Basically, IOTA is a cryptocurrency just like Bitcoin, Litecoin or Ethereum. It differs, however, in that it doesn’t employ blockchain technology and that it doesn’t use miners to verify transactions. Instead, IOTA’s protocol uses a system called the Tangle, which means that everyone taking part in the network speeds it up. In theory, this means the more participants, the faster and more secure the network becomes. This makes IOTA ideal for usage in Internet-of-Things (IoT) applications, where scalability, microtransactions and transaction speeds are crucial.
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