IOTA looks set to announce another partnership in the automobile industry, this time with CarVertical, a company that is seeking to reduce used-car fraud by decentralizing ownership data.
The impending news release was announced on Twitter by CarVertical who promised both communities a “huge surprise” that will bring benefit to consumers through Internet of Things (IoT) technology. IOTA have branded themselves as “The first open-source distributed ledger that is being built to power the future of the Internet of Things.”
The CarVertical/IOTA is most likely an announcement that will see the car data firm utilizing the IOTA blockchain and although that news may not blow the minds of many in the blockchain community, it does at least highlight another use case for IOTA as they continuie to gain first-mover advantage in the potentially huge automobiles industry, while the rest of the crytpocurrency community seem to be chasing either big finance, or other small niche operations.
IOTA reeled in a much bigger fish in February of this year with an announcement that they would be partnering with the European car giant Volkswagen, to collect and evaluate performance data. The Digital CarPass service was later scheduled for release in early-2019 and it was noted that a further five pilot projects were underway. The link between all three companies is in the knowledge that CarVertical won a competition to incubate their start up in Volkswagen’s Dresden incubator.
Volkswagen has previously shown interest in ledger technology and the company has employed its own “Head of Blockchain” to spearhead their projects. The German company sees “enormous potential” in blockchain, which they expect to see used in areas such as “maintenance, logistics and self-driving vehicles.” One spanner in the works for IOTA was announcement last week that Volkswagen were partnering with Microsoft to create an automotive cloud system that will aim to provide seamless transition between vehicles and homes.
The tie-up between the two companies will also see VW set up a base close to Microsoft’s headquarters in Redmond, WA, where Microsoft will provide technical assistance and staff. This maybe highlights a potential drawback for IOTA in their attempts to dominate IoT, where they would end up competing with the might of a Microsoft.
IOTA is still the only large-scale crypto project that is targeting the automobile industry, which gives them first run at securing some valuable use cases and enticing the other car giants to use the technology. It’s possible that their blockchain could even creep into other IoT joint ventures like the one mentioned but for now they should seek to gain further traction in the manufacture and maintenance space.
IOTA are the first-mover in a valuable industry that nobody else is watching so it is currently theirs to dominate. That outcome is far from secured, but will be interesting to follow in the months ahead.
IOTA currently sits at number twelve in the list of coins by market capitalization with a value of $1.6 billion, only $250 million away from tenth spot.