- The upcoming Rebased Protocol of IOTA is reported to combine the Sui MoveVM and the Ethereum Virtual Machine (EVM) to achieve full decentralization.
- Rebased Protocol is expected to increase the network’s transactions per second to beyond 50,000.
The much anticipated Rebased Protocol proposed by IOTA (IOTA) and subject to governance voting has caught the attention of industry giants as SUI elaborates on the procedure. As we reported on November 19, this protocol aims to improve the scalability, decentralization, and programmability of the IOTA network. Though the Rebased Protocol is being built on an existing architecture, a new range of features would be introduced to improve the performance.
@SuiNetwork X @iota@SuiNetwork inspires other projects and teams to create cutting-edge solutions🚀✨
⬇️Details below⬇️ pic.twitter.com/mTKo3A1hF6— Sui Corner (@SuiCorner) November 19, 2024
According to the official report, the protocol would also integrate the MoveVM which was originally developed by the Mysten Labs for the Sui Network. The function is to enable programmability at the L1 level to support the creation of new applications and functionality.
Another incredible merit of the Rebased Protocol is its ability to utilize a high transaction processing speed model of more than 50,000 transactions per second and a finalization time of less than a second. Similar to the one found on Sui, a burn fee function would be unlocked to balance the economy and the network.
Quest to Reaching Programmability on IOTA
In a recent report, IOTA disclosed that it has been developing two important functionalities since 2021 to meet the growing demand for smart contracts on the network. Firstly, it started the IOTA Smart Contracts Protocol (ISC) in 2021 to launch EVM-based smart contracts on IOTA as a Layer 2 solution. Secondly, its Layer 1 Smart Contract was explored to introduce Smart Contract to the IOTA’s L1 protocol.
In May 2024, the EVM-based smart contracts were concluded with the launch of the IOTA EVM. Since then, several projects, including Goldsky and Pyth, have successfully deployed on the network. Meanwhile, an internal team was created to assess the solution landscape and technical feasibility of integrating smart contracts into the L1. After assessment, it was concluded that the MoveEVM was the most feasible solution for the DAG ledger. Later, the team ported the Sui MoveVM to IOTA after an internal recommendation.
Our smart contract team then began to work with the IOTA 2.0 core team on the requirements and specifications of bringing MoveVM to the IOTA 2.0 protocol. Their initial assessment concluded that, while technically feasible, implementing MoveVM into IOTA 2.0 would be a multi-year effort to deliver a safe and tested protocol to the mainnet. Moreover, this approach would require two consecutive breaking protocol changes: first for IOTA 2.0, and later for the L1 Move upgrade.
Analyzing a comprehensive blog post detailing the Rebased Protocol, we observed that the initiative would enable IOTA and its ecosystem to immediately access a new application paradigm, L1 smart contracts, much-improved tokenomics, and full decentralization. Also, the combination of the MoveVM and EVM would enable builders to create an entirely new application.
Currently, the Rebased testnet has been launched to enable the community to assess and become familiar with the features before the official mainnet launch.
At press time, IOTA was trading at $0.172 after declining by 3% in the last 24 hours.