The concept of cryptocurrency was developed to make an alternative to cash. Thus, being cashless is one of the prime motives of users using the facility. Cryptocurrencies along with the IoT have completely changed the way of payments and investments. The concepts that were least trusted during their early stages of development are now marking their specific presence in the physical as well as the digital market. As a result, the digital market has enabled itself to gain not just popularity but real investors and traders. One of the most important roles of IoT and cryptocurrency is in making micropayments. In this article, we will discuss the role of IoT and crypto in the field of making micropayments and will try to clear the specific doubts of the concerned users for the same. If you’re just beginning to trade cryptocurrencies, click https://quantum-connects.com now for a faultless trading experience with a reputable online trading platform.
Table of Contents
Earlier uses of IoT
When we talk about the earlier phase of IoT we are dealing with the little deployments of some specific sensors through which important data is collected and then consumed for the specific usage. The user need not be the same as on the deployment side and can be anyone apart from the original one. One of the examples of using IoT in real time is the tracking of movements of automobiles and many more. The user behind deploying the same may be the owner or the user that requires important data for subjective knowledge or merely an experiment. The levels of IoT are different and range from small-scale deployments to larger ones. However, it is seen that some provisions are creating barriers to the existence of crypto. The same is discussed in the next heading.
IoT creating barriers to crypto
Though the range of barriers and constrictions to crypto is varied still some can be discussed here. One of the foremost barriers to the usage of crypto in IoT is the protocol being used for obtaining high-volume transactions. High-volume transactions mean a lot to keep an eye on and thus a large amount of transaction fee is to be charged. The peak traffic condition thus is seen as an opportunity to gain more. Thus, prohibitively, smaller transaction value amounts will be charged heavily and thus a condition in invert is developed. Thus, the future of protocols will be at stake as their development that has already been made cannot be edited much sooner. Though, this is a challenge but still a famous barrier to cryptocurrencies.
Another barrier may be attributed to the fact that the blockchain technology behind the operation of cryptocurrency is energy-hungry. As a result, it is not attributed as a sustainable option for coin generation. Similar is the case with the most famous protocol of the crypto world and that is Proof of Work. Now we have many new options that are not just better as compared to the Proof of Work protocols but also more energy efficient as compared to the former.
Options for interaction
It seems that IoT and cryptocurrency can communicate singly. But, this is not true. Many other options are yet to be explored and only some of them are done yet. The private blockchain system is one of the most famous options for interaction between the two and the IoT permission devices are another option for making a constant option for interaction between the two. The similarity is supported by the fact that various works in the states and different parts of the world have successfully supported the same.
Though there are barriers to the interaction between IoT and crypto, similarities can be established securely and easily using other options as discussed above.
