The potential change that NFTs are showing in the digital world has led IOTA, the blockchain network for IoT, to update and add support for the already famous NFT tokens.
Now IOTA, the network that serves as a bridge between smart devices of the Internet of Things (IoT) and blockchain, will also be adding support to support non-fungible tokens or NFTs. The integration of the new tokens and tokenization functionalities in this network is due to the largest update that IOTA has seen, called chrysalis; an update that will be completed next March.
Chrysalis will help IOTA enable new use cases for the creation of innovative products and services that were not previously possible within this network, such as NFTs, which are potentially causing change within various sectors of society. The almost infinite possibilities offered by these tokens is what is driving IOTA to take a significant step to change its history, and become a much more complete and balanced blockchain network.
Its developers recently published on GitHub what is the new Marco of digital assets that the blockchain will support, including NFT tokens and colored coins, or colored coins. With these integrations, IOTA seeks to catch up with other blockchain networks, and allow developers to create and issue new tokens on the network, expanding its capabilities towards the tokenization of assets, offering new and better use cases.
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IOTA, in the best style of Ethereum
Today, Ethereum, the second blockchain network and cryptocurrency most important of the markets by capitalization, it is also the network most used and dominated by developers. The powerful capabilities that Ethereum offers allow you to run all types of decentralized applications (dApps), create and use Smart contract and also new token usage. However, it is the high rates of Gas, the fuel that this network uses to process transactions, which makes it difficult for many new users and retail investors to participate and interact with the applications and projects that are developed within this network. Thus, the new capabilities that IOTA is offering are presented as an alternative to Ethereum, with greater appeal for developers and application creators.
IOTA ensures that it will maintain the network's low commission rates, as well as its scalability and security for new tokens and assets that are developed within its blockchain. These features allow developers to have a much more favorable working environment for creating applications, while the network evolves its native token economy model, also called IOTA, towards “a colorful world of digital assets ranging from tokenized physical assets to data streams and even NFTs.”
NFTs and Colored Coins
Both NFTs and colored coins can be used in IOTA to represent and tokenize real-world assets; such as bonds, stocks, property rights and much more. As the network developers explain, the objective is “allow real-world assets to be represented by digital tokens that are secure, transferable, free and fast” within IOTA, opening the doors of the network to new use cases and value.
In the case of NFTs, the new non-fungible tokens created in IOTA can be used to represent works of art, collectibles or special edition items, and can also be used as collateral within decentralized finance protocols (DeFi).
IOTA also plans to integrate support for utility tokens and security tokens, which also allow the creation of new financial instruments to provide an easy, secure, convenient and economical method of creating and trading blockchain-backed services.
Smart contracts on IOTA
On the other hand, in addition to integrating support for NFTs and colored coins, IOTA is also preparando to integrate support for smart contracts, next March, which will allow developers to have a much more complete and competitive blockchain network in the market. Recently, the network's developer team announced the launch of IOTA Smart Contract Protocol (ISCP), the first implementation of smart contracts on the IOTA network.
The Digital Assets framework that IOTA announced is a key component of smart contracts to enable entire new use cases on the network. With these integrations, IOTA seeks to make the machine economy a reality, facilitating free micropayments, immutable and verifiable data, decentralized and autonomous identities, as well as smart contracts. All of these features enable IOTA to provide a complete and autonomous environment that facilitates the tokenization of physical and digital assets on the blockchain, as a highly valuable instrument that will change the world.
“Tokenization will transform the concept and exchange of value as we know it.”
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