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  • ISO 20022 Crypto: Which Coins & Tokens are Compliant?

    ISO 20022 Crypto: Which Coins & Tokens are Compliant?

    ISO 20022-compliant cryptocurrencies could benefit substantially in the future. They will be prime candidates for financial institutions looking to expand their offerings with the unique advantages offered by blockchain technology. Our ISO 20022 crypto list will help you identify the best cryptocurrencies that comply with the ISO 20022 standard.

    In this article, we are going to explain what ISO 20022 is in simple terms and go over cryptocurrencies that are currently compliant with the standard.

    Key takeaways:

    • The ISO 20022 standard streamlines data interchange between financial institutions, enhancing automation, reducing errors, and improving cash flow visibility.
    • As of the latest reports, about 26.4% of banks have achieved ISO 20022 compliance, with others required to comply by November 2026.
    • Cryptocurrency companies that have adopted the ISO 20022 standard, like XRP and Stellar, offer easier integration with financial systems and potential industry adoption.
    • The adoption of ISO 20022 in cryptocurrency projects like Algorand, Quant, and Hedera enhances compatibility with traditional finance, fostering wider acceptance and technological integration.

    What is ISO 20022?

    According to SWIFT, ISO 20022 is a methodology for standardizing the interchange of data between financial institutions. ISO 20022 can be used in various areas, including the clearing and settlement of payments, trading and settlement of securities, cash management, account management, and more.

    In essence, ISO 20022 addresses the problem of financial institutions using different formats and protocols for electronic data, which leads to inefficiencies. By adopting ISO 20022, financial institutions can cut costs, reduce the likelihood of errors, and reduce the complexity of data interchange.

    Here are some of the main benefits of the ISO 20022, according to SWIFT:

    “Thanks to its structured and richer data elements, ISO 20022 enables counterparties, intermediaries, and beneficiaries to increase automation in transaction processing, reducing costly manual interventions, and improving visibility on cash flows and cash positions, for example, in payment transactions.”

    the benefits of adoptiing ISO 20022 graphic by JP Morgan
    The benefits of adopting ISO 20022. (Source: JPMorgan)

    It is important to highlight that not all institutions have fully implemented the prerequisites for ISO 20022 readiness. As reported by The Banker last year, approximately 26.4% of banks have achieved ISO 20022 compliance. 

    For those institutions that have yet to undertake the essential measures to attain ISO 20022 compliance, they will have until 2026 to make the necessary adjustments.

    The best ISO 20022-compliant cryptos

    Some cryptocurrencies have been designed with the ISO 20022 standard in mind so that they can potentially be integrated into broader financial systems more easily. When we say that a digital asset is an ISO 20022 crypto, we mean that it incorporates messaging language as defined in the ISO 20022 standard, allowing for simpler data exchange between its blockchain and other financial systems such as SWIFT.

    ISO 20022 coins could have a head start when it comes to adoption in the financial services industry, as they will be much easier for companies to integrate than cryptocurrencies that weren’t designed with this standard in mind. 

    Below, you’ll find a list showcasing the ISO 20022-compliant cryptos:

    1. XRP – Highly efficient cryptocurrency suitable for cross-border payments
    2. Stellar – Fast and cost-effective blockchain with built-in DEX
    3. Algorand – Pure Proof-of-Stake blockchain with smart contracts
    4. Cardano – Research-driven blockchain with a focus on scalability, security, and sustainability
    5. XDC Network – Hybrid blockchain optimized for enterprise and trade finance applications
    6. Quant – Platform enabling interoperability between blockchains
    7. Hedera Hashgraph – A highly efficient DLT based on Hashgraph architecture
    8. IOTA – DAG-based network for IoT use cases
    9. Coreum (COREUM) – A blockchain specialized for RWA tokenization and smart tokens

    1. XRP – Highly efficient cryptocurrency suitable for cross-border payments

    xrp

    XRP is a cryptocurrency that uses a unique consensus algorithm called the XRP Ledger Consensus Protocol to provide extremely fast and cost-effective transactions. This makes it suitable as a bridge currency that can enable liquidity between different fiat currencies. 

