Questions » What is the IOTA network?

What is the IOTA network?

The IOTA network is a decentralized, open-source distributed ledger technology (DLT) designed to facilitate secure and feeless transactions between devices on the Internet of Things (IoT). IOTA stands for “Internet of Things Application” and is built on a unique protocol called the Tangle.

Unlike traditional blockchain-based cryptocurrencies, which rely on miners to validate transactions and secure the network, the IOTA network uses a different approach called “Directed Acyclic Graphs” (DAGs), where each new transaction confirms two previous transactions. This allows the network to scale more efficiently and eliminates the need for transaction fees.

The IOTA network is designed to support microtransactions between IoT devices and has a range of potential applications, including machine-to-machine payments, supply chain management, and data marketplaces. The network also offers several unique features, such as quantum-resistant cryptography, fast confirmation times, and the ability to send transactions without an internet connection.

IOTA’s native cryptocurrency is called MIOTA and is used to facilitate transactions on the network. The supply of MIOTA is fixed at 2.78 billion, and the cryptocurrency can be bought and sold on several major cryptocurrency exchanges.