What is IoTeX（IOTX）? Blockchain for the Internet of Things

What is IoTeX: A decentralized, open-sourced blockchain platform with a vision to mix cryptocurrency technology with the Internet of Things (hence the IoT in IoTeX) - the goal is to create a decentralized ecosystem where users and their IoT machines are able to interact in safe, guaranteed trustless environments.

How does IoTeX work? The IoTeX blockchain adopts a modified delegation of the Proof of Stake consensus (PoS), for a lighter and faster transactional state as mentioned previously. It also innovates by holding several lateral blockchains to improve scalability. Since the Internet of Things technology involves a large variety of apps, software and hardware, a single blockchain would not be nearly enough computing power to hold all the necessary processing and transactions.

The IOTX token: The IOTX token is the blockchain’s native ERC-20 token used to feed the dApps, govern the network and of course as a payment system. Users utilize IOTX to register their devices in the blockchain and conduct transactions, and are even able to share or sell their own data and receive IOTX tokens as a reward.

The main IoTeX products available: Pebble and Ucam (main sellers, hardware), ioPay (IoTeX’s native crypto wallet), Cyclone Protocol, Healthnet, MintToken and Hyperaware.

Cryptocurrencies have several real-world applications - mostly geared towards financial transactions, the world of digital assets also allows for incredible innovation in real-life devices and data usage that could greatly benefit from decentralization and trustless systems to make users’ lives easier and safer.

One of the main crypto projects that tackles this matter is IoTeX, focused on developing applications for the Internet of Things.

In this article, we provide a summary of IoTeX; how it works, its IOTX token and the main applications behind the project - including its top two sellers.


What is IoTeX?

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The crypto project IoTeX was founded in 2017 as a decentralized, open-sourced blockchain platform with a vision to mix cryptocurrency technology with the Internet of Things (hence the IoT in IoTeX) - the goal is to create a decentralized ecosystem where users and their IoT machines are able to interact in safe, guaranteed trustless environments.

In a broader sense, the project holds the mission of making sure that companies, initiatives and common people are able to possess and control smart devices, as well as the data and the intrinsic value generated by them. By connecting the digital and physical worlds, IoTeX wants to democratize access to decentralized apps (dApps) in machines while handing their control over to the users.

However, IoTeX’s technology is currently limited by its lack of interoperability, which the foundation seeks to resolve as the project grows and more people become interested in the applications of crypto for the Internet of Things. Its services are, though, up and running. Some of the current dApp integrations that IoTeX has at its disposal are Pebbles, a smartwatch app, Cyclone (private transactions in DeFi) and its original ioPay - a payment system that includes apps in several crypto wallets and even the collection of NFTs. Speaking of interoperability issues, IoTeX currently only runs in the Ethereum blockchain, so its token IOTX is ERC-20 based.

IoTeX is also, allegedly, an eco-friendly blockchain service. In order to maintain privacy, the IoTeX blockchain is projected to transmit only the lighter, lower scale aspects of its framework to users and dApps. That allows the network to run at low energy costs for storage, transactions and the need for computational power. It also makes the project easier to be implemented in IoT devices, since most of them hold much lower hardware and software efficiency than a full-on computer.


How does IoTeX work?

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The IoTeX blockchain adopts a modified delegation of the Proof of Stake consensus (PoS), for a lighter and faster transactional state as mentioned previously. The validators in the network are selected through the voting interests of the governing parties - which are done so through the IOTX token. Therefore, when validators validate transactions and create valid blocks, those who voted in their roles are also compensated in tokens. Their PoS protocol is also allied with safety mechanisms such as the usual Practical Byzantine Fault Tolerance, of PBFT, and Verifiable Random Functions (VRF) to improve decentralization and scalability.

IoTeX also innovates by holding several lateral blockchains to improve scalability. Since the Internet of Things technology involves a large variety of apps, software and hardware, a single blockchain would not be nearly enough computing power to hold all the necessary processing and transactions. Therefore, cloned lateral blockchains were created to interact with these devices and apps whenever needed in order to reduce workload from the main chain. For every new device framework and adapted software, a parallel chain is created.

While the parallel chains are able to connect and interact amongst each other, the main blockchain of the IoTeX network functions as a gatekeeper: it keeps track of the security procedures happening between the other chains and their respective devices. If anything goes wrong, the main blockchain is secure and IoTeX remains intact.


The IOTX token

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The IOTX token is the blockchain’s native ERC-20 token used to feed the dApps, govern the network and of course as a payment system. IoTeX has implemented a deflationary measure titled “burn drop”, where a certain number of tokens are burned according to the number of devices connected to the network. Users utilize IOTX to register their devices in the blockchain and conduct transactions, and are even able to share or sell their own data and receive IOTX tokens as a reward.


The main IoTeX products available

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While the IoTeX network is constantly expanding, there is a range of products that are more popular and have been consistently present in popular adoption, more so than others. They are as follows:

· ioPay: It is the official digital wallet of the IoTeX network, the gateway application for all of the crypto’s dApps and services.

· Cyclone Protocol: Mentioned previously, it’s a privacy tool to ensure that transactions are encrypted.

· Healthnet: A pilot created by the US Navy, Healthnet is a platform that enables logistics tools for medical supply chains. Quite unique!

· MintToken: Popular in other crypto projects too, it allows users to create and distribute their own ERC-20 and ERC-721 tokens.

· Hyperaware: App that controls and governs devices based on their geolocation.

And much more. According to the official website, IoTeX’s ecosystem now accounts for 144 different projects.

When it comes to Internet of Things hardware, however, IoTeX makes sure to stand out two main devices that populate the network - Ucam and Pebble.


Ucam and Pebble

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Ucam is the first-ever blockchain-powered security camera, built entirely for IoTeX’s blockchain. Receiver of the CES Innovation Award of 2020, this device allows for your data, including login and password to use the servers, to be completely encrypted and without any presence of third party applications. A recording device for people’s homes, Ucam makes it their main goal to make sure that user data and video footage is their own and no one else’s. On top of it, anyone is able to own the device for merely 50 US dollars.

Meanwhile, Pebble is a highly-advanced but equally decentralized sensor. With features such as GPS, light, gyroscope, environmental, heat sensors and much more, it utilizes state-of-the-art data to provide the most accurate information possible for its users. A device more geared towards industrial security, it comes at a relatively expensive price of 215 US dollars, while being fully customizable and coming with a variety of complex features.




Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
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