IOTA is scalable and payments are free, making many applications in the IoT viable. Not without reason are companies like Bosch very interested in such technologies, because a future in which each car pays for itself in the parking garage makes our lives easier.
Whether IOTA can prevail, only the future will show, because a proof of concept must be provided in real-world applications. As with Bitcoin, the risk of the bubble is significant, because without genuine applications I personally consider such a crypto-currency worthless.
What is exciting, however, is whether the Lightning network will have a positive effect and whether profitable applications may soon be on display.
For IoT, where machines pay machines, we need a payment system that can process tiny transactions in huge numbers and in real time. It must be cheap, or even better, free, fast and scalable. And that is exactly what Bitcoin cannot do, according to experts, but it remains to be seen what improvements the newly created Lightning network will bring.
Here, payments are to be executed via many separate micropayment channels, which make it possible to execute transactions virtually in parallel to the Blockchain. Instead, two users can make as many transactions as they like, without informing all the participants in the blockchain about the cash flow. Only the final amount of their transaction will be noted afterwards.