What is Internet of Thing (IoT) Token (Altcoin)

Photo by JJ Ying on Unsplash

Definition/Example

• IoT is a set of device with feature such as processing ability, sensor, software and other technologies that connect and exchange data via the IoT communication network.
• The simplest example of IoT is the smartwatch.
• Correct me if I’m wrong but based on my initial research, IoT token is a cryptocurrency that is used to initiate the connecting and exchanging data part in IoT communication network in a more decentralized way.
• Some of the examples of IoT token is VeChain (VET) and IOTA.

Usage

• From the definition for IoT token itself we already know what is it usage. Soooo, no need for further explanation… I’m kidding😆.
• One of IoT token main usage is to connect and exchange data in IoT communication network without any third party involvement.
• Say for example, you might know Google and you might have a Google Account. Have you ever thought were all the data of you daily Google account usage went through. If you guess it correctly, that data go inside Google itself.
• That’s why everytime you search something such as a phone, every ads on your social media platforms suddenly show every ads that is available about the phone that you already search. You know how Google do it…they use black magic.
• Not really, they only use algorithm and computer code. Remember the third party that can control the data connecting and exchange in IoT, one of that third party is Google.
• This is what IoT token is trying to eliminate. No third party, more privacy and more searching weird sh*t on the internet without anyone knowing…Don’t deny it, I know you sometimes does that.

Pros and Cons

Pros:-

• Using IoT token, user can connect and exchange their own data directly with the other person in a decentralized IoT network and basically creating more privacy for them.
• It’s also create a new trading opportunity on the IoT and blockchain platforms. Now you can trade your own data with other people for a sum of cryptocurrency or for their own data.
• IoT token also provide more transparency towards who and how your data is being used. Some unverified third party platform usually will use you data for stupid sh*t (Even verified third party platforms does this). The nature of blockchain can completely eliminate this problem if it was integrated into IoT communication system.

Cons:-

• I need to get creative here cause it’s so hard to find anything about the problem of IoT tokens, so bear with my creativity.
• The most basic problems of all cryptocurrency, cybercrime. IoT token usage makes your data way more vulnerable to be breach and no third party platforms can compensate for you if that happen.
• The energy consumption of every IoT token can be really high because there are a lot more data than we can count that will be transferred and exchange via IoT token. (As you might already know, cryptocurrency transactions consume a lot of energy because it rely on computer power)
• Unemployment rate will also be really high in IoT communication sector because the usage of IoT token made all of the data connecting and exchange becoming an autonomous system.

Other/Conclusion

• I don’t really mind IoT tokens replacing most of the third party company because I saw too many news about third party platform that use our data in a not so good way.
• The only thing that will be affected is the employees itself because they might lose their jobs.
• We might don’t know the full capability of IoT token until we saw a major adoptions of it in the data connecting platforms.

(I’m not really confident if most of this information is true because it was written only based on my understanding of the IoT token)

Feel free to read my other articles:-

1. What is Stablecoin
2. What is Fiat and Crypto Collateralize Stablecoin
3. What is Commodities Collateralize and Algorithmic Stablecoin

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