Interest in the Internet of Things (IoT) industry is growing by leaps and bounds. However, the growth and development of this space cannot be possible without decentralization.
This is where Parity’s Polkadot comes in. Unlike previous conclusions that connecting devices to remote services is the last phase in building an IoT network, this process is actually just a prerequisite to achieving a successful IoT network.
Although IoT is a magnificent invention, however, it faces a major issue of inadequate bandwidth. Simply put, as more devices are added to the network, the system grows weaker. Furthermore, data transferred becomes vulnerable as it moves from server to server. This is especially because of the conventional centralized models available.
To fix these issues, the IoT industry needs to create a multi-agent system. This is a system where every participant is furnished with autonomy. One that can easily carry out several tasks without having to rely on a central body or human intervention.
Ethereum and Polkadot Blockchains
Unlike the Bitcoin blockchain, Ethereum is a multi-purpose blockchain, serving as a base for a varied range of smart contracts. Due to its multi-purpose feature, Ethereum could serve as decentralized support for the IoT space. However, bandwidth issues, high transaction costs, and poor interoperability with other blockchains make Ethereum a poor choice.
Parity Technologies, the parent company of Polkadot, is believed to be better placed to facilitate the IoT industry and also the Web3 Foundation. The blockchain protocol’s sharding feature facilitates inter-blockchain communication. Many schools of thought have dubbed Polkadot as the “Ethereum killer.”
The IoT industry has become one of the major beneficiaries of the Polkadot protocol.
Importance of Polkadot To IoT
Polkadot’s first-ever token sale took place in 2017 and was a tremendous success. However, the successful token sale is still not comparable with its price today. Polkadot boasts of a total market cap of about $5 billion. This explosive price is an indication of the global demand for an inter-blockchain protocol. Polkadot currently boasts of being the solution for both bandwidth and scaling issues. According to reports, the protocol is able to achieve this because of its ability to link different blockchains.
One outstanding feature of Polkadot is its sharding principle. The principle enables the splitting up of blockchains into segments, with each segment acting as a node. This sharding, subsequently, increases transaction speed and improves scaling.
IoT Projects on Polkadot
The number of projects on Polkadot is approximately 300, and plans are in place to introduce more. These projects are both DeFi and IoT- based. While DeFi projects received tremendous awareness and support this year, the same cannot be said for IoT-based projects.
Polkadot’s protocol boasts of three IoT-based projects, namely: MXC, the Nodle IoT, and Robonomics.
- MXC (Machine eXchange Coin)
This project is focused on creating a communication network for IoT devices with global coverage. MXC also makes use of LPWAN (low-power wide-area network) technology.
- Nodle IoT
This project provides IoT devices and sensors with uninterrupted access to the internet. Nodle aims to provide workable solutions to logistics, scooter and bike-sharing services, etc.
- The Robonomics Network
Launched about five years ago, the network is a parachain designed to control robotics. The integration of Ethereum and Polkadot will open up a wide range of dApps for automation functions.
Polkadot is here to stay and is predicted to facilitate seamless interaction among IoT devices and AI carriers. Businesses would be able to carry out secured automated functions without running the risk of external interference.
Popular fintech platform Crypto.com recently added support for DOT tokens.
At the time of publication, Polkadot’s DOT token was trading at $5.34, with a market cap of $5,042,159,771 and a 24-hour trading volume of $386,219,008.
Find out more about Polkadot on the Altcoin Buzz YouTube channel.