IOTA overview using the Feynman Technique
This post is one of a series of posts I am writing where I try to apply the Feynman Technique to a number of different crypto token projects. You can find the rest here. None of this should be taken as investment advice. They are just meant to be simple introductions to the projects.
IOTA is a platform designed for Internet of Things (IoT) devices. It allows IoT devices to transact and communicate between each other.
IOTA uses new software technology to enable free and fast transactions between devices. That means any device connected to the internet and using the IOTA platform can transact with all other devices on the IOTA platform. An example of this would be your electric car paying some amount to the traffic light you’re stopped at to turn green because you are in a hurry. Or your WiFi router charging a guest in your house’s phone for the internet it uses while they are there.
The IOTA platform also makes it easy to transfer data between devices, including messages. This could be information about the environment that a devices is in or information about its status like whether or not it needs service.
One difference between an open network like Bitcoin and IOTA is that IOTA requires a Coordinator to protect it from different kinds of attacks. The Coordinator is run by the IOTA Foundation.