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Iota is an Open Source Software (OSS) distributed ledger and cryptocurrency designed for the Internet of Things (IOT). It uses a Directed Acyclic Graph (DAG) to store Transactions on its Distributed Ledger, motivated by a potentially higher scalability over blockchain based distributed ledgers. Iota does not use Miners for its Consensus Process for validating transactions, instead, Nodes that issue a new transaction on the network must approve two previous transactions. Transactions can therefore be issued without fees, facilitating microtransactions. The network currently achieves consensus through a Coordinator Node, operated by the Iota Foundation. As the coordinator is a Single Point of Failure (SPoF), the network is currently centralized.

Source: https://en.wikipedia.org/wiki/IOTA_(technology)