    While the XRP Ledger doesn’t offer advanced smart contract functionality, the platform is optimized for payments and can offer the performance and efficiency that are required by global financial institutions.

    The main entity spearheading the development of the XRP ecosystem is Ripple, a United States-based company that uses XRP in its cross-border payments products. Ripple is part of the ISO 20022 Standards Body and was the first blockchain-focused company to join it. By adopting the ISO 20022 standard, Ripple can offer its RippleNet solution to a broader range of customers.

    XRP summary:

    • A distributed ledger using the XRP Ledger Consensus
    • XRP can handle 1,500 transactions per second
    • Transactions cost fractions of a cent
    • Ripple has partnerships with numerous leading financial institutions

    2. Stellar – Fast and cost-effective blockchain with built-in DEX

    stellar

    Stellar is a cryptocurrency that was initially launched as a modified version of XRP. One of the co-founders of Stellar is Jed McCaleb, who also played a role in the creation of XRP. The Stellar blockchain also offers extremely fast and efficient transactions. 

    The Stellar blockchain can be used to make transactions with the platform’s native currency, XLM, but it also offers built-in decentralized exchange functionality to seamlessly swap between the different assets issued on the Stellar blockchain. 

    Given its emphasis on interoperability between financial institutions, Stellar is poised to readily embrace the ISO 20022 standard. Through the integration of ISO 20022, Stellar will enable more efficient cross-border transactions and foster improved communication with conventional financial systems. XLM is poised to become one of the leading ISO 20022 tokens on the market.

    Stellar summary:

    • A cryptocurrency with similar properties to XRP
    • Built-in decentralized exchange feature
    • Useful for cross-border payments and stablecoins
    • Smart contracts functionality through the Soroban platform

    3. Algorand – Pure Proof-of-Stake blockchain with smart contracts

    algorand

    Algorand is a blockchain platform that supports smart contracts and employs a sophisticated Proof-of-Stake consensus algorithm that allows all ALGO holders to participate in the consensus process. The Algorand project was founded by renowned computer scientist Silvio Micali.

    The Algorand mainnet made its debut in 2019. Since then, Algorand has seen multiple enhancements, including improved smart contract functionalities and the capacity to support custom tokens, among other features. Algorand is intentionally structured to be an environmentally conscious and highly efficient blockchain and offers some of the lowest transaction fees among all cryptocurrencies. 

    Through the incorporation of the ISO 20022 standard, Algorand has the potential to improve its compatibility with conventional financial systems, enabling effortless integration with pre-existing infrastructure. 

    This could lead to wider adoption of Algorand’s technology, potentially attracting a greater number of developers and enterprises to engage with and build upon the platform.

    Algorand summary:

    • Pure Proof-of-Stake blockchain
    • Supports smart contracts and custom tokens
    • Very low transaction fees
    • Environmentally friendly

    4. Cardano – Research-driven blockchain with a focus on scalability, security, and sustainability

    Cardano is a blockchain platform built on rigorous academic research and a layered architecture to enhance scalability, security, and sustainability. Developed by IOHK and led by Ethereum co-founder Charles Hoskinson, it aims to provide an efficient and sustainable blockchain ecosystem for enterprises and individuals.

    Cardano’s Ouroboros Proof-of-Stake (PoS) consensus ensures energy efficiency while maintaining high security. Its dual-layer architecture separates ADA transactions from smart contract execution, enabling flexibility and scalability. The Plutus smart contract platform and Hydra layer-2 solution further boost network efficiency and adoption potential.

    By aligning with ISO 20022, Cardano strengthens its compatibility with financial systems, making it a strong candidate for integration into traditional banking and enterprise applications.

