The president of the IOTA Foundation said that the low-cost feature of IOTA smart contracts are “the wet dream” of DeFi operators.
IOTA, the decentralized project based on Internet of Things (IOT), announced this Thursday the launch of the smart contracts functionality in beta version. The development marks a crucial step towards building an ecosystem of decentralized applications (dApps) on top of the Iota blockchain.
The IOTA Foundation He reported on the startup in a blog post, where he stated that the goal is to solve the challenges of scalability and high transaction fees, as well as bring greater interoperability to the network. “Programmable Smart Contracts Beta Now Available on IOTA 2.0 DevNetThey wrote in the entry and added:
With the beta launch of smart contracts, the IOTA Foundation takes a major step towards adding a new utility layer to IOTA, by offering unlimited possibilities to create decentralized applications (dApps) and other Web3 innovations. Our goals with IOTA smart contracts are to address some of the drawbacks of existing solutions – pricing, scalability, interoperability, and limited composability – and to create an ecosystem of new opportunities.
IOTA deploys smart contracts
The smart contract functionality will foster interoperability and standardization through the integration of Ethereum Virtual Machine (EVM) and will allow Multiple ability for developers to write program languages with Tiny Go, Rust and the language of Ethereum, Solidity.
In addition, among the many features, It allows developers mark one-time execution fees. The latter, a notable difference from the Blockchain from Ethereum, it could dramatically drive fee reduction across the network, as the pool of competitors looking to validate smart contracts grows.
In conversations with Cointelegraph, Dominik Schiener, co-founder and president of the Iota Foundation, explained that the incorporation of the smart contract functionality “will add a vital component to the Iota ecosystem “. He also assured that Iota’s smart contracts are unique in that they offer low, predictable and transparent fees.
Iota smart contracts “allow anyone to create complex dApps using industry standard Ethereum tools while relying on a free base layer and low, predictable execution fees“, He commented to the aforementioned medium and continued:
IOTA smart contracts also enable the free transfer of assets across chains, offering the IOTA ecosystem, and anyone else interested, unprecedented opportunities in terms of utility, compostability, and scalability.
An opportunity for DeFi
The deployment of IOTA smart contracts in beta comes months after the alpha launch of smart contracts. In March of this year, the Iota Foundation had announced its alpha protocol, designed to encourage developers to create smart contracts in addition to decentralized finance applications (DeFi) and non-fungible tokens (NFT).
The latest team development could foster the growth of Iota’s DeFi space, as well as boost interoperability between chains. According to the announcement, the Foundation is currently working for “offer full interoperability of tokenized assets on the IOTA base layer that can be transferred and used in smart contract chains“.
This will offer the ability to transfer assets between different smart contract chains at no additional cost, completely without trust and without incurring transaction fees, a feature that could favor NFT markets and developers on DeFi and decentralized exchanges (DEX).
Schiener opined in this regard that the low costs of IOTA could answer what many of the DeFi users have been longing for.
The ability for chains to compete for the ‘work’ of executing a smart contract creates an additional incentive to drive execution fees to their absolute minimum, including zero. Non-zero fees are paid in whatever form the chain owner demands, providing additional flexibility. Simply put, it’s a DeFi operator’s ‘wet dream’.
Hannah Estefanía Pérez’s version / DailyBitcoin
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