What is IOTA? How It Works & Where to Use It

Overview

IOTA at a glance.

IOTA uses the Tangle, a directed-acyclic-graph structure rather than a chain of blocks, originally designed for feeless Internet-of-Things payments with no miners. The network has been restructuring toward a more formal Layer 1. Here is how it works and how it is used, not the price.

Total value locked (DeFi)

n/a

Value locked in DeFi protocols on IOTA. Updated Jun 2, 2026. Source: DefiLlama.

Native token

IOTA

Used for fees and securing the network. See the live IOTA price.

How it works

How IOTA works.

Instead of a linear chain of blocks produced by miners, IOTA records transactions in the Tangle, a directed acyclic graph where transactions reference earlier ones. The original design aimed to be feeless and suited to many small machine-to-machine payments. The network has been moving toward a more structured Layer 1 known as IOTA Rebased, using a Move-based smart-contract model.

Consensus: Tangle (DAG-based)

Instead of a linear chain of blocks produced by miners, IOTA records transactions in the Tangle, a directed acyclic graph where transactions reference earlier ones. The original design aimed to be feeless and suited to many small machine-to-machine payments. The network has been moving toward a more structured Layer 1 known as IOTA Rebased, using a Move-based smart-contract model.

The Tangle

IOTA stores transactions in a directed acyclic graph where each transaction references earlier ones, rather than in sequential blocks.

Feeless design

The original IOTA design aimed for feeless transactions, making it suited to many small payments.

Machine-to-machine

IOTA was built with Internet-of-Things and machine-to-machine payments in mind, where devices transact directly.

Move toward a structured L1

With IOTA Rebased, the network is restructuring toward a more formal Layer 1 using a Move-based smart-contract model.

Ecosystem & usage

What IOTA is used for.

IOTA is used for data integrity and payments in machine and Internet-of-Things settings, and is expanding toward smart contracts.

Machine payments

Small, direct payments between connected devices.

Data integrity

Recording sensor and device data on the Tangle.

Smart contracts

Programmable applications under the Move-based model in IOTA Rebased.

In the Zypto App

Hold, swap and spend IOTA.

IOTA is integrated in the Zypto App. Hold IOTA in self-custody, swap it to any supported asset, and use it across Zypto’s features.

Hold IOTA in Zypto How to buy IOTA

Be the reason IOTA ships next.

IOTA isn’t in the Zypto App yet. Post the request to your followers, chains with the most demand get prioritised.

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FAQ

Common questions.

What is the Tangle?

The Tangle is IOTA directed-acyclic-graph structure, where transactions reference earlier ones instead of forming a linear chain of blocks.

Is IOTA feeless?

The original IOTA design aimed to be feeless and miner-free, suited to many small machine-to-machine payments.

What is IOTA Rebased?

IOTA Rebased is the network move toward a more formal Layer 1 using a Move-based smart-contract model.

Can I hold IOTA in the Zypto App?

Not yet. IOTA isn't in the Zypto App at the moment. You can hold it in any self-custodial wallet, and you can ask us to add IOTA using the "Request IOTA" button above.

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