IOSToken — Altcoin Appreciation Month

By Mike Bateman | CryptoReviews | 9 May 2019


Originally posted April 9th 2018

IOSToken

Internet of Services Token (IOST) has been setting the crypto world on fire lately with numerous announcement and a recent uptrend that wont seem to quit in this bear market. Today were going to be examine this project as we dive back into mid/high cap land.

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The IOST project itself was started back in January of 2018 and has already garnered considerable attention. The team boasts graduates from top institutions in the world such as Harvard and Princeton and is currently based in Singapore. This team has devised a new consensus protocol called Proof of Believability (PoB) which they state can achieve millions of transactions per second and will be more energy efficient and thus scale more effectively than Bitcoin or other Proof of Work (PoW) coins. IOST is currently an ERC20 token built on top of the Ethereum network and the team plans to launch their own main net no later than Q1 of 2019 with a public testnet towards the end of Q2 2018.

IOST did not launch through an ICO but rather through a private offering to “institutional investors”. The sales were not available to those in the USA, China, or Korea. The current total supply of IOST is 21 billion tokens while the circulating supply is 8 billion. Recently the team announced that all of the IOS Foundation’s tokens would be placed in escrow until the launch of IOST mainnet scheduled for Q1 of 2019. When the mainnet is launched, tokens will be converted to native IOS tokens for use on the blockchain at a 1:1 rate. The current price of the token is $0.029, 437 sats, or 0.00007514 ETH giving the project a market capitalization of around $246 million. 24 Hour volume for the coin is at $81 million or right around 1/3rd of total market cap.

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IOST recognizes that there are numerous blockchain applications out there that are attempting to solve the issues of centralization in the digital space, but they believe those application themselves to be too specialized or hampered by a low transaction output. Because of those issues, the existing systems cannot be used to bring larger service based companies or projects into the decentralized space.

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Scalability is an issue spoken about often in the crypto space and one that all third generation blockchain projects are aiming to tackle. IOST recognizes that existing blockchains are facing two major issues when it comes to scalability: synchronization and efficiency. For synchronization, as the amount of transactions grows it becomes more and more difficult for a node to catch up and participate in the verification process. For efficiency, all of the nodes that are on a network currently take part in or are obligated to take part in the process of verifying the latest block. A more efficient use of nodes would be to bunch them together and have them work in groupings as opposed to one mass.

IOST aims to solve the issues of scalability in blockchain with two innovations: Efficient Distributed Sharding (EDS) and PoB. EDS in its most simplistic is the bundling of nodes on a network so that each grouping, called shards here, runs a small scale version of the entire network. Each shard will run its small scale version of the network in parallel with the overall network, so each shard can be performing its own consensus protocol at the same time. That advantage allows for the overall network to operate much more efficiently and with a higher throughput than a traditional PoW network. Instead of having the entire network working on one transaction, multiple transactions may be validated by multiple shards. Now, these shards are not set in stone, the shards themselves are from a dynamic partitioning system that also intends to make sure the partitioning is bias free. To summarize, the goal of the sharding process is to have sufficiently large and bias-resistant shards from the dynamic process that will act as subspaces of the overall network that do not replace it but run in tandem with it.

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Moving forward, another big piece of the scalability of the network revolves around their consensus protocol Proof of Believability. In this protocol, nodes are divided into two groupings, a believable group and a normal group. The protocol takes a Believe-First approach and nodes placed in the Believable group will quickly validate transactions and send them to the normal group. Which group a node is placed in is based on its Believability Score. This score takes into account factors such as a node’s token balance, SERVI score, reviews and user behavior will compile to give the node a believability score. This score will have a definitive range.

The normal group then goes and validates transactions much like any normal network and provides security to the system using a Byzantine consensus scheme based on Byzcoin. That is how the network will offer both high throughput while maintaining that the system is outputting correct transactions and of course all of this is being done in the sharding groups that are dynamically selected by the system. Lastly, the jobs performed by each node will differ depending on the group it’s in. Believable nodes will receive more important roles and thus be compensated more generously. In short, if you are going to be involved in securing this network, you want your node to be in the believable group and that is based on a Believability Score which takes into account coin balance, like Proof of Stake, but also many more factors.

Now there are several other smaller features that are being employed to make all of this work. Those include Atomix, Scaleout, and BRDR. Atomix (atomic commit protocol) is what is used to send transactions across the network and shards. This protocol makes it so transactions will be enforced consistently across shards. Scaleout is used for the partitioning state of the shards, and BRDR (Bias Resistant Distributed Randomness) is what introduces the unbiased randomness into the network and shards.

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IOST has had a lot happening with the past three days alone. As of yesterday the team announced that it would be placing all of its IOST (7.35 billion tokens) in escrow until the release of the IOST mainnet. This announcement was coupled with the public release of the team’s github. The team has stated on Twitter that a detailed plan of the use of the tokens will be announced closely to the launch of the mainnet. In addition, IOST was recently added for trading on Bitfinex.

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The IOST team is currently working on the public testnet which will feature both their EDS system and PoB protocol. Another notable milestone includes releasing a smart contract document draft in Q3 of 2018. Now, the roadmap originally released is basically obsolete as it had the release of mainnet scheduled for Q3 of 2019, but as was said above and by the team, they are currently anticipating a Q1 2019 release. Milestones that are set to occur before that release include a testing and security audit of the network and a launching of the IOST network client and wallet. Milestones to follow the mainnet include a launching of dApps on the IOST network followed by optimization of the network with machine learning.

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IOST is traded on multiple exchanges with the most volume on Binance, Huobi, and OKEx. The two largest volume pairs are the IOST/BTC pairing on Binance at ~37% and IOST/USDT pairing on Huobi at ~33%. Binance also offers an ETH pairing for IOST and Huobi offers a BTC and ETH pairing too. OKEx has its most volume on the USDT pairing. Links below (Binance link is ref link).

Binance — https://www.binance.com/?ref=11591001

Huobi — https://www.huobi.pro/

OKEx — https://www.okex.com/lang/en-US/

To follow the IOST project and learn more please see the links below!

Website — https://iost.io/
CMC — https://coinmarketcap.com/currencies/iostoken/
Twitter — https://twitter.com/IOStoken
Reddit — https://www.reddit.com/r/IOStoken/
Medium — https://medium.com/@iostoken
IOST Primer — https://docsend.com/view/rwgpdxx

That concludes today’s article on IOST. This article felt a lot more technical than the previous week’s so I hope that everything was explained at an appropriate level and of course correctly. If you would like to keep up to date on articles I’m writing please follow me on here, Twitter at thant1194, or on InvestFeed @thant11.

For last week’s article’s please check my Medium profile. I will be updating my pinned tweet on Twitter in the next couple of days and it will include a thread with links to all of my articles. As always thank you and good luck trading. I need to go return some video tapes.

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Mike Bateman
Mike Bateman

Altcoin Fundamental Analysis | Crypto Education | Direct Response Copywriter | Stuck here until my reservation at Dorsia is confirmed


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