Tangle
Crypto ProtocolTangle is IOTA's original directed-acyclic-graph (DAG) ledger, where each transaction confirmed two previous ones; in May 2025 the IOTA Rebased upgrade replaced it with a Delegated-Proof-of-Stake design.
The Tangle was IOTA's original alternative to a blockchain: instead of grouping transactions into miner- or staker-validated blocks, every new transaction referenced and validated two previous ones, forming a web (DAG) of confirmations rather than a linear chain. That design needed no miners — so IOTA transactions were feeless — but it relied on a central "Coordinator" node for security, which IOTA spent years trying to remove.
In May 2025, IOTA launched "Rebased," a full architectural replacement that retired the original Tangle consensus and the Coordinator. IOTA now runs on Delegated Proof-of-Stake via the Mysticeti protocol (a permissionless validator set) over a Move-based object ledger — the same lineage as Sui. The "Tangle" name now refers to that legacy design rather than IOTA's current consensus.
IOTA remains positioned for machine-to-machine and IoT use, and has published work on embedding structured payment data (including ISO 20022-aligned payloads) in transactions — aiming to carry machine-initiated payment data through the same standards as bank payments.
Crypto Relevance
IOTA targets machine-to-machine and IoT micropayments — historically via the feeless Tangle, and since the May 2025 Rebased upgrade via a faster Move-based, validator-secured network that is staked and no longer feeless — a niche aimed at data-carrying micro-transactions too small to be economical on fee-based chains.
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Join ISO 20022 investorsRelated Terms
IOTA IoT Module
IOTA's designated role in the ISO 20022 cohort is machine-to-machine (IoT) micropayments and tamper-proof data streams, rather than traditional bank payment messaging.
ODL
ODL (On-Demand Liquidity) is Ripple's cross-border payment product that uses XRP as a real-time bridge currency to eliminate pre-funded nostro accounts.
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Last reviewed: 2026-06-14