DeFi
IOTA launches EVM targeting DeFi and real-world assets — TradingView News
Blockchain network IOTA has launched its Layer 2 Ethereum Virtual Machine (EVM) network with a focus on using real-world assets, developers shared with CoinDesk via email.
Tuesday’s launch introduced features such as smart contracts, cross-chain capabilities, parallel processing, and maximum extractable value (MEV) security to the IOTA ecosystem, strengthening the fundamentals of the IOTA token. The token is up 6% in the past 24 hours, according to CoinGecko data, while the CoinDesk 20 Index (CD20), a measure of the broader crypto market, has gained less than 2%.
Layer 2 will particularly focus on decentralized finance applications (DeFi) and the use of real-world assets (RWA), IOTA co-founder Dominik Schiener said in a Telegram message. RWA refers to a sector of the cryptocurrency market that focuses on the tokenization of tangible assets existing in the physical world.
“We are positioning IOTA to bring the real world to Web3 and help bring billions of assets and institutional investors on-chain,” Schiener said. “With the establishment of the IOTA Ecosystem DLT Foundation as the first DLT foundation registered under the Abu Dhabi Global Market Regulation (ADGM), IOTA is in a unique position to lead the tokenization of the world’s assets real (RWA).”
“We have tailored our technology stack specifically to adapt to the needs of institutional investors, including our on-chain KYC project to identify investors and enable DeFi institutional trading pools, and the MEV resistance of our network to protect investors and respect regulatory compliance,” he added.
MEV is a predatory way for network validators to extract fees by rearranging and reordering transactions waiting to be added to the blockchain. The IOTA EVM claims to have built-in functionality to prevent transaction ordering, which helps avoid extracting value from the fees users pay to use the network.
Parallel processing involves sending multiple network transactions simultaneously rather than sequentially. This allows for blockchain scaling, lower gas costs, and higher transaction processing speed.