    Cardano summary:

    • Proof-of-Stake blockchain with a research-driven approach
    • Scalable and energy-efficient, designed for long-term sustainability
    • Layered architecture enables seamless upgrades and enhanced security
    • Supports smart contracts through the Plutus platform
    • Hydra scaling solution to significantly boost transaction speeds
    • ISO 20022 integration enhances interoperability with financial systems

    5. XDC Network – Hybrid blockchain optimized for enterprise and trade finance applications

    XDC Network (XinFin Digital Contract) is a hybrid blockchain that merges public and private architecture, making it ideal for enterprises and institutions. It is specifically designed to enhance trade finance, supply chain operations, and cross-border settlements with fast, secure, and cost-effective transactions.

    Using a Delegated Proof-of-Stake (DPoS) consensus, XDC Network ensures high throughput, low latency, and minimal energy consumption. Transactions settle in two seconds, with fees significantly lower than Ethereum.

    A key advantage of XDC Network is its ISO 20022 compliance, enabling seamless integration with banks and financial institutions. It supports smart contracts, tokenization, and interoperability with legacy systems, facilitating real-world financial applications.

    As trade finance digitizes, XDC Network stands out as a fast, transparent, and regulatory-compliant blockchain, bridging blockchain technology with traditional finance.

    XDC Network summary:

    • Hybrid blockchain that combines public and private blockchain features
    • Optimized for enterprise and trade finance applications
    • Delegated Proof-of-Stake (DPoS) ensures fast and energy-efficient transactions
    • Finality within two seconds and low-cost transactions
    • ISO 20022-compliant, making it bank-friendly and interoperable with financial institutions
    • Supports smart contracts, tokenization, and seamless integration with legacy financial systems

    6. Quant – Platform enabling interoperability between blockchains

    quant

    Quant is a blockchain platform that enables interoperability and establishes seamless connections among multiple blockchain networks. It relies on the Overledger protocol to facilitate the exchange of information between different blockchain ecosystems. The Quant platform enables collaboration and innovation, empowering developers and enterprises to launch decentralized applications that can interact with a multitude of blockchains.

    Through the adoption of the ISO 20022 standard, Quant aspires to boost its compatibility with traditional financial systems, streamlining the secure exchange of data across various networks. Achieving ISO 20022 compliance could position Quant in a pivotal role, bridging the divide between various blockchain platforms and strengthening its role in the blockchain ecosystem.

    Quant summary:

    • Blockchain focused on enabling interoperability
    • Allows developers to launch mDApps, which are decentralized applications that function with multiple blockchains
    • Supports a variety of blockchains, including the likes of Bitcoin, Ethereum, and XRP
    • Designed for financial institutions and SMEs

    7. Hedera Hashgraph – A highly efficient DLT based on Hashgraph architecture

    Hedera Hashgraph

    Hedera Hashgraph is a decentralized network that provides functionality similar to blockchains but is based on an innovative architecture called a hashgraph. Hashgraph provides an alternative and arguably superior way to achieve distributed consensus. 

    The platform offers transaction fees as low as $0.001, and transactions on Hashgraph achieve finality in between 3 to 5 seconds. According to Hedera Hashgraph’s development team, the platform can facilitate upwards of 10,000 transactions per second.

    The Hedera Hashgraph platform supports smart contracts that are compatible with the Ethereum Virtual Machine, making it a suitable platform for developers who are accustomed to building with the Ethereum ecosystem’s smart contract tools.

    Through its adoption of the ISO 20022 standard, Hedera aims to bolster its compatibility with conventional financial systems, enabling the smooth integration of decentralized applications (dApps) with the pre-existing infrastructure. 

    Hedera Hashgraph summary:

    • Distributed ledger based on Hashgraph technology
    • Can process over 10,000 transactions per second
    • EVM-compatible smart contracts
    • Low fees, transactions achieve finality in 3-5 seconds

    8. IOTA – DAG-based network for IoT use cases

    iota

    IOTA is another distributed ledger platform that forgoes the traditional blockchain architecture in an effort to achieve superior scalability. In the case of IOTA, the platform is built using a directed acyclic graph (DAG) architecture, which allows it to support zero-fee transactions. IOTA’s DAG network is called the Tangle.

