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IOTA

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LAST UPDATED:
February 17, 2026
IOTA is an open-source Layer 1 distributed ledger designed to serve as public digital infrastructure connecting global economies onchain.

Built on a Directed Acyclic Graph architecture and integrating the Move Virtual Machine, IOTA enables smart contracts, digital assets, and digital identity to operate directly at the base protocol level.

IOTA is already deployed in live, real-world environments, with a strategic focus on digital trade and supply-chain infrastructure. Through collaborations with governments, global institutions, and industry partners, IOTA supports initiatives spanning digitalized trade documentation, digital product passports, identity, and cross-border asset flows.

A flagship implementation is the Trade Worldwide Information Network (TWIN), which embeds IOTA technology into national and cross-border trade systems, enabling shared, verifiable data exchange and coordinated processes across complex networks of public and private actors.

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Background

Founded in 2015, the IOTA Foundation has consistently focused on real-world adoption and deployment beyond purely speculative use cases. With more than ten years of continuous development and implementation, it is one of the longest-running and most experienced projects in the Web3 space.

Launch

IOTA launched on 17 July 2016.

How does it work?

IOTA operates as a Layer 1 DLT secured through a delegated proof-of-stake consensus mechanism.

  • Up to 100 validators secure the network through community staking and delegation
  • The $IOTA token is used for network participation, staking, and validator rewards
  • All onchain activity requires $IOTA to be paid and burned as fees
  • Refundable storage deposits lock tokens while digital assets exist, returning them when deleted
  • Sponsored transactions allow application providers to abstract fees from end users

This design enables scalable throughput, sub-second finality, and cost management mechanisms suited for regulated, institutional, and trade-focused deployments.

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