Introduction to IOTA
IOTA (pronounced "eye-oh-ta") derives its name from the Greek letter Ι (iota), symbolizing something infinitesimally small—apt for its focus on microtransactions in the Internet of Things (IoT). Founded in 2015 by David Sonstebo, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov, IOTA represents a groundbreaking shift from blockchain to its proprietary Tangle technology.
Key Milestones
- 2015 Crowdfunding: Raised 1,337 BTC (~$500K) during November–December 2015.
- Token Distribution: All IOTA tokens were issued to investors; no mining exists.
- Mainnet Launch: July 11, 2016.
IOTA Tokenomics
Total Supply
IOTA’s fixed supply is 2.8 Peta-IOTA (2,779,530,283,277,761 units), with denominations ranging from i (1 IOTA) to Pi (Peta-IOTA).
| Metric | IOTA | Bitcoin (2140 Projection) |
|---|---|---|
| Total Units | ~2.8 Peta-IOTA | ~2.1 Peta-Satoshis |
| Supply Increase | None (pre-mined) | Gradual mining until 2140 |
👉 Discover how IOTA enables feeless microtransactions
Tangle vs. Blockchain
How Tangle Works
IOTA’s Tangle is a Directed Acyclic Graph (DAG) where each transaction validates two previous ones, eliminating miners and fees.
| Feature | Blockchain | Tangle |
|---|---|---|
| Structure | Linear blocks | Web-like DAG |
| Scalability | Limited by block size | Improves with more users |
| Fees | Transaction fees | Feeless |
Core Advantages of IOTA
- Quantum Resistance: Uses Winternitz One-Time Signature (WOTS) for post-quantum security.
- Microtransaction Ready: Send as little as 1 IOTA without fees.
- Machine Economy: Enables autonomous M2M (Machine-to-Machine) payments.
Real-World Applications
1. Smart Charging Stations
Electric vehicles (EVs) with IOTA wallets automatically pay charging stations upon fueling. Example:
- Accessec GmbH’s prototype uses MIOTA for EV charging, maintenance, and insurance.
2. IoT Data Marketplace
Purchase real-time sensor data (e.g., 10,000 air-quality devices) via data.iota.org.
👉 Explore IOTA’s IoT solutions
FAQs
Q: How is IOTA different from Bitcoin?
A: Unlike Bitcoin’s blockchain, IOTA uses Tangle—a fee-free, scalable DAG optimized for IoT.
Q: Is IOTA secure against quantum attacks?
A: Yes, its WOTS algorithm is designed to resist quantum computing threats.
Q: Can IOTA be mined?
A: No. All 2.8 Peta-IOTA were pre-distributed during the 2015 crowdfunding.
Q: What’s the smallest IOTA unit?
A: 1 i (IOTA), enabling true micropayments.
Conclusion
IOTA redefines decentralized transactions with its feeless, scalable, and quantum-resistant Tangle architecture. From EV charging to data markets, its applications are paving the way for a machine-driven economy.
For developers: Dive into the IOTA Whitepaper to explore its technical depth.