IOTA Launches Layer 1 Upgrade with 50,000 TPS and Smart Contracts
On November 18, 2024, IOTA, a scalable and fee-less distributed ledger, released a report detailing its upgrade through the Layer 1 (L1) protocol, called “IOTA Rebased.” This upgrade aims to enhance scalability, decentralization, and programmability. A governance vote will soon determine whether to adopt this new protocol or continue with IOTA 2.0.
Today we unveil IOTA Rebased 🌀🚀
The biggest upgrade in #IOTA‘s history to leapfrog us on our mission to bring the real world to Web3:
✅Parallelized MoveVM & EVM
✅Full decentralization
✅50k+ TPS & <500ms finality
✅10-15% $IOTA staking APY
More 🧵🔗👇https://t.co/k1r4EUzMzc pic.twitter.com/znrEZrrjS8— IOTA (@iota) November 18, 2024
Since its inception in 2015, the IOTA Foundation has focused on eliminating traditional blockchain inefficiencies such as miners, high energy usage, and transaction fees. IOTA provides scalability and decentralization without relying on proof-of-work. The foundation has built strong partnerships with governments, businesses, and research organizations.
The IOTA Rebased upgrade addresses the industry's growing demand for programmability within the L1 protocol. It enhances capabilities beyond the IOTA 2.0 upgrade that achieved full decentralization in 2023. The lack of native smart contracts on the L1 network has limited functionality, making the Rebased upgrade essential.
Decentralization Meets 50K+ TPS Efficiency
IOTA Rebased introduces scalability capable of handling over 50,000 transactions per second (TPS). This advancement positions IOTA for high-throughput applications previously unattainable. The Mysticeti consensus protocol supports this performance boost, ensuring subsecond finality.
The integration of Move-based smart contracts enhances programmability, enabling decentralized applications (dApps) to develop. This upgrade facilitates tokenized trade finance, stablecoin adoption, and decentralized finance growth (DeFi). IOTA’s utility and market adoption are expected to increase significantly.
IOTA Rebased emphasizes scalability, decentralization, and economic sustainability. Alongside achieving 50K+ TPS, the network introduces innovations to enhance security and user experience. A Delegated Proof of Stake (DPoS) mechanism allows up to 150 permissionless validator slots, promoting a secure environment.
New tokenomics include an adaptive fee-burning mechanism that adjusts transaction fees based on network conditions. Staking rewards with an initial inflation rate of 6-7% annually offer validators and stakers up to 15% annual percentage yield (APY), enhancing network security.
Can IOTA Become a Key Player in DeFi?
IOTA Rebased seeks to accelerate network growth by shortening the time to market for new features. The introduction of native Layer 1 smart contracts allows developers to create complex applications, increasing IOTA's appeal as a scalable blockchain platform.
Integrating IOTA with enterprise applications and facilitating technology adoption remains a priority. For instance, IOTA is digitizing trade and supply chain processes in Kenya, aiming to tokenize assets to establish a trade finance ecosystem on the IOTA blockchain.
The rollout of stablecoins and decentralized order book exchanges positions IOTA as a significant player in the DeFi sector. If the governance vote favors IOTA Rebased, a new mainnet launch may follow a testnet phase, security audits, and exchange integrations.