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IOTA is a distributed ledger technology (DLT) that empowers individuals to have control over their private data, run tamper-proof programs, and engage in asset ownership and trading without the need for intermediaries. DLTs, as the name suggests, maintain a ledger of token ownership across multiple nodes. However, unlike centralized systems, DLTs require consensus among independent nodes to agree on the ledger's state. This introduces the challenge of protecting the network from malicious actors. IOTA takes a unique approach, setting it apart from other protocols.

The Tangle

The core of IOTA lies in the Tangle, a structure where new transactions validate previous ones, in contrast to the typical blockchain used by most DLTs. In blockchain-based systems, transactions are grouped into blocks and linked together, creating a natural bottleneck. However, IOTA bypasses this limitation by utilizing the Tangle, which allows for a more scalable and efficient network. It eliminates the need for centralized validation and offers a decentralized and secure environment for transactions and data exchange.

The Tangle is a replicated data structureA data structure is a way of organizing data so that it can be efficiently and effectively used. The Tangle uses a variety of data structures, including blocks, payloads, transactions, and commitments, to store and process data. across a network of nodes, forming a directed acyclic graph of blocks. It enables parallel validation of transactions without total ordering, eliminating intermediaries and offering a highly performant consensusAgreement between nodes on the inclusion of blocks in the Tangle and validation of transactions. and ledger solution.

IOTA Mainnet

The IOTA mainnet is the production grade network on which the IOTA token is available. It currently runs the Stardust protocol version.

Feeless Transactions

Unlike traditional cryptocurrencies, IOTA requires no fees for transaction processing. The amount deducted from the sender's wallet is exactly the same as the amount added to the recipient's wallet, making transactions seamless and cost-effective.

Powered by a Non-Profit Foundation

Main development of IOTA is fostered by the IOTA Foundation, which is a non-profit organization based in Berlin, Germany.

Continuous Innovation

The IOTA protocol is continuously evolving through research and development. It consists of two main public networks: the IOTA mainnet, which is the production-level network managing IOTA tokens, and the Shimmer the staging network for testing and deploying the latest protocol updates. The Shimmer network acts as a testing ground to validate new features and improvements before they are implemented on the IOTA mainnet.