IOTA 2.0: Launching the First Fully Decentralized Development Network

iota crypto news

The IOTA foundation launches its first truly decentralized development network (DevNet), and goes one step closer to completing its famous roadmap. 

A New Era of Decentralization

IOTA 2.0 announced the completion of one of its long list of proposed milestones, the NectarThe Era of IOTA’s Decentralization Starts Here, its press release says. 

Before Nectar, the foundation had earlier announced the successful implementation of Chrysalis and Pollen, while also launching the first testphase of its cross-chain platform in January.

The latest goal in the bag, Nectar, is expected to play a pivotal role in the” complete” decentralization of the IOTA network. 

IOTA has always been one known to push the limits of innovation, having famously spearheaded the creation of its unique  blockchain: Tangle. The Tangle,unlike the ubiquitous consensus mechanisms Proof of Work and Proof of Stake, is generally more energy-efficient.  For all its perks, the Tangle is often accused of being “centralized”. If there was any bigger proof backing this claim, it would be IOTA’s decision to “switch off” its network to mitigate damages after its network was hacked in February, 2020.

With the implementation of Nectar, decisions like this would no longer be possible. To rid itself of criticisms, IOTA announced the implementation of Chrysalis (also called IOTA 1.5) on  28 April 2021. The Chrysalis update dealt away with previous controversial decisions like ternary encodings and quantum proof cryptography and replaced them with established standards. 

Nectar is the latest effort, and perhaps the most important, to shut critics up for good. Dubbed IOTA 2.0, the new DevNet  is described as fully decentralized, and “without the need of a coordinator”. 

IOTA 2.0  is established on a leaderless agreement that permits every node to contribute directly to the security and consensus of the network by validating transactions. Contributing nodes are rewarded and incentivized with  “manas”. 

The operation of “manas” is not exactly clear. William Sanders, Director of Research at the Iota Foundation commented on the unusual decision to reward nodes with “manas” rather than tokens:

“Incentive to participate arises from the demand to use the network. Users who want to use our DApps, spend our tokens, or secure data on the Tangle, have a natural incentive to acquire mana to use the Tangle. Mana is not a token since it cannot be traded, and its value will be always [be] dependent on the demand for access to the network.”

New Competitive Edges

Another major feature of IOTA 2.0 DevNet is its tokenization capability. The ability to mint tokens on the Ethereum blockchain  was responsible for most of its later successes. Cardano’s ongoing hard fork plans to introduce Smart Contracts to the Cardano blockchain as well, as Cardano hopes to become the de facto home of the DeFi industry.

Like Cardano, IOTA 2.0 would facilitate Smart Contracts on the Tangle blockchain and would provide the opportunity to create utility coins and other digital assets like NFTs on Tangle. Although the network is presently a prototype, its co-founder, Dominik Schiener thinks there are high hopes for the rejuvenated token already.You can buy or trade any top cryptos on ChangeNOW for IOTA here.