Amazon web services now allow users to run IOTA Private Tangle following it’s integration with the Amazon Infrastructure. To set it up and get it going, a user would have to consider software requirements and other performance metrics like storage, memory and CPU, this is estimated to cost around 0.371 per hour on a moderate use. To finally set it up, it would require Hornet node, a spammer, and a compass- an open source implementation of the coordinator.
IOTA Private Tangle
IOTA private tangle is an IOTA network that you control which contains only nodes you know. It is the same technology as the public IOTA networks, but this time around you control it by running an open-source implementation of the coordinator called Compass. For the Private Tangle nodes to be properly configured and to be in synchronization with others within the identified network, a coordinator Plugin is used. This plugin creates an instance of the Compass which allows nodes to synchronize once activated.
Tangles are also set up in order to explore the IOTA technology, develop and used in testing an application, setting up a faster IOTA network and also showcase the IOTA technology.
The IOTA Compass
The IOTA compass is an open source implementation of the coordinator. It basically creates, signs and sends a bundle of transactions that contain Milestone. For a node to reach a consensus, the node operator must configure it to recognize a particular compass Milestones. You can then configure compass to send Milestones to one of your nodes at regular intervals.