In this paper we analyze the mathematical foundations of IOTA, a cryptocurrency for the Internet-of-Things (IoT) industry. The main feature of this novel cryptocurrency is the tangle, a directed acyclic graph (DAG) for storing transactions. The tangle naturally succeeds the blockchain as its next evolutionary step, and offers features that are required to establish a machine-to-machine micropayment system.
The IOTA protocol is a Distributed Ledger Technology developed by the IOTA Foundation. It is a next-generation technology designed from the ground up to be the data and value transfer layer for the Machine Economy.