By Mayor | HYDRO Fans | 27 Feb 2019

The partnership between Hydro and XYO was announced on Feb 4th with much enthusiasm from both teams. You may be wondering what has a $15.5 million market cap project currently positioned at 185 got to do with a $5.8 million market cap project positioned at 357 on the list. What does it entail? 

The only common denominator between the two projects before the announcement is the fact that they both run on the Ethereum network and created their tokens about the same time in 2018. As stated by the XYO team, the promising partnership is expected to help protect digital identities of the network subscribers using the HydroBlockchain protocol.

Looking back into time, you’ll see that the XY team has recorded successes around building an open world location verification for over half a decade with more than 1,000,000 beacons scattered around the world. This success history gave birth to the new project of the team called the XYO Network. The XYO Network is planned to be the definitive location oracle based on two core concepts they introduced: Proof of Origin and Bound Witnesses. They explained The concept of Bound Witnesses to be the guarantees that two different components of the XYO Network were in the same location at the same time. While the Proof of Origin ensures that the information a component provides is valid and resistant to falsification. All these are expected to use the power of the smart contracts built into the Ethereum blockchain network.

On the other hand, the main focus of the hydro team is on providing security and identity solutions to all company types where data privacy of entities is a major priority to avoid breach of any form, particularly using the snowflake protocol for digital identity management to help reduce time to verify and onboard new users, and eliminate the recurring cost of always sending the same personal information to different third parties which may not be qualified to be in possession of such personal information.


XYO network plans to be the world’s first decentralized crypto-location trustless oracle network. Obviously, the network targets a novel area in the real world application of blockchain being able to communicate with things around us i.e. IoT, but this is only going to be possible where the users are able to confidently trust the system with an initially mapped data void of any middle man. If this doesn’t exist, the smart contract built into the XYO NETWORK may not be working with accurate and verifiable information. The XYO team believes the hydro snowflake using the new ERC 1484 identity standard designed by the team is the best fit in this situation to fulfil all the above criteria’s in securely collecting private data of all that will be in the loop.


The Equifax hack that happened in 2017 may have reduced in the headlines but many victims are yet to recover from its effect. It was a situation where certain important private human information — social security numbers, birthdays, and addresses —was released into the wild? It affected over 148 million unsuspecting people. Nobody wants to be burnt twice. This makes individuals and organizations alike to be very slow in releasing personal details that can lead to a data hack. So whenever a project comes up with an idea that will require collecting important details people question how secure they’ll be doing that. I’m sure the closest any company has come in designing a framework that will guarantee the security of personal information is seen in with what the hydro team is doing using the immutability of the blockchain, this must have necessitated this partnership.

The wide usage opportunity of the XYO Network in self-driven vehicles, smart cities, supply chain, package delivery drones and much more will definitely benefit Hydro tokens usage in the long run, since they’ll be building the identity management system on the snowflake protocol which will, in turn, help them overcome the biggest shortcoming – trust/centralization. The smart contract will be given the responsibility to handle the process of vouching for the accuracy of user data.

The partnership will definitely increase the utility of the Hydro and/ XYO tokens since either of them can be used to pay for gas (through staking or per transaction) in the digital ID system built on snowflake protocol.


With all these explained its obvious there’s close connectedness between the use of XYO and Hydro tokens which validates the need for the new partnership.

The key target of the XY team in 2019 includes; Onboarding Larger Businesses, Organizations and Retail Companies That Have Use-Cases for Location Verification. Also Formalizing business partnerships with enterprises and larger entities who can benefit from a decentralized, trustless location oracle (e.g. logistics, supply chain, work hour tracking, e-commerce and countless other niches). All the above are potential clients of hydro as they’ll be needing identity verification to access the XYO network offerings.

It now remains looking into the future for the moves these two projects will be taking to get more attention in the market to differentiate them from the sea of other tokens providing different solutions using blockchain technology and cryptocurrencies.


I'm an Engineer by training, a writer by passion, and a blockchain enthusiast. I believe the adoption of the technology and it's underlying currencies will make us have a better world where humans collaborate for increased output with less effort.


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