How 'Business to Things' will transform commerce

Billions of devices are already connected using cellular networks to create the internet of things.

These networks have become more powerful and faster allowing vast amounts of data to be gathered and processed. Processing has typically been in the cloud but now the need for faster, local processing is moving compute power closer to the device – creating the IoT edge. This allows data to be processed closer to the source, with lower latency, but also creates new opportunities for IoT devices in the same vicinity to transact directly between each other.

Edge IoT has resulted in a growing network of remote intelligent devices and opened the possibility of a whole new way of doing business. This capability is increasingly being called the Economy of Things (EoT) or Business to Things (B2T) which describes an emerging future where devices can transact and trade securely with each other, without human intervention.

For example, an electric vehicle could be given permission to connect directly with a charging station and negotiate the amount and cost of the charge, a car could transact with traffic controllers to receive information about traffic flow and congestion in the locality or a freight container could provide port authorities all the information they need to exchange goods between an exporter, importer, or freight carrier.

Efficiency, convenience and security

Allowing devices to communicate and transact ‘peer-to-peer’ offers many benefits such as the simplification of supply chain interactions. However, these transactions – however small – will have a financial consequence. As a result, any system must have the capability to authenticate, authorise, process, track and audit billions of transactions quickly and securely, and this is why cellular communications – with its high levels of security and encryption – underpins B2T.

Using SIM-based authentication, devices can be given a unique and interoperable digital identity so they can be verified and allowed to transact wherever they are. At the same time, a ‘smart contract’ linked to the device’s ID specifies exactly what it can buy and sell, who from and how often, allowing customers to ultimately retain control over the parameters of any transaction.

Reconnecting the supply chain

Apart from the convenience of secure automatic payments, B2T also opens the possibility of demand side response. For example, imagine a lorry load of perishable goods that are being handled by a wholesaler, delivering to a distributor. With every crate monitored by IoT, you could detect damage from transit and immediately discount and settle at the point of transfer.

From cars, buses and trains to shipping, energy and retail

The opportunities go well beyond transactions between EVs and charging stations.

Direct payments for tolls and parking meters straight from the vehicle will also be possible while travellers using public transport may not have to pay in advance or tap in and out. Devices on the train or bus will simply measure when they get on and off and charge their mobile phone accordingly.

In the world of shipping, trading companies will not only be able to track their products but also verify container and package contents with customs and automatically pay any duties owed. Furthermore, increased clarity about a consignment being moved from one shipping agent to another could allow companies to benefit from spot markets for the sale of their products in transit.

At home, households can authorize their solar generator to automatically sell excess energy to the grid depending on demand. On the street, retailers could adjust pricing, offering shoppers real-time discounts during off-peak hours.

The new ‘Business to Things’ model has the potential to transform industries by enabling more efficient, transparent and automated economic interactions.

Vodafone’s investment in the future

As a leader in IoT, connecting more than 190 million devices in over 180 countries, Vodafone has been a pioneer in early developments of the Business to Things model.

Now, in partnership with Sumitomo Corporation, we’ve created Pairpoint, a platform that allows devices to transact seamlessly and securely using wallets and payment technology secured by a mobile SIM and blockchain.

Why not learn more about Pairpoint tech and industry solutions or take a look at Vodafone’s simple video guide.