IOTA is an open source distributed ledger. In fact, it is the first open-source distributed ledger. This is a revolutionary transaction settlement and data transfer layer for the IoT (the Internet of Things). Based on a distributed ledger technology (as said above) the Tangle overcomes the inefficiencies of the current Blockchaindesigns, introducing a fresher way of reaching consensus in a decentralized peer-to-peer system. Using IOTA, people can transfer money or/and data without any transaction feesin a decentralized environment. Even nano-payments are possible without the need for a trusted intermediary. Iota Foundation was originally established in Germanyas a non-profit organisation in 2017by David Sønstebø and Dominik Schiener. The goals for Iota foundationare to:
- Secure the protocol
- Create knowledge to benefit the ecosystem behind the economy of things.
- Develop production-ready software for the community and partners
- Promote technologies to ensure the Foundation’s success.
- Standardise and ensure the maturity and widespread adoption of the economy of things
What is the Tangle?
The Tangle- IOTA’s distributed ledger. The Tangle doesn’t consist of transactions grouped into blocks and then stored in sequential chains. They come as a stream of individual transactions entangled together.
The more the Tangle has activity in it, the faster all transactions can be confirmed. IOTA is not only limited to transactional value settlements. It is possible to store information in the Tangle transactions, or if you want, spread larger amounts of information across different bundled or linked transactions. To make a transaction in the Tangle two previous transactions must be valid.
How is IOTA useful?
- IOTA solves the inefficiencies of Blockchain
- It is a scalable, feeless and secure transaction settlement layer
- Empowers both humans and machines to participate in flourishing new economies (Machine Economy)
- Synchronizing ledgers of data and money in secure, distributed, decentralized and permissionless environments.
- No need for trusted third-parties
- Iota is efficient and innovative