IOTA will be able to release the Ethereum Virtual Machine (EVM) in the near future. The project has passed security checks. At the same time, the IOTA Foundation is reminding everyone to apply for funding for external projects.
Springtime mood at IOTA: the eagerly awaited integration of the Ethereum Virtual Machine (EVM) is apparently imminent. IOTA Foundation head Dominik Schiener posts on X that he can already hear the sound of the EVM and calls for the creation of an “ecosystem with new use cases and benefits for tokens”. He is referring to the fact that crypto security firm Zokyo has completed three rounds of testing for the IOTA EVM and awarded the top score of 100 out of 100. The Ethereum Virtual Machine is a standard module in the crypto industry for organizing smart contracts and thus complex use cases.
The EVM has been live on the IOTA side project Shimmer (SM) since last September. However, the desired success did not materialize there. Despite a larger airdrop program, the capital invested in the Shimmer EVM has recently shrunk again to less than USD 5 million, according to DeFiLlama. IOTA will also face the challenge of finding a unique selling point among the now more than 150 crypto projects with EVM.
External projects could help here. The foundation under Schiener’s leadership is campaigning for financial support from a recently launched IOTA fund worth USD 10 million. In this context, X is currently thanking the Ministry of Economy of the United Arab Emirates for its support. It has published a benevolent press release on the IOTA program, albeit without any financial commitments.
Conclusion: IOTA wants to take off – will markets and experts follow?
Schiener pushed for the establishment of an IOTA branch office in Abu Dhabi in 2023 and is aiming for close cooperation there. The United Arab Emirates should help to open doors in Africa, for example. With the EVM, IOTA is becoming fundamentally multi-functional. This could benefit projects that are already underway, for example, and make international trade more efficient through digital customs clearance. However, whether typical DeFi users will also embrace the IOTA EVM remains an open question. After all, the Shimmer EVM attempt has become a financial failure and the IOTA Tanglenet is also still based on a centralized structure. A decentralized IOTA 2.0 (“Coordicide”) has been in preparation for around seven years and is considered a prerequisite for regaining a foothold in the crypto industry. A date for the general release of the IOTA EVM has yet to be set – the effects will then be easier to assess.
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