Tangle
Crypto ProtocolTangle is IOTA's directed acyclic graph (DAG) ledger where every transaction confirms two previous transactions, enabling zero-fee microtransactions at scale.
The Tangle is IOTA's alternative to a traditional blockchain. Instead of transactions being grouped into blocks and validated by miners or stakers, every new transaction in the Tangle must reference and validate two previous transactions. This creates a web (DAG) of interdependent confirmations rather than a linear chain.
The result is that there are no miners to pay fees to — the cost of submitting a transaction is the computational work of validating two previous ones. This makes IOTA's transaction fees effectively zero, which is essential for the IoT (Internet of Things) use case where billions of devices might need to transact tiny amounts (e.g. a smart meter paying fractions of a cent per kilowatt-hour).
For ISO 20022 compatibility, IOTA has published specifications for embedding ISO 20022-structured data payloads within Tangle transactions, enabling machine-to-machine payment data to flow through the same messaging standards as human-initiated bank payments.
Crypto Relevance
IOTA's zero-fee Tangle makes it the only ISO 20022-aligned network realistically capable of handling IoT micropayments — an XRP or ETH transaction fee, even at $0.001, would exceed the value of most machine-to-machine payments.
Get the institutional context, investment implications, and common misconceptions about Tangle, written by AI for ISO 20022 investors.
Unlock AI Deep Analysis
Is this target realistic? Get the data — historical precedent, risk factors, and what it would take.
Free forever. Weekly brief only. Unsubscribe in one click.
Join ISO 20022 investorsRelated Terms
Related Tools
Sources
Last reviewed: 2026-05-17