A Beginner’s Guide to IOST Network

Blockchain networks have undoubtedly introduced remarkable growth opportunities for new and existing businesses. The problem with most blockchain networks is that they can’t scale following the rising demands of businesses. Currently, most blockchain networks are focused on serving small to medium-scale enterprises.

But these networks may fail to accommodate their needs once the businesses grow. Similarly, it’s a major problem why most large-scale businesses are failing to move to the blockchain industry because they need to serve millions of clients without any interference. IOST network has introduced an innovative consensus mechanism that may help it scale according to the rising demands of the users.

What is IOST?

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IOST is a next-generation blockchain network that offers more affordable and faster developer architecture compared to Ethereum. It’s marketed as the ultra-fast decentralized blockchain network. The platform is dedicated to establishing a strong reputation for online services of the future.

IOST offers secure and efficient transactions with its Proof-of-Believability consensus mechanism. IOST was introduced with the goal of serving the big companies that were unable to embrace blockchain technology. The platform was initially capable of processing 8,000 transactions per second.

Later on, the team enhanced its capability by adding ‘microstate blocks’ and ‘efficient distributed sharding’. With these new features, the platform can process 100,000 transactions per second. Thus, it waives the concerns of businesses regarding speed and scalability.

IOST offers a range of DApp development tools and resources that are easily accessible by developers. The developers simply need to stake their IOST tokens to access these resources. It ultimately reduces development costs. The best thing about IOST is that it uses JavaScript for designing and deploying applications.

It means even traditional Web2 programmers can easily build DApps on this platform without having to learn a new programming language.

How Does IOST Work?

Unlike other blockchain networks, IOST uses a Proof-of-Belivability consensus mechanism for processing transactions. The platform doesn’t only support DApp development but also allows developers to launch their own Non-fungible tokens.

Proof-of-Believability (PoB)

Proof-of-Believability is an extended version of the traditional delegated proof-of-stake consensus protocol. It introduces a point system (Servi) to encourage more users to participate in the validation process. PoB is primarily designed for transaction validation and block creation but it’s also used for the protocol’s governance. Thus, it ensures scalability, security, and decentralization of the network.

The platform incorporates a block producer election and committee formation process for prioritizing the nodes that have more votes. At a time, 17 node operators can be a member of the committee. The platform automatically selects the nodes based on their Servi points. And the node operators are required to use their Servi points to complete the block production.

Thus, all the node operators get a chance to participate in the block creation process because unselected nodes have more Servi points compared to the ones that have already participated in the process. The block creation committee reshuffles every ten minutes giving hundreds of nodes an opportunity to perform the block creation every day.

IOST Wallets

The users can connect their IOST account to a wide range of crypto wallets. The users primarily opt for two types of wallets including mobile wallets and PC Chrome extension web wallets. Citadel, Huobi, and TokenPocket are the leading mobile wallets available on this platform. Similarly, Jetstream and iWallet are the leading PC Chrome extension web wallets.

Some wallets are best known for their zero transaction fees while others offer super-fast transaction speed. The platform recommends users complete their own due diligence before choosing a wallet.

IOST Memos

Unlike other blockchain networks, IOST uses memos to represent a user’s wallet address instead of numbers and letters. These are human-readable names that work as unique identifier. Thus, the users don’t need to remember long wallet addresses while sending or receiving funds from other users and exchanges.

However, the users are required to keep their private keys secure because they need these keys to retrieve their funds if they purchased a new computer. It’s also worth noting that the users may lose their funds forever if they didn’t complete the memo field in specific exchanges before transferring funds.

IOST Non-fungible Tokens

There are three NFT applications operating on this network.

Revival – With this application users can create NFTs and tokenize their artwork. It also supports the trade of NFTs from different chains in one place.

TokenLink – It’s the flagship NFT marketplace of IOST. It was developed by a blockchain gaming company, Platinum Egg. It enables users to invest in NFT music, games, artwork, and avatars. This marketplace has experienced significant growth over the years because it’s one of the early players in this category.

RIZN FC – IOST introduced this NFT marketplace in collaboration with NFT-Japan Inc. It’s primarily focused on facilitating the fans of Japanese martial arts.

The interesting part is that IOST invites individuals and businesses to build and deploy their own NFT marketplaces if they want. The developers can use the V8, Javascript smart contract language, for building these marketplaces. The platform’s NFT standards are similar to those of Ethereum.

IOST Tokenomics

IOST is the native token of the IOST network that is used to pay transaction fees. The developers can stake their IOST tokens to access different tools and resources for DApp development. With a circulating supply of 18.7 billion tokens, IOST has a market cap of $181 million. It ranks among the 200 best cryptocurrencies in terms of market cap.

Conclusion

IOST Network has emerged as a promising solution for businesses seeking to embrace blockchain technology. With its innovative consensus mechanism, Proof-of-Believability, IOST offers scalability, speed, and security for transactions.

The platform’s commitment to serving large-scale enterprises sets it apart from other blockchain networks. Moreover, IOST’s user-friendly approach, accessible DApp development tools, and compatibility with JavaScript make it easier for developers to adopt and build on the platform.

Feel free to get in touch with us if you need more information about how IOST works. We also invite you to subscribe to our weekly newsletter if you need regular updates about Bitcoin and the crypto market.