Why machine-to-machine payments are the new electricity for the digital age
Summary
Huang argues that continuous M2M payments represent the new electricity, positioning blockchains as the essential power grid. This perspective highlights the transformative potential of blockchain technology in revolutionizing payment systems.
Key Insights
What are machine-to-machine (M2M) payments?
Machine-to-machine (M2M) payments are automated, real-time transactions between connected devices, such as IoT devices or AI agents, with minimal or no human intervention, enabling seamless micropayments like smart meters paying for electricity or autonomous vehicles paying for parking.
Why are blockchains described as the power grid for M2M payments, akin to electricity?
Blockchains act as the essential infrastructure or 'power grid' enabling continuous, frictionless M2M payments, similar to how electricity powers devices invisibly and ubiquitously, by providing secure, decentralized, immutable ledgers for instant settlements, smart contracts, and trustless interactions between machines.