IOTA

IOTA is a Layer 1 network originally launched in 2016 with an unconventional architecture based on a directed acyclic graph rather than a linear chain of blocks. It was designed with machine-to-machine payments and Internet of Things use cases in mind, and it has since undergone substantial redesign.

How IOTA works

IOTA's data structure allows transactions to reference multiple previous transactions, forming a graph rather than a single sequence of blocks. In the network's current form this architecture is combined with the Move virtual machine, the smart contract environment originally developed for the Diem project and now used by several networks. This gives IOTA programmability for smart contracts, digital assets, and digital identity directly on the Layer 1, where earlier versions of the network had limited contract functionality. The design supports parallel transaction processing, low fees, and application-level fee sponsorship, which lets an application pay transaction costs on behalf of its users.

IOTA has no fixed maximum supply in the available data. Total supply is approximately 4.96 billion tokens with around 4.59 billion in circulation. The network uses proof of stake for consensus and also operates an EVM-compatible environment alongside the Move-based Layer 1.

Role in the ecosystem

IOTA's original niche was feeless machine payments for connected devices, and the project retains a focus on real-world infrastructure, digital identity, and supply chain applications. It has worked with public sector and industrial partners in Europe and the Middle East on identity and trade documentation pilots. The move to the Move virtual machine placed it in the same technical family as Sui and Aptos, which broadens the developer tooling available to it.