What is IOTA?

IOTA is a distributed ledger designed specifically for the Internet of Things (IoT). Founded in 2015, it utilizes a unique data structure called the Tangle, which distinguishes it from traditional blockchains by enabling fee-free microtransactions and secure data transfer. The protocol is designed to offer scalability and fast transaction capabilities without the need for miners, relying instead on computational power to facilitate transactions.

The primary use case for IOTA is to address limitations found in blockchain technology, such as transaction speed and costs, particularly as data grows over time. The architecture supports decentralized communication and currency applications for machines in IoT environments. IOTA's governance model and supply cap are structured to support its goal of efficiently handling numerous transactions in a growing network of connected devices.