Tackling IoT Issues With Blockchain: IoTeX (IOTX) Project Breakdown

Tackling IoT Issues With Blockchain: IoTeX (IOTX) Project Breakdown

By Swapzone | Swapzone Blog | 28 Jul 2022



IoTeX is a layer 1 blockchain-focused on interactions between humans and machines. The blockchain leverages IoT technology and is also compatible with the Ethereum Virtual Machine (EVM), which facilitates dApp developments. IoTeX also claims to be the market’s quickest, most secure, and most scalable blockchain platform.

This blockchain network attempts to elevate the internet of things (IoT) ecosystem. In other words, it intends to power billions of devices and decentralized applications (dApps) both physically and digitally. This page will teach you what you need to know about this IoT-related blockchain, including how it works and what makes it unique. You will also discover whether or not this project is a suitable investment.

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How Does IoTeX Work?

IoTeX prides itself on the scalability and efficiency of its network. The protocol achieves these mainly by running on several designated blockchains at the same time. Its major root chain manages all other independent chains. This way, the network can maximize productivity as much as possible.

Similarly, IoTeX is regulated by more than 80 delegates, including DraperDragon, Blockfolio, and Binance. Its IOTX token powers smart contracts and allows holders to participate in staking and governance. As an EVM-compatible blockchain solution, IOTX enables an ever-expanding ecosystem of smart devices, dApps, and digital assets. The team envisions a future where all IoT devices can register their data and operations on the IoTeX blockchain.

What is IOTX Used For?

IoTeX has been employed in real-world applications, such as the development of Pebble and Ucam. Pebble is a data parsing device that can be used to track any object on the IoTeX blockchain in real-time. Similarly, Ucam is a blockchain-based home security camera that employs end-to-end encryption to secure your personal videos.

Additionally, the IoTeX blockchain is what enables services like ioPay and ioTube. Moreover, its ecosystem has powered many dApps in the DeFi and NFT areas, including Mimoswap and PixieWorld.

Likewise the IoT crypto company is intent on bringing in a new class of decentralized utility by introducing real-world data to its ecosystem. With IoTeX, for example, users can earn some IOTX based on real-world actions.

In turn, the IOTX token can be staked, traded, or used across the whole IoTeX network of devices and marketplaces. Also, IOTX stakeholders will have voting rights for governance participation.

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What Makes IoTeX Unique?

The IoTeX ecosystem’s distinctive architecture is one of its most notable features. Its design to delegate and operate on several interoperable blockchains makes it quite different from most protocols.

Additionally, its network is made up of many specialized layers, such as decentralized identification, real-world data oracles, and secure hardware. All of this adds up to make IoTeX a comprehensive ecosystem.

IOTX features a built-in privacy system that gives consumers more control over their personal information. It also provides consumers with the option to monetize their data. All these are important attributes against the backdrop of its efficiency and scalability.

Who are the Founders of IoTeX?

IoTeX began in 2017 with a line of code and has transformed into one of the most notable blockchains today. The privacy-focused blockchain was founded by four popular minds. Raullen Chai co-founded IoTeX after leading tech roles at tech giants like Google and Oracle. His most recent position before forming IoTeX was as Head of Cryptography at Uber.

Another co-founder is Jing Sun, who has had prior experience as an investor in several large firms. She has also served as an angel investor in Rippling, Theta Labs, and Silver.tv. Xinxin Fan was a founding member of IoTeX as well, with 15 years of cryptography research and industry experience. Qevan Guo, a former Facebook research scientist and engineering manager, is the final founding member.

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Development & Roadmap

IoTeX was created from the ground up to protect the data and devices of millions of users in the future machine economy. Since then, its technology has undergone massive improvement at an astonishing rate.

IoTeX held its private sale in January 2018 and raised $25 million in ETH. Another notable event for the IOTX community was the launch of the mainnet alpha in 2019. That same year, it also launched a mainnet beta. The most recent developments in the ecosystem include the burn-drop initialization along with the launch of Ucam and Pebble Tracker.

The team is now working on MachineFi — their attempt to prepare for a Web3 future. IoTeX also intends to financialize machine resources to deliver value, since it believes machines will be a dominant industry in the near future.

According to the roadmap, the MachineFi marketplace will be introduced later this year, in Q3 and Q4. Finally, the team plans to develop a cross-chain data bridge before the end of the year.

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IoTeX: Key Features

IoTeX addresses the topic of scalability, which occurs as the number of nodes and transactions in the blockchain grows. It utilizes four critical components:

Roll-DPoS

Roll-DPoS consensus is a variant of Delegated Proof of Stake (DPoS) which is designed to support high scalability for the IoT. This differs from DPOS because Roll-DPoS randomly selects a number of the top community-voted delegates to mine every hour. This system significantly improves the security and decentralization of the network while maintaining good performance.

Layer 2 Chain

The usage of Layer 2 chains enables IoTeX’s blockchain-in-blockchain network. The layer 2 chain enables the addition of diverse use cases and applications based on different cryptocurrencies. It accomplishes this through mutually collaborative trust developed by the same group of randomly selected delegates. It further results in the simple creation of a subchain to include different IoT devices.

Edge Computing

Edge computing refers to bringing computation and data storage closer to the origin of data. Having this feature in the IoTeX ecosystem is expected to improve response time as well as save bandwidth. This blockchain enables edge computing while using layer 2 chains for building privacy-focused dApps.

Cross-Network Communication

The root chain of IoTeX provides cross-chain interactions and governance by facilitating communication with all subchains. Cross-chain communication involves the exchange of data between one or more blockchains. The block finality mechanism, which means the irreversibility of a well-formed block, enables the process. This ensures privacy during its operation.

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IOTX Tokenomics

There are currently 9.54 billion IOTX tokens in circulation in June/22, with a current total supply of 9.6 billion tokens. The IOTX token is limited in supply and it is fixed at 10 billion. IoTeX also has a small market cap of $272 million at the time of writing.

IoTeX: Pros and Cons

IoTeX has quite a number of advantages and also downsides, just like any other cryptocurrency project.

Pros

Low Cost per Transaction

The protocol provides users with fast, secure, and transparent transactions. Moreso, IoTeX’s layer 2 chains help the blockchain by increasing transaction speed while keeping costs minimal. This in turn attracts more users to the IoTeX ecosystem.

Privacy

IoTeX addresses the IoT’s privacy problems by utilizing blockchain and secure hardware. The IoTeX architecture was created from the ground up to preserve privacy at the protocol level. It uses on-device randomness to protect users’ privacy and interests, based on the appropriate signature schemes.

Interoperability

IoTeX has created a one-of-a-kind decentralized identity system for both people and machines. This means that people and devices can transact directly with one another because their identities are interoperable and standardized across the platform.

Cons

Incomplete Decentralization

The Roll-DPoS consensus is not totally decentralized as it seems to be. The consensus only selects specific delegators who manage the blockchain network.

High Volatility

A typical characteristic of the cryptocurrency market is its volatility, and IOTX is no exception. High market volatility implies a larger risk of investment as well as a higher payoff if successful. It is highly volatile and its price fluctuates as well.

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Is IoTeX (IOTX) a Good Investment?

IoTeX has a lot of potentials and could one day lead the charge for IoT and blockchain. In a world guided and driven by data, there is no doubt that IoTeX’s project has a place in it.

There are also some other factors indicating that the project and its token could have a promising future. One of these factors could be the launch of the highly anticipated MachineFi. An innovation that could become even more important as the number of devices using IoT continues to grow.

IoTeX’s deflationary model also ensures that the value of its token increases as the network becomes more popular. Its rich vein of team members also means IoTeX enthusiasts can have a level of trust in the system. The blockchain company is headquartered in Silicon Valley and is backed by a global team of 30+ top-tier engineers and researchers. Its team includes specialists from Google, Facebook, Uber, Bosch, and other tech firms.

The Internet of Things (IoT) may come to influence the globe in the future, and IoTeX may just play a significant role in this shift. If this occurs, the value of IOTX may climb significantly, making IOTX holders profitable. Moreover, IOTX appears to be at a very low price right now, over 80% down from its all-time high. Who knows what the future might hold for long-term investors?

Swapping IOTX

Swapping any crypto asset for IOTX is a breeze with Swapzone, which compares over 15 exchanges to ensure you pay low transaction fees. For example, to buy IOTX with ETH, follow these simple steps:

  1. Visit the ETH to IOTX exchange page.
  2. Enter the total amount of ETH you want to exchange.
  3. Choose the best ETH-IOTX exchange rate.
  4. Click the Exchange button.
  5. Enter your wallet address to receive IOTX in your wallet.
  6. Deposit your ETH to the generated address.
  7. Wait for your ETH-IOTX swap to be executed.

Closing Thoughts

IoTeX is one of the most distinctive privacy-focused initiatives, and it appears to have released several great real-world products thus far. The project is expected to pick up more steam now that the blockchain is working on its Web3 machine economy, MachineFI. With the Pebble Tracker launch in full force, user involvement may also increase.

Overall, IOTX appears to have solid underpinnings and good use cases. It also has a strong possibility of being bullish, especially given its small market capitalization.

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