DeFi
IOTA Launches Layer 2 Solution to Connect Challenge to Real-World Assets
IOTA has deployed a layer 2 solution compatible with the Ethereum Virtual Machine with the aim of bringing smart contract capabilities to the network.
THE IOTA The Foundation announced the launch of IOTA EVM, a Layer 2 solution for the network designed to enable smart contracts functionality to expand ecosystem capabilities in the decentralized finance (defi) space.
In a blog announcementThe IOTA Foundation has revealed that blockchain developers can now deploy Solidity-based smart contracts on the IOTA network, a move aimed at bridging the gap between the IOTA and Ethereum ecosystems, thereby enhancing IOTA’s capabilities.
“Launching IOTA EVM with a fully functional, industry-competitive infrastructure marks a major step toward our goals to innovate and drive adoption in both the crypto space and the real world.”
The IOTA Foundation
The main features of IOTA EVM include parallel transaction processing for horizontal scalability interoperability for Solidity smart contract deployment. The IOTA Foundation says the solution also improves “fairness and security” through native randomness and maximum extractable value (MEV) resistance, in line with regulatory requirements for market integrity.
To access or develop decentralized applications based on IOTA, users will need to bridge tokens between the mainnet and Layer 2 using the latest versions of Firefly or Bloom wallets. With this latest development, IOTA claims to have become the first officially registered distributed ledger technology (DLT) foundation in the Abu Dhabi Global Market (ADGM), positioning it to create more products integrating real-world assets with a decentralized finance.