IOTA debuts layer-2 solution to bridge defi with real-world assets

IOTA introduced a layer-2 solution compatible with the Ethereum Virtual Machine to bring smart contract capabilities to the network.

The IOTA Foundation announced the launch of IOTA EVM, a layer 2 solution for the network designed to provide smart contracts functionality to expand the capabilities of the ecosystem in the decentralized finance (defi) space.

In a blog announcement, the IOTA Foundation announced that blockchain developers will now be able to deploy Solidity-based smart contracts on the IOTA network; This is a move aimed at bridging the gap between the IOTA and Ethereum ecosystems and improving IOTA’s capabilities.

“The launch of IOTA EVM with a fully functional and industry-competitive infrastructure marks a major step towards our goals of innovating and increasing adoption in both the crypto space and the real world.”

IOTA Foundation

Key features of IOTA EVM include parallel transaction processing for horizontal scalability for deployment of Solidity smart contracts. The IOTA Foundation says the solution also increases “fairness and security” through native randomness and resistance to Maximum Extractable Value (MEV), and is compatible with regulatory demands for market integrity.

To access or develop IOTA-based decentralized applications, users will need to bridge tokens between the mainnet and layer-2 using the latest versions of Firefly or Bloom wallets. With this latest development, IOTA said it has become the first distributed ledger technology (DLT) foundation officially registered on the Abu Dhabi Global Market (ADGM), positioning itself to create more products that integrate real-world assets with decentralized finance.