IOTA Kickstarts EVM Targeting DeFi, Real World Assets

As a researcher with experience in blockchain technology and a focus on real-world applications, I’m excited about IOTA’s recent launch of its layer 2 Ethereum Virtual Machine (EVM) network. The network’s emphasis on real-world asset usage and decentralized financial applications is a significant step forward for the platform.

As a crypto investor, I’m excited to share that IOTA, the blockchain network I follow closely, has initiated its Layer 2 Ethereum Virtual Machine (EVM) network. This new development is aimed at enhancing the usage of real-world assets on the IOTA platform, according to an email update I received from the team at CoinDesk.

On Tuesday, a new feature update was unveiled, enriching IOTA with capabilities like smart contracts, cross-chain interoperability, simultaneous processing, and enhanced security against Maximal Extractable Value (MEV). The IOTA token responded positively to this news, recording a 6% increase in value over the previous 24 hours, according to CoinGecko. Meanwhile, the broader crypto market as represented by the CoinDesk 20 Index experienced minimal growth of less than 2%.

Dominik Schiener, one of IOTA’s co-founders, highlighted in a Telegram message that layer 2 of their platform will prioritize decentralized financial applications and the use of real-world assets. Real-world assets signify a sector in the cryptocurrency market dedicated to tokenizing tangible items present in the physical world.

“Our technology has been customized to cater to institutional investors’ requirements. For instance, we have an on-chain KYC initiative to authenticate investors and establish institutional DeFi trading pools. Moreover, our network is resistant to MEV (Minimum Value Extracted) and ensures investor protection while adhering to regulatory standards.”

As a crypto investor, I can explain that Miner Extractable Value (MEV) refers to a method employed by network validators to generate additional profits by manipulating the order of transactions in the mempool before they get added to the blockchain. This practice involves rearranging and reordering transactions to extract fees paid by users. However, IOTA EVM takes a proactive approach to prevent such practices by incorporating a feature that maintains fair transaction ordering, thereby ensuring users pay only for their intended transactions without any hidden or unintended fees extracted by validators.

Parallel processing refers to the ability to handle several network transactions concurrently rather than one at a time. This approach enhances blockchain scalability, reduces gas fees, and increases the pace of transaction processing.