IOTA has launched its layer-2 solution, IOTA EVM, compatible with Ethereum Virtual Machine, aiming to bring smart contract capabilities to its network. Announced in a recent blog post, this move enables developers to deploy Solidity-based smart contracts on IOTA, bridging it with the Ethereum ecosystem and enhancing its decentralized finance (defi) functionalities.
The IOTA EVM introduces parallel transaction processing for horizontal scalability and enhances fairness and security through native randomness and resistance to Maximal Extractable Value (MEV). This aligns with regulatory demands for market integrity. Users can bridge tokens between the mainnet and layer-2 using updated Firefly or Bloom wallets.
With this development, IOTA becomes the first officially registered distributed ledger technology (DLT) foundation in the Abu Dhabi Global Market (ADGM). This positions IOTA to create more products integrating real-world assets with defi, marking a significant step towards future innovation and adoption.
