IOTA Kickstarts EVM Targeting DeFi and Real World Assets - a Sleeping Giant
IOTA has launched its layer 2 Ethereum Virtual Machine (EVM) network, aiming to integrate real-world asset usage and enhance the IOTA ecosystem. This new network focuses on bringing physical assets on-chain through tokenization, incorporating features like built-in protections against transaction ordering and Maximal Extractable Value (MEV).
Key Features and Impact:
Smart Contracts and Cross-Chain Capabilities: The EVM network introduces smart contracts and cross-chain functionalities, enabling seamless transactions across different blockchain networks.Parallel Processing: By processing multiple network transactions simultaneously, the network improves scalability, reduces gas costs, and enhances transaction speeds.Security Enhancements: The network includes protections against MEV, a method where validators rearrange transactions for profit, ensuring fair transaction processing.
In the past 24 hours, the IOTA token has risen by 6%, outperforming the broader crypto market, which saw less than a 2% gain according to CoinGecko data.
Focus on DeFi and Real-World Assets:
IOTA co-founder Dominik Schiener emphasized the network’s focus on decentralized financial (DeFi) applications and real-world asset (RWA) usage. RWA involves tokenizing tangible physical assets. Schiener highlighted IOTA's unique position to lead in this sector, particularly with the establishment of the IOTA Ecosystem DLT Foundation under Abu Dhabi Global Market regulations.
Institutional Integration:
IOTA has tailored its technology to meet institutional investors' needs, including an on-chain KYC project for investor identification and compliance with regulatory standards. The MEV-resistance feature protects investors and supports institutional DeFi trading pools.
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