M2M Economy What It Means How It Works
Contents
M2M Economy: What It Means, How It Works
What Is the Economy?
The M2M, or machine-to-machine, economy is where smart, autonomous, networked machines or devices act as participants in production, distribution, and allocation with little to no human intervention. This ecosystem is made possible by the Internet of Things (IoT).
Key Takeaways
- The M2M economy refers to a system of interdependent, networked devices that carry out economic activity autonomously.
- The M2M economy is important for understanding IoT and blockchain-based platforms that need to allocate and distribute network and processing bandwidth.
- The M2M economy is predicted to become a trillion dollar pursuit in the future.
Understanding the M2M Economy
The internet has changed the way we exchange information and communicate with machines. It has enabled a new ecosystem where objects equipped with sensors, actuators, memory modules, and processors can exchange real-time information. This M2M ecosystem leads to increased efficiency and economic benefits with limited human intervention.
The number of IoT devices reached 22 billion in 2018 and is projected to reach 38.6 billion devices by 2025. The global market revenue of IoT is projected to reach $1.5 trillion by 2030. McKinsey Global Institute suggests that IoT could create an economic impact of $2.7 to $6.2 trillion annually by 2025.
How IoT Devices Help Run the M2M Economy
The processing power and data generated by IoT devices have great value.
For instance, a water purifier with a microprocessor can schedule the purifying cycle based on the hardness of the incoming water and send alerts for cartridge replacement. The data generated by such devices can help assess consumption behavior, inform macro-level tasks like city planning, and be sold for monetary rewards.
In addition to device functionalities, blockchain projects are utilizing the processors and memory modules of IoT devices for cryptocurrency mining and transaction authentication. Projects like IOTA, IoT Chain, and IOTW are harnessing these resources for their blockchain projects.