    The network’s immense efficiency makes IOTA a suitable candidate for Internet of Things (IoT) applications where handling large amounts of data in a short period of time is of the utmost importance.

    By incorporating the ISO 20022 standard, IOTA strives to establish a framework for standardized and secure data transfers among Internet of Things (IoT) devices. This strategic choice aims to facilitate the effortless integration of IOTA into the wider IoT ecosystem, ensuring a consistent and secure flow of data among IoT devices.

    IOTA summary:

    • Distributed ledger platform based on a DAG architecture
    • Fee-free transactions
    • Suitable for IoT applications
    • Can handle around 1,000 transactions per second

    9. Coreum (COREUM) – A blockchain specialized for RWA tokenization and smart tokens

    Coreum is a high-performance layer 1 blockchain built with the Cosmos SDK, focused on real-world asset tokenization, decentralized applications, and programmable digital assets. Powered by the Tendermint consensus engine and WebAssembly smart contracts, it delivers higher throughput and lower latency compared to many older networks. A key innovation is its Smart Tokens, which allow developers and businesses to create customizable, programmable assets with built-in logic and controls.

    The project launched in 2021, founded by Dubai-based entrepreneurs Bob Ras and Rezza Bashash. Coreum places a strong emphasis on interoperability, including integration with the XRP Ledger through a dedicated bridge. The network’s native token, COREUM, is used for staking, transaction fees, and governance. A large portion of the initial supply was distributed to the community through airdrops and incentive programs.

    Coreum summary:

    • WebAssembly smart contracts enable fast, secure, and flexible dApp development
    • Smart Tokens support advanced asset issuance with programmable features and compliance controls
    • Built on Cosmos for scalability, performance, and modular design
    • Cross-chain connectivity through IBC and custom bridges enhances interoperability

    The bottom line

    We hope that our ISO 20022 crypto list helped you understand the ISO 20022 standard and how it relates to the cryptocurrency space. As we can see, the list of ISO 20022-compliant crypto tokens mostly consists of projects targeting enterprise use. 

    Many of the coins featured on this list feature extremely low transaction fees, which allows them to be used in enterprise-grade applications that require handling an extremely large number of transactions in a short period of time. To learn more about this topic, make sure to check out our list of the cheapest cryptos to transfer.

  • Top 3 Coins to Watch – Week 52

    Top 3 Coins to Watch – Week 52

    The final weeks of a year are usually relatively quiet – most projects use this time to go on a well-deserved break, and typically don’t have major announcements or launches during the period. However, that doesn’t mean that nothing interesting is happening in crypto right now. Here are 3 crypto projects that will be worth following in the coming days.

    3. Terra (LUNA)

    The Terra blockchain platform is designed to support algorithmic stablecoins and a decentralized finance ecosystem built around them. Terra is built using the Cosmos SDK and uses Tendermint consensus. The network also supports the issuance of synthetic assets through its Mirror Protocol.

    Buy/Sell LUNA

    The rapid growth of Terra’s DeFi ecosystem pulls the value of LUNA towards $100

    On December 22, LUNA hit a new all-time high at almost $100. This is extremely impressive if we consider that the token was trading below $1 at the start of 2021. Alongside the LUNA token’s price, Terra’s DeFi ecosystem has also been seeing rapid growth.

    According to data from DeFi Llama, Terra is currently the second-largest DeFi platform in terms of TVL (Total Value Locked). At the time of writing, Terra has a TVL of $19.2 billion, ahead of the $16.7 billion figure on Binance Smart Chain. Admittedly, the 1st spot is currently out of reach for Terra, as Ethereum is dwarfing all competitors with its TVL of $155.4 billion. Currently, the most popular DeFi protocol on Terra is Anchor, which offers yields on Terra-based stablecoins.

    2. IOTA (IOTA)

    IOTA is a project that’s tackling decentralized ledger technology in an alternative way instead of using blockchain architecture. The IOTA network uses the directed acyclic graph (DAG) architecture, which can provide significant scalability improvements over blockchain, although it has proven to be more complex to implement successfully.

