IOTA has launched a Layer2 solution compatible with the Ethereum EVM, IOTA EVM, to ensure the security of real-world assets (RWA) through a secure and trusted environment for tokenization and asset management on the blockchain.
IOTA's recent initiative, with the launch of its EVM-enabled Layer2 solution, called IOTA EVM, marks a significant milestone in the space of decentralized finance (DeFi) and real-world asset integration (RWA).
This platform introduces a number of advanced features such as smart contracts, cross-chain functionality, parallel processing and reinforced security against Maximum Extractable Value (MEV) attacks, representing a considerable advance in the protection and efficiency of transactions on the blockchain. .
IOTA Strategic Alliances
The collaboration with renowned entities such as LayerZero, Stargate Finance, Pyth Network and Supra, underlines IOTA's commitment to creating a robust ecosystem and promoting the adoption of crypto applications in traditional sectors. These strategic alliances facilitate interoperability and expansion of capabilities IOTA EVM, thus allowing horizontal scalability and deployment across multiple chains.
Furthermore, the implementation of native randomness and resistance to MEV improves the fairness of the system, preventing the front-running and ensuring an unpredictable sequence of transactions, which is in line with regulatory demands for market integrity and equitable access.
With the launch of IOTA EVM, the IOTA Foundation not only strengthens its technological infrastructure, but also strategically positions itself to drive the adoption of DeFi in the interaction with real-world assets, opening new avenues for innovation and entrepreneurship in the crypto space. .
IOTA EVM Use Cases
Specific use cases for real-world assets (RWA) on the IOTA EVM platform span a wide range of financial and non-financial applications.
The IOTA Foundation he highlighted that, in the financial sector, tokenization of physical assets such as real estate, works of art and precious metals allows for greater liquidity and accessibility, facilitating investment and trade in global markets. Furthermore, the IOTA EVM infrastructure can be used for the creation of decentralized identities, providing a secure and verifiable method for managing digital and physical identities.
In the area of the supply chain, The platform can be used to improve product traceability and authenticity, from its origin to the final consumer, ensuring the integrity of the process and reducing the risk of counterfeiting.
Immutable document and record library
Another use case of IOTA EVM is document and records management, where the immutability of the IOTA blockchain can serve to store and verify legal documents, property titles and academic certificates, providing a trusted source of truth and reducing the possibility of document fraud.
RWA integration with DeFi and parallel transactions
Furthermore, the integration of RWA with DeFi opens Opportunities for loans and financing collateralized by tangible assets, providing new forms of access to credit and investment.
Lastly, IOTA EVM's ability to process transactions in parallel y its resistance to MEV attacks cThey contribute to the efficiency and security of all these applications, which is essential for the adoption and sustainable growth of the RWA ecosystem on the blockchain.
IOTA EVM mechanisms to ensure RWA security
The security of real-world assets (RWA) on the IOTA EVM platform is ensured through a combination of advanced technologies and strong governance practices. First, the network uses smart contracts for asset tokenization, ensuring that the properties and transactions of physical assets are accurately reflected on the blockchain.
These smart contracts are programmable and auditable, allowing clear rules and monitoring to be established for asset management. Additionally, the IOTA EVM network incorporates security mechanisms against the Maximum Extractable Value (MEV), thereby protecting transactions from malicious manipulations and reorderings that could affect the value of the tokenized assets.
More efficiency and security in transactions
The IOTA EVM infrastructure also benefits from the network's parallel processing architecture, which not only improves transaction efficiency but also contributes to security by distributing operations across multiple channels, reducing the risk of concentrated attacks. in a single point.
Resistance to MEV is reinforced by this parallel processing capability, as it makes it even more difficult for malicious actors to predict or influence the order of transactions.
Another key aspect is collaboration with regulatory entities and strategic partners. The IOTA Foundation has established the IOTA Ecosystem DLT Foundation under the regulations of the Abu Dhabi Global Market (ADGM), which provides a legal framework for the operation and regulatory compliance of the tokenization of real-world assets.
This framework ensures that operations within the IOTA EVM network comply with international regulatory standards, which is critical for investor protection and market integrity.
Additionally, IOTA EVM has adapted its technology to meet the needs of institutional investors, including the implementation of a project KYC on-chain to identify investors and enable institutional DeFi trading pools. This not only improves security by verifying the identity of participants, but also ensures compliance with global financial regulations.
