IOTA (Distributed Ledger Technology)


IOTA is a distributed ledger technology designed specifically for the Internet of Things (IoT) to facilitate secure, feeless, and scalable data and value transactions. Unlike traditional blockchain, it uses a directed acyclic graph (DAG) structure called the Tangle, which enables faster transaction processing and greater scalability. This open-source platform aims to provide a decentralized, energy-efficient, and permissionless ecosystem for IoT devices and applications.


The phonetic pronunciation of the keyword “IOTA” related to Distributed Ledger Technology is: /ʌɪˈoʊtə/ or “eye-OH-tuh.”

Key Takeaways

  1. IOTA is a distributed ledger technology specifically designed for the Internet of Things (IoT) ecosystem, providing feeless and highly scalable transactions among connected devices.
  2. Its innovative Tangle technology, which works as a directed acyclic graph (DAG), enables faster transaction processing time and secure data transfer, differentiating it from traditional blockchain-based systems.
  3. IOTA addresses real-world use cases, such as data marketplace, smart cities, and supply chain management, partnering with a variety of industries to facilitate trusted and efficient machine-to-machine (M2M) communication.


IOTA (Distributed Ledger Technology) is an important technological innovation because it provides a scalable, energy-efficient, and feeless solution for secure data transfer and transactions in the Internet of Things (IoT) ecosystem.

By utilizing a unique distributed ledger called “Tangle,” IOTA offers several key benefits over traditional blockchain technologies, such as parallel transaction validation, increased network speed, and greater decentralization.

This enhanced data integrity and security enable a more trustless and streamlined exchange of information, creating new opportunities for data-driven industries, smart cities, and real-time communication in interconnected environments.

Moreover, IOTA’s potential to facilitate micro-transactions and machine-to-machine communications significantly contributes to the development of a secure and efficient digital economy.


IOTA is a distributed ledger technology (DLT) specifically designed to facilitate secure transactions and communication between various interconnected devices in the Internet of Things (IoT) ecosystem. While traditional blockchain-based technologies focus primarily on providing solutions for financial transactions, IOTA expands this purpose to support transactions and secure data sharing between IoT devices.

The main idea is to reduce costs and increase the efficiency of these devices, leading to a more decentralized IoT ecosystem. The IOTA network relies on a unique architecture, known as the Tangle, which makes it highly scalable, allowing for real-time transactions with minimal fees—features that are deemed essential for IoT to thrive.

In addition to supporting transactions and data sharing in IoT, IOTA also promises to solve some of the inherent challenges faced by blockchain technologies, such as high transaction fees and scalability issues, by eliminating the need for miners to validate transactions. As more devices join the Tangle-based network, transaction validation becomes faster, reinforcing the system’s security.

Furthermore, IOTA’s data integrity and authentication capabilities have significant potential for applications in industries such as healthcare, supply chain management, and smart cities, where secure and instant data exchange is crucial. These features empower organizations to build innovative solutions that not only enhance their current systems but also pave the way for new possibilities and business models in the IoT landscape.

Examples of IOTA (Distributed Ledger Technology)

IOTA is a distributed ledger technology designed to enable transactions within the growing ecosystem of the Internet of Things (IoT). Here are three real-world examples where IOTA has been implemented:

Mobility and Automotive :In 2019, Jaguar Land Rover, a well-known car manufacturer, collaborated with IOTA to integrate the IOTA Tangle technology into their vehicles. The project, known as “Smart Wallet,” allows car owners to earn IOTA tokens in exchange for sharing their driving and car data with other vehicles or infrastructure services, such as charging stations or smart city systems. As a result, car owners can earn IOTA tokens for their data or use the tokens to pay for parking, electric vehicle charging, or even coffee.

Smart Energy and E-Mobility:In 2018, IOTA partnered with Energine, a Dutch smart energy solution provider, to develop a decentralized e-mobility ecosystem. This demonstrates the efficient use of multiple renewable energy resources to power an e-vehicle and its charging station. Energine uses IOTA to create a secure, transparent, and decentralized data-sharing platform, which ultimately enables streamlined energy provision and consumption for e-vehicle users and charging stations.

Smart Cities and Waste Management:In the city of Taipei in Taiwan, IOTA has collaborated with startup company TWO IoT and the Taipei City Government to create an intelligent waste management system using the IOTA Tangle technology and IoT sensors. This project leverages IOTA’s rapid, feeless transactions to collect real-time data on garbage trucks’ locations, fullness sensors in smart waste bins, and other related aspects, ensuring efficient waste collection and deployment. This experiment contributes to Taipei’s vision of becoming a global leader in smart-city technologies and sustainability.

FAQ: IOTA (Distributed Ledger Technology)

What is IOTA?

IOTA is an open-source distributed ledger technology (DLT) designed to enable secure data and value transfer between Internet of Things (IoT) devices. Unlike traditional blockchains, IOTA utilizes a directed acyclic graph (DAG) called the Tangle to achieve scalability, fast transactions, and zero-fee transactions for micropayments.

How does IOTA differ from other blockchain technologies?

IOTA’s primary difference from other blockchain technologies is its unique underlying infrastructure, the Tangle. The Tangle enables IOTA to offer faster transaction speeds and better scalability compared to traditional blockchain systems. In addition, IOTA has zero-fee transactions, which allows for cost-efficient micropayments, making it suitable for IoT applications.

What is the Tangle and how does it work?

The Tangle is a directed acyclic graph (DAG) that serves as IOTA’s underlying data structure. In the Tangle, each transaction is represented as a vertex and is connected to two previous transactions. To issue a new transaction, a user must validate and approve two unconfirmed transactions. This structure enables parallel transaction processing, which can increase transaction speed and network scalability as more users join the network.

What are use cases for IOTA?

IOTA is designed for applications within the Internet of Things (IoT) ecosystem, such as data integrity, secure communication, and micropayments. Some specific examples of IOTA use cases include supply chain tracking, smart cities, data marketplace, energy trading, and digital identity management.

How can I get IOTA tokens (MIOTA)?

IOTA tokens, also known as MIOTA, can be obtained through various methods, such as purchasing them on cryptocurrency exchanges, participating in mining pools, or receiving them as rewards for participating in the IOTA network. It’s essential to research and choose a reputable platform or method to obtain MIOTA tokens securely.

How do I store my IOTA tokens (MIOTA)?

To store your IOTA tokens (MIOTA), you can use an IOTA-compatible digital wallet, such as the official IOTA wallet, Trinity, or other third-party wallets. When choosing a wallet, consider factors like security, ease of use, and compatibility with your devices.

Related Technology Terms

  • Tangle
  • Internet of Things (IoT)
  • Miota
  • Proof of Work (PoW) Algorithm
  • Directed Acyclic Graph (DAG)

Sources for More Information


About The Authors

The DevX Technology Glossary is reviewed by technology experts and writers from our community. Terms and definitions continue to go under updates to stay relevant and up-to-date. These experts help us maintain the almost 10,000+ technology terms on DevX. Our reviewers have a strong technical background in software development, engineering, and startup businesses. They are experts with real-world experience working in the tech industry and academia.

See our full expert review panel.

These experts include:


About Our Editorial Process

At DevX, we’re dedicated to tech entrepreneurship. Our team closely follows industry shifts, new products, AI breakthroughs, technology trends, and funding announcements. Articles undergo thorough editing to ensure accuracy and clarity, reflecting DevX’s style and supporting entrepreneurs in the tech sphere.

See our full editorial policy.

More Technology Terms

Technology Glossary

Table of Contents