Smart cities will provide more and more services, an increasing number of which they’ll be apt charge for. As urban IoT infrastructure expands, local businesses will naturally also take advantage of it. With all of that on the way, there’s an expectation that it will be useful for people to have access to a suitable electronic currency for small fees and minor purchases — for making micropayments.
IOTA, a ledger-based technology designed specifically for the IoT, is being proposed for that purpose.
Several ledger systems already exist. The most well-known is blockchain, the technology at the base of Bitcoin. Blockchain has some of the basic characteristics appropriate for supporting micropayments in an IoT environment, but it has disadvantages too, which make it unsuitable for making micropayments in IoT ecosystems.