IoT represents a network of everyday appliances, vehicles, and other items that have software, sensors, and Internet connectivity. It allows these devices to communicate and collect data, creating a bridge between the physical world and computer-based systems. As a result, IoT requires less human engagement. This increases overall efficiency.
IOTA emerged in June 2017. By the end of the year, its value had surged past $5 from $0.60. However, as most cryptocurrency prices fell in early 2018, IOTA’s price slid to $0.61.
Keep in mind that the following article doesn’t serve as investment advice. Whether or not you choose to invest in cryptocurrency, and where you choose to spend it, is a personal financial decision.
DAG: The Technology Behind IOTA
One thing that distinguishes IOTA from other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) is that the technology underlying it is not blockchain. Instead, the IOTA ecosystem uses something called ‘Tangle,’ which is a Directed Acyclic Graph (DAG).
Some consider DAG to be more advanced than blockchain technology. What is blockchain technology and DAG? Like blockchain, DAG also functions as a ledger. Though, its transactions are stored in the form of graphs—rather than chains—that point in one direction and are non-circular. Transactions are stored in interconnected nodes, called “sites” in Tangle terminology.
To validate a transaction, an algorithm randomly chooses two previous transactions, which have to be approved. An IOTA transaction is called a bundle. Each bundle includes information about the current transaction and the two random transactions.
The two random transactions are called the tip of the bundle. The user has to solve a cryptographic puzzle to validate them. The use, or Proof-of-Work, involves finding the nonce—a unique number that allows transaction approval from the network. After the Proof-of-Work is completed and the nonce is found, the original transaction is broadcasted to the entire network until it is selected by the algorithm to be validated. The process then repeats itself.
The main advantage of Tangle is that there are no transaction costs. The Proof-of-Work that validates the two previous transactions is not difficult. In fact, it can be performed on any device. Also, because transactions don’t have to belong to the same chain, users can validate multiple transactions simultaneously.
Applications for IOTA Tokens
The main application for IOTA tokens is to validate the microtransactions between IoT devices. With more Internet connectivity than ever, more and more devices that can perform tasks like these that go beyond their basic functionality. There are currently over 9 billion IoT devices worldwide.
As of now, most interactions between IoT devices require some human input. For example, pressing the Amazon Dash button to place an order. The order gets sent to an Amazon fulfillment center, where someone orders robots to find the right product. Next, the product is packed and shipped. Eventually, this entire process will be fully automated. So, when you press the Dash Button, robots at the Amazon warehouse will automatically find, pack, and ship the product. In such situations, you can use IOTA tokens to pay for whatever you want to order.
In the meantime, IOTA tokens are a regular cryptocurrency that users can buy and sell on a secure cryptocurrency exchange. It can also be beneficial in retail transactions because it’s fast and doesn’t have transaction fees.
Currently, there aren’t too companies that accept IOTA, but adoption is growing. Here’s where you buy use IOTA as a payment method right now.
In Switzerland, in the Canton of Zurich, Seeholz Farm spans over 20 hectares. The farm grows various crops and has several types of animals, including cows, sheep, goats, chickens, and ducks.
You can buy their produce online and pay for it with IOTA tokens. Seeholz Farm makes natural agricultural products accessible to the crypto community. The drawback is that their delivery is only available in Switzerland. Though, they serve as an excellent example for other farms that are looking to diversify their customer base.
9. Crypto Bar
If you own IOTA tokens or other cryptocurrency and find yourself in Moscow, you should check out Crypto Bar. It’s a lounge-style hookah bar with a friendly atmosphere and lots of cryptocurrency-related decorations. They even have an Ethereum logo-shaped lighting fixture.
8. Monster Cleaning
Monster Cleaning is a UK-based cleaning service provider. It covers London, Oxford, Liverpool, Manchester, and other major cities across the country.
The cleaning service recently has started accepting IOTA tokens as a form of payment. Monster Cleaning is fast, eco-friendly, and doesn’t charge transaction fees for IOTA payments.
You can also buy furniture with IOTA tokens. Volamo, based in Germany, offers a selection of furniture aimed at tech-minded people.
Volamo furniture and accessories are optimal for storing and charging mobile phones and accessories.
The furniture looks fantastic. Though, the prices are on the high end. However, they accept crypto, which is something that Ikea certainly does not.
6. Jade Bloom
Jade Bloom is an online retailer that sells a large variety of health and beauty products. Their offerings include many essential oils from various plants, such as peppermint, almond, lemon, etc., as well as natural soap, shampoo, deodorant, and toothpaste. Jade Bloom started accepting IOTA five months ago. In fact, in a Reddit post, the company’s owner said that he is “a huge supporter of the IOTA community.”
5. Gemma LED
Gemma LED sells LED lights for growing plants. The Sweden-based company has a wide selection of LED plant lights optimized to sustain the lives of indoor plants year-round. Gemma accepts IOTA tokens as payment, but also other cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Dash (DASH), ZCash (ZEC), Bitcoin Cash (BCH), Monero (XMR), and even Dogecoin (DOGE).
Netz0.com is a provider of domain names and cloud services. Netz0.com was the first company that started accepting IOTA as payment in 2017. In a statement, Netz0.com said that, while they had always accepted Bitcoin, they noticed that Bitcoin is not very attractive for smaller payments and has long transaction times. However, they believe that using IOTA can solve these problems.
3. Datschi Trachten
Datschi Trachtenis is a German manufacturer of clothing, shoes, and accessories for men, women, and children. The company is part of the Fair Wear Foundation. Datschi Trachten is available for online purchase. Additionally, it ships to many countries worldwide, including the US. IOTA is currently the only cryptocurrency that Datschi Trachtenis accepts.
HODLCat is an online store that focuses on IOTA and sells a variety of crypto-related merchandise. Its range includes a variety of physical crypto for IOTA, Bitcoin, Litecoin, Monero, ZCash, and Ethereum, as well as physical Ledger Nano S hardware wallets. Most merch available on HODLCat features the IOTA logo, such as t-shirts, mugs, phone cases, hats, etc.
1. Elemental Coffee
Elemental Coffee is one of the best websites to spend IOTA tokens on because there aren’t many things better than coffee. The company is based in the US and offers a wide selection of espresso, drip, and even cold brew coffee in bottles. Furthermore, customers have the option to sign up for a subscription. Subscribers receive their favorite beans at their doorsteps in the form that they prefer.
IOTA Tokens Accepted Here
This is our compilation of the 10 best places to spend IOTA tokens. Many of the businesses presented in the list are available only outside the US. Nevertheless, they can serve as an example for entrepreneurs around the world that IOTA tokens are a viable payment method and have many advantages. For example, they don’t charge fees and they provide exceptionally fast transactions.
Today, Bitcoin transaction volume is currently higher than gold, and other cryptocurrencies are increasingly exchanged, too.