For every complex problem there is an answer that is clear, simple, and wrong. — H. L. Mencken

The Current System

Imagine Joe is your best friend. He’s traveling overseas and on the fifth day of his vacation he calls you and says: “Dude, I need some money. I’ve completely run out.”

You, being the nice person you are, reply “sending some right away,” and hang up.

IOTA is a decentralized distributed ledger that was designed primarily for the Internet of Things. Unlike other cryptos based on the Blockchain technology, IOTA works on the Tangle Network technology— which is a Directed Acyclic Graph (DAG).

The Tangle Network enables IOTA to work in a faster and smarter way that was not possible with blockchains. In a more connected network, IOTA opens a variety of use cases that cannot be replicated with the blockchain technology.

IOTA is designed to make IoT achieve the next level of networking — think of connected devices with sensor technology, machine to machine communication, smart cities, pay on demand and other IoT concepts which were otherwise not very feasible with blockchains.

What is a DAG and how does Tangle work?

A Directed Acyclic Graph (DAG) is a finite graph wit...