With so many cryptocurrency projects performing similar services, it can be tiring to keep sifting through the white papers to find a unique point. Here’s where CryptoGrinders comes in: we do the sifting for you, and this week we’re looking closely at IOST.
Full Disclosure: No member of CryptoGrinders is invested in IOST at this point. This is not an advertisement.
IOST stands for Internet of Services Token, and the project aims to provide a decentralised platform for the exchange of online services and goods. It also aims to allow developers to deploy large scale dApps that have the ability to support a large number of users.
Here are some of the recent statistics for IOST, which is ranked 44 on CoinMarketCap at time of writing.
Market Cap: USD$ 576,281,160
24H Volume: USD$ 164,377,000
Circulating Supply: 8,400,000,000 IOST
Total Supply: 21,000,000,000 IOST
How It Works
Within the IOS ecosystem, all intelligent Internet of Things (IoT) devices will be treated as nodes in the network. This means that any computing devices, smart devices and cluster storage devices become nodes in the network.
The nodes are differentiated based on their ability. Nodes that can support all technical functionalities are First Class Nodes, and provide a full range of various services to the network. Nodes that are unable to do so will run a ‘light’ client version.
What Will It Do?
There are many aspects of the IOS ecosystem, and we will be covering a few of the major ones here.
Service Automation Ecosystem
The team plans to create a blockchain version of the Apple Store, where developers can create dApps and integrate them seamlessly onto the IOS ecosystem. On the user’s end, they will be able to search for and discover new dApps.
Separation of Transaction and Service
Transactions, such as the amount of IOS tokens being transferred from user to user, are recorded on the blockchain to ensure their immutability and security.
Services are defined as messages sent via smart contracts. Services only exist within the IOS Virtual Machine, which is not on the blockchain. This ensures that the network does not need to store large amounts of service requests, and can devote its computing power toward the critical transactional information.
Fair & Transparent Feedback System (FTFS)
Unlike conventional service platforms, reviews in the IOS ecosystem cannot be altered or deleted. Public comments are forever recorded in the transaction records, and only customers of a service are able to post such comments.
This ensures that reviews are as accurate and trustworthy as possible, rather than paid-for reviews. It also ensures that businