The IOTA Foundation has released its highly anticipated Q2 2024 progress report, spotlighting major advancements that signal a pivotal phase in the evolution of the IOTA ecosystem. From the launch of the IOTA EVM chain to the rollout of the IOTA 2.0 testnet and breakthroughs in digital identity solutions, this quarter marks a strategic shift from foundational research to real-world application and ecosystem expansion.
This comprehensive update reflects the foundation’s ongoing commitment to decentralization, scalability, and enterprise-grade blockchain integration—positioning IOTA as a leading force in the next generation of distributed ledger technologies.
Core Advancements: EVM Chain and IOTA 2.0 Testnet
One of the most significant milestones in Q2 2024 was the official launch of the IOTA EVM chain, a major step toward enabling full programmability within the IOTA network. By integrating Ethereum Virtual Machine (EVM) compatibility, developers can now deploy Ethereum-based smart contracts seamlessly on IOTA, unlocking new possibilities for decentralized applications (dApps).
👉 Discover how EVM compatibility is accelerating dApp innovation on scalable blockchains.
Simultaneously, the IOTA 2.0 testnet went live, replacing the previous coordinator-based consensus with a fully decentralized model. This upgrade introduces a novel Proof-of-Stake (PoS) mechanism powered by Mana, a reputation and resource allocation system designed to enhance network security while minimizing environmental impact. The transition marks a critical leap toward a trustless, self-sustaining network architecture.
These developments are not just technical upgrades—they represent a fundamental shift in IOTA’s trajectory, moving from theory to production-grade implementation.
Research & Development Focus
The core development team remained laser-focused on refining the underlying protocol, culminating in the successful deployment of the IOTA 2.0 testnet. Meanwhile, the Layer 2 smart contract team delivered on its promise by launching the EVM chain, enabling robust smart contract functionality without compromising scalability.
Developer experience was also prioritized: updated EVM documentation and enhanced tooling have made it easier than ever for developers to build on IOTA. The tools team further supported this momentum by developing essential infrastructure—including blockchain explorers and wallet software—tailored specifically for the IOTA 2.0 environment.
This holistic approach ensures that both technical robustness and user accessibility advance in tandem.
Driving Real-World Adoption: The Role of Technical Applications
To bridge the gap between innovation and implementation, the IOTA Foundation established a dedicated Technical Applications (TA) department. This new unit combines deep technical expertise with strategic business development capabilities to accelerate adoption across industries.
Key initiatives under the TA umbrella include:
- European Blockchain Pre-Commercial Procurement (EBSI PCP): A pan-European effort to leverage blockchain for public services, where IOTA’s technology is being evaluated for secure, transparent data exchange.
- SUSEE Project: Focused on creating scalable, secure data transmission solutions for sensor networks—critical for IoT and smart city applications.
These projects underscore IOTA’s growing relevance in government and enterprise contexts, where reliability, interoperability, and compliance are paramount.
Transforming Trade: The Trade & Logistics Information Pipeline (TLIP)
At the heart of IOTA’s real-world utility lies the Trade & Logistics Information Pipeline (TLIP)—a digital infrastructure built on IOTA’s distributed ledger technology (DLT). TLIP aims to modernize cross-border trade processes, particularly between the EU and the UK, by enabling secure, tamper-proof data sharing.
In a notable partnership, IOTA is collaborating with the Kenya Revenue Authority to streamline export certification workflows. By digitizing and securing trade documentation, TLIP reduces fraud, accelerates processing times, and enhances transparency—demonstrating how blockchain can solve tangible logistical challenges.
This use case exemplifies how DLT can deliver value beyond cryptocurrency, serving as a backbone for global supply chain transformation.
Expanding the Ecosystem: Builders, Funding, and Community Growth
The ecosystem team played a vital role in nurturing community-driven innovation. Since the launch of the IOTA EVM in June 2024, over 30 dApps have already been deployed—spanning DeFi, NFTs, gaming, and identity management.
To fuel further growth, the IOTA Grants Program received more than 102 applications, with funding commitments totaling $2.74 million. These grants are empowering independent developers and startups to push the boundaries of what’s possible on IOTA.
Additionally, strategic integrations with top-tier infrastructure providers and leading oracle services have strengthened the reliability and functionality of the IOTA EVM stack.
Community engagement remains strong through initiatives like BuildSphere, an eight-episode X-Space series featuring interviews with key ecosystem projects—fostering visibility, collaboration, and momentum.
👉 Explore how blockchain ecosystems grow through grants, developer tools, and community programs.
Legal & Regulatory Milestones
As regulatory scrutiny intensifies globally, IOTA is proactively shaping the conversation around compliance and standardization. The foundation’s Web3 identity solution has been selected for inclusion in the European Commission’s Blockchain Sandbox, a prestigious initiative that tests innovative technologies under real regulatory conditions.
This recognition validates IOTA’s approach to self-sovereign identity (SSI)—a privacy-preserving framework that gives individuals control over their digital identities.
Moreover, IOTA’s legal team actively participated in workshops on tokenization of financial assets, contributing insights on interoperability standards and regulatory alignment. These efforts position IOTA at the intersection of innovation and institutional acceptance.
Looking Ahead: From Development to Deployment
With the successful launch of the IOTA 2.0 testnet and EVM chain, the foundation is now shifting focus from research and development to ecosystem consolidation and widespread adoption. Organizational restructuring—including expanding the Ecosystem and Technical Applications teams—reflects this strategic pivot.
The goal is clear: make IOTA the go-to platform for enterprises, governments, and developers seeking scalable, sustainable, and secure DLT solutions.
Frequently Asked Questions
Q: What is the significance of the IOTA EVM chain?
A: The IOTA EVM chain enables Ethereum-compatible smart contracts on IOTA, allowing developers to build dApps using familiar tools while benefiting from IOTA’s high throughput and feeless transactions.
Q: How does IOTA 2.0 improve upon previous versions?
A: IOTA 2.0 replaces centralized coordination with a decentralized PoS consensus using Mana, enhancing security, scalability, and environmental sustainability.
Q: Is IOTA focusing only on enterprise use cases?
A: While enterprise adoption is a priority, IOTA supports diverse applications including DeFi, NFTs, gaming, and community-driven projects through its grants and developer programs.
Q: What is TLIP and who benefits from it?
A: TLIP (Trade & Logistics Information Pipeline) is a DLT-based infrastructure that streamlines cross-border trade. Governments, customs agencies, exporters, and logistics firms benefit from faster, more transparent processes.
Q: How is IOTA addressing regulatory challenges?
A: Through participation in EU regulatory sandboxes and asset tokenization discussions, IOTA is helping shape compliant frameworks for digital identity and financial innovation.
Q: Can developers start building on IOTA today?
A: Yes—comprehensive documentation, developer tools, and grant opportunities are available for those looking to build on IOTA EVM or contribute to core protocols.
👉 Start building on a scalable, enterprise-ready blockchain platform with growing ecosystem support.
The Q2 2024 progress report underscores a transformative period for IOTA—one defined by technological maturity, strategic partnerships, and expanding real-world utility. As the ecosystem continues to evolve, IOTA is proving that distributed ledger technology can deliver both innovation and impact.