IOTA has recently introduced its new “IOTA 2.0” testnet to the public. This new testnet promises to be eco-friendly by reducing environmental impacts and energy consumption, thereby appealing to companies interested in green solutions.
“IOTA 2.0” marks the transition from Proof of Work (PoW) to a decentralised Proof of Stake (PoS) consensus, which aims to boost the network’s scalability and efficiency. The update also removes the central entity that previously handled consensus and seeks to minimise the influence of centralised figures and explore new efficiency and decentralisation concepts.
![](https://coinculture.com/au/wp-content/uploads/2024/05/222.png)
“The new consensus mechanism is designed to improve the security of the network, making it more resistant to attacks and failures. This is crucial to gaining trust and expanding adoption in sectors such as finance, healthcare, and smart cities, where security is paramount,” IOTA said in a statement.
The firm also clarifies that the new testnet is primarily for developers and holds no real-world value, with the possibility of occasional reboots during a grace period.
Developers on social media have praised the new IOTA testnet as a significant development, suggesting it could create new opportunities within the decentralised finance ecosystem. Some even say that it could rival Ethereum and achieve a market cap of $1 billion.