IOTA is a distributed ledger technology designed specifically for the Internet of Things (IoT) ecosystem, using a unique Directed Acyclic Graph (DAG) structure called the Tangle instead of a traditional blockchain. The IOTA token serves as the native currency for microtransactions between IoT devices, enabling machine-to-machine payments and data transfer. The network operates without miners or transaction fees, making it ideal for micropayments and IoT applications. IOTA's architecture allows for quantum-resistant security and scalability that increases with network usage. The platform supports smart contracts and decentralized applications while maintaining feeless transactions. IOTA Foundation focuses on standardization, research, and real-world implementation of IoT and Web3 technologies. At launch of IOTA Rebased, 4,600,000,000 IOTA tokens were migrated from the previous Stardust network.

You may ask

What is the Tangle and how does it work?

The Tangle is IOTA's Directed Acyclic Graph (DAG) structure that replaces traditional blockchain architecture. In the Tangle, each transaction validates two previous transactions, creating a web-like structure. This approach eliminates the need for miners and enables feeless transactions while improving scalability as network usage increases.

How does IOTA achieve feeless transactions?

IOTA achieves feeless transactions through its Tangle architecture where transaction validation is performed by network participants rather than miners. Each user who wants to make a transaction must validate two previous transactions, creating a self-sustaining system without requiring transaction fees or mining rewards.

What are IOTA's main use cases?

IOTA is designed for IoT applications, supply chain management, data integrity, and machine-to-machine micropayments. The platform enables devices to autonomously transact value and data, supporting smart cities, industrial IoT, and decentralized identity solutions. Real-world implementations include automotive, healthcare, and logistics applications.

How does IOTA's token supply work?

IOTA has no fixed maximum supply. 767,000 new IOTA tokens are minted each epoch, with fee burning helping maintain balance. The total supply fluctuates over time based on the balance between token inflation and fee burning. The token serves four purposes: staking, paying transaction fees, value transfers, and governance.