This article was first published on IOTA - Medium
The IOTA technology and digital asset is a unique player in the world of distributed ledger technologies. Its forward thinking design was architected to support the unforeseen challenges of wide-scale IoT networks, quantum resistant computers, automation, and feeless payments in a digital world.
What is often overlooked is that IOTA is much more than a “protocol for machines.” Due to its design, it is incredibly well-suited to be the connective tissue between the human economy and the machine economy.
In order to fully understand the implications of this line of thinking, it’s important to frame the technology in a larger context:
The Human Economy
Up until now, our economy has been made up primarily of humans engaging in economic activity within a marketplace. Products, services and value have been easily exchanged thanks to a common set of standards that promote a decent level of interoperability between people and businesses.
Recently, devices have come into the picture to support the exchange of products and services amongst humans. At this point in time, devices only really have the capacity to exchange data with one another in siloed environments and lack the capability to send or receive value for the services exchanged.
Because of this, devices are still considered ‘tools’ in our economy and relegated to a single function as a ‘producer.’ They are unable to act as a ‘consumer’ due to a lack of interoperability between our marketplace and their technical standards. Current payment processors and data infrastructure simply cannot support microtransactions or usage-based payment schemes for an army of devices.
As devices become smarter, the Human Economy must ask itself some difficult questions: How will humans assimilate with this new economy of devices? What sort of digital infrastructure will be required to support both economies simultaneously? What is a machine’s preferred environment to engage ...
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IOTA - Medium