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- IOTA founder Dominik Schiener emphasized the foundation’s focus on long-term real-world applications of blockchain, particularly in tokenizing real-world assets (RWAs).
- Schiener discussed the ongoing development of IOTA 2.0, including the shift from a centralized Coordinator to a “proof of authority” model for decentralization.
In a recent interview, Dominik Schiener, co-founder of the IOTA Foundation, discussed IOTA’s future in the Web3 space, the development of IOTA 2.0, and its focus on real-world asset tokenization projects. Schiener emphasized the need for real-world applications of blockchain, a shift from the crypto industry’s trend of “get-rich-quick” schemes.
IOTA Foundation Co-founder Offers Insight Into Web3
Schiener acknowledged that many blockchain projects have deviated from their original visions by chasing short-term profits instead of creating tangible value. “Crypto only makes sense if it’s really applied in real life,” Schiener said. Moreover, he emphasized that the IOTA Foundation remains focused on long-term utility rather than hype-driven projects.
Additionally, he highlighted the foundation’s commitment to real-world asset tokenization, as reported by CNF. This RWA application could revolutionize sectors like trade finance by providing increased liquidity and transparency. Also, one of the critical points he discussed was the significance of IOTA 2.0.
Scheiner opened up on the removal of the “Coordinator,” a key aspect of IOTA’s consensus mechanism that has drawn criticism for centralization. Schiener noted, “The Coordinator is not important for the entire crypto space…removing the Coordinator doesn’t help us in the market.”
Instead, the IOTA Foundation has shifted to a “proof of authority” model, where a distributed validator set secures the network. This transition will pave the way for a more decentralized future for IOTA.
Schiener also provided updates on IOTA’s DeFi achievements, revealing that the network’s Total Value Locked (TVL) had surpassed $5 million, reported CNF. He noted that more projects, including decentralized exchanges (DEXs) and tokenized assets, are in the pipeline.
“Some games are now coming to IOTA, and I think the goal is that we’re building our own ecosystem,” Schiener said. He stressed the importance of creating new utilities for the IOTA token through these projects.
Tokenizing Real-World Assets (RWAs)
Another focus area for the IOTA Foundation is tokenizing real-world assets, such as real estate and government bonds. Schiener explained how this would bring more efficiency to sectors reliant on traditional finance systems, as reported by CNF. “In crypto or blockchain, it is immensely more efficient…you can read everything completely on the blockchain,” he remarked.
He described how tokenization could simplify processes like tracking net asset value in real-time. This ability to tokenize assets would make markets more accessible and liquid by attracting institutional investors.
Schiener also touched on IOTA’s partnership with governments and businesses, especially in the field of trade logistics. He revealed that IOTA is working with the Kenyan government on a project called the Trade Logistics Information Pipeline. This project aims to create a transparent supply chain. The venture, initiated in 2018, is now moving into production.
Finally, Schiener acknowledged that progress in the blockchain space has been slower than anticipated, but he remains optimistic. “It always takes much longer than expected,” he admitted. Despite these challenges, he reaffirmed IOTA’s commitment to developing real-world use cases.