IOTA and Volkswagen are about to change the auto industry


At the Cebit 18 Expo, IOTA and Volkswagen introduced their partnership related to IoT approach

IOTA and Volkswagen partnered together to introduce the Proof-of-Concept (PoC) at the Cebit 18 Expo in Germany on June 11th. The PoC allows Volkswagen to use IOTA's Tangle network to deliver software updates to over-the air updates (OTA).

The information about the partnership between the two companies was announced at the Cebit 18 Expo hosted by Volkswagen by the Chief Digital Officer Johann Jungwirth. He claimed that by 2020, there will be more than 250 million vehicles connected to each other, and to make that happen, some tremendous improvements will be made. IOTA is the partner that Volkswagen is looking for because IOTA's development goal is to use leverage to support companies in the field of autonomous vehicles.

iota, volkswagen, blockchain, tangle, proof of concept, distributed ledger

According to a press release from Volkswagen, the current challenges in the field of information technology lie in the fact that the centralized ownership of data will make the information less reliable. Lack of transparency will lead to a reduction of trust between parties and a more complex  process documentation system. The goal of the project is to ensure the transparency of the data system through OTA upgrades; the establishment of intermediary storage and auditing trail is also a top priority. Integrating IOTA's technology into existing system in order to increase the ability to exchange information between electronic devices, the connection of all vehicles is intended to enable the use of the data collected.

The Tangle model of IOTA is the key to the following benefits:

  • Establish transparency and digital trust with customers, authorities and third parties
  • Ability to provide an evidence to external parties
  • Handle product recalls efficiently
  • Ability to record high volume of updates and different software versions
  • Tamper-proof and transparent statistical recording

iota, volkswagen, blockchain, tangle, proof of concept, distributed ledger

"Distributed ledger technology (DLT) is crucial for the future of trusted transactions," said Johann, “IOTA has great potential to become a DLT leader with the Tangle approach." Tangle is a new generation of blockchain network, the blockchain without the blocks and the chains. Every user who wants to perform transactions on IOTA needs to confirm two previous transactions, thus reducing the network congestion.

IOTA's focus is on the Internet-of-Thing (IoT) field, a concept of a global network that connects all home appliances and means of transportation to communicate and exchange data. The partnership with Volkswagen also enabled IOTA to step into its future Mobility-as-a-Service (MaaS) system, using the DLT to serve as the rental, leasing and payment services of smart autonomous vehicle.

Currently, the Volkswagen Group is one of the largest auto manufacturers in the world with 120 manufacturing facilities in over 30 countries. In 2017, Volkswagen  sold 10,741 million vehicles around the world.

IOTA is now on rank 9th on the CoinMarketCap with a total market capitalization of over $3 billion and the current price is $1.5.

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