The IOTA Tangle is a type of distributed ledger technology (DLT) that is specially designed to enhance and advance the Internet of Things (IoT) ecosystem. The IOTA technology introduces a new type of DLT which differs from the traditional blockchain standard. It was created by the IOTA Foundation to support the advancement and adoption of new DLTs, including the Tangle.

The challenges from using existing blockchain systems for processing transactions which led to loss of some funds led to the creation of virtual currency alternatives that could help solve the issue. IOTA Tangle was created to enable the processing of micro-transactions without fees for the growing ecosystem of IoT devices.

IoT devices are network-enabled devices, including products such as smart appliances, home security systems, computer peripherals, wearable technology, routers, and smart speaker devices that have Wi-Fi connections, Bluetooth connections, or near-field communication (NFC).

Tangle was created to provide high scalability, no fees, and near-instant transfers within the IoT ecosystem.

Tangle uses a proof-of-work (PoW) system for verifying transactions on a distributed ledger. Tangle’s PoW system is similar to the one used by bitcoin, but it uses less energy and takes less time than Bitcoin’s PoW system.

The interconnectedness of Tangle’s architecture doesn’t require complete verification across the ledger. Rather, all parties verify transactions simultaneously and, as a result, the energy and time required to complete transactions are reduced.

Tangle Scalability

One of the most constant arguments in support of using IOTA’s tangle, rather than a blockchain, relates to the issue of scalability.

It is commonly known that blockchain has a long way to go when it comes to scalability. However, large resources are already being spent on solving the problem of blockchain scalability. These solutions are already in use or development, such as the Lightning Network and Sharding.

With IOTA Tangle, there is a higher level of scalability for transactions. The interconnectedness of the Tangle is one of the reasons it is so successful in usage for large-scale scenarios.

As new Tangle verifications go on to approve or verify, previous ones and the more users are on the Tangle network, the more secure it becomes.