IOT and EOT - Internet of Things and Economy of Things
The Economy of Things (EOT) and Internet of Things (IoT) are two important concepts in the field of technology that have garnered significant attention in recent years. Both terms refer to the use of technology to connect everyday devices and objects to the internet, allowing them to collect and exchange data, automate processes, and make our lives easier. However, while IoT is more focused on the connection of devices, EOT is focused on the creation of new economic models that make use of these connected devices through monetization and trading value they created.
IoT refers to all Smart Devices connected through the internet. These Smart Devices will include all mundane objects like consumer goods as well as industrial products and manufacturing processes. This means that IoT’s affects range from objects like coffee makers to crop harvesting equipment to cars according to elavon.
“There’s a fairly basic formula here: contextually aware devices streaming rich data via ubiquitous connectivity = The Internet of Things.” - elavon
Benefits of IoT:
Improved efficiency: IoT devices can automate processes, making them faster and more efficient. For example, a smart thermostat can automatically adjust the temperature of your home based on your preferences, saving energy and reducing costs.
Increased productivity: IoT devices can help increase productivity by enabling real-time monitoring and control of equipment and processes, allowing for faster and more effective decision-making.
Better data management: IoT devices generate vast amounts of data that can be used to gain insights into various aspects of our lives, from health and wellness to energy consumption. This data can be used to improve decision-making and optimize processes.
Improved safety and security: IoT devices can help improve safety and security by providing real-time monitoring and alerts in the event of an emergency, such as a fire or break-in.
Drawbacks of IoT:
Privacy concerns: IoT devices generate vast amounts of personal data that can be vulnerable to hacking and other forms of exploitation. There are also concerns about who has access to this data and how it is used.
Reliance on technology: The widespread use of IoT devices can lead to a reliance on technology that can be difficult to manage and maintain, particularly in the event of a power outage or other issue.
Cost: Implementing IoT technology can be expensive, both in terms of purchasing the devices and the infrastructure required to support them.
The Economy of Things is created when new value is extracted from the Internet of Things. This means that physical assets are turning into Digital Assets that are able to participate in new disruptive digital markets, liquefying the physical world. The ‘liquefaction’ of the physical world refers to assets around us to become “indexed, searched and traded as any online commodity”.
“If IoT is digitizing the physical world, then the Economy of Things represents the liquefaction of the physical world.” - IBM
Benefits of EOT:
New economic models: EOT creates new economic models that make use of connected devices to create new value and revenue streams. For example, the sharing economy model, where individuals share resources, such as cars or homes, has been made possible by the widespread adoption of IoT technology.
Increased innovation: EOT enables new forms of innovation by allowing businesses and individuals to leverage the data generated by connected devices to develop new products and services.
Improved sustainability: EOT creates new economic models that are more sustainable, by making use of connected devices to reduce waste and improve energy efficiency.
Drawbacks of EOT:
Complexity: EOT introduces new and complex economic models that can be difficult to understand and manage.
Inequality: EOT has the potential to create new forms of inequality, particularly if certain individuals or businesses have access to more connected devices and data than others.
Regulation: EOT requires new forms of regulation to ensure that these new economic models are fair, transparent, and sustainable.
In conclusion, both IoT and EOT have the potential to bring significant benefits to our lives, but they also bring with them their own set of drawbacks. The benefits of IoT include improved efficiency, increased productivity, better data management, and improved safety and security. However, the widespread use of IoT technology also raises concerns about privacy, reliance on technology, and cost. On the other hand, EOT creates new economic models that can lead to increased innovation, improved sustainability, and new forms of value creation. However, EOT also introduces new and complex economic models, the potential for inequality, and the need for new forms of regulation.
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