IOTA the Ultimate Economic Model and Secure Scaling of Smart Contracts

IOTA recently released their idea for Assembly, the permissionless network of validators that will allow trustless execution of Smart Contracts on IOTA.

Assembly will be its own network on top of IOTA with its own token. It’s designed to provide incentives to run validator nodes and build out the IOTA ecosystem with the community, the IOTA Foundation and Venture Capital firms that were seed investors in the project.

The concept that I’ll introduce bellow is NOT a competitor to Assembly and can be implemented independently. No new concepts will be added. We’ll reuse existing solutions from Ethereum, Cardano (IOTA already started extending its UTXO ledger), and we’ll use things that are planned for Assembly.

This solution will scale horizontally, while having FULL security and also incentivizing running nodes and holding tokens. It will provide a real dividend to ALL IOTA token holders WITHOUT inflation!

Assembly will have a root contract ran by high mana nodes. This means that high mana nodes will run WASP nodes which ‘speak’ the smart contract language. This means that L1 will ultimately act as the Supreme Court where all disputes are settled. Good, we’ll reuse this solution too!

Unlike Assembly we’ll introduce a solution that only requires the IOTA token and no additional network on top of IOTA needs to be formed.

We’ll begin by extending the UTXO ledger to support validity and fraud proofs as used in Ethereum today.