus mechanism. 101 authority master nodes are responsible for the security and network management. VET holders can suggest improvements, as well as vote for suggestions. VET is also the fuel of the platform; with the help of a token, payment is made for all financial transactions within the project. 

• Helium

Helium is a peer-to-peer wireless network that aims to provide a secure and cost-effective way for low-power Internet of Things devices to interact with the global Internet. Helium has an impressive range of services, including pet tracking, smart urban infrastructure, scooter, and bicycle tracking, health monitoring, logistics, as well as smart water management, and more.

Helium users earn HNT tokens by mining them and increasing wireless network coverage for People’s Network using hotspots. To date, there are already more than 720 thousand hotspots that provide low-power network coverage in almost 55 thousand cities. Los Angeles ranks first in the number of installed hotspots.

The network uses a Proof of Coverage consensus algorithm. It allocates rewards to users for launching hotspots, providing coverage, confirming operations, and securing the network. With the help of this consensus algorithm, the platform checks miners for the fact of providing coverage.

• IOTA

IOTA is a fast and efficient communication protocol for IoT devices. The scope of application of IOTA is almost limitless. The platform’s services can be used for supply chains, environmental tracking, smart charging for electric cars, smart cities, transport tracking, anti-counterfeiting, and much more. In addition, IOTA can help bring honesty and transparency to the agriculture and government sector.

The project is based on Tangle technology. There are no transaction fees on the network. It is completely decentralized. Unlike Bitcoin, there are no miners here. In Tangle IOTA, all transactions are verified by subsequent transactions. This process is fully automatic and takes place very quickly.

The project has strong partnerships. The list of IOTA partners includes such global companies as Jaguar, Land Rover, Dell, Volkswagen, and hundreds of others.

The total number of coins in circulation is 2.78 quadrillion. It seems to some users that this is a lot and hinders the growth of the token’s value. However, in practice, this is far from the case. This amount is suitable for using these tokens in micropayments that we’ll likely see in IoT devices.

• IoTeX

IoTeX is a decentralized network designed for IoT purposes. This blockchain is focused on user privacy. Among the main advantages of IoTeX are methods that make it possible to secure data as much as possible, a fast RDPoS consensus algorithm created specifically for IoT, governance through DAO with uniform control laws in networks of different devices, and innovative blockchain-in-blockchain technology, which contributes to a significant increase in scalability, the confidentiality of the system and the ability to interact.

These characteristics have helped IoTeX become one of the leading IoT projects on the market. To date, the platform powers almost 12,500 devices. The most famous representatives are:

• Ucam is the world’s first blockchain-based surveillance camera. For cybersecurity and functionality, the device received the CES Innovation Award 2020.
• Pebble is an instrument for capturing real-world data and transferring it to the blockchain. Anything can be used as data: location, weather, movement, and so on. The device is ideal for optimizing supply chains.
  
  
• Fetch.ai

Fetch.ai is a project to create a decentralized “economic Internet” infrastructure based on combined artificial intelligence (AI) and machine learning (ML) technologies aimed at optimizing the use of resources and automating market areas that currently cannot do without laborious manual work.

It is assumed that Fetch.ai will be able to serve a variety of markets that need fast and efficient computing: finance, mobility, supply chains, smart homes and cities, and much more.

To perform the assigned tasks, Fetch.ai allows users to create their digital twins to get rid of tedious tasks. Twins can perform various routine tasks, thereby making user’s life easier: finding parking spaces, planning, task automation, reorganizing plans, rebooking tickets, and so on.

The FET token is an exchange tool for network participants. With the help of FET, users can make mutually beneficial transactions: pay for the purchase of services, goods, or information.

Desclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.