I have previously mentioned IOTA in this book and explained how the network works. Instead of being a layer 2 solution, it was built with the same concept from the start in 2015/2016. IOTA developed the Tangle network, which is the data structure behind the IOTA network, and instead of it being a blockchain, it is a particular type of directed graph that holds transactions, as shown in the following diagram:
Example of the Tangle data structure
Each transaction is represented on the diagram as a vertex in the graph. When a new transaction is added to the Tangle Network, it picks two previous transactions to approve, adding ...
