- IOTA is preparing for a potential integration with Coinbase’s Rosetta, an open standard designed by Coinbase to streamline the incorporation of blockchain-based tokens on exchanges.
- Rosetta simplifies the compatibility process with exchanges, speeds up the integration of new blockchains, and protects customer funds by guaranteeing that essential security standards are met.
IOTA is carving out its own niche in the cryptocurrency landscape by actively pursuing global adoption and breaking away from traditional norms. According to Salima, an IOTA fanatic, IOTA could be looking to integrate with Coinbase’s Rosetta standard, a move that would be instrumental in achieving seamless connectivity with exchanges, wallets, and applications.
The Rosetta standard, launched in 2020, streamlines the integration of blockchain-based tokens across crypto exchanges, block explorers, and wallets. Its rapid adoption saw it support various blockchains within a year of its launch, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Filecoin (FIL), and those utilizing the ICRC-1 standard.
How Rosetta Empowers IOTA’s Blockchain Integration
IOTA was launched in 2016 by Dominik Schiener, Sergey Ivancheglo, and Serguei Popov. IOTA utilizes a directed acyclic graph (DAG) architecture that promotes energy-efficient transactions without fees, making it accessible via computers and smartphones. The integration of IOTA with Coinbase’s Rosetta standard presents an opportunity for the network to enhance its performance and broaden its reach. IOTA -Rosetta will utilize the Rosetta API to connect with IOTA’s network, allowing efficient reading and writing of transactions via the IOTA full node.
One core advantage of IOTA’s integration with Rosetta is the simplification of cross-blockchain application development. The Rosetta API consists of two key components: a data API that provides read-only access to network data and an endpoint for constructing transactions. By utilizing standard formats and functionalities provided by Rosetta, IOTA can avoid the complexity of custom parsing for each blockchain, leading to reduced coding effort and simplified maintenance. This could facilitate the creation of wallets, dApps, and block explorers that are compatible with multiple platforms.
Moreover, using the Rosetta framework positions IOTA within a larger ecosystem of over 25 blockchain projects that are actively working on similar implementations. Collaborating within this community allows IOTA to share insights and improvements, ultimately increasing its robustness and adaptability.
Coinbase’s Rosetta Grants program further incentivizes growth within the ecosystem. It offers resources that could aid in developing and refining IOTA’s integration, potentially attracting more developers and partnerships.
Additionally, IOTA’s features, such as its resistance to quantum computing and its capability for microtransactions, will become more accessible through Rosetta’s standardized infrastructure. This accessibility may increase user adoption and confidence in IOTA’s technology.
The IOTA Foundation reported that IOTA is making significant progress toward global adoption in the third quarter of 2024. Key developments include the successful launch of the Eviden Digital Passport Solution in partnership with Eviden, advancements in the European Blockchain Pre-Commercial Procurement process, and integrations with Kenyan government agencies, such as the Kenya Revenue Authority (KRA), to ease access to vital trade documents.
Additionally, the recently proposed IOTA Rebased initiative aims to transition from a UTXO to an object-based ledger using the Move Virtual Machine, enhancing programmability for complex applications. Currently, IOTA’s trading price is $0.3788, approximately 93.6% below its all-time high of $5.69 achieved in 2019. This includes a 2.72% decrease over the past day and a 14.63% drop for the week. However, there has been a positive trend in trading volume, which has risen by 5.83%.
