IOTA is a distributed ledger that is based on Directed Acyclic Graph (DAG) called Tangle. Tangle is almost similar with blockchain, with peer-to-peer system and runs on consensus mechanism but with differences in structure, security and decentralization. It record the exchange of data and makes sure the information is correct and cannot be altered nor destroyed.  Tangle is a system of nodes that confirm transactions.

IOTA network is fast, highly scalable with low requirement of resources. Due to the absence of blockchain, there are no miners needed. Hence, no fees are required for transactions.