The subject of IOTA elicits excitement while also causing headaches. Despite significant losses in recent years, the project continues to have a large following, particularly in German-speaking countries. At the same time, hopes for a renaissance of the project are frequently dashed. However, the introduction of smart contracts via the ShimmerEVM chain has the potential to change that. How IOTA Smart Contracts Could Skyrocket the Value of MIOTA?
Where does the IOTA project stand in 2023?
The hype surrounding the IOTA project was higher than ever at the start of 2018, at the end of the 2017/2018 bull market. This was also demonstrated by the MIOTA price, which was capable of rising to more than 5 US dollars at the time. Numerous investors were won over by the tangle concept, which is based on the directed, acyclic graph (DAG). Above all, a collaboration with the technology group Bosch sparked an interest.
While IOTA was still the fourth most valuable cryptocurrency by market capitalization at the end of 2017 and early 2018, it is now more of a sideshow on the market. The price is only $0.21, and IOTA is ranked 80th in terms of market capitalization among cryptocurrencies.
However, there have been significant network developments in the last 1 to 2 years. One is working hard on Coordicide (also known as IOTA 2.0), which should result in network decentralization. The Shimmer network was also tested. This also allows for IOTA staking.
IOTA Smart Contracts: What is the Shimmer Network?
IOTA’s Shimmer network adds another layer to the DAG-Tangle. Smart contracts and asset tokenization should be possible. The network went live on September 28, 2022, and it has its own token called SMR.
IOTA’s goal with Shimmer is to build a multi-chain network that allows for interoperability and value transfer via smart contracts. The network also hopes to close the gap with networks such as Ethereum, Cardano, and Solana by introducing smart contracts.
IOTA Smart Contracts: How does Shimmer bring the IOTA network forward?
Following the massive hype surrounding IOTA at the turn of the year 2017 / 2018, the years that followed were filled with disappointment. On the one hand, there were internecine conflicts. However, it was discovered that decentralizing the tangle and its central coordinator was extremely difficult. Other networks passed IOTA during this time. Not only are the aforementioned networks decentralized, but they have also been providing smart contract functionality for years.
At IOTA, the test network for the ShimmerEVM chain is now operational. This is the Shimmer network’s first EVM (Ethereum Virtual Machine) compatible chain. This enables assets to be transferred from other networks to Shimmer. However, IOTA anticipates a significant competitive advantage from fee-free transactions, which competitors cannot provide.
Can the IOTA price finally benefit?
Although the price of IOTA has increased slightly in the last three months, the gains are minor when compared to Bitcoin, for example. Even with the launch of the ShimmerEVM chain’s test network, the price could hardly rise. Technical breakthroughs have so far failed to restore trust in the project.
The hope is that IOTA is currently undervalued and that the price can return to previous highs in a bull market. Then, if the technological innovations can fully develop with a larger number of users, they will be perceived much more broadly. As a result, the MIOTA token is still extremely affordable.