How does IOTA work?
IOTA is a distributed ledger technology (DLT) that uses a directed acyclic graph (DAG) instead of a blockchain.
This allows for faster and more efficient transactions, as well as scalability. The IOTA network is powered by its native cryptocurrency, MIOTA. Transactions are validated by the network’s users, who are incentivized to do so with small fees.
This process is known as “Proof of Work” (PoW). To send or receive MIOTA, users must first create an address on the IOTA network. This address is used to store and transfer MIOTA tokens.
All transactions are recorded on the Tangle, which is a public ledger that stores all past and present transactions on the IOTA network. The Tangle is secured by a consensus mechanism called “The Coordinator” which ensures that all transactions are valid and prevents double spending. The Coordinator also helps prevent malicious actors from taking control of the network by verifying each transaction before it is added to the Tangle.
IOTA also has its own distributed ledger technology called “the Masked Authenticated Messaging” (MAM). MAM allows users to securely send messages over the IOTA network without revealing their identity or content of their message. This makes it ideal for secure data sharing and communication between devices on the IOTA network.
