IOTA is a peer-to-peer distributed ledger protocol and network that uses “Tangle”, a directed acyclic graph (DAG) instead of a uniform and linear blockchain. This is due to the fact that users must validate two other transactions on the network before being able to send their own. As a result, scalability is vastly increased and transaction times are decreased because the entire network grows as more people make use of it. There are no transactions fees. The DAG protocol also means that IOTA is truly decentralized and quantum computing resistant. IOTA also supports the building of other functions on top of itself, thus increasing its potential uses (such as storing data and verifying that the data is genuine). IOTA is the basic unit or token that can be sent over the IOTA network.
IOTA makes every technological resource a potential service to be traded on an open market in real time, with no fees. In this new autonomous Machine Economy IOTA will be the backbone. The Tangle ledger is able to settle transactions with zero fees so devices can trade exact amounts of resources on-demand, as well as store data from sensors and dataloggers.