Internet of Things (IOT), Smart Contract Platform
IOTA is a distributed ledger technology (DLT) project that is designed to enable secure, low-cost, and scalable transactions for the Internet of Things (IoT).
It was founded in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Dr. Serguei Popov. IOTA is based on a new type of distributed ledger technology called the Tangle.
Unlike traditional blockchain-based systems, IOTA does not use miners or blocks to validate transactions. Instead, it uses a directed acyclic graph (DAG) structure called the Tangle. This structure allows for faster transaction speeds and lower fees than traditional blockchain-based systems.
The Tangle also allows for scalability as it can handle an unlimited number of transactions without having to increase its size or complexity. This makes it ideal for IoT applications where scalability is essential. Additionally, IOTA has no transaction fees which makes it attractive for microtransactions and other applications where small payments are required.
IOTA also has some unique features such as Masked Authenticated Messaging (MAM), which allows users to securely share data over the network without revealing their identity or the content of their message. Additionally, IOTA has implemented a new consensus algorithm called Coordicide which removes the need for miners and allows for more decentralized control over the network. Overall, IOTA is an innovative DLT project that offers a unique solution to scalability and low transaction costs while providing additional features such as MAM and Coordicide that make it attractive for IoT applications.