IOTA EVM and the Rise of Smart Contracts: How IOTA Bridges the Gap with Ethereum

IOTA

IOTA

The IOTA Foundation, the non-profit organization behind the IOTA cryptocurrency, has set its sights on a significant goal: bringing billions of real-world assets (RWAs) on-chain through tokenization. This strategic shift marks a new chapter for IOTA, which has long been a pioneer in the field of Distributed Ledger Technology (DLT) with its unique Directed Acyclic Graph (DAG) architecture.

In a recent interview, Dominik Schiener, the IOTA Foundation co-founder, discussed the organization’s motivations and vision for the future. Schiener emphasized the limitations of traditional proof-of-work blockchains, which IOTA was designed to overcome. He highlighted the immutability and security benefits of DLTs, while acknowledging that different DLT projects prioritize various aspects, leading to variations in functionality.

One of IOTA’s key differentiators is its non-profit status and its foundation in Germany. This, according to Schiener, fosters trust and facilitates collaboration with corporations, governments, and other institutions. He acknowledged the challenges faced during IOTA’s development, including bootstrapping the project without significant funding and overcoming the technical hurdles inherent in DAG technology.

While the Internet of Things (IoT) was a focal point for IOTA in the past, the organization has broadened its scope. Tokenization is now seen as a critical driver for cryptocurrency adoption. Schiener argues that tokenization offers a way to represent real-world assets immutably and securely, eliminating the need for intermediaries. This, he believes, unlocks the vast potential of dormant, analog assets in today’s digital world.

IOTA’s strategy to bridge the real world and Web3 involves not only regulatory work and RWA tokenization but also fostering a robust ecosystem of builders within its network. Schiener highlighted IOTA’s achievements as a pioneer in showcasing real-world applications of DLT beyond just financial speculation. Existing use cases include trade finance, logistics tracking, and digital product passports.

Looking ahead, IOTA is poised to enter the RWA tokenization space with the ambition of bringing billions of assets on-chain. Schiener expressed his belief that DLTs, with their enhanced security and transparency, can empower individuals and create a more equitable future. He sees IOTA as the infrastructure upon which a new digital economy, built on DeFi and stablecoins, can flourish.

The interview concluded with Schiener acknowledging the importance of utility over speculation. He refrained from price predictions for the MIOTA token, emphasizing IOTA’s focus on building a future where the technology’s true potential is realized. This future, according to Schiener, positions IOTA as a leader in the DLT industry.