- The Rebased upgrade sets IOTA apart with its dual smart contract ecosystem, combining the capabilities of Ethereum Virtual Machine (EVM) and MoveVM.
- This innovation enables seamless development across both platforms, enhances cross-chain interoperability, and positions IOTA for diverse applications in decentralized finance (DeFi), etc.
The IOTA ecosystem is currently seeing one of its most powerful platform upgrades with the introduction of the Rebased protocol. As one of the oldest Layer 1 (L1) blockchain platforms, IOTA has been a pioneer in decentralized ledger technology (DLT). After a series of updates such as Stardust, the Rebased protocol aims to take IOTA to new heights, thereby introducing several significant improvements, reported CNF.
What sets Rebased apart from the previous upgrades is some of the below features, such as low transaction fees, Move-based smart contracts, staking rewards, decentralization, etc. Here’s the special feature for each of these:
- Move-based Smart Contracts: Implemented on a parallelized Directed Acyclic Graph (DAG) ledger for enhanced functionality.
- Consensus Switch: Moving to the Mysticeti protocol, which offers higher scalability and low latency, enabling 50k+ transactions per second (TPS) and subsecond finality.
- Low Transaction Fees: An adaptive fee burn mechanism ensures minimal transaction costs.
- Staking Rewards: Initial target inflation of 6-7% per year with 10-15% APY for stakers and validators, reported CNF.
These features signal IOTA’s commitment to building a sustainable, decentralized network that offers improved scalability and security, opening the door to broader innovation in the blockchain space.
Dual Smart Contracts: A Step Forward for IOTA’s Ecosystem
The Rebased protocol introduces the concept of dual smart contracts, setting IOTA apart from other L1 blockchain networks. Also, the combination of EVM (Ethereum Virtual Machine) and MoveVM enables developers to easily build on the IOTA network using Ethereum-compatible tools or Move-based languages. This flexibility ensures that IOTA remains adaptable to different use cases while supporting diverse ecosystems. Some of the notable benefits of this include:
- Seamless development is for developers familiar with both the Ethereum and Move languages.
- Enhanced efficiency and scalability, combining the best features of both ecosystems.
- Better cross-chain interoperability, positioning IOTA for broader adoption in DeFi and other blockchain use cases.
IOTA’s Growing Ecosystem and Future Prospects
IOTA’s ecosystem is rapidly expanding, with impressive growth in its Layer 2 Ethereum Virtual Machine (EVM) platform. Launched in June 2024, it saw a surge in Total Value Locked (TVL), reaching $86M from an initial $30M. To further accelerate adoption, IOTA has allocated $28M over the next two years to support DeFi development. This growth aligns with IOTA’s broader roadmap to enhance decentralization and scalability, which will contribute to its long-term success.
In addition, IOTA continues to build strategic partnerships with global entities, including governments, enterprises, and research institutes. Notable collaborations include the creation of the Trade and Logistics Information Pipeline (TLIP) in Kenya, tokenizing U.S. Treasuries in collaboration with Realize, and partnerships with Rabby Wallet, LayerZero for bridging, and Pyth Network for accurate pricing oracles.
With the Rebased upgrade, IOTA is poised for a promising future, strengthening its position in the blockchain space and unlocking new opportunities for innovation, decentralization, and scalability.
