IOTA: This is why billion-$-companies and Nakama Labs build on the tangle and Shimmer Ecosystem – Report

  • In a Twitter thread, Rob Daykin, the co-founder of Nakama Labs explained the reason  to launch on the Shimmer network.
  • According to him, there is no layer-1 for either minting or moving assets. 

IOTA officially launched the Shimmer network on September 28, 2022, after months of battle testing. Shimmer was designed as a separate layer 1 network to foster a new dApp and smart contract ecosystem. It is also important to note that the Shimmer UTXO-based ledger has zero fee transaction and parallel layer 2 chain connectivity in addition to its high scalability and five-second finality time. Following the launch, Nakama Labs, a Web3 Builder, and Venture Fund has disclosed its plans to build and invest in dApps on top of Shimmer. 

In a Twitter thread, Robert Daykin, the co-founder of Nakama Labs explained the reason for such a move.

According to him, there is no layer-1 for either minting or moving assets. This makes it more cost-effective for creators and users. 

ShimmerEVM uses a random order consensus to confirm transactions, which prevents sandwich/front/back running MEV attacks on Dexes. This ensures a more secure and fair trading environment.

Daykin also mentioned that there is a large established community with no opportunity to adopt Web3 applications on the IOTA network. This could be possible with the ShimmerEVM. 

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Also, there is higher security and efficiency in moving assets between chains on top of layer 1. This means there will be no need for third-party centralized or decentralized bridges since the security would be guaranteed by the layer-1 DAG. 

Shimmer layer -1 allows new smart contract chains

Another reason for this decision is that the Shimmer layer-1 allows the launch of new smart contract chains that provide more efficient language. It opens endless possibilities for innovation and growth.

With these USPs, we are optimistic that we can start to unlock more of the potential of #Web3. Which offers advantages if deployed correctly over its Web2 cousins. We’ve only just started to scratch to the surface of what is possible.

Nakama Labs also thinks that Shimmer has a unique advantage which is a layer-1 feeless and environmentally friendly creation of tokens and NFTs. Adding to the submission of Daykin, Nakama Labs confirmed that Shimmer would support additional chains which are secured by Shimmer layer-1. This means each chain would address the problem of congestion.

Feeless asset transfers on L1 have the potential to revolutionize the transfer of value. F.ex, the ability to mint stablecoins securely and feelessly have the potential to disrupt the banking system relying on a legacy transfer system that has not innovated since the 70s.

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Its compatibility with the Stardust Tokenisation Framework is said to enable the horizontally scalable and modular multi-chain architecture that ensures that the processing of sovereign smart contract networks in parallel is allowed. This enables well-retaining composability across the chain.

Its uniqueness lies in its ability to keep track of ownership of multiple assets. Comparatively, Proof of Work (PoW) or Proof of Stake (PoS) based blockchains only keep track of ownership for a single digital asset. The native token of the Shimmer network is SMR. 

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John's a cryptocurrency and blockchain writer and researcher with years of experience. He has a lot of interest in emerging startups, tokens, and the invisible forces of demand and supply. He holds a Bachelor's degree in Geography and Economics.

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