- The Rebased upgrade enhances IOTA with dual smart contracts, combining Ethereum Virtual Machine (EVM) and MoveVM for improved scalability, cross-chain interoperability, and developer flexibility.
- This upgrade, alongside low transaction fees, staking rewards, and a new consensus protocol, positions IOTA for significant growth in decentralized finance and blockchain innovation.
The world of blockchain technology is witnessing a significant shift with IOTA’s latest Rebased upgrade, positioning the network for a new era of innovation. As one of the oldest Layer 1 (L1) blockchain platforms, IOTA has always been at the forefront of decentralized ledger technology (DLT). With the introduction of the Rebased protocol, IOTA is set to enhance its ecosystem in ways that will reshape the future of decentralized finance (DeFi) and beyond.
Dual Smart Contracts: A Game-Changer for Developers
The Rebased upgrade introduces a revolutionary feature: dual smart contracts. By integrating both Ethereum Virtual Machine (EVM) and MoveVM, IOTA offers a highly adaptable ecosystem for developers. This hybrid approach allows developers to leverage Ethereum-compatible tools or Move-based languages, ensuring seamless development across both platforms.
This flexibility has far-reaching benefits. Developers familiar with either Ethereum or Move can now easily build on IOTA’s network, resulting in better cross-chain interoperability and enhanced scalability. With these combined features, IOTA is well-positioned for broader adoption in DeFi, decentralized applications, and other blockchain use cases.
Key Features of the Rebased Protocol
The Rebased upgrade brings several features that contribute to IOTA’s long-term growth:
- Move-Based Smart Contracts: These smart contracts are implemented on a parallelized Directed Acyclic Graph (DAG) ledger, offering greater functionality and efficiency compared to traditional blockchain systems.
- Consensus Switch to Mysticeti Protocol: This new protocol boosts scalability, allowing the IOTA network to process 50,000+ transactions per second (TPS) with subsecond finality. This leap in transaction speed ensures that IOTA remains a top contender in high-demand blockchain use cases.
- Low Transaction Fees: The adaptive fee burn mechanism implemented in Rebased ensures that transaction costs remain minimal, making IOTA an attractive option for developers and users alike.
- Staking Rewards: IOTA has introduced staking rewards with an initial target inflation rate of 6-7% per year, offering an attractive 10-15% annual percentage yield (APY) for stakers and validators.
These features work in tandem to create a sustainable, decentralized network that offers unparalleled scalability and security.
IOTA’s Ecosystem and Future Prospects
IOTA’s ecosystem is expanding rapidly, especially with the success of its Layer 2 Ethereum Virtual Machine (EVM) platform, which has seen Total Value Locked (TVL) surge from $30M to $86M since its launch in June 2024. With a $28M fund allocated to accelerate DeFi development over the next two years, IOTA is well-positioned to drive innovation in the blockchain space.
Strategic partnerships with governments, enterprises, and research institutions further bolster IOTA’s ecosystem. Notable collaborations include the creation of the Trade and Logistics Information Pipeline (TLIP) in Kenya, tokenization of U.S. Treasuries with Realize, and integrations with Rabby Wallet, LayerZero, and Pyth Network for enhanced blockchain interoperability.
Conclusion
The Rebased upgrade marks a new chapter in IOTA’s journey, setting the stage for broader adoption and deeper integration into decentralized networks. With enhanced scalability, lower transaction fees, and the introduction of dual smart contracts, IOTA is ready to lead the charge in blockchain innovation, bringing new opportunities for developers, enterprises, and users around the world.