    Buy/Sell IOTA

    Smart contracts and true decentralization are coming to the IOTA network

    There are two additional networks being built to complement the IOTA ecosystem: Shimmer and Assembly.

    Shimmer is based on the same consensus mechanism as the IOTA 2.0. DevNet, but instead functions as a truly decentralized network. Shimmer is designed to be upgraded with new features before they make their way to the IOTA mainnet. The role of the Assembly network is to bring smart contract functionality to the IOTA ecosystem. Assembly is anchored to the IOTA network, but also has a pool of decentralized validators.

    Shimmer and Assembly will have their own native tokens called SMR and ASMB, respectively. IOTA is now holding a staking program where users will be able to earn SMR and ASMB by staking IOTA. The pre-staking period began on December 21, and users will start receiving their staking rewards from December 28th onward for a 90-day period. You can learn more about the IOTA staking program by reading the project’s official announcement.

    polkadot

    1. Polkadot (DOT)

    Polkadot is a blockchain platform focused on interoperability, scalability and on-chain governance. Polkadot is designed as a network where customizable blockchains called “parachains” can connect to the main Relay Chain, providing significant security and interoperability between parachains. Polkadot is secured through a Proof-of-Stake (PoS) consensus mechanism.

    Buy/Sell DOT

    The second batch of parachain auctions is bound to bring additional interest to the Polkadot ecosystem

    The second batch of Polkadot parachain auctions is currently underway, and the Polkadot ecosystem is poised to enjoy some additional attention in the coming weeks. The 6th parachain auction started on December 23, and auctions will be taking place on a weekly basis until March 10, 2022.

    Polkadot currently supports a limited number of parachain slots, which means that projects that want to connect a parachain to the network have to win a parachain slot auction. To get the necessary amount of DOT to win an auction, most projects organize “crowdloan” campaigns where users can lend their DOT to the project. If the project wins, crowdloan contributors are typically rewarded with the project’s native tokens (for example, ACA in the case of Acala). The DOT contributed in crowdloans is locked and automatically returned when the project’s parachain lease expires, or if the project fails to win an auction.

    Some of the more interesting projects currently competing for a parachain slot are Efinity, Manta Network, Litentry, Crust Network and Centrifuge.

    To view the full schedule of the second batch of parachain auctions, you can check out this official announcement from Polkadot.

  • Top 3 Coins to Watch – Week 36

    Top 3 Coins to Watch – Week 36

    The total cryptocurrency market capitalization is slowly climbing towards $2.4 trillion as we progress towards the end of Q3 2021. Week 35 has been all about smart contract blockchains since Ethereum (ETH), Solana (SOL), Polkadot (DOT), and even oracle provider ChainLink (LINK) all posted weekly gains of over 20%. Even though Bitcoin did climb up a few percent as well and is approaching a market cap of $1 trillion, BTC dominance is still declining and will likely soon reach 40% if the downward trend continues. While it may not be enough to call it “altcoin season” just yet, the past month was, for sure, an “altcoin month”. It is therefore not surprising, that our Top 3 Coins to Watch article focuses on altcoins for the third week in a row.

    1. IOTA (IOTA)

    IOTA is a distributed ledger protocol designed to facilitate machine-to-machine transactions on the internet of things (IoT), which is a network of smart devices with different functionalities that can interoperate and communicate with each other. Since the IoT sector is growing exponentially IOTA is designed to be infinitely scalable. Furthermore, IOTA blockchain had no transaction fees, which is perfect for micro and nano-payments, which are often used in the IoT.  IOTA operates as a peer-to-peer network and relies on a proprietary technology called Tangle to perform consensus and confirm transactions. IOTA has a total supply of 2779530283277761 IOTA with all the tokens being created at launch in 2015 and none minted afterwards. The IOTA development team is based in Germany and the IOTA foundation cooperates with several high-profile advisors.

