After months of anticipation and speculation, IOTA has finally unveiled its next-generation protocol. In a surprising move, the organization has announced that it will be pivoting to the Rebased protocol instead of its initial 2.0 version goal.
The announcement, which was made on December 1, marks a significant shift in IOTA's plans. The foundation had previously stated that it would be transitioning to IOTA 2.0 in phases, with the complete migration expected to be finished by the end of 2024. However, it appears that the organization has decided to scrap those plans and move directly to Rebased.
According to IOTA, the decision to skip IOTA 2.0 was made after careful consideration and is driven by the belief that Rebased is a vast improvement over the original 2.0 plans. In its year-end assessment, the organization highlighted several key aspects of Rebased that make it better suited to IOTA's vision of decentralization and answering real-world demands, particularly in asset tokenization.
The new protocol is designed to prioritize usability, programmability, and adoption. It paves the way for the full integration of smart contracts and decentralized applications (dApps), and it also offers seamless interoperability with other blockchains. The foundation explained that this transformation will allow IOTA to "compete effectively on the application layer, bringing advanced utility to developers and businesses alike."
IOTA also revealed that future integrations, such as the synthesis of multiple execution environments directly into its Layer 1 chain, will further expand the network's capabilities.
"This will culminate in the creation of a multi-chain architecture that will massively enhance IOTA's throughput, cater to a broader range of use cases, and bolster its status as a next-generation blockchain protocol," the foundation stated.
In addition to the introduction of IOTA Rebased, IOTA has also made considerable strides in the IOTA EVM (Ethereum Virtual Machine) and RWA (Real-World Asset) Tokenization. It also forged strategic partnerships with the government and private sector to expand its international reach and exposure.
The IOTA EVM's arrival effectively bridged the network to the omnichain Web3 space and DeFi (decentralized finance) ecosystem. This brought forth enhanced interoperability that dovetailed with the chain's integration with the likes of Stargate, LayerZero, Pyth Network, and other emerging powerhouses in the Web3 and DeFi domains.
Moreover, the IOTA EVM marked the blockchain's transition to an RWA tokenization hub. This milestone was reinforced by the Singapore-based IOTA Tenity RWA Accelerator Program that boosted the network's real-world use cases to include its application in digital product passports (DPP), identity solutions, and logistical support.
Along the way, the organization forged vital partnerships with prestigious international non-governmental organizations (NGOs). It formed a consortium composed of the World Economic Forum (WEF), the Tony Blair Institute for Global Change, the Chartered Institute of Export and International Trade, and the Global Alliance for Trade Facilitation. Its biggest project by far that's set to make a huge mark in global trade is the Trade Logistics Information Pipeline (TLIP).
