IoTeX is a promising initiative with the goal of developing a safe and decentralized environment for the IoT sector. In this article, we will explore the technology behind IoTeX, how IoT devices communicate with one another and with the rest of the world thanks to its emphasis on privacy, security, and community governance.
IoTeX also uses a unique architecture that includes multiple layers, each with its specific role in the overall system. How does it work though? Lets see
What is IoTeX?
IoTeX is a blockchain platform that was founded in 2017. IoTeX is developed on a special architecture that combines the features of Ethereum, EOS, and Bitcoin. It has been designed to be a scalable, private, and secure blockchain platform. The network’s security and effectiveness are ensured by the platform’s usage of a combination of Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) consensus methods.
IoTeX’s privacy-focused approach is one of its primary characteristics. To protect the data and transactions on the network, the platform combines many security methods, including multi-party computation (MPC), zero-knowledge proofs (ZKP), and ring signatures. Additionally, it gives customers the option to manage their data and choose who has access to it.
In order to help developers create decentralized applications (dapps) on the platform, IoTeX provides a number of tools and services. These include a decentralized identification system, the Solidity++ smart contract language, and an oracle service that permits access to off-chain data. Additionally, IoTeX is designed to provide a flexible and configurable infrastructure that supports a broad array of devices and protocols, enabling the development of novel new use cases and business models, such as sharing economy platforms, smart cities, and autonomous cars.
The team behind IoTeX includes Raullen Chai (co-founder and CEO of IoTeX), Jing Sun (operations, eco), Qevan Guo (product), Simone Romano (dev community growth) and many more
What is the IoTX token?
The network uses the IoTeX token (IOTX) as its native currency. It is a native token on the IoTeX blockchain and an ERC-20 token on the Ethereum blockchain. It is used to cover transaction costs, stake the network for security, and take part in network governance.
Holders of IOTX may vote for delegates and stake their tokens to earn a 10%+ APY (rate fluctuates) as well as play a significant part in the governance of the IoTeX network. Voters thereby contribute to the IoTeX Network’s overall security while also earning up to 10% annualised interest on their staked IOTX. The IoTeX Network also uses Roll-DPoS consensus, where 24 of the top 36 Delegates chosen by the community are randomly chosen to mine blocks every hour.
Similar to other Layer 1 blockchains, IoTeX employs a gas fee model, where “gas” is paid by users in proportion to the computational capacity required to process a transaction or smart contract. In the IoTeX Network, both humans and machines/devices will have the ability to send payments, access smart contracts, and even charge for services. Machines will be equipped with wallets and execute automated payments, data transfers, and more based on pre-programmed smart contracts.
A “Powered by IoTeX” (PBI) Certificate, a unique VC that permits a device-DID to access beneficial, device-focused services and capabilities, will be obtained by device makers in the future by burning IOTX. With each new “Powered by IoTeX” device, the entire quantity of IOTX will fall under the Burn-to-Certify tokenomics concept, increasing the value of IOTX.
How does IoTeX work?
IoTeX claims to make it possible for diverse IoT devices to communicate in a safe and interoperable manner as well as to enable worldwide trustless transactions and data exchange. They are to do this by combining a number of crucial elements and technologies, such as:
1. Consensus mechanism: IoTeX employs a special kind of DPoS called Roll-DPoS, which provides decentralization while reducing the possibility of node centralization. It enables quick block confirmation times.
2. Scalability: Because of the layered design of IoTeX, numerous transactions may be completed concurrently across several nodes thanks to parallel processing and sharding.
3. Privacy: To shield user data and transactions from prying eyes, IoTeX offers both on-chain and off-chain privacy options, such as stealth addresses and ring signatures.
4. Interoperability: In order to facilitate smooth communication and transactions between IoTeX and other blockchain networks, IoTeX provides cross-chain communication protocols such atomic swaps and secure multi-party computation (sMPC).
5. IoT integration: IoTeX has built-in support for IoT hardware and protocols, including machine-to-machine (M2M) and Bluetooth Low Energy (BLE).
IOTX has a maximum supply of 10 Billion tokens with the total supply being 8.8B after Burn-Drop as 900M IOTX will be gradually burned as they onboard 1 Million devices on the IoTeX platform and 265M IOTX was burned in June 2020 as part of Mainnet GA activation.
