Last Updated: March 2026
IOTA is a distributed ledger designed for the Internet of Things (IoT) — enabling feeless microtransactions between connected devices. Unlike traditional blockchains, IOTA uses a directed acyclic graph (DAG) called the “Tangle.”
History and Founders
Founded by David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov in 2015. Based in Berlin with the IOTA Foundation managing development. IOTA raised funds through an ICO and has focused on IoT and enterprise partnerships. The project has undergone significant leadership changes and technical pivots.
How IOTA Works
Instead of a blockchain (linear chain of blocks), IOTA uses the Tangle — a DAG where each transaction confirms two previous transactions. This design eliminates miners/validators, enables feeless transactions, and theoretically scales with more usage. IOTA 2.0 (Shimmer network) introduces full decentralization and smart contracts. See blockchain guide.
Tokenomics
Supply: ~4.6B MIOTA (fixed, no inflation). No fees: Transactions are free — unique among major cryptos. See tokenomics guide.
Use Cases
- IoT micropayments: Machines paying machines (autonomous vehicles, smart cities)
- Supply chain: Tracking goods with immutable data
- Digital identity: Decentralized identity for IoT devices
- Data marketplace: Selling and buying IoT sensor data
Pros and Cons
- Pro: Zero transaction fees
- Pro: Designed specifically for IoT (unique niche)
- Pro: Fixed supply, no inflation
- Con: Technical challenges — full decentralization took years longer than planned
- Con: Smaller ecosystem than major L1s
- Con: Leadership controversy and founder departures
- Con: IoT use case hasn’t materialized at scale yet
How to Buy IOTA
Available on Binance, Bitfinex, and some other exchanges. Less widely listed than top-20 coins. See exchange guide.
Frequently Asked Questions
Is IOTA a good investment?
IOTA is a niche bet on IoT blockchain adoption. The zero-fee design is compelling but adoption has been slow. Higher risk than major L1s. See altcoin guide.
Is IOTA feeless?
Yes — IOTA has zero transaction fees, unique among major cryptocurrencies. Ideal for IoT micropayments.
How is IOTA different from blockchain?
IOTA uses a Tangle (DAG), not a blockchain. Transactions confirm each other rather than being grouped into blocks.
