IOTA experienced a significant value increase of 43% following the establishment of a new foundation dedicated to its ecosystem in Abu Dhabi. This newly formed IOTA Ecosystem DLT Foundation has the distinction of being the inaugural entity established under Abu Dhabi’s specific regulatory guidelines for blockchain foundations, as indicated in a public announcement.
The surge in the value of IOTA, the native token of this ecosystem, was a direct response to the news of the foundation’s establishment in Abu Dhabi, the United Arab Emirates’ capital. This development foundation, according to details released by IOTA, is the first of its kind to be registered under a regulatory framework named the DLT Foundations Regulations. It is an initiative of Abu Dhabi Global Market (ADGM), the city’s financial regulatory authority.
The foundation’s establishment is backed by a substantial investment, with $100 million in IOTA tokens allocated and earmarked for a four-year period, as stated in the official announcement.
IOTA Price Reaction
Following this development, the price of the cryptocurrency experienced a notable spike, with IOTA’s price soaring from 17 cents to 25 cents, marking its highest valuation since February. This price increase coincided with IOTA’s strategic plans, unveiled in September, to set up a regulated body in Abu Dhabi to aid in its worldwide growth.
IOTA is among a group of entities related to cryptocurrency that have recently gained approval from regulatory bodies in Abu Dhabi. Other firms, including Paxos and Liminal, a provider of digital asset custody and wallet infrastructure, have also received approvals to operate in the city. Liminal, in particular, obtained a preliminary nod from ADGM earlier in the month.
These approvals are part of Abu Dhabi’s larger initiative to position itself as a welcoming environment for the cryptocurrency sector. In a bid to attract tech talent and startups, the emirate announced earlier in the year a substantial investment of approximately $2 billion in web-3 and blockchain startups, focusing on its economic free zone.
What is IOTA?
IOTA is a groundbreaking digital currency and technology platform, distinct from traditional blockchain-based cryptocurrencies like Bitcoin and Ethereum. At its core, IOTA utilizes a unique architecture known as the Tangle, a system that differs significantly from the conventional blockchain. The Tangle is designed to facilitate quick, secure, and highly scalable transactions, making it particularly suitable for the rapidly evolving world of the Internet of Things (IoT). Unlike blockchain, the Tangle does not require miners to validate transactions, which allows for feeless and faster transactions.
This design positions IOTA in the sphere of micropayments and real-time data transfer, making it a good candidate for various applications, ranging from smart cities and energy trading to supply chain management and beyond. IOTA’s focus on enabling seamless machine-to-machine transactions marks it as a forward-thinking player in the digital currency and decentralized technology space.
How is IOTA used?
IOTA, with its distinctive Tangle technology, offers a wide range of applications, particularly in environments where efficiency, scalability, and quick transactions are crucial. Here are some key uses and current case studies:
Internet of Things (IoT) Applications: IOTA is specifically designed for the IoT, enabling devices to securely and efficiently communicate and transact with one another. This can be applied in smart cities, where IOTA can manage and streamline everything from traffic systems to energy distribution.
Data Integrity and Sharing: In industries like healthcare and supply chain management, ensuring the accuracy and traceability of data is vital. IOTA’s distributed ledger provides a tamper-proof record, making it ideal for tracking pharmaceuticals, food products, or any goods through a supply chain.
Micropayments: Because IOTA transactions are feeless, it’s suitable for micropayments, a significant advantage for services like pay-per-use models, media content distribution, or in-app payments.
Smart Energy: IOTA can facilitate energy trading in smart grids, allowing households to trade surplus energy seamlessly, promoting efficient energy use and contributing to sustainability efforts.
Automotive Industry: With the advent of smart vehicles, IOTA can manage and secure data exchange between vehicles and infrastructure, enable feeless transactions for services like tolls, parking, or charging, and improve supply chain processes for manufacturers.
Current IOTA Case Studies:
- CityxChange: An initiative funded by the European Union, CityxChange is focused on creating smart, positive energy blocks in cities. IOTA’s Tangle is used for secure and efficient data and energy trading between buildings, electric vehicles, and other urban infrastructure elements.
- TradeMark East Africa Challenge: IOTA partnered with TradeMark East Africa to improve the visibility and efficiency of trade in the East African region. The project uses IOTA to track and authenticate goods, reduce trade barriers, and enhance the supply chain process.
- Jaguar Land Rover: In a move to integrate cryptocurrency wallets into its vehicles, Jaguar Land Rover tested IOTA to allow drivers to earn rewards for sharing data like traffic conditions or potholes, which can be used for payments like tolls, parking, or electric charging.
- Digital Health Passport: IOTA has been used to develop a digital health passport, which securely stores and manages health data, including COVID-19 test results and vaccination records. This application is particularly relevant for ensuring safe travel and access to certain venues or events during the pandemic.
These case studies demonstrate the versatility and practicality of IOTA in various sectors, leveraging its unique features to innovate and enhance efficiency in digital transactions and data integrity. And all of it means one thing and one thing only. When a crypto asset has real uses cases, its value can only go one way and it is up. Of course, this article is not an investment advise and you should always do your own research, but with IOTA’s expansion in use cases, it truly becomes hard to fault its potential.
