IOTA is an open-source distributed ledger that facilitates secure and efficient transactions without relying on traditional blockchain networks. MIOTA serves as its native token.
The IOTA network was developed in response to recognized limitations in blockchain technology, particularly its inability to scale effectively for enterprise-level applications. To overcome these challenges, IOTA adopted a unique architecture known as Tangle—a directed acyclic graph (DAG) structure. Unlike conventional blockchains, Tangle utilizes a parallel system for processing transactions, enabling higher throughput and scalability.
One of the most significant advantages of Tangle is that it eliminates the need for miners or nodes to pre-validate transactions. As a result, the IOTA network operates with greater speed, simplicity, energy efficiency, and scalability compared to traditional blockchain setups.
A distinctive feature of the IOTA ecosystem is its reputation system called MANA, which helps distinguish and prioritize transactions within the Tangle. Native token holders have the option to lease their MANA to contribute to network liquidity. In return, they receive a share of network resources that facilitate transaction enablement.
The revenue model for IOTA token holders is somewhat analogous to staking in a Proof-of-Stake (PoS) system. However, with IOTA, earnings are not subject to devaluation through inflation. Moreover, MANA is entirely free to use—it operates as a resource allocation mechanism that grants owners access to network capabilities.
IOTA and its associated foundation are focused on creating scalable solutions within the Internet of Things (IoT) ecosystem, with applications spanning numerous industries. The network’s high-speed performance supports complex architectures, enabling use cases such as smart city development, digital identity management, and much more.
Understanding MIOTA’s Price and Economic Model
MIOTA has a maximum supply of 2.8 billion tokens. All of these are currently in circulation, making MIOTA a non-inflationary cryptocurrency. It is worth noting that one MIOTA is equivalent to one million IOTA units, similar to how satoshis function in the Bitcoin network.
Historical price charts indicate that MIOTA has experienced considerable industry growth over the past several years. That said, its value is closely tied to the adoption of more complex real-world applications and the expansion of its use cases. 👉 Explore real-time price tracking tools
The Team Behind IOTA
IOTA was established in 2015 by David Sonstebo, Dominik Schiener, Dr. Serguei Popov, and Serge Ivancheglo. Schiener and Sonstebo initially served as co-chairs of the board, while Dr. Popov led the research division of the foundation.
Due to internal disagreements, co-founders David Sonstebo and Sergey Ivancheglo stepped down from the board in 2019. Dr. Serguei Popov later joined the board as a co-founder and member.
Early institutional supporters of IOTA include Earlybird Venture Capital, Outlier Ventures, and Robert Bosch Venture Capital. The project has also established partnerships with major companies such as Dell and Jaguar. Additionally, it receives support from various financial and exchange partners.
Frequently Asked Questions
What is IOTA?
IOTA is a distributed ledger designed to facilitate feeless microtransactions and data integrity for the Internet of Things. It uses a structure called the Tangle instead of a conventional blockchain.
How does IOTA achieve scalability?
IOTA’s Tangle architecture allows parallel transaction processing, which significantly improves scalability and speed compared to linear blockchain designs.
What is MANA in IOTA?
MANA is a reputation and resource allocation mechanism in the IOTA network. Token holders can delegate MANA to earn rewards and contribute to network operations.
Is MIOTA inflationary?
No, MIOTA has a fixed maximum supply of 2.8 billion tokens, all of which are already in circulation, making it a non-inflationary asset.
Who are the founders of IOTA?
IOTA was co-founded by David Sonstebo, Dominik Schiener, Dr. Serguei Popov, and Serge Ivancheglo in 2015.
What are some real-world applications of IOTA?
IOTA is used in digital identity systems, smart city infrastructure, supply chain tracking, and decentralized energy grids, among other applications. 👉 Learn more about advanced blockchain strategies