“In an industry such as the Internet of Things (IoT), blockchain’s capabilities have proven to be a particularly strong fit. Interconnected devices require rapid and transparent verification of data, something blockchain’s ledger can handle exceptionally well. However, some have complained that blockchain’s somewhat rigid architecture makes it well-suited for robustly storing small amounts of data. This means it’s not truly scalable for things such as big data storage that has come to be synonymous with IoT.

This and other concerns led a team of developers to launch IOTA, a cryptocurrency platform designed for the demanding IoT ecosystem. With a twist on the traditional blockchain the company calls Tangle, IOTA claims to provide zero-fee transactions, as well as a unique verification process that resolves many of the scalability problems associated with bitcoin.

[…] IOTA’s architecture is still young, and while it has made promising steps towards broader adoption, the newer upstart must still contend with Ethereum’s existing infrastructure and first-mover advantage. Additionally, companies that build on Ethereum remain ahead, as they are already compatible with the prevailing systems. With the introduction of live-data streaming capabilities from companies like Streamr, Tangle may face an uphill battle dethroning Ethereum in the IoT sphere, even when considering its custom-built design.”

Source: Blockchain Wars: IOTA’s Tangle Takes on Ethereum