IOTA Introduces Layer 2 Ethereum Virtual Machine (EVM) Network
IOTA has recently launched its layer 2 Ethereum Virtual Machine (EVM) network, with a strong emphasis on real-world asset usage and the introduction of new functionalities to enhance the IOTA ecosystem.
Focus on Real-World Asset Tokenization
The layer 2 network is designed to bring real-world assets onto the blockchain, specifically focusing on the tokenization of physical assets. It incorporates built-in protections against transaction ordering and Maximal Extractable Value (MEV), enhancing security and efficiency.
Key Features of the Layer 2 Network
- Smart contracts implementation
- Cross-chain capabilities
- Parallel processing for improved scalability
- MEV protection to safeguard investors
The introduction of these features has bolstered the fundamentals of the IOTA token, leading to a 6% increase in its value over the past 24 hours, according to data from CoinGecko.
Decentralized Finance (DeFi) and Real-World Asset Usage
IOTA co-founder Dominik Schiener highlighted the network’s focus on decentralized financial applications and the utilization of real-world assets. The tokenization of tangible assets in the physical world is a key aspect of the network’s strategy to bridge traditional assets with blockchain technology.
Schiener emphasized IOTA’s role in bringing trillions of assets and institutional investors onto the blockchain, positioning the platform as a leader in Real-World Asset (RWA) tokenization.
Enhanced Technology Stack for Institutional Investors
To cater to institutional investors, IOTA has tailored its technology stack to meet their specific needs. This includes the implementation of an on-chain KYC project to verify investors and facilitate institutional DeFi trading pools. Additionally, the network’s MEV-resistance feature ensures investor protection and regulatory compliance.
Preventing MEV Exploitation and Enhancing Transaction Processing
MEV, a predatory practice in blockchain networks, is mitigated by the IOTA EVM’s built-in feature that prevents transaction ordering. This mechanism safeguards users’ fees from being exploited by network validators.
Parallel processing, a key functionality of the network, allows for the simultaneous processing of multiple transactions, leading to improved scalability, reduced gas costs, and faster transaction speeds.
