As of recent news, the IOTA Foundation released the Beta Version of Smart Contracts for IOTA. I will try to outline in this article why I think this is an absolute game changer for IOTA and maybe also the complete crypto economy.
Smart Contracts And Their Use Cases
Smart Contracts in general became a very important part of the crypto world in recent years. Use Cases like decentralized finance (DeFi), digital art with NFTs or the upcoming machine economy rely on them.
However, one can argue that many other crypto projects already have that feature. IOTA seems to be late to the party.
That‘s correct, but most of them are blockchain based, IOTA on the other hand is based on a directed acyclic graph (DAG) – the Tangle. Or as I call it, the next generation distributed ledger technology.
Why Smart Contracts On IOTA Are Different
The main smart contract ecosystem today is without a doubt Ethereum. But as in any ecosystem, Darwinian forces are at work here as well. There are many projects that are eyeing the throne. Cardano is only one example.
However, the release of the smart contracts beta on IOTA is something completely different.
The reason is in the underlying technology. A deeper look makes some things very obvious.
Today, the biggest pain point is the tremendous fees. IOTA is feeless.
Blockchains are getting slower, the bigger they become. IOTA scales up faster, the more participants.
Furthermore, IOTA added Ethereum Virtual Machine (EVM) compatibility, for easily porting smart contracts. The contracts follow the lego bricks concept and bring full interoperability.
Outlook
From my perspective, this beta release sounds very promising. According to verifiedmarketresearch.com the smart contracts market size was valued at $145 Million in 2020. It is projected to reach $770 Million by 2028, growing 25% annually this decade.
I hope it became clear, why I am so excited about the news. Feel free to let me know what you think in the comments section or on Twitter.
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