IOTA has rolled out a layer 2 solution compatible with Ethereum Virtual Machine in an effort to bring smart contract capabilities to the network.
The IOTA Foundation has announced the launch of IOTA EVM, a layer 2 network solution designed to enable smart contract functionality to expand the ecosystem’s capabilities in the decentralized finance (defi) space.
In one blog announcementthe IOTA Foundation revealed that blockchain developers can now deploy Solidity-based smart contracts on the IOTA network, a move aimed at bridging the gap between the IOTA and Ethereum ecosystems, expanding IOTA’s capabilities.
“The launch of IOTA EVM with a fully featured and industry-competitive infrastructure marks an important step towards our goals to innovate and drive adoption in both the crypto space and the real world.”
IOTA Foundation
Key features of IOTA EVM include parallel transaction processing for horizontal scalability, interoperability for the deployment of Solidity smart contracts. The IOTA Foundation says the solution also improves “fairness and security” through natural randomness and resistance to maximum extractable value (MEV), in line with regulatory requirements for market integrity.
To access or develop IOTA-based decentralized applications, users would need to bridge tokens between the mainnet and layer-2 using the latest versions of the Firefly or Bloom wallets. With this latest development, IOTA says it has become the first officially registered distributed ledger technology (DLT) foundation on the Abu Dhabi Global Market (ADGM), positioning it to create more products that integrate real assets with decentralized finance.
