IOTA 2.0 DevNet Nectar went live on Wednesday, a step started toward complete decentralization of the IOTA protocol. The new DevNet brings a modular architecture, and gives individual nodes the autonomy to evaluate new messages in a decentralized way.
On Wednesday, June 2, the IOTA Foundation took another step towards full decentralization. The Foundation announced the launch of its long-awaited IOTA 2.0 Development Network (DevNet) “Nectar”.
This is basically the research prototype for the first fully “decentralized, no feeling, no permission and secure” Tangle protocol. After the news broke, the price of native IOTA cryptocurrency skyrocketed to the north. So far, the IOTA is trading about 15% above, at $1.33, with a market value of $3.92 billion.
The announcement also notes that the launch of Nectar is a step towards scalable, efficient, sustainable and secure encryption solutions. Nectar will play a crucial role in preparing for the fully decentralized IOTA 2.0. Dominik Schiener, co-founder and president of the IOTA Foundation said:
“IOTA 2.0 DevNet‘ Nectar ’is an important milestone in IOTA’s trajectory towards full decentralization. I can’t underestimate the importance of this release: Nectar is living proof that you can have DLT feeless, scalable, secure, resource efficient and totally decentralized. It’s a game changer. Now that we’re releasing it to the public, we’re excited to see it perform. Feedback on DevNet features and use cases will be essential as we continue to prepare for the final Coordicide update.”
IOTA 2.0 DevNet: Towards Full Decentralization
The introduction of full decentralization by IOTA 2.0 DevNet expands the capabilities of the IOTA protocol. The announcement indicates that new messages entering IOTA Tange’s internal data structure should not be protected by central authorities such as the Coordinator.
Instead, the IOTA Foundation brings an elegant new system of cooperation from us and non-monetary rewards. This system encourages individual nodes to evaluate transactions with confidence.
In addition, PoS and PoW solutions often require considerable monetary and computational resources. However, IOTA 2.0 DevNet will rely on network consensus validation. Thus, it rewards honest nodes with an alternate “Mana” token and nodes can continue to acquire them with honest behavior. These nodes evaluate new message entries in Tangle. In return, they receive rewards in “Mana” tokens for processing transactions that bring a good reputation. This in turn creates a virtuous cycle of validation of node consensus and reputation.
IOTA 2.0 DevNet also supports a modular architecture. This means that developers will be able to implement future updates and bug fixes to specific modules. Serguei Popov, PhD, co-founder and member of the Board of Directors of the IOTA Foundation said:
“Everything IOTA does is based on bold ideas supported by rigorous research. The IOTA 2.0 DevNet consensus protocol is a particular development that makes us proud. We’ve developed a mathematically elegant, resource-efficient and secure DLT solution that will eventually make the Coordinator obsolete and make IOTA Mainnet totally decentralized, while keeping it perfect – an industry first.”
IOTA 2.0 DevNet will soon undergo rigorous testing encouraged by members of the IOTA community. This is to confirm the effectiveness of the consensus algorithm in real world settings.