🤔 What is IoTeX?
IoTeX is a blockchain specifically designed for IoT(Internet of things) devices.
It is an EVM-compatible L1 blockchain that provides secured interactions between humans and machines. By creating a platform for the Internet of Trusted Things, IoTeX powers a decentralized network of DApps (Cyclone, Mimo), smart devices (UCam, Pebble), services (ioPay, ioTube), and digital assets to deliver better value to end-users.
💡 What role does IOTX token play ?
IOTX is the native cryptocurrency of IoTeX blockchain. It is used for:
- Transaction fee: Users pay IOTX tokens as transaction fees to execute transactions and smart contracts on the IoTeX blockchain.
- Governance: Token holders can stake their IOTX to vote on proposals. The weight of a staker’s vote is proportional to the amount staked.
- Delegation: IoTeX is a DPOS(Delegated proof of stake) blockchain. IOTX token holders delegate their token to elect nodes that add new blocks to IoTeX blockchain.
- Medium of exchange: Users can transfer value on IoTeX blockchain using IOTX tokens. All services on IoTeX marketplace are also denominated in IOTX token.
What problem does it solve
📝 Origin of IoTeX
IoTeX was founded in 2017. They have evolved a lot since then:
- Private sale fundraising (raised $25M in ETH)
- First exchange listings on Binance and Kucoin
- Testnet Launches (StoneVan, Strive, Epik, Photon)
- Joined Trusted IoT Alliance
- Joined China Mobile IoT Alliance
- Listed on Bittrex
- ioPay wallet launched
- Mainnet Alpha
- IoTeX explorer was launched
- Mainnet beta was launched
- Ucan(IoT camera) was launched on Amazon
- Pebble tracker(IoT device) was launched
🤖How does it work ?
Although architecturally similar to Ethereum, IoTeX is not an “Ethereum killer”. Rather, IoTeX is hub for decentralized IoT data/devices and collaborate with Ethereum and other Layer 1 platforms. The IoTeX platform employs a modular architecture consisting of various technological layers:
- Blockchain: EVM-compatible, Roll-DPoS consensus (5-sec blocks + instant finality), maintained by 60+ decentralized Delegates.
- Decentralized Identity (DID): On-chain identity framework that enables users/devices to own their data, identity, and credentials.
- Real-World Data Oracles: Convert real-world phenomena into verifiable, blockchain-ready data for use in IoTeX DApps.
- Secure Hardware: Tamper-proof devices utilizing Trusted Execution Environment (TEE) that integrate seamlessly with IoTeX.
It is a network of various blockchains running concurrently while retaining interoperability among each other.
In this network, there is a root blockchain tasked with managing the independent subchains.
The subchains, on the other hand, are function-specific blockchains that interact with IoT devices with similar functionalities and/or operating mechanisms.
Despite being interoperable with the subchains, the root blockchain does not share the risks of failure of subchains. For example, if a particular subchain is being attacked, the root blockchain is left unaffected.
The IoTeX blockchain utilizes a Randomized Delegated Proof of Stake (Roll-DPoS) to achieve fast consensus and instant block finality.
Roll-DPoS is a combination of DPoS as the underlying consensus mechanism, Practical Byzantine Fault Tolerance (PBFT) as its voting algorithm, and Verifiable Random Functions (VRFs) to produce publicly verifiable proofs of correctness.
The implemented Roll-DPoS mechanism has four phases – elect candidate, form committee, propose block and finalize block.
Delegates are entitled to receive mining rewards in exchange for producing blocks and securing the network.
The team has also launched several devices that leverage IoTeX blockchain.
Ucam - IOT based home security camera
Ucam replaces traditional password-based login with blockchain-based login — unlike an 8-character password that is easy to crack, a blockchain private key is uncrackable and owned exclusively by the user.
Ucam uses the user’s private key to end-to-end encrypt all videos so that only the user can decrypt the file.
Equipped with a TEE and multiple sensors (GPS, climate, motion, light), Pebble Tracker captures/signs data from the real world and converts it into verifiable, blockchain-ready data.
Pebble combines a tamper proof hardware(TEE) and tamper-proof software(Blockchain).
🏛️ Governance model
On-chain governance is powered by the IOTX token which gives stakers the right to elect delegates and participate in other network governance activities. Stakers receive one vote for each token staked, i.e. 1 vote = 1 IOTX.
New proposals pass through a three-stage process before they are finally implemented on the network: Proposal, Vote, and Action.
Community members are free to submit their ideas on-chain, and the community reviews the ideas. Once an idea has garnered enough support, evidenced by reaching a threshold quorum, the proposal moves to a network-wide vote.
If a majority of the votes are in favor of the proposal, the proposal is confirmed and moved into the implementation phase by the IoTeX Foundations and developer groups.
- Growth of IoT devices: Number of devices connected to the internet are growing exponentially every year.
- Network effects: IoT manufacturers will choose to integrate with the most widely used cryptocurrency. This positive feedback loop can result in exponential growth.
IoTeX has a maximum supply of 10 Billion IOTX tokens (8.8 Billion after Burn drop). These tokens have been distributed as follows:
- Private sale – 24%: IoTeX held a private sale to 30+ non-USA, accredited investors in Jan 2018. A total of 25,000 ETH (~$25M) was raised @ 1 IOTX = 0.0000125 ETH. IoTeX did not have a public ICO due to regulatory reasons. Private sale tokens have been fully distributed in 2018-2020.
- Ecosystem – 18%: The Ecosystem fund is for bootstrapping the IoTeX ecosystem, including strategic partners, developers, and marketing efforts.
- Foundation – 25%: The Foundation fund is reserved to build and evolve the IoTeX platform + protocol, as well as to sustain the long-term growth of IoTeX. It is also used to fund cryptography, blockchain, and IoT research and onboard future development teams and contributors. Foundation tokens are unlocked gradually over the course of 3 years after token issuance date.
- Core team – 15%
- Roll-DPoS Mining Rewards – 12%
- Community Reward Program – 6%
These tokens will be released as follows:
1 Billion IOTX (10% of total supply) will be burned + dropped as IoTeX onboards first 1 million “Powered by IoTeX” devices.
Of the 1 Billion IOTX allocated to Burn-Drop, 900M (90%) will be burned and 100M (10%) will be dropped to long-term stakers.
Burn to certify
After 1 million “Powered by IoTeX” devices are onboarded, Burn-Drop will be finished and “Burn-to-Certify” tokenomics will be activated.
From then on, builders (e.g., device manufacturers) will burn IOTX to obtain access to special services/capabilities for each new device.
This will continue in perpetuity and the total supply of IOTX will decrease with every new “Powered by IoTeX” device.