    Buy/Sell IOTA

    Hornet protocol update causes IOTA to double its price 

    After reaching a local low of $0.96 on September 1, the price of IOTA surged by 55% to reach an intraday high of $1.65 on September 2. The price climb coincided with a 234% growth in the 24-hour trading volume, which reached as high as $681 million. The large increase in interest for the project and subsequently IOTA trading activity can be explained by the roll-out of the Hornet protocol update, which hit the IOTA network on September 2. The update brought back the auto-peering feature and significantly simplified the process of running a private ‘Tangle’ by integrating a faucet plugin with the Hornet node. IOTA rally peaked at $2.06 on September 5. While IOTA has since dipped back below $2, the project has many more updates that could fuel even higher rallies scheduled down its roadmap. The project is currently transitioning to IOTA 2.0 that will feature complete decentralization (the coordinator node will be removed in an even called “Coordicide”). IOTA 2.0 will also allow its users to create digital assets like utility coins and non-fungible tokens on the IOTA network. The IOTA Foundation recently launched the Nectar Development Network, which became “the first fully decentralized, feeless data and value protocol prototype”. The Nectar DevNet is a crucial milestone in the preparatory work for IOTA 2.0, estimated to release in late 2021. Another game-changer will be the deployment of smart contract functionality. According to the roadmap info, developers are currently working on a Beta release of the IOTA Smart contract protocol. You can find more recent news about IOTA in the project’s weekly QuickTakes video.

    2. Zilliqa (ZIL)

    Zilliqa is a high-performance blockchain platform that aims to solve the scaling issues that most of the popular blockchains are facing without compromising the security of transactions. Zilliqa achieves that by incorporating sharding technology, which means that nodes are broken down into groups of 600, i.e., shards, that can run many sub-blockchains simultaneously. As more mining nodes join the network, the network’s throughput increases. The blockchain utilizes a unique consensus algorithm, a combination of Byzantine Fault Tolerance (BFT) and the standard Proof of Work (PoW) mining algorithm is used. In addition, Zilliqa supports smart contracts and has an active community of both users and developers, which is crucial for the long-term success of a blockchain platform.

    Buy/Sell ZIL

    Zilliqa Adoption on the Rise: The project Recorded 150,000 New Users every month since April

    Zilliqa recently published its Ecosystem Growth Report for Q2 2021, which, among other things, sheds light on the amazing growth of the ecosystem’s userbase. The report notes that the number of unique Zilliqa addresses grew by more than 35% in Q2 2021 and exceeded 2 million at the end of the quarter. According to an official tweet, the ecosystem has been recording more than 150k new addresses every month even though the exponential growth of users that reached its peak in April 2021 is over. The increased influx of users can be attributed to the general surge in demand for DeFi and NFT services. All other social statistics, such as Reddit, Telegram, YouTube subscribers and Twitter followers were also up in Q2 2021, indicating that real new users are likely behind the newly created addresses as opposed to old users creating new addresses. In addition to the increased demand for ZIL that could arise from the growing userbase, the blockchain’s native asset is also being made scarcer by transaction fee burning (6.56 million ZIL with an estimated value of over $1 million have been burned in Q2 2021) and the fact that 5.87 billion ZIL, taking up almost half of the ZIL’s total circulating supply are locked in DeFi protocols through staking. At the time of writing, ZIL is trading around the price of $0.130 and the cryptocurrency is up by 20% in the past week. You can find more information about the project’s recently established partnerships and the eight start-ups accepted in the ZILHive 2021–2022 Accelerator program, in Zilliqa’s August newsletter.

    3. Balancer (BAL)

    Balancer is an automated market maker (AMM), decentralized exchange (DEX), and liquidity pool protocol that allows users to swap their ERC-20 assets without having to rely on any centralized entities. Rather than using order books Balancer DEX, directly swaps one asset for another via user-created liquidity pools. Balancer is developed by BlockScience, a blockchain consulting company that raised $3 million in March 2020 for the development of its AMM protocol. Thanks to the wide selection of innovative features that set Balancer apart from its competition, the protocol quickly rose became popular among DeFi users. Balancer (BAL) token is the protocol’s governance token. 145,000 BAL are distributed among liquidity providers as a reward each week. 

