What Is IOTX?

IOTX is an Ethereum token that powers IoTeX, a platform that aims to connect IoT devices (such as cameras, sensors, and other devices connected with the internet) and decentralized applications. Today IoT devices are fast emerging and are expected to grow to 18 billion devices in 2022. However, most IoT platforms today are centralized, are not scalable, have high operating costs, and have privacy concerns. Since smart IoT devices have changed the way people interact in the modern world, IoTeX aims to create an ecosystem where humans and devices (machines) can interact with each other using their free will, without worrying about security or trust and enjoy economic incentives. Smart devices have made sharing of data convenient and quick. IoTeX seeks to create a platform where businesses and individuals can own their devices and create value from their data.

The IoTeX team comprises “30+ top tier engineers, research scientists and operators from Google, Facebook, Uber, Bosch, and more.” IoTeX is collectively governed by a decentralized network of users, developers, and enterprises.

Architecturally, IoTeX consists of two main technological layers:

• Blockchain: According to the platform, IoTex’s blockchain is one of the fastest blockchains in the industry. IoTex blockchain can finalize a block within five seconds compared to the industry average of 17.49 seconds. The platform claims that their blockchain has been running error-free since 2019.

• Decentralized Identity (DID): On one hand, where traditional platforms create a decentralized identity just for people, IoTex creates DID for both people and devices. These identities are interoperable, as they are standardized across the platform. Using this technology, IoTeX seeks to create a seamless interaction between people and machines.

Since IoTeX provides an identity to devices, both people and devices can execute payments and charge for services. On IoTeX, even machines are equipped with wallets and smart contracts to execute transactions. Smart contracts are just like regular contracts; however, smart contracts are executed through protocols running on blockchain instead of being drafted on paper.

As mentioned previously, IOTX token fuels the IoTeX network. IOTX is an Ethereum-compatible token, and its holders can stake, spend, and/or burn the token to access the network’s resources. IOTX can be used by:

• Service providers to offer services/DApps (decentralized applications)

• Users to pay for these services/DApps and stake/vote for delegates

• Delegates for staking and being able to produce new blocks

• Developers for powering their DApps and incentives

History of IoTex (IOTX) 

IoTex was founded as an open-source platform built from scratch (no fork) in 2017. The company is headquartered in Silicon Valley. Raullen Chai, Qevan Guo, Jing Sun, and Xinxin Fan are the founders of IoTeX.

Raullen Chai is an advisor at BootUP Ventures and formerly worked as the lead of crypto R&D and engineering security at Uber. Qevan Guo formerly worked as a research scientist and engineering manager at Facebook. Jing Sun is a managing partner at Sparkland Capital. She is also an investor at Polychain Capital and Rippling. Xinxin Fan was formerly a senior research engineer at Bosch Research and Technology, North America.

The initial coin offering (ICO) of IoTeX took place in February 2018 and was offered for $0.0000125 per token. The project managed to raise $14 Million in ICO. After that, the whitepaper of IoTeX was released in May 2018. The company launched its platform in the same year and its blockchain network (mainnet) in 2019.

How Are New IOTX Tokens Created?

IoTeX runs on a decentralized governance model—the token holders deposit (stake) their tokens to elect delegates through network-wide voting. Any IOTX holder that stakes tokens can vote to select one or more delegates. Each user receives one vote in return for every IOTX token staked (1 IOTX = 1 vote). In return, the voters can earn an annual interest of up to 10% on their staked tokens. Users can also choose to show long-term commitment by setting a pre-defined stake duration (anywhere between 0 and 1050 days). The longer you stake, the higher the rewards.

The role of a delegate is to manage consensus on behalf of the network. IoTeX uses an in-house consensus mechanism called Roll-DPoS. Under this mechanism, 24 out of the top 36 voted delegates are randomly selected to create new blocks every hour. Finally, the delegates receive rewards in the form of IOTX for managing consensus. The delegates eventually pass on their rewards to the voters. According to the website, 60+ delegates contribute to the platform differently and pay rewards to the voters. The voters can switch their votes anytime they choose to.

How Many IoTeX (IOTX) Tokens Are There?

There is a total supply of 10 billion IOTX tokens.

How to Buy IoTeX (IOTX) Tokens

There are many exchanges to buy and sell IOTX tokens, including Coinbase. An investor can also buy the IOTX tokens with USD, EUR, and two more fiat currencies.