IOTA is designed to usher in machine-to-machine payments and data transfer in the Internet-of-Things economy. The new protocol promises to fix the scalability issues that ail blockchain technology with fast, zero-fee, quantum-immune, and secure transactions.

IOTA was founded in 2015, by entrepreneurs David Sønstebø and Dominik Schiener, and mathematicians Sergey Ivancheglo and Serguei Popov. Ivancheglo is also the creator of NXT, a Proof of Stake coin.

In 2017, IOTA opened a German-based non-profit foundation focused on research, development, education, and standardization of the economy of things. The foundation recently added Dr. Rolf Werner, a Fujitsu business executive, while IOTA recently added Porsche to its growing list of partnerships and corporate interests.

Instead of a blockchain, IOTA uses a Directed Acyclic Graph (DAG), or Tangle, as part of its consensus mechanism. Each transaction acts independently and non-chronologically as a single block, which then connects to other blocks.

Each transaction must confirm two previous transactions. Theoretically, more transactions only improve scalability with this model. Read more from…

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