    Buy/Sell BAL

    Balancer Launches on Arbitrum in a Bet to Significantly Reduce Gas Fees and Scale Liquidity

    In a recent press release, the Balancer protocol developers announced that they are launching support for the popular AMM protocol on Arbitrum, a leading Ethereum layer-2 scaling solution. Like many other DeFi projects, Balancer made this move in an effort to significantly reduce gas costs and scale liquidity on their AMM protocol. Lower fees and even higher liquidity will make Balancer an even better product that is going to be more likely to attract new users or convince users of other similar protocols to start using Balancer instead. Furthermore, according to this April announcement, Balancer is expected to soon launch on Algorand as well. After this integration, which is scheduled for Q3 2021, Balancer is going to become the first AMM available for use by the Algorand community, allowing Algorand users to create programmable liquidity pools and trading pairs with any Algorand Standard Asset (ASA). The additional positive piece of news is that BAL has been listed on the KuCoin exchange on September 2, which further increased the number of BAL on-ramps.

  • IOTA’s Chrysalis Upgrade Turbocharges Network Speeds 50x

    IOTA’s Chrysalis Upgrade Turbocharges Network Speeds 50x

    • IOTA Completes Phase 1 of the Chrysalis upgrade
    • Chrysalis Phase 1 brings significant scalability improvements to the IOTA network
    • IOTA continues on its way towards “Coordicide”

    Chrysalis upgrade turbocharges IOTA

    The IOTA network has been upgraded to Chrysalis Phase 1, allowing it to handle about one thousand transactions per second. This is a considerable improvement over the 20 transactions per second previously that were previously processed by the network.

    The IOTA Foundation released a blog post on August 19th stating that Chrysalis Phase 1, also referred to as IOTA 1.5 was going live.This upgrade is meant to be a middle stage before the nework’s central coordinator is wholly removed from the system.IOTA developers manage the Coordinator, which is a centralized server that forms checkpoints in transaction history.

    With the launch of Chrysalis, transaction confirmation times on the mainnet have neem reduced drastically, and have been slashed to as low four seconds in most cases.

    During the testing period, the team announced that the network could achieve 1,500 transactions per second with the community. So, it is entirely plausible that IOTA can handle beyond 1,500 following the deployment of Chrysalis Phase 1.

    The Chrysalis upgrade also brings an improved token transfer experience – this is achieved by a high confirmation rate, which is maintained even in situations in which the previous network couldn’t keep up.

    Since transaction time has been reduced from 80 seconds to 4-10 seconds, tokens can be moved moved from one wallet to another much more easily.

    With the upgrade comes easier maintenance and set up of nodes; setting it up can be done through four commands, and there is no longer a need for manual pairing – one of the features that come with Chrysalis is the auto-peering tool. Conflict spams, a problem with the previous version, are eliminated with Chrysalis to enable speedy transactions.

    From Pollen to Coordicide

    Chrysalis is simply a milestone leading the way to Coordicide – the next phase is expected to be released before the end of the year as work had already begun on it months ago. The phase 1 of the network upgrade is only a step towards removing the Coordinator.

    The anticipated phase 2 is supposed to support a new signing scheme and reusable addresses, a new client library APO, and a new node API.

    The three stages of the upgrade of the official test net are named after the different stages of creating honey: Pollen, Nectar, and finally, honey.

    The IOTA network stated that Pollen, the first stage, began in June. The second stage, Nectar, is expected to start in the fourth quarter and will come with the full implementation of Coordicide on a testnet to search for bugs and issues before it is finally released on the mainnet. Participants of the network can generate rewards or Nectar when they find attack vectors or bugs.

    Honey, which is the final test net stage for IOTA 2.0, will include all the last modules of Coordicide and will be the first version of a fully decentralized IOTA mainnet (IOTA 2.0). The complete upgrade on the mainnet is expected to be launched in early 2021.