Without a doubt, what stands out the most about IOTA is that it is not a blockchain-based network. Rather, its developers are using what they call "Tangle". The Tangle is a direct acyclic graph (DAG) that requires each new transaction to confirm two previous transactions. As the network grows and more transactions are validated, these validation lines begin to look like a tangle. This is how the developers invented the "Tangle".
There are a number of advantages to relying on the DAG over the blockchain. For example, blockchain-based networks require user votes to generate and validate blocks. These are cases where delays can slow down a network or make it more expensive. With no need for validators, IOTA's network is designed to become more efficient with each passing transaction. On average, payment transactions complete in seconds.
Better yet, the DAG solution ensures that transactions on its network are (drum roll) free! This is a significant competitive advantage over most cryptocurrency networks and existing payment infrastructures.
Equally exciting, IOTA introduced it staking in December 2021, which allows IOTA holders to earn passive income in the form of new tokens. One of these new tokens, Assembly, will offer free smart contract-based transactions when its network launches later this year.
One final reason IOTA is a much smarter purchase than Shiba Inu in March is its real-world use case. In February 2021, IOTA announced a partnership with well-known IT company Dell Technologies (NASDAQ shares - NYSE: DELL). Three years ago, Dell launched its Data Confidence Fabric (DCF), which aimed to trace the journey of data from the edge of the cloud to its destination. IOTA is helping to scale and protect Dell's DCF, as well as record this data's trust rating in its Tangle. This is one of the many reasons why IOTA belonged to your portfolio well before SHIB.
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