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IOTA is a cryptocurrency, but that doesn’t tell you much. It’s very different from other forms of digital money like Bitcoin, Ethereum, Ripple, and Dash — it’s designed for the Internet of Things (IoT). Its developers see a future where machines trade resources (electricity, storage, bandwidth, data, etc.) and services with each other using IOTA as payment. So what is IOTA, exactly? How does it work, and what are its advantages over other cryptocurrencies?
IOTA solves many of the problems other cryptocurrencies face. This is because it’s not based on a blockchain but rather on a directed acyclic graph (DAG), referred to as the Tangle.