Summary
The IOTA Foundation has announced plans to achieve decentralization by 2024 with the launch of the Shimmer side project (SMR) and the subsequent release of IOTA 2.0. A timeline for IOTA 2.0 has been provided, stating that a testnet will go live in the first quarter of 2024, and the new protocol will be implemented into Shimmer. Later in the same year, IOTA itself will undergo a major upgrade to version 2.0, enabling the decentralization of the tanglenet.
Introduction
The IOTA Foundation is actively promoting its forthcoming technological advancements, including decentralization through the implementation of Shimmer and IOTA 2.0. These plans aim to address the central authority that currently dominates the IOTA Tanglenet, contradicting the decentralized nature of cryptocurrencies like Bitcoin. The Foundation has expressed confidence that this fundamental problem can be solved, with the validation of transactions in IOTA 2.0 expected to be determined by a form of Delegated Proof-of-Stake (DPoS).
Main Points
- The IOTA Foundation plans to achieve decentralization by 2024 through the launch of the Shimmer side project (SMR) and IOTA 2.0.
- A testnet for IOTA 2.0 is scheduled to go live in the first quarter of 2024, followed by its implementation into Shimmer.
- IOTA 2.0, also known as “Coordicide,” aims to resolve the centralized structure of the IOTA Tanglenet.
- The validation of transactions in IOTA 2.0 is expected to be determined using a form of Delegated Proof-of-Stake (DPoS).
Conclusion
Despite the IOTA Foundation’s announcements, the crypto markets have not shown significant reaction. Shimmer’s price remains close to an all-time low, and the initial interest in SMR in the decentralized finance (DeFi) sector has already declined. The registration of a new foundation in Abu Dhabi briefly boosted the price of IOTA, but this increase has been reversed. The industry now awaits the fulfillment of the decentralized IOTA 2.0 plans, as well as the technological feasibility, which may become clearer in 2024.