What is IoTeX (IOTX)? Things You Need to Know

The Internet of Things (IoT) has swiftly established its reputation in almost all walks of life. It’s one of the fastest-growing industries in the tech space. According to research, the IoT has the potential to reach a value of $1,855 billion by 2028. IoT devices are currently generating a huge amount of data.

And the data is mostly controlled by centralized authorities. The data can ultimately be used to influence the thoughts of the users. The blockchain industry can potentially solve this problem by establishing a decentralized network of IoT devices and applications. IoTeX is trying to achieve this goal by providing a decentralized environment for IoT devices.

What is IoTeX?

IoTeX is a layer-1 blockchain network dedicated to establishing the open economics for machines. It’s an EVM-compatible blockchain where developers can build several decentralized applications that may be used to control smart devices.

The platform offers excellent transaction speed by incorporating the delegated proof-of-stake consensus mechanism. Moreover, it uses a set of sidechains to process the transactions without any delays.

Ucam – Ucam is currently the most important device connected to IoTex. It’s a home security camera that ensures users’ privacy while providing them with complete control over their data.

Pebble – Pebble is a sensor-like device that collects real-time data by processing climate, location, and motion. Fortunately, the data can’t be accessed by a centralized entity.

IoTeX Brief History

IoTeX was introduced by Raullen Chai, Xinxin Fan, Jing Sun, and Qevan Guo, in 2017 with the goal of establishing a secure ecosystem for IoT devices. Raullen Chai is also an advisor to BootUP ventures. Similarly, Jing Sun also works in a higher position at Sparkland Capital. Thus, the team didn’t face enough problems raising funds for the project.

The platform introduced the Ucam, an end-to-end encrypted home security camera, in September. And later on, the Pebble Tracker was introduced in 2021. These two devices played a vital role in establishing IoTeX’s reputation in the crypto space and IoT landscape.

Over the years, IoTeX has proved to be a market leader in solving security issues in the traditional IoT space. Furthermore, the team has introduced innovative ideas to provide users and developers with more control over their data.

IoTeX Key Features

IoTeX is primarily focused on resolving the scalability issue with its unique infrastructure.

Roll-DPoS

IoTeX uses a modified version of the proof-of-stake consensus mechanism where stakeholders need to elect the block producers/delegates using their voting power. These delegates then add new blocks to the network based on the transactions. The platform transfers rewards to the delegates for their contribution.

These delegates are responsible for distributing the rewards among stakeholders who elected them. Thus, the platform maintains a high level of decentralization by engaging more users.

Side Chains

IoTeX has established a network of multiple Layer 2 chains. The developers can develop their desired applications based on different cryptocurrencies without affecting the performance of the main network. The side chains are capable of handling a wide range of IoT devices. The delegates mutually decide on the creation of a new side chain if needed.

Real-world Data Oracles

The oracles are widely used for collecting data from external devices and platforms. IoTeX uses data oracles to collect real-time data from the IoT devices connected to the network. Thus, it works as an additional layer between the blockchain and the external environment.

Decentralized Identity (DID)

Unlike traditional platforms, IoTeX doesn’t use the user’s data for marketing purposes. Instead, it uses the decentralized identity framework to provide users with complete control over their data and credentials.

Privacy-Centric DApps

IoTeX also offers edge computing solutions for developers who are willing to build privacy-centered DApps.

Interoperability

IoTeX establishes strong communication between the decentralization applications built on the network. The best thing about the platform is that the blocks can’t be changed once they’re finalized. Thus, developers can easily access their desired information for building unique applications. Furthermore, it also ensures the network’s security.

How Does IoTeX Work?

IoTeX is designed to host a wide range of decentralized applications, secured devices, NFTs, and other online transactions. It ensures a smooth interaction between humans and machines with guaranteed privacy and free will.

IoTeX uses the delegated proof-of-stake consensus mechanism to finalize the transactions. The stakeholders need to elect 100 delegates based on their performance. These delegates use their computing resources to validate the transactions. The stakeholders can eliminate a delegate if the delegate is involved in a malicious activity or if his performance is weak.

By facilitating the contribution of more users, the platform protects itself from hacking attacks.

IOTX Use Cases

IOTX is the native token of the IoTeX network. The token is primarily used to pay gas fees for certain transactions. Similarly, the users need IOTX tokens to buy products/services from DApps. The IOTX token holders can use their voting power to elect the delegates. The delegates stake their IOTX tokens to qualify for the position.

With a circulating supply of 9.45 billion tokens, IOTX has a market cap of $272 million. It has a total supply of 10 billion tokens that will be released through a rewarding process. It ranks among the 200 best cryptocurrencies in terms of market cap.

Conclusion

IoTeX is targeting one of the fastest-growing industries with its innovative infrastructure. The platform connects IoT devices through a decentralized platform to ensure data privacy. It uses delegated proof-of-stake consensus mechanism to quickly validate the transactions. Moreover, the platform incorporates side chains to avoid delays.

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