Advances in telecommunication and interactivity have made life remarkably efficient. Businesses that don’t catch up to the internet generally fade into oblivion. As internet usage grows globally, platforms that provide reliable and affordable services tend to be more successful long term.
The internet of Things (IoT) is a rapidly growing industry. It is a term that generally refers to interconnected computing devices that rely on the internet to exchange data and function in a highly automated environment. Examples include household equipment like air conditioning, smartphones, sensory devices and chips, and other modern equipment seamlessly communicating to achieve common utility. Kalima blockchain aims to provide a valuable resource for enterprises that generate significant IoT data to manage and potentially monetize such data.
High Fees Diminishes Blockchain Benefits
Blockchain technology inherently seeks to democratize financial sector and data management control. Tech giants like Google and Facebook often draw criticism for concentrating too much power in the hands of a few. The blockchain operates as a decentralized digital ledger that adds transparency to data management.
The blockchain took off to a dream start. By the time Laslo Hecynz famously bought two pizzas using ten thousand Bitcoin, this sector was teeming with optimism for the future. Soon, Ethereum joined the fray and got immensely popular as well. Within a few years, these early blockchains began to display their shortcomings. Proof of Work blockchains could not cope with the high usage that later usage brought.
Accordingly, miners had to prioritize some transactions over others during verification, meaning those with transaction fees got priority. Bitcoin could only process about four transactions a second, while the Ethereum blockchain could reach 30 transactions. In contrast, modern blockchains like Kalima Blockchain can process over 1000 transactions a second with negligible latency.
The natural consequence of this trend was higher transaction fees. Ethereum average transaction fees soared past the $50 mark during the 2021 bull market. Such high fees became counterproductive for micropayments and small users. This fallacy meant that the blockchain was losing one of its core tenets in the form of true decentralization.
How Low Fees Drive IoT Adoption
IoT systems offer opportunities for value creation. The collective analytical devices of various devices can impact businesses positively. IoT systems are rapidly advancing, with areas like security and transparency of data use still requiring more development.
Low-fee blockchains like the Kalima blockchain are ready to offer practical solutions for IoT devices. Companies and small organizations cannot use blockchains if the costs outweigh the benefits. Kalima utilizes proof of stake consensus to enable IoT-rich organizations to manage their data securely.
Apps generate tons of data about enterprises or individuals. Low fees on blockchains like Kalima allow for data management and monetization rather than outsourcing these operations to centralized cloud servers that charge relatively high costs for managing data.
The Kalima blockchain has a robust and scalable infrastructure for transparent data collection. Kalima’s network of private chains (privachains) features API integration and can link efficiently with other blockchains and external systems. The KLX token is the native cryptocurrency of the Kalima main chain. This token essentially allows enterprises to monetize the data IoT devices collect, such as data on vital aspects of the business, such as environmental management.
Scalability is crucial to sustainable IoT data management. A Proof of Stake blockchain like Kalima ensures that an organization can have accurate and immutable data infrastructure available to participants in the network to utilize and potentially monetize. Robust blockchains ensure fast processing of transactions and cutting overhead costs associated with standard IoT gateways. Besides, smart contracts reduce human involvement in data management, further reducing costs and enhancing transparency.
Kalima is a Scalable Solution for IoT Enterprises
Decentralized systems reduce vulnerability from single points of failure. The Kalima blockchain offers this utility with the added advantage of low transaction costs and fast processing speeds. The continual development of IoT systems needs robust and secure solutions. There may be concerns about the technical abilities of older blockchains to handle large-scale data and transactional needs.
Kalima blockchain alleviates this problem for IoT systems and entrepreneurs considering options for data management. Several industries can benefit from blockchain transparency and efficiency. Notably, these include industry supply chains, healthcare data, energy companies, and even finance. Companies like Enedis, a French electricity distribution company, have effectively deployed the Kalima blockchain. Data obtained from IoT systems have a robust and efficient tool for management, and the likes of Enedis can monetize the data on the sustainability of their project for use by researchers and other businesses. Such mutual benefit is the hallmark of 21st-century innovation, and this low-cost blockchain intends to be a key stakeholder in IoT growth.