IOTA is a cryptocurrency that does not use blockchain technology. Instead, IOTA uses a new type of distributed ledger technology called "Tangle".
The first mention of IOTA on Bitcointalk was in November 2015. Later, on December 2015, the first public release was made and the token distribution event took place.
IOTA has no transaction fees and it is fast and scalable because of its Tangle technology.
IOTA is currently a centralized project. However, work in ongoing on the part of the team behind IOTA to make sure the project becomes decetralized.
These two changes can be found in the two different versions of IOTA
- IOTA 1.5, or Chrysalis
- IOTA 2.0, or Coordicide
IOTA 1.5, or Chrysalis, is an upgrade to the IOTA network that will bring about a new consensus mechanism called Coordicide. This new system will replace the old one, which is known as Proof of Work (POW).
Coordicide will be a radical change in how IOTA operates. It removes the need for miners and instead relies on a system where each participant has their own node and acts as both a transaction validator and coordinator.
IOTA Tangle
The IOTA Tangle is a new type of DLT protocol that is based on a Directed Acyclic Graph. It has no blocks, no chains, and no miners. In the IOTA Tangle, every transaction is valid as soon as it is verified by a node.
IOTA is one of the most promising cryptocurrencies in the market today because it offers scalability and feeless transactions.