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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.