IOTA launches beta smart contracts with zero fees

By: Ali Raza
Ali Raza
Ali plays a key role in the cryptocurrency news team. He loves travelling during his spare time and enjoys… read more.
on Oct 22, 2021
  • IOTA is launching smart contracts that will be the first to offer feeless transactions.
  • The zero fees structure will be enabled by allowing developers to set individual factors for execution fees.
  • The smart contracts also come with limitless scalability and foster interoperability.

On October 21, the IOTA Foundation launched a beta version of the network’s smart contracts. According to the firm, these smart contracts will offer high speeds and will offer functionality at zero transaction fees.

The beta smart contracts will also bring interoperability between IOTA and ERC-20 tokens because of using an Ethereum Virtual Machine (EVM). This interoperability will enable the smart contracts to be written using Ether’s Solidarity language that is linked in the IOTA’s tangle. It has also been developed using Go and Rust language, which also offer interoperability.

First feeless smart contracts

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The beta smart contracts will also enable smart contract developers to set their own execution fees. This is being done in a dynamic manner such that it will incentivize the fees, which will reduce significantly because different chains will compete for the work of executing a smart contract.

This smart contract is the first one in the industry as it enables users to deploy smart contracts on a network that charges zero fees. According to the CEO of the IOTA Foundation, Dominik Schiener, the new smart contract update will boost support to the network.

‘We believe that a vast amount of our partnerships with multinational entities, government agencies, as well as the interest we receive from startups, SMEs, and crypto dApp operators are due to the fact that IOTA is feeless. Fees themselves, and especially their volatility, put a strain on business models and are the diametric opposite of an economic driver.

In March, IOTA Foundation has announced it would release the alpha IOTA Smart Contracts Protocol. This protocol would be created to help developers to launch smart contracts and build decentralized finance (DeFi) and non-fungible tokens (NFTs).

Schiener also stated that launching smart contracts would add a crucial component to IOTA’s ecosystem. Besides, the smart contracts would enable anyone to create dApps supported by standard Ethereum tooling while using a feeless base later and predictable but low execution fees.

Cardano vs. IOTA smart contract launch

Last month, Cardano (ADA/USD) launches smart contracts to support the development of DeFi on the network. While some people argued that the smart contracts launch had come in late, the network’s founder, Charles Hoskinson, dismissed these claims, stating that launching a smart contract late came with its own benefits.

IOTA’s smart contract launch is different from Cardano’s because IOTA offers limitless scalability, while Cardano is currently looking for a scaling solution to be implemented later. IOTA also enables users to feeless transfer assets across different blockchains.

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