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What is IOTA’s Shimmer Network and Token? 2021

What is Shimmer Network and Token?

In IOTA’s attempt to become a fully decentralized and programmable multi-asset ledger crypto, IOTA launched an incentivized network with its own token “Shimmer” ($SMR). Shimmer is IOTA’s test network that will allow for head starts on project developments, similar to the Kusama network for Polkadot. To ensure all updates that get pushed to the mainnet are quality and have been thoroughly tested IOTA’s team will be using the Shimmer network to do all of their testing. 

Shimmer Network use case diagram
Source: https://blog.shimmer.network/

What is Shimmer

IOTA is getting ready for their 2.0 upgrade, but they need to do thorough testing before devs can push the update. Shimmer network’s purpose is to be an incentivized testing network for IOTA. Think of IOTA as the stable branch of the two, and devs will do all testing before it gets pushed to IOTA on Shimmer to know that it will not jeopardize the main network. After the testing on Shimmer, the update will allow for complete decentralization of the network and removal of the Coordinator from the network. 

Future updates to IOTA will have to go through the Shimmer network to ensure that nothing will disrupt the transition of tokens and applications on the network. Soon you will be able to stake your IOTA with no lockup in the Firefly wallet to generate 1 Shimmer Token for every IOTA you have roughly every ten seconds for a month. Afterward, you will be able to stake the Shimmer tokens on the new Shimmer Network.

shimmer network staking
Source: https://blog.shimmer.network/

What is IOTA

IOTA is a scalable, feeless modular open-source distributed ledger protocol (great description from r/IOTA.) That has a similar blockchain to Nano, where each wallet is its own blockchain, making transactions quick and free with very little proof of work which is done by the devices involved in the transaction. Like Nano, they have the entire supply in circulation, meaning there are no more tokens to be acquired from mining.

Why is this special?

Currently, IOTA is in its early stages of smart contract implementation. They will be using this new network to test their latest updates, which IOTA’s team will later implement to the main network. Once the smart contracts are fully implemented and the network becomes fully decentralized, the network will be worth multiple times more than what it is worth now. 

Most cryptos nowadays have value because they have a project that is their token used in and that creates value. This project has not reached its full potential, and 2.0 will unlock the full potential of its capable of.

Currently, we’re going off the limited amount of info available on this update. Their update article mentions how they will only announce the launch of the new network 24 hours before to make it fair for everyone. The more people who find out about this new update that understand the implications of the 2.0 update, the higher the token price will go. So while the news is fresh, it might be the best time to stock up on the tokens to increase the staking rewards. We’re stocked and ready.

Conclusion

IOTA is a token with a similar blockchain infrastructure as Nano making it infinitely scalable and feeless. The developers of IOTA have announced the Shimmer network that will be the testing grounds for future IOTA updates working their way to version 2.0. The 2.0 update is bringing complete decentralization to the network and full release smart contracts. IOTA will essentially have the scalability of Nano with smart contracts, making it one of the most important crypto projects. This crypto should be on your watch list.

If you want to know how you can get your hands on crypto we have an article for you. If you’re interested in staking you can learn more here.

Note: Nothing in this article should be taken as investing advice.