Introduction
"Blockchain technology isn't just synonymous with Bitcoin or Ethereum—its distributed ledger technology (DLT) has far-reaching applications, particularly in high-volume transaction environments like the Internet of Things (IoT)," said Chu Yi-Chen, CEO and co-founder of BiiLabs, during a keynote speech introducing their blockchain services.
Chu positioned BiiLabs as aspiring to become the "Red Hat of the blockchain era." Similar to Red Hat's relationship with Linux, BiiLabs leverages IOTA's DLT to design an infrastructure platform. Using the Tangle ledger architecture, they package API services for enterprise subscriptions, commercializing blockchain microservices.
👉 Discover how blockchain is revolutionizing IoT
Why IOTA's Tangle Architecture Excels for IoT
Limitations of Traditional Blockchain in IoT
Chu explained that IoT payments require speed, but conventional blockchain mechanisms operate on a queuing system where each transaction waits for miner validation and incurs fees. He analogized this to a funnel—when transaction volume surges, the narrow outlet creates bottlenecks, causing delays that can persist for days. "This is a scalability issue that demands alternative technical solutions," Chu added.
Advantages of Tangle
IOTA's Tangle architecture eliminates blocks and chains entirely, focusing instead on a decentralized framework. Data uploaded to IOTA's ledger replicates across countless network nodes, ensuring immutability. Notably, Tangle lacks mining mechanisms—transactions are validated by IOTA users, removing fee requirements.
Key benefits:
- Scalability: Larger transaction volumes enhance system performance.
- Cost Efficiency: No mining or transaction fees.
- Security: Decentralized storage reduces single-point vulnerabilities.
IoT Market Projections and BiiLabs' Strategy
Chu projected that by 2025, global populations will own 50 billion devices generating 50 trillion daily transactions. Current IoT models relying on cloud storage face escalating cybersecurity risks and unsustainable IT management costs.
BiiLabs targets enterprises, particularly B2B operators transitioning from cloud-based architectures to blockchain platforms. Their pilot project involved migrating Academia Sinica's air-quality monitoring data from cloud servers to Tangle, ensuring data integrity while reducing costs.
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Blockchain Entrepreneurship Insights
Chu outlined four critical considerations for blockchain startups:
- Global Applicability: Prioritize universally adaptable products/services.
- Technology Longevity: Choose enduring technologies to avoid mid-development obsolescence.
- Roadmap Alignment: Ensure product goals align with the blockchain's development trajectory.
- Support Networks: Verify access to technical support organizations for troubleshooting.
Taipei's IOTA Integration for Smart City Initiatives
In January, Taipei City partnered with IOTA Foundation to enhance IoT security in experimental zones, starting with digital citizen cards. This collaboration aims to:
- Strengthen identity data protection against tampering.
- Create secure data-exchange frameworks for IoT applications.
Decentralizing Taiwan's Iconic BBS: PTT.ai
Taiwan AI Labs—founded by PTT creator Du Yi-Zhen—collaborated with BiiLabs to launch PTT.ai. This initiative rebuilds the centralized BBS system using IOTA's DLT, featuring:
- Decentralized identity authentication.
- User-controlled personal data management.
Cross-Border Trade Blockchain by TradeVan
TradeVan partnered with Malaysia, Indonesia, and the Philippines to develop a Southeast Asian trade blockchain platform focusing on:
- Streamlining cross-border document exchanges (invoices, bills of lading).
- Accelerating validations traditionally requiring manual processing.
Taishin Bank's Blockchain Verification Pilot
Approved by Taiwan's FSC, Taishin Bank is testing blockchain for:
- Inter-account verification (internal phase).
- Future applications in personal transfers and B2C payments, potentially integrated into mobile banking apps.
E.Sun Bank's Campus Payment Trial Results
A three-month blockchain loyalty points experiment at NTU involving 32 merchants revealed:
- Pros: Merchants saved ~2 monthly hours on reconciliation.
- Cons: Transaction times increased by 5 seconds due to ledger-writing processes.
FAQ Section
Q1: How does IOTA's Tangle differ from traditional blockchains?
A1: Tangle eliminates blocks and chains, using a decentralized network where users validate transactions—enabling feeless, scalable solutions ideal for IoT.
Q2: What industries benefit most from DLT?
A2: IoT, supply chain, and identity management systems gain advantages from tamper-proof data and reduced intermediary reliance.
Q3: Why are cities like Taipei adopting blockchain?
A3: Blockchain enhances data security in smart city applications, particularly for citizen ID systems and IoT infrastructure.
Q4: What challenges did E.Sun Bank encounter in its blockchain trial?
A4: While reconciliation improved, transaction speeds slowed by 50% due to ledger-writing latency.
Q5: How does decentralized storage compare to cloud services for IoT?
A5: Though initial costs are higher, decentralized storage offers predictable long-term expenses and enhanced security against centralized breaches.