IOTA plans to introduce smart contracts on its Layer 1 network this year, with a quick transition from the testnet to the mainnet expected. This move is aimed at allowing the L1 network to support decentralized applications and tokenization, which founder Dominik Schiener views as the network’s primary target market.
IOTA has been striving to become an all-encompassing network capable of supporting decentralized applications, NFTs, tokenization, decentralized exchanges, and other blockchain applications. While many of these developments have taken place on the Shimmer staging network, the IOTA Layer 1 is expected to catch up before the end of the year, starting with the launch of smart contracts.
According to discussions on the IOTA developers’ forum, the smart contracts could be launched later this year and would initially be tested in a testnet environment before quickly transitioning to the main network. This has created a bullish outlook among community members, with hopes of achieving IOTA’s all-time high next year if major real-world asset liquidity starts flowing in.
The forum conversation also mentioned that IOTA developers have been working on significant tech upgrades in private repositories, which might include the introduction of MoveVM, a virtual machine designed to run smart contracts written in the Move programming language. MoveVM is known to enhance flexibility, security, and transaction processing speed, which could potentially revolutionize blockchain technology.
Earlier this year, IOTA announced the integration of Supra Oracles for IOTA EVM to enhance the data accuracy of its smart contracts. These developments have marked a significant advancement for IOTA, particularly with the launch of IOTA 2.0 on a testnet earlier this year, which has been hailed as the network’s most radical development in years.
IOTA has already been recognized as the best infrastructure for the Internet of Things ecosystem, with its Tangle technology being acknowledged as the best implementation of decentralized ledger technology for the rapidly growing sector. Additionally, studies have shown that smart contracts on IOTA 2.0 can enhance and secure software-defined networking, making networks more flexible.
Despite a 2% drop in its trading price, IOTA’s trading volume has risen by 24%, and the overall market cap has experienced an uptick. These developments indicate a promising outlook for IOTA as it prepares to introduce smart contracts on its Layer 1 network, solidifying its position as a leading player in the blockchain space.