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What Is a Token Generation Event (TGE) in Crypto?
kenson
November 7, 2025
IOTA
IOTA
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IOTA is a distributed ledger technology designed to enable secure, feeless, and scalable data and value transfer for the Internet of Things (IoT) ecosystem. Unlike traditional blockchain platforms, IOTA uses a unique architecture called the Tangle—a directed acyclic graph (DAG)—which removes the need for miners or blocks and allows for faster, lightweight transactions.
At its core, IOTA aims to be the backbone for machine-to-machine communication and microtransactions, enabling smart devices to interact and transact autonomously in a decentralized manner. By eliminating transaction fees and enabling infinite scalability, IOTA is well-suited for the emerging data economy where billions of devices communicate constantly.
The native token, MIOTA, is used to transfer value on the network, incentivize participation, and secure the network through a unique consensus mechanism embedded in the Tangle’s structure.
IOTA was founded in 2015 by David Sønstebø, Sergey Ivancheglo, Dominik Schiener, and Serguei Popov—experts in distributed systems, cryptography, and IoT. The project is managed by the IOTA Foundation, a nonprofit organisation committed to driving adoption and development.
IOTA’s mission is to enable a decentralized and trustless data and value exchange layer for the Internet of Things. The goal is to create an infrastructure where connected devices can operate autonomously, exchanging resources and services without centralized intermediaries, lowering costs and opening new economic possibilities.
IOTA’s uniqueness lies in its Tangle architecture and focus on the Internet of Things:
Coordicide: IOTA is transitioning to a fully decentralized network by removing its Coordinator node, a temporary mechanism that currently helps secure the network but introduces centralization risk. This upgrade will allow complete decentralization and improved scalability.
IOTA tackles several core challenges in IoT and distributed ledgers:
Masked Authenticated Messaging (MAM): A protocol for encrypted, verifiable data streams on the Tangle, ideal for IoT telemetry and supply chains.
IOTA’s architecture centers around the Tangle—a directed acyclic graph where each transaction approves two previous transactions, creating a web of interlinked validations rather than a linear chain.
Key technical components include:
IOTA’s smart contracts run on scalable layer-2 chains rather than directly on the Tangle. This design provides:
This approach enables developers to build complex decentralized applications suitable for IoT and beyond.
IOTA’s Tangle grows in throughput as more transactions are added, since each transaction validates two others, creating a self-scaling system. Unlike blockchains, there are no blocks or miners causing bottlenecks.
Additional scaling is provided by:
As a result, IOTA is capable of supporting billions of microtransactions per second, ideal for large-scale IoT networks.
IOTA’s consensus is embedded in the structure of the Tangle itself. Each transaction validates two previous transactions, building a web of approvals. The network achieves consensus through:
This design achieves decentralization, security, and speed without proof-of-work mining.
IOTA is developing interoperability solutions that enable interaction with Ethereum and other blockchains. Through bridges and cross-chain protocols, IOTA users and developers will be able to:
Additionally, IOTA’s layer-2 smart contract chains are designed to be compatible with Ethereum Virtual Machine (EVM), easing developer onboarding and expanding cross-chain use cases.
IOTA’s data-centric approach naturally supports AI applications:
This combination opens the door for decentralized AI ecosystems powered by reliable data flows and autonomous economics.
Decentralized identity is a fundamental pillar of IOTA’s ecosystem. The IOTA DID framework provides:
This enables secure, private, and interoperable identity management for humans and machines alike.
Shimmer is IOTA’s staging and innovation network — similar to how Kusama supports Polkadot. It serves as a testbed for experimental features, including smart contracts, staking, and tokenization, before they’re deployed to the IOTA mainnet. Shimmer introduces native assets (custom tokens) and decentralized applications, making it a crucial component in IOTA’s long-term roadmap.
Yes. IOTA introduced staking capabilities through Shimmer, where users can stake IOTA tokens to earn rewards in newly launched network tokens like SMR or ASMB (Assembly). While IOTA doesn’t use traditional Proof-of-Stake, it does incentivize token holders to participate in new network layers and ecosystem growth.
Coordicide is the planned upgrade that will eliminate the Coordinator, a centralized node currently used to secure the IOTA network. Removing this will make IOTA fully decentralized. Coordicide introduces Mana (a reputation system), Fast Probabilistic Consensus, and network sharding — all key to achieving permissionless scalability and trustless operation.
Mana is a reputation-based resource mechanism introduced as part of Coordicide. It’s not a token, but rather a non-tradeable metric assigned to nodes based on token ownership and participation. Mana plays a role in spam protection, access control, and Sybil resistance, allowing IOTA to remain secure without Proof-of-Work or staking.
Without miners or gas fees, IOTA uses several layers of protection:
The primary wallet is Firefly, a secure, open-source wallet developed by the IOTA Foundation. It supports:
IOTA’s total supply is fixed at2,779,530,283 MIOTA(i.e., nearly 2.78 billion tokens). There is no inflation or mining. This fixed supply ensures predictability and long-term economic stability. New networks like Shimmer and Assembly may introduce additional tokens, but IOTA’s main supply remains constant.
Transactions in IOTA are immutably anchored on the Tangle once confirmed. For extra integrity, IOTA supports zero-value transactions for logging data — ideal for supply chains and audit trails. Advanced use cases include:
Audit logs for device actions
Proof of data existence
Cryptographic hashing to link large off-chain files
Secure IoT telemetry for regulators or insurers
Think of it as:
→ IOTA = foundation
→ Shimmer = experimental launchpad
→ Assembly = dApp and smart contract scaling layer
Businesses, especially those involved in IoT, can benefit from IOTA’s fast, feeless, and scalable network to automate processes, track assets, and facilitate secure data sharing. Industries such as supply chain management, smart cities, and automotive sectors can leverage IOTA to enhance transparency, reduce costs, and improve operational efficiency.
IOTA achieves security via:
IOTA participates in several high-level regulatory and standardisation bodies:
This positions IOTA as a trusted enterprise and government-grade platform, beyond just cryptocurrency.
IOTA’s DAG structure (the Tangle) is inherently scalable because:
IOTA’s design focuses on enabling feeless and rapid transactions, which makes it particularly appealing for microtransactions, especially in the Internet of Things (IoT) ecosystem where devices frequently exchange small amounts of data or value.
However, at present, IOTA is not primarily intended for everyday consumer payments like buying coffee or groceries. Its main strength lies in facilitating machine-to-machine communication and payments without the burden of transaction fees.
That said, as the technology matures and adoption grows, there is potential for IOTA to expand into more common payment use cases, possibly offering a seamless and cost-effective alternative to traditional payment networks.
Despite its innovative design and promising technology, IOTA faces several challenges. One significant hurdle is achieving wider adoption beyond niche IoT applications, as the ecosystem is still relatively young compared to more established cryptocurrencies.
Network maturity is another concern—ensuring consistent performance and stability under increased loads is crucial for mass adoption. Additionally, IOTA competes with other blockchain and distributed ledger technologies that offer different strengths, which means it must continue to innovate and improve user experience.
Technical challenges such as simplifying the onboarding process for developers and users, enhancing security, and ensuring compatibility with existing systems are areas the IOTA Foundation is actively working on.
You can follow IOTA’s latest updates and developments through several official channels:
IOTA offers a unique approach to distributed ledger technology that goes beyond the limitations of traditional blockchains. By enabling fast, feeless, and scalable transactions, it positions itself as a leading solution for the emerging Internet of Things industry and beyond. For anyone interested in the future of digital transactions and connected devices, keeping an eye on IOTA is a smart move.
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