Foundation: The Foundation fund is reserved to build and evolve the IoTeX platform and protocol, as well as to sustain the long-term growth of IoTeX. It is also used to onboard future development teams and fund research. Foundation tokens are unlocked gradually over the course of 3 years after the token issuance date. This covers 25% of the total supply. This covers 25% of the total supply.
Private Sale: IoTeX held a private sale and tokens have been fully distributed from 2018 to 2020. However, IoTeX did not have a public ICO due to regulatory reasons. This covers 24% of the total supply.
Ecosystem: The Ecosystem Fund is used to bootstrap the ecosystem, which also includes developers, key partners, and marketing initiatives. The Ecosystem fund has been specifically given to Burn-Drop (10% of total supply) and the Halo Grants Program, which lets developers create 1,000 next-generation Dapps (8% of total supply), hence accelerating the expansion of the IoTeX ecosystem. After the token issuance date, ecosystem tokens gradually become available over the period of three years. This covers 18% of the total supply.
Team: After the launch date, the tokens will be distributed to the core team, who will then follow a timeline for unlocking them. The vesting time for team tokens is 4 years from the commencement date. The initial team token distribution took place in February 2019. They are designed to last for at least ten years in order to bring on new core team members.
Mining Rewards: 12% of the total supply has been set aside for Roll-DPoS mining incentives, which started in April 2019 as part of Mainnet Alpha, in order to support mining. The protocol delivers these incentives to Delegates, who frequently distribute these incentives to their constituents.
MachineFi by IoTeX
MachineFi was released around 2 years ago by the team behind IoTeX with their goal being nothing less than the creation of a new business model. -> MachineFi. (Machine + Finance). Last year, MachineFi lab raised $10M in a seed funding round led by Samsung Next, Draper Dragon Fund and Jump Crypto. The round valued MachineFi at $100 million.
An Ethereum Virtual Machine (EVM) blockchain, a multichain cryptocurrency wallet, a blockchain bridge, an onboarding platform, and software development kits (SDKs) are just a few of the infrastructural components that MachineFi provides. The toolkit aids in the development of machine networks and dapps. MachineFi Lab will be at the forefront of an economy where real-world actions, whether carried out by humans or machines, will create valuable data by incorporating IoT, Blockchain, and AI. The information will be integrated into smart contracts for dApps. Projects working with MachineFi Lab will develop on IoTeX.
“Building on the IoTeX infrastructure, MachineFi Lab jump-starts the large-scale decentralized machine networks. It incentivizes the deployment of machines and the financialization of smart devices and machines’ utility and data. And it enables their self-evolving governance,” said Raullen in a conference.
Samsung NEXT, a multifaceted innovation group within Samsung Electronics talked about their investment in MachineFi, “We invested in MachineFi Lab because we think its platform has the potential to unify large-scale machine networks and to provide the infrastructure needed to enable each device to act as an autonomous market participant, providing incentives for consumers to help construct the network.”
The MachineFi Portal, which can already register and bind human/machine identities, will be followed by a first-of-its-kind real-world oracle called W3bstream to deliver verified machine intelligence to IoTeX Dapps throughout the course of the upcoming year. Now, let us have a look at what W3bstream is:
W3bstream by IoTeX
Scheduled for release in Q2 2023, W3bstream allows the easy creation of DAOs of groups of devices or machines for a specific application. W3bstream is basically a broad framework for integrating data produced in the real world with the blockchain world. W3bstream manages a decentralized network of gateways that transmits data from IoT equipment and devices using the IoTeX blockchain.
With W3bstream in place, device owners may earn money from their IoT data by taking part in certain Dapps, and Dapp developers can control a horde of IoT devices working together to complete a single task. W3bstream seeks to support a wide range of legacy Web2 based products, community driven development boards, and upcoming Web3 focused devices, as well as IoT devices with a variety of hardware capabilities.
With its focus on privacy, scalability, interoperability, and governance, IoTeX offers a comprehensive IoT platform that can meet the evolving needs of the industry. The team behind IoTeX has also demonstrated a commitment to innovation, as evidenced by the development of new technologies such as Roll-DPoS and Pebble Tracker. As the IoT ecosystem continues to grow, IoTeX is poised to play a major role in shaping its future.
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