The convergence of Internet of Things (IoT) and blockchain technology is accelerating digital transformation across industries. As global demand for secure, scalable, and efficient data exchange grows, innovative solutions like distributed ledger technology (DLT) are stepping into the spotlight. At the upcoming InnoVEX Forum, part of COMPUTEX TAIPEI, the IOTA Foundation will take center stage with a keynote address on the future of decentralized systems in IoT ecosystems.
Dominik Schiener, co-founder of the IOTA Foundation, will deliver an in-depth presentation on Tangle, a next-generation distributed ledger specifically designed for machine-to-machine (M2M) transactions and IoT environments. Unlike traditional blockchain architectures, Tangle eliminates the need for blocks and miners, enabling feeless, scalable, and fast data transfers—critical features for real-time IoT applications.
Why Tangle Stands Out in the DLT Landscape
Traditional blockchains such as Bitcoin and Ethereum rely on consensus mechanisms that require significant computational power and energy. These constraints make them less suitable for resource-limited IoT devices that demand lightweight, low-latency communication protocols.
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Tangle addresses these challenges through a directed acyclic graph (DAG) structure. In this model, each new transaction validates two previous ones, creating a self-sustaining network where security and scalability grow organically with usage. This makes Tangle particularly effective for:
- High-frequency microtransactions
- Secure sensor data logging
- Autonomous device coordination
- Tamper-proof identity verification
By removing transaction fees and reducing data size, Tangle enables seamless integration into IoT infrastructure—from smart home devices to industrial automation systems.
Real-World Applications Across Industries
The practical implications of Tangle extend far beyond theory. In Europe, major technology leaders including Fujitsu, Volkswagen, and Bosch have already begun exploring or implementing Tangle-based solutions. Use cases include:
- Vehicle identity and data integrity: Ensuring odometer readings and maintenance records cannot be falsified.
- Supply chain transparency: Tracking goods from origin to delivery with immutable logs.
- Smart city infrastructure: Managing energy grids, parking systems, and public transportation via secure M2M communication.
- Digital identity management: Providing individuals and machines with cryptographically secured identities.
In January 2025, the IOTA Foundation formalized its commitment to urban innovation by signing a memorandum of understanding with the Taipei City Government. This collaboration aims to pilot smart city initiatives leveraging Tangle’s capabilities in traffic management, environmental monitoring, and citizen services.
The Rising Investment in Blockchain Solutions
Adoption of blockchain and DLT is not just experimental—it's backed by substantial investment. According to a recent report by IDC, global spending on blockchain solutions reached $2.1 billion in 2018**, more than doubling from the previous year’s $945 million. Projections indicate this figure could surge to $9.7 billion by 2025, reflecting a compound annual growth rate (CAGR) of 81.2%** between 2016 and 2025.
Organizations are increasingly recognizing DLT’s potential to streamline operations, reduce fraud, and enable new business models. Whether it's verifying product authenticity or automating contractual obligations via smart contracts, enterprises are integrating distributed ledgers into core processes.
Enabling Infrastructure: From Cloud to Edge Computing
While DLT provides the software backbone, hardware plays an equally crucial role. At COMPUTEX TAIPEI, exhibitors offer comprehensive solutions tailored for blockchain and IoT deployments.
Leading manufacturers such as Gigabyte, ASUS, MSI, Supermicro, and QCT showcase cloud servers, server motherboards, and chassis optimized for decentralized applications. These systems support high-throughput data processing required for blockchain nodes and enterprise-grade security.
For edge computing—where real-time decision-making is essential—companies like ICP Electronics, Aaeon, DFI, Contec, and DFI provide rugged industrial PCs and embedded systems. These devices empower local data validation and storage in environments ranging from factory floors to autonomous vehicles.
Such hardware ecosystems ensure that DLT can operate efficiently at scale, bridging the gap between theoretical potential and real-world deployment.
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Frequently Asked Questions (FAQ)
Q: What is the difference between blockchain and Tangle?
A: While both are distributed ledger technologies, blockchain organizes transactions into sequential blocks requiring mining or staking for validation. Tangle uses a DAG structure where each transaction approves two prior ones, eliminating miners and enabling feeless, faster transactions ideal for IoT.
Q: Can Tangle be used for financial transactions?
A: Yes, but its primary focus is on machine-to-machine value exchange and data integrity. It supports microtransactions without fees, making it suitable for automated payments in IoT scenarios like toll collection or energy sharing.
Q: Is IOTA compatible with existing blockchain platforms?
A: IOTA operates independently but can interoperate through bridges and APIs. Developers can integrate IOTA with Ethereum or other blockchains to combine smart contract functionality with feeless data transfer.
Q: How does Tangle ensure security as the network grows?
A: Security improves with transaction volume. As more devices participate, the validation web becomes denser, making malicious attacks increasingly impractical due to the distributed nature of consensus.
Q: What industries benefit most from IOTA’s technology?
A: Key sectors include automotive, supply chain logistics, smart cities, energy, healthcare (for secure patient data), and industrial automation—all areas requiring trusted, real-time data exchange between machines.
Q: Is IOTA’s technology open source?
A: Yes. The IOTA Foundation promotes open development. Its codebase is publicly available, encouraging global collaboration and transparent auditing.
The integration of IoT and blockchain represents a pivotal shift toward autonomous, trustless systems. With Tangle emerging as a scalable alternative to traditional blockchains, industries are better equipped than ever to harness secure, decentralized data flows.
As innovation continues at events like InnoVEX, the synergy between hardware advancements and next-gen ledgers will drive the next era of digital transformation.
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