Layer 0 – The real reason why Dominik Schiener (Co-founder IOTA Foundation) said “IOTA is NOT an Ethereum killer”

Layer 0 – The real reason why Dominik Schiener (Co-founder IOTA Foundation) said “IOTA is NOT an Ethereum killer”

The idea behind Ethereum is ingenious: Connect computers from all over the world to build the most decentralized world-computer possible. However, we also all have seen the problems of the current, monolithic “one blockchain fits all” solution: Exploding fees, clogged network, long processing times and subsequently slow adoption in the real-world. You have all heard about Ethereum layer 2 solutions like Elrond or Polygon. But have you ever considered to solve Ethereums problems by seeing it as a second layer of an even more fundamental network?

This is exactly the strategy the IOTA foundation revealed with its recent IOTA smart contract protocol (ISCP) beta release.

They made the unique decision to have smart contracts not as a part of their feeless base-layer (the “Tangle”), but instead as a second layer solution. Each smart contract is one individual blockchain and is run by its own committee of nodes. This committee performs all smart contract computations internally and connects to the IOTA main-layer to create and send digital assets (NFTs, wrapped tokens, etc.) IOTA tokens and to communicate seamlessly with all other IOTA smart contract chains.

Animation of how an IOTA smart contract chain (for example Ethereum mainnet) interacts with the underlying IOTA Tangle (normal transactions in blue).

This layout allows IOTA smart contracts to be extremely flexible in design, different for each usecase and each user, while bein extremely scalable. It is the antithesis of the “one blockchain fits all” paradigm, a true cooperative multi-blockchain environment.

IOTA smart contract chain can choose freely between:

Permissionless (for high decentralization) or permissioned (for trusted consortia) validators

PoW, PoS, PoX or any other consensus mechanism

Being feeless or getting paid in any currency (outside of the network in fiat or other crypto currencies, with a currency minted inside your IOTA smart contract blockchain (i.e. ETH) or with the native IOTA token)

Creating own internal tokens (IOTA smart contract chains are complete blockchains after all)

Communicate feeless and seamlessly with other SCs over the IOTA Tangle. You can interact with other smart contracts, build complex multi-SC networks and send around data, L2 tokens (i.e. ETH) or IOTA-based L1 token to every other connected SC chain.

Control IOTA tokens and IOTA digital assets on the Tangle

Use any programming language you want (currently supported Rust, Go and Solidity (Ethereum virtual machine), many more languages and bridges planned).

As you can see, IOTA smart contracts can be made in any way any company, government, DeFi developer, game-designer or private person would want them. It is a completely open playing field, a sandbox, ready to be flooded with ideas and use-cases.

The role of Ethereum in the IOTA smart contracts eco-system (“Apes together strong”)

IOTA is not an Ethereum-killer, it is an Ethereum enabler.

Ethereum is plagued by unpredictable fees and a clogged network because every single Banano -> Squirtle-coin swap needs to be processed by this literal world-computer. Every crypto-kitty, gambling-app or other fun little smart-contract project today gets secured with the insane levels of hash-power a literal world-computer has to offer and in turn becomes slow and expensive. Yes, there is a thing as having TO MUCH security for your crypto application and your latest gambling roulette or smart-neighborhood application in a suburb of Buenos Aires is a prime example for that.

All these smaller and mid-size use-cases can now migrate onto the IOTA Tangle (IOTA 2.0 DevNet for now, mainnet next year) by creating their own, individual smart contract chains. Decentralized finance can for example be performed by smaller consortia using proof of stake on an individual smart contract chain. Gaming apps can be processed by just some dozens of validators instead of hundreds of thousands. Both speed and costs of DEXes would improve DRAMATICALLY – no more 100$ swaps that take one hour! We are talking DeFi happening in seconds and for the cost of mere cents.

So what´s the role of Ethereum here?

In this new context Ethereum can be seen the most decentralized and highest security IOTA smart contract chain possible. It will be the go-to solution for REALLY high stake smart contracts like high value life-insurances or large real-estate trades.

Ethereum gains from being part of IOTA smart contract landscape:

– High reliability and use-ability for high-value use-cases because it is less clogged by smaller projects and games

– Seamless communication with ALL OTHER smart contracts on IOTA, even those which are impossible on Ethereum as of today (such as permissioned smart contracts by industry consortia)

– A more diversified and therefore decentralized crypto-landscape, no single point-of-failure

Growth of the cryptocurrency space can only happen when technology evolves and projects work together – not “kill” each other. This is now possible in a previously unknown new direction: Not by adding second layers on top of Ethereum, but instead adding a “Layer 0” solution under its feet.

More details about IOTA smart contracts:

IOTA blog: https://blog.iota.org/iota-smart-contracts-beta-release/

Absolute beginner/non-programmer guide to create your own IOTA smart contracts:

https://iotaguide.notion.site/Setting-up-Metamask-for-IOTA-smart-contracts-fa52b6d49f3446e5947f8f37606c82cc

https://iotaguide.notion.site/Creating-your-own-token-on-IOTA-smart-contracts-using-Solidity-No-programming-required-d61aeff320324f2a9cb76c620aa0ace4

submitted by /u/Linus_Naumann
[link] [comments]

from Ethereum https://www.reddit.com/r/ethereum/comments/qetvom/layer_0_the_real_reason_why_dominik_schiener/

  • Bitcoin
  • Ethereum
  • Tether
  • Cardano
  • Polkadot
  • Binance coin
  • Dogecoin
Scan to Donate Bitcoin to 194astnfvj2nr6izGJFwG9ebRqNU7ynQYY

Donate Bitcoin to this address

Scan the QR code or copy the address below into your wallet to send some Bitcoin

Scan to Donate Ethereum to 0xe5853a1d08b3ea0bb69276b0e40cdf858968d822

Donate Ethereum to this address

Scan the QR code or copy the address below into your wallet to send some Ethereum

Scan to Donate Tether to 0xe5853a1d08b3ea0bb69276b0e40cdf858968d822

Donate Tether to this address

Scan the QR code or copy the address below into your wallet to send some Tether

Scan to Donate Cardano to DdzFFzCqrhsu1xWeeGai3gbgsbrFP26zPaVrCJqqF286carQJmAkTitRQSUCLhYLpKCotroRRNpKj7YcnAJQqpSfsHHdj8nUaitPvH4j

Donate Cardano to this address

Scan the QR code or copy the address below into your wallet to send some Cardano

Scan to Donate Polkadot to 155rGKVEanCxpi5EqGh8yh1AkGpm6bVUa7RQNydA38KzbhNu

Donate Polkadot to this address

Scan the QR code or copy the address below into your wallet to send some Polkadot

Scan to Donate Binance coin to bnb136ns6lfw4zs5hg4n85vdthaad7hq5m4gtkgf23

Donate Binance coin to this address

Scan the QR code or copy the address below into your wallet to send some Binance coin

Tag/Note:- 105346725
Scan to Donate Dogecoin to DKN9sscVgSBVyG7f9PYJq2D3BhWK5ffUmK

Donate Dogecoin to this address

Scan the QR code or copy the address below into your wallet to send some Dogecoin


Credit: Source Link

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy
WP Twitter Auto Publish Powered By : XYZScripts.com