IOTA is a distributed ledger technology designed for the Internet of Things (IoT) ecosystem, enabling feeless microtransactions and data transfer between machines. Originally built on a DAG (Directed Acyclic Graph) called the Tangle, IOTA transitioned to IOTA 2.0 β a fully decentralized, leaderless consensus blockchain designed for machine-to-machine economy. IOTA tokens are used for paying fees, staking, and securing the network.
IOTA originally used the Tangle β a DAG where each new transaction validates two previous transactions, enabling fee-free transactions and high scalability without miners. After years of development, IOTA launched IOTA 2.0 (Shimmer mainnet migration) which uses a delegated PoS consensus for decentralized block production without a centralized coordinator. The Move-inspired tokenization standards allow assets to be created on IOTA. The IOTA Identity framework enables self-sovereign identity for IoT devices. IOTA EVM compatibility enables Ethereum smart contracts. Enterprise IoT use cases include supply chain data, mobility data markets, and machine payments.
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Traditional blockchains impose transaction fees that make microtransactions between IoT devices economically unviable. IOTA was designed for a future machine economy where billions of devices need to transact tiny amounts of value (e.g., paying per data point, per kilowatt-hour, per API call) without fees eating into the economics. The Tangle's feeless design was the core value proposition for this use case.
Originally the only feeless distributed ledger designed specifically for IoT microtransactions, using a DAG (Tangle) rather than a blockchain β enabling machine-to-machine payments of fractions of a cent at industrial scale.
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Supply figures and project details are approximate and may not reflect the latest changes. Always verify from official sources before making decisions. This information is for educational purposes only β not financial advice.