What is IOTA (IOTA)?

Deep Dive

1. Purpose & Value Proposition

IOTA aims to solve inefficiencies in global trade and IoT ecosystems. Its Trade Worldwide Information Network (TWIN) digitizes supply chains, enabling real-time data sharing between IoT devices and reducing cross-border trade costs by up to 80% (CoinMarketCap). The protocol focuses on trustless automation, such as micropayments for EV charging or verifying cargo conditions.

2. Technology & Architecture

IOTA uses the Tangle—a Directed Acyclic Graph (DAG)—to replace blockchain. This allows:
- Feeless transactions: No miners; users validate two prior transactions.
- High throughput: >50,000 transactions/second (vs. Bitcoin’s ~7).
- Energy efficiency: Lightweight consensus suits IoT devices.
The 2025 Rebased upgrade introduced Move-based smart contracts and Delegated Proof-of-Stake (DPoS) for decentralized validation by 150+ nodes (Crypto.News).

3. Key Differentiators

• Regulatory alignment: Integrated compliance tools (AML/KYC via Lukka) for enterprise adoption.
• Real-world partnerships: Collaborations with the World Economic Forum, Abu Dhabi’s ADGM, and TradeMark Africa.
• Tokenized assets: Enables RWA-Fi (real-world asset DeFi) for trade finance and Islamic banking.

Conclusion

IOTA combines scalable infrastructure with a governance model tailored for institutional use cases, positioning itself as a bridge between Web3 and global trade. How might its focus on regulatory compliance and IoT interoperability shape the future of decentralized systems?