IOTA is a cryptocurrency for the Internet-of-Things (IoT) industry. The main characteristic of this new cryptocurrency is the Tangle, a quantum-proofed acyclical graph (DAG) for storing transactions. The Tangle is the next evolutionary step of blockchain technology and offers functions that are needed to create a machine-to-machine micropayer system. An essential contribution from IOTA is a family of Markov Chain Monte Carlo (MCMC) algorithms. These algorithms select the attachment points on the Tangle for a transaction that has just arrived.
IOTA therefore does not work with a succession of “Blocks”, which can only be realized when the previous “Block” was solved, but all transactions are parallel. It comes down to the fact that the more users and transactions the “Kluwen” or Tangle counts, the faster they also expire as more and more attachment points and verifying parties are obtained.
Because IOTA is fed by the users, this is the only cryptocurrency that charges no fees.
IOTA was founded by quartet David Sonstebo, Dominik Schiener, Sergey Ivancheglo and Serguei Popov, who invented IOTA.