See how the IoT Chain works, what you can use it for and why this is dubbed one of the most promising coins for 2018.
ITC is the name of the cryptocurrency token that stands for the Internet of Things (IoT) Chain. Created by a startup in Singapore, ITC was created specifically to solve the serious safety problems of the present-day IoT. The creators of IoT Chain are looking to develop an operating system, using blockchain technology, that can allow for safe communication between devices on the Internet of Things.
The Internet of Things refers to the connection between smart objects. Today, that might be your camera, your computer and cloud storage. Tomorrow, it might be your fridge and the grocery store, or your car, other cars and the streetlights.
While the Internet of Things is not a brand new idea, the IoT Chain aims to be the go-to platform, utilising blockchain technology and a decentralised currency to allow for secure transactions and interactions on the Internet of Things.
Find out where to buy it, how it all works and what you can use IoT Chain for below.
Where to buy IoT Chain
Wallets that support IoT Chain (ITC)
At the time of writing in January 2018, the IoT Chain team are working on creating an IoT wallet. There are hopes that the wallet will be created and tested by the end of May 2018 and in use by mid-2018.
For now, you can store ERC20 tokens in the following wallets:
What is IoT Chain?
The ITC token was created with security and scalability in mind. It uses blockchain technology to protect users and their IoT-connected belongings from outside attacks, and the transparency of the open-source software offers guaranteed protection against attacks from the inside.
Almost anything with a smart chip and IoT connectivity can be managed and automated with complete security through IoT Chain.
A handful of the potential applications include the following:
- Supply chain automation
- Automated identity verification and security from cameras
- Secure communications
- Smart street lighting
- Automatic payments on a driverless public transport system
Significantly, IoT Chain will also allow for the monetization and secure transfer of information between devices. For example, it can let someone record the current temperature and wind speed at their location with their phone and then sell that information to a weather station in a micro-transaction settled through ITC.
The user wouldn’t need to divulge their personal information to do so, but the weather station would still be able to verify the data’s accuracy. The end result could be a constantly running network of detailed live weather information all over the world, with its contributors receiving fair compensation for the data they collect, and climate researchers and meteorologists having an incredible source of data available, which they can purchase with ITC.
How IoT Chain works
IoT Chain has a maximum total supply of 100 million ITC, with around 40 million in circulation at the time of writing, and a cap of 50 million tokens in the current circulation plan. The remaining half has been locked up to prevent them from unexpectedly flooding the market.
The IoT Chain project has a unique lock-in token reward program, which encourages investors to hold onto their tokens for the long term. This could be a few months or even a few years, and investors will be rewarded with more ITC tokens afterwards. This helps to create a stable base of users who believe in the quality and longevity of the project, helping to increase the price of the tokens.
Why buy ITC?
IoT Chain attempts to solve two major problems:
- Security. The creators of IoT Chain plan on creating one of the most secure networks available in order to protect the objects on the Internet of Things. Security will focus on preventing botnet networks from breaching individual and community data.
- Scalability. IoT Chain promises to create a massive node network that is capable of meeting the increasingly high demands of data storage. This scalable network will be convenient and cost-effective. The IoT blockchain can scale amounts greater than 10 thousand transactions a second, giving an average transaction time of milliseconds.
IoT Chain has often been called the “IOTA of China,” but unlike IOTA, IoT Chain is supported by a single-chip microcomputer which allows for easier proof-of-hardware security than other options.
While the IOTA blockchain technology is a tangle chain based on DAG (Directed Acyclic Graph), IoT Chain will be a decentralized main chain based on PBFT (Practical Byzantine Fault Tolerance) consensus, which will allow for fast and accurate mining.
It will also use a DAG subnet. Using both will greatly improve the processing performance of the blockchain since it will achieve consensus of the main blockchain’s decentralisation. The DAG network will help solve any performance problems. This combination of secure technologies is how the IoT Chain creators have managed to create a scalable, speedy and secure network.
What to consider when buying IoT Chain
There are still some key problems that need to be tested and solved when applying the IoT Chain blockchain technology. Much of the technology is still being created and tested, and there are still a number of questions that need to be answered about the technology and how it can be as secure as it appears.
While IoT Chain has been dubbed one of the most promising cryptocurrency blockchains on the market this year, it will not be fully developed until 2019. It will be late 2018 before the DAG network is released and early 2019 before the DAG and main PBFT network are combined to produce maximum security for users.
On the plus side, a few major investors are already backing IoT Chain, including Link Capital and FBG Capital.
While ITC tokens are currently available, the price has risen over the month of December 2017 from less than US$1 to around US$2.50.
IOTA and IoT Chain are probably two of the clearest competitors in cryptocurrency, so their prices are likely to be closely entwined. But compared to IOTA, IoT Chain is largely geared towards quick and easy uptake by businesses, with its single-chip microcomputer support and software aiming to present a much more “ready out of the box” experience than IOTA.
This is definitely a coin to watch as the blockchain technology sounds promising.