
IOTA
IOTA
IOTA (MIOTA)
IOTA is a next-generation distributed ledger designed for the Internet of Things (IoT).
Instead of a blockchain, it uses a unique Tangle architecture — a Directed Acyclic Graph (DAG) that allows feeless, scalable, and lightweight transactions.
What is IOTA?
- Ledger type: DAG (Tangle)
- Token: MIOTA
- Launch: 2015
- Focus: IoT, microtransactions, machine-to-machine payments
- Consensus: transactions validated by referencing two previous ones
How Does IOTA Work?
- Tangle architecture: no traditional blocks/miners, instead a graph structure.
- Feeless: no transaction fees, making it ideal for IoT microtransactions.
- Lightweight: designed for low-power devices and sensors.
- Scalability: more activity = faster validation.
Why is IOTA Important?
- IoT economy: enables machines, vehicles, and devices to exchange value.
- Feeless payments: unique advantage over fee-based blockchains.
- Research partnerships: working with industry and governments.
- Green design: minimal energy use.
IOTA Use Cases
- Smart cities & infrastructure
- IoT devices & sensors
- Supply chain tracking
- Mobility & automotive (e.g., pay-per-use vehicles, charging)
Risks of IOTA
- Early-stage adoption: IoT payment economy still developing.
- Technical complexity: DAG tech is less battle-tested than blockchains.
- Centralization history: past reliance on a "Coordinator" raised concerns.
- Ecosystem competition: faces rivals like Hedera Hashgraph, XDC, and others.
Lanzo Tip 🪙
IOTA is one of the most innovative but risky projects — if the IoT economy truly takes off, IOTA could be a leader. But adoption has been slow, so keep an eye on real-world partnerships before betting big.