IOTA is not based on traditional blockchain technology, but on a new distributed ledger technology, Tangle. With this technology IOTA wants to solve the problems of classic blockchain technology such as transaction fees, high energy consumption for mining, low throughput and the ever increasing size of the chain.
(M) IOTA, or a token / coin, is a cryptocurrency currently ranked 12th in the digital market capitalization universe.
IOTA sees itself as a secure communication and payment medium for the Internet of Things (IoT). It is assumed that distributed ledger technology will play a central role in IoT. The technology offers several advantages over today’s centralized platform solutions. These include immutability, privacy, decentralization and transparency.
Immutability : All participants in a distributed ledger system act as a controller. If data is entered into the system, the participants must come to a consensus. Subsequently, the data is stored independently on all participating nodes. This makes subsequent modification or counterfeiting difficult and requires control of the majority of nodes in the network.
Privacy : All Distributed Ledger technology is based on cryptography. By creating a private key you can participate in the network.
Decentralization : Data reconciliation no longer requires any trusted institutions in the distributed ledger that all participants trust. Today, for example, the classical banks fulfill this role for the settlement of payments between two persons.
Transparency : Distributed-ledger technologies make it possible to share data with many users. It is then possible for everyone to understand exactly which information was provided at what time.
Behind IOTA today is the IOTA Foundation, which was founded in 2017 as a foundation under German law. The founders are Dominik Schiener, David Sønstebø, Sergey lvancheglo and Serguei Popov, who developed the idea behind IOTA and the Tangle architecture.