IOTA is an open source project, which is different from traditional blockchain. It utilizes a system called the Tangle to solve some of the problems of traditional blockchains. The goal is to build a technology for IoT and machine-to-machine communications that enables devices to interact directly, verify and record transactions without the need for intermediaries or fees. #IOTA

IOTA’s main slogan is “Enabling the true IoT through the Machine Economy”.

As the Internet of Things becomes increasingly mature, many companies have invested in it. The team developed the innovative Tangle network using distributed ledger technology, aiming to build a decentralized world. Tangle is a decentralized network system developed based on Directed Acyclic Graph (DAG) technology. It is different from blockchain because there is no concept of chains, blocks or miners.

By leveraging the features of the Tangle system, many existing blockchain problems can be solved. For example, Tangle can accommodate large numbers of users without paying transaction fees and confirm transactions faster as the number of transactions increases. Therefore, it surpasses existing blockchain technologies in terms of throughput and scalability. In the future world of the Internet of Things, transactions between machines (M2M) will play an important role. IOTA is positioned as a wallet for exchanging information between machines, suitable for data exchange, data anchoring, micropayments, smart grids, and infrastructure. , supply chain transportation and smart cities and other fields.

It is worth mentioning that IOTA has cooperated with many well-known enterprises to jointly build a secure and fast information exchange space and experiment with the application of this technology on the Internet of Things. Partners include more than 20 companies including Bosch, Microsoft, Fujitsu, Samsung, and Volkswagen, and have also signed a memorandum of cooperation with the Taipei City Government team to jointly promote the development of smart cities.

How IOTA solves problems

With the rise of the Internet of Things, payment and resource exchange are not limited to humans. Machine-to-machine (M2M) can also trade each other's information and price it in proportion. Therefore, the core goal of IOTA is to become a wallet between machines in the Internet of Things. The method to achieve this goal is distributed ledger technology, namely Tangle. The Tangle is like a circulating digital currency, and the ledger that records all transactions is also called the Tangle.

Scalability

When transaction volume and the number of users continue to increase, traditional blockchain frameworks find it difficult to keep up with demand, resulting in transaction speeds slowing down, handling fees rising, and even network crashes. However, under the Tangle architecture, as the number of users increases, the transaction network will not only be more stable and secure, but the transaction speed will also become faster and faster, which is inversely proportional to the throughput of existing blockchain technology. This is due to Tangle's use of Directed Acyclic Graph (DAG) technology instead of chain structure and the technology of regularly adding blocks, allowing its throughput to grow rapidly.

Zero transaction fees

In traditional blockchain technology, transactions need to be verified and included in blocks, so transaction fees are inevitable. But under the Tangle architecture, there is no concept of miners, and every user can initiate and verify transactions, so zero transaction fees can be achieved in the IOTA world. Since there are no handling fees, IOTA focuses on micropayment and other uses, encouraging more frequent and efficient information exchange between machines.

Decentralization

Distributed ledger technology is very important in the world of the Internet of Things, using its decentralized characteristics to achieve anti-counterfeiting and traceability of information stored in machines. For example, Volkswagen plans to use IOTA technology for future vehicle data storage and encryption, including driving area positioning, driving mileage, usage and maintenance status and other information. When these data cannot be tampered with, the fairness of used car sales will be better protected.

IOTA token features

MIOTA is the only token name of IOTA. In the online world of Tangle, MIOTA is the only medium of exchange. In the architecture of the Internet of Things, decentralized autonomous transactions between machines are very frequent (transactions do not need to be authenticated by a central agency), such as car charging, refueling, parking payment and other scenarios, as well as valuable information and data transactions between machines. In all cases where payment is required, only MIOTA can be used as a medium of exchange.

Core figures of the IOTA team

IOTA was founded in 2015 by four core figures, including David Sønstebø, Sergey Ivancheglo, Dominik Schiener and Serguei Popov. Almost all of these four founders have technical skills, which is very important for a team that wants to pioneer new technologies. In addition, IOTA has also invited experienced experts in various fields to join the advisory team to provide them with strong support. For example, Dr. Jiang Hongquan is one of the venture capital partners of Bosch in Germany. Their investment projects cover the Internet of Things, artificial intelligence, augmented reality and other fields. What are the specific issues that IOTA is interested in in the fields of Internet of Things and Industry 4.0?

The United Nations signed a memorandum of cooperation with IOTA in May 2018, aiming to use distributed ledger technology to improve the efficiency and transparency of the United Nations' organizational work. Through this collaboration, the United Nations hopes to be able to track and manage document processing and transaction payments in real time, and improve the efficiency of the supply chain.

DNB, Norway's largest financial services group, also signed a memorandum of cooperation with IOTA in May 2018. DNB has been studying the feasibility of applying distributed ledger technology in the commercial field, and this cooperation is expected to achieve this goal.

Lasse Meholm, head of distributed ledger technology at DNB, said: “The Internet of Things (IoT), machine information exchange (M2M) and micropayment services are leading the future trends, and we believe that only by leveraging distributed ledger technology like IOTA can DNB Gain more valuable development in future revenue and business models, and gain more core technical expertise.”

Related news about IOTA:

DNB, Norway’s largest financial group, has partnered with the IOTA Foundation to jointly explore blockchain applications.

Taipei City and IOTA signed a memorandum of cooperation to promote the digital citizen card project and ride the wave of blockchain.

The United Nations partners with IOTA to accelerate the development of blockchain initiatives.