IoT Chain: the blockchain of China
The prospects for ITC look very promising considering the diverse utility the IoT Chain will have on the Chinese economy.
IoT Chain and its flagship token ITC are relative newcomers to global cryptocurrency markets. Understandably, with only three exchanges trading ITC, it is hard to see how influential this new kid on the blockchain could be. Since trading of ITC began on 26 December 2017 its price has increased confidently from US$1.28 to a solid US$4.14 at time of writing (3 January 2018).
The market cap of ITC also continues to increase rising from US$48 million to US$152 million over the same period. In terms of daily trading volume, ITC has shown constant demand peaking at US$111 million but otherwise hovering between US$27-US$37 million per day. This shows a steady demand for the pre-mined token.
As a pre-mined token, there is a cap on the total units of ITC which is at 100 million units. It is reported that only 50 million units have been released to markets. The developers' intent, in this case, has been to prevent profit taking by early speculative trade. At this early stage, that strategy seems to be working.
Aside from the daily price increase of over 20%, there are a lot of fundamental indicators that suggest IoT Chain is going to be a very strong competitor in the global cryptocurrency market. The key indicator for the competitiveness of individual cryptocurrencies in 2018 will be utility. Put simply, the technology underpinning ITC is genuinely revolutionary.
IoT Chain and the fourth industrial revolution
The technology that underpins ITC is a blockchain adaptation for processing information across a widely distributed network. In theory, that network has a multitude of nodes, an estimated 20 billion across the network expected by the year 2020. These nodes will be utilising the software and computing on the IoT Chain. That will become the blockchain of China.
To understand the enormity of the concept, China’s nominal GDP is set to exceed that of the United States (US) by 2030, and in terms of purchasing power parity, is already believed to have taken over from the US. Also, the population difference between the US and China is roughly one billion people. Total IoT computer hardware spending has reached US$1.7 trillion in 2017 also revealing 30% growth year on year. That number is expected to rise further.
As smartphones, or rather the technology in smartphones becomes utilised in the diverse range of mechanic, electronic and mechatronic creations throughout the economy, their ability to communicate and process information increases. For something like an autonomous car being automatically refilled by an autonomous gas station, IoT Chain allows that process to take off.
This is achieved by the advances in blockchain technology currently being rolled out in so-called smart cities with Nanjing being the first. The innovation not stopping there further develops the practical uses of this technology in healthcare, smart energy grids, wearable / transplantable electronics and autonomous transportation. If there is a smart electronic device that can be used to benefit an individual’s process of production it will be connected to the IoT blockchain.
IoT Chain will provide a particular focus on data optimisation production, which for any business that uses data analytics to guide its business decisions, will become critical. In the Artificial Intelligence and machine learning industries, the data gleaned from the information extracted by the IoT Chain will provide insights that will drive business understanding of consumer habits right throughout the Chinese economy. Bringing with it the fourth industrial revolution, the virtual revolution.
|Supporters||Ordinary single-chip microcomputer||Self-developed by customers|
|Risk of being tampered before going on chain||No risk||No risk|
|Service mode||Non-perceived update||Customers self-develop IOTA adaptation protocol|
|Do the customers need to develop by themselves?||No||Yes|
|Resolved problems||IoT centralisation / IoT security / physical asset / digitisation / equipment share||M2M micropayment efficiency / micropayment without service charge|
Source: IoT Chain Whitepaper
The scalability issue has been solved by use of the simple payment verification (SPV) protocol. This efficiency gain is described as the key to ensuring the entire network’s stable performance. This will mean that by virtue of almost every industrially economic enterprise in China being connected by the IoT chain, the gains sheer volume of data computed onto the blockchain will be immense. By analysing trends in IoT resolved problems (see table above) it can be seen that there is an increasing tendency towards centralisation.
The virtual revolution and the investor
What business can gather from this is that IoT Chain will continue to develop centralisation and, depending on the regulatory environment of China, could even develop a monopoly over the “ecosystem.” What that means for the price of ITC is significant, to say the least. A monopoly over the consumer and enterprise data of an economy the scale to which China will grow over the coming decades will be a significant advantage for any enterprise seeking to gain a market share of the Chinese economy.
The economic potential for IoT Chain is not limited to just China’s borders. As the pace of development increases from economic projects under China’s One Belt One Road policies, the market share for the global Internet of Things will increase in China’s favour. And those developmental projects are extremely ambitious involving industrialisation of entire regions and a level of Eurasian interconnectedness the world would not have seen since the era of Genghis Khan.
Access to market insights on that scale will only come by way of having access to the IoT Chain. This will mean having ITC. Where the potential value for that token rises to is unclear, but it seems quite likely to increase in value, especially against the US Dollar as the US economy is replaced by China’s as the world’s most productive economy.