The emergence of 5G technology represents a huge opportunity for IOTA to become the most widely used crypto currency in the world. The ongoing battle between the U.S. Justice Dept. and the Chinese telecommunications manufacturer Huawei revealed an unticipated benefit for the crypto industry. Even though the investigation centers on allegations of fraud, stolen secrets, and ties to the Chinese government, the endgame is control for the next technological space – the internet of things. And that’s where IOTA comes into play.
The 5G Controversy
In an article, Bloomberg details that U.S. prosecutors filed criminal charges against Huawei Technologies Co for Iran sanction violations. This is the latest action the U.S. government is taking to curb the company’s infringement on its American competitors. In fact, competiton is the real reason of the argument. 5G is a very promising technology that is poised to change the world. And whoever controls it will enjoy a major global advantage. U.S. Western allies (UK, Germany, Australia, Canada, etc) have followed suit with regulation checks of their own against Huawei.
The reason being that 5G is largely an unsecured system quite vulnerable to intrusion and control. And just as Bitmain can potentially control Bitcoin by being the largest producer of mining hardware, Huawei can control 5G by being the largest smart communication hardware supplier. And either by influence or authority, the Chinese government is not far behind. Therefore, 5G is a potential national security concern for the West. A threat the U.S. is looking to twart while it still can.
What is 5G?
5G is an interconnected network of devices through higher frequency communication channels. It achieves a 20 to 50% speed boost over 4G networks thanks to the use of more efficient coding and larger transmission bands. In addition, it uses a higher, millimeter-wave frequencies to further increase speed data transfer. All this translates into faster data sharing, download speed, lower latency, and connectivity. All the ingredients necessary for smart devices to communicate with each other.
IOTA stands for Internet-of-Things Applications. It is an open-source distributed ledger optimized for microtransactions and data integrity for intelligent machines. Through the use of its data structure called the “Tangle” it is able to scale transaction outputs exponentially. 5G and IOTA are a proverbial match made in heaven. While 5G provides the high speed network, IOTA can provide the digital currency required by assorted branded products to transact with each other. Together they promote a massive business opportunity.
A report by MarketsandMarkets estimates the 5G services market to reach $123 billion by 2025. This incorporates the application of 5G to Smart Cities, Connected Vehicles, Connected Factories, Smart Buildings, Smart Utilities, Connected Healthcare, and Broadband Services.
IOTA is perfectly placed to become the default currency for all smart devices to do business with each other. For starters, it has very small competition; the only other crypto project that shares a directed acyclic graph (DAG) / blockchain like IOTA is Nano. And though permissioned blockchains like IBM’s Hyperledger or Quora will definitely enter frey, IOTA is still the leader in the field.
Furthermore, given the low prices of IOTA tokens ($ .27 cents), it will make for an undervalued investment. Once investors realize the link between 5G with IOTA, the price of the token will surge. Also, the volume of transactions created by all the devices will push the rank standings of the coins ever higher.
As 5G will begin implementation this year, IOTA may prove to be an unanticipated surprise. And as 5G development progresses, so will the standings of IOTA which might culminate in it becoming the most prominent crypto of the near future.