IOTA is one of the 10 largest crypto currencies and offers a block chain-based solution for the management of smart devices. The company focuses on a very unique way and further development of the blockchain technology, which differs significantly from other projects in its architecture.

The company describes itself as the “backbone” of the “New Autonomous Machine Economy”. The key technology is called Tangle-Ledger, Tangle is a direct acyclic graph. The ledger is fed by a series of algorithms that belong to the family of Markov-Chain-Monte-Carlo algorithms. These algorithms each select a binding point on the ledger for a transaction.
The structure and functionality of the Tangle Ledger is very different from Bitcoin, Ethereum, and CO. One of the most striking differences is that the system works completely without blocks. Transactions are confirmed by two higher-level transactions or nodes in the network. This makes the system very scalable and eliminates the need to generate blocks.

Another difference is that the consensus is no longer decoupled, but is an essential part of the system. This leads to a decentralized and self-regulated peer-to-peer network. This allows devices to trade exact amounts of resources on demand, while at the same time data can be securely stored and verified on the ledger.

Tangle Ledger can also be used offline using subtangles. These work offline within their defined environment and are connected to the entire network and updated as soon as an Internet connection is available.

Practical applications of the IOTA Blockchain
– Micro payments
– Secure data transfer
– eGovernance and elections
– masked messaging
– unlimited possibilities for service offerings