The IOTA Foundation has launched the 2.0 ‘Nectar’ DevNet to address centralisation concerns.

Spread the love

 204 Interactions,  2 today

To say the least, IOTA has had a rough journey. Consider this: the cryptocurrency was formerly placed as high as fourth on CoinMarketCap’s charts, but as of press time, it was rated 32nd. It was also trading slightly under the $1.5 threshold. It is worth mentioning, however, that the flagship currency had a significant 23 percent increase in price action, as well as a staggering 170 percent increase in volume, within a 24-hour period.

One of the explanations for the sudden rise might be a new IOTA development.

The IOTA Foundation is in the news today after it announced the launch of IOTA 2.0 Development Network (DevNet) named ‘Nectar,’ a research prototype for the “first fully decentralized, feeless, permissionless, and secure Tangle protocol.” This will be the first fully decentralized IOTA network without the need for a Coordinator.

Nectar is second in line with IOTA’s three-phase release strategy. Pollen, the first testnet for IOTA 2.0, was released back in June 2020. Soon, Honey will follow.


RECOMMENDED READ:  Ren opens a gateway to Polygon for seven of the largest crypto assets.

This update will work parallelly with the Chrysalis upgrade. As per the Foundation’s official statement,

“Following the path charted by the latest Chrysalis upgrade, Nectar will play a pivotal role in preparing for IOTA 2.0, the ultimate and decentralized iteration of IOTA.”

An important aspect to note here is its Tangle protocol. According to the IOTA Foundation,

“The Tangle-powered project positions itself as a more efficient alternative to existing proof of work (PoW) and proof of stake (PoS) blockchains since it does not require transaction fees and does not “waste” electricity and computing resources.”

The said development has been welcomed by many in the community, with the likes of Dominik Schiener, Co-founder and Chairman of the IOTA Foundation, commenting,

“IOTA 2.0 DevNet ‘Nectar’ marks a major milestone on IOTA’s trajectory towards full decentralization.”

He added,

“I cannot understate the importance of this release: Nectar is the living proof that you can have feeless, scalable, secure, resource-efficient and fully decentralized DLT. It’s a game-changer.”

Having said that, it’s worth noting that the initiative has been criticized in the past as being centralized. Critics have often cited the hack of the Trinity wallet in February 2020 to fuel their skepticism of the project.

RECOMMENDED READ:  If anyone else can modify Bitcoin's playbook, it seems to be...

With the release of this new update, however, it would seem that the IOTA Foundation is intending to allay any concerns on the question of centralization.

Leave a Reply

Contact Us