IOTA (MIOTA) is a cryptocurrency which operates on a networked distributed ledger as opposed to a traditional, sequential blockchain. The IOTA network does not consist of transactions grouped together in a sequential blockchain, but instead uses a directed acyclic graph (DAG) structure, which IOTA calls the Tangle.
In the Tangle, no monetary rewards are required for transaction verifications – each new user performs some basic computational work to verify two previous transactions. In doing so, they allow their own transaction to be verified by another user in the Tangle. This system of paying-it-forward creates equality between IOTA users, without requiring a hierarchy of responsibilities within the network.
The IOTA project launched in 2015 under the stewardship of Sergui Popov, Sergey Ivancheglo, David Sonstebo and Dominik Schiener. In 2017, German electrics and engineering firm, Bosch, invested in the IOTA project and took a seat on the board. In 2018, car company Volkswagen announced a partnership with IOTA, with plans to use the technology in their everyday business.