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It was designed to be less complex and lighter than other cryptocurrencies in order to make the micro-transactions which are generated by the tens of billions of IoT devices as frictionless as possible. Instead, it uses a system called Tangle which allows free and instantaneous transactions.

Tangle can handle unlimited transactions and is overseen by the non-profit IOTA Foundation which maintains it as a license-free technology. IOTA is the token name of the cryptocurrency that fuels the platform, and it also represents the smallest unit of the token.

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These financially savvy Germans were one of the crypto space pioneers and the first to pinpoint the need to create a new type of transaction grid to better support the growing industry of IoT. IoT initially means that any device with a chip can be leased in real time. So why do these devices need a special e-coin? Because they generate tens of billions of micro-transactions and even nano-transactions and require a super-fast and scalable transaction technology.

Its ledger technology is based on a Directed Acylic Graph DAG that functions in a similar way to a blockchain but with a peer-to-peer network and a validation mechanism. Because they generate tens of billions of micro-transactions and even nano-transactions and require a super-fast and scalable transaction technology.

Its ledger technology is based on a Directed Acylic Graph DAG that functions in a similar way to a blockchain but with a peer-to-peer network and a validation mechanism. IOTA is quite an old project in cryptocurrency terms, but it seems like many have forgotten about and are leaving it behind. Of course, blockchain technology is quite new, and breakthrough developments happen all the time. A major upgrade to the protocol, or some ground-breaking news could certainly rocket the price of IOTA higher.

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