What is loTeX?

IoTeX (IOTX) is an open-source, Layer-1 blockchain network that is compatible with Ethereum virtual machine (EVM) and allows for safe interactions between people and machines. IoTeX drives a decentralised network of dapps (Cyclone, Mimo), smart gadgets (UCam, Pebble), services (ioPay, ioTube), and digital assets that provide higher value to end-users by developing a platform for the Internet of Trusted Things (IoTT). Using the IOTX token, users can connect Internet of Things (IoT) devices to the IoTeX network.

A brief history of loTeX

IoTeX was founded in 2017 with the goal of powering the IoTT, an ecosystem of safe data, devices, and people. Its founding team of Jing Sun, Qevan Guo, and Raullen Chai have extensive experience in cryptography, blockchain technology, and information security that supports the protocol's objective to achieve end-to-end trust in IoT. IOTX, the native token of the IoTeX blockchain, has been on the market since 2019.

Since its inception, the IoTeX ecosystem has grown to solve inherent security and privacy issues in traditional IoT systems. In addition, IoTeX has empowered users and developers to capture more value from the data and devices they own, from platform design and private sale fundraising in 2018 to launching self-sovereign and trusted devices like Pebble Tracker in 2021.

Due to regulatory constraints, a private initial coin offering (ICO) round started in January 2018, finishing on 14 February 2018, with around 50 approved investors. The Ethereum cryptocurrency (ETH) was used in the sale, with over 25,000 ETH (almost US$20 million at the current exchange rate) raised at a conversion rate of 96,000 IOTX to 1 ETH. As a consequence, 2.4 billion IOTX tokens were produced, accounting for 24% of the total supply. By November 2019, all private sale tokens were delivered.

IoTeX has devised a novel burn-drop tokenomics architecture, in which the overall supply of IOTX decreases in perpetuity as more devices are registered. Of the 1 billion IOTX tokens allocated to burn-drop, 900 million (90%) will be burned and 100 million (10%) will be dropped to long-term stakers. This burn-drop process will finish once 1 million “Powered by IoTeX” devices have been onboarded.

How loTeX works

IoTeX uses specially developed smart contracts to link real-world devices to the blockchain. The system incorporates a cross-chain data bridge to increase usability and usefulness across multiple networks, and leverages off-chain sensors, known as oracles, to monitor device data. The Truststream protocol functions as an oracle Layer-2 system.

Oracles are off-chain sensors that can send and receive data from a decentralised network. These sensors are critical in verifying and monitoring critical data. As a result, oracles are one of the most significant blockchain solutions to emerge in recent years.

IoTeX has also introduced roll-DPoS, a new delegated proof of stake (DPoS) version. This solution combines the greatest features of delegated staking networks with randomisation to boost efficiency and decrease centralisation. As part of this plan, the system allows users to stake their tokens in order to vote for delegates. On top of this, the MachineFi protocol enables users to transform machine resources and intelligence into revenues, meaning that anyone using the system may monetise their smart gadgets and other digital assets.

What is loTeX used for?

IoTeX leverages these smart devices to build a new kind of IoT-powered blockchain. As part of this plan, the system makes adding new devices to the network easier. It takes just a few minutes to add a sensor to the IoTeX system. Currently, the protocol is used by 9,366 smart devices.

The protocol enables users to conduct quick, safe, and transparent transactions, and users may easily add and monitor data from new devices across many platforms. This information, when combined, gives a complete picture of corporate activities.