IOTA was built to power the future of the Internet-of-Things (IoT), a term used to describe the myriad of interconnected objects capable of connecting to the internet — ranging from smartphones to washing machines and light bulbs.

Unlike other cryptocurrencies, IOTA is built on tangle, which is based on a directed acyclic graph (DAG). This enables it to tackle the problem of scalability from the ground up by doing away with wasteful miners and expensive transaction fees — allowing the huge droves of IoT devices to communicate with the network without burning resources.

IOTA differs significantly from other blockchains in that transactions do not need to be confirmed by most of the network. Instead, a centralized node known as a coordinator is used to confirm transactions while each tangle user assists with the validation process. This system allows IOTA to confirm more than 90 percent of transactions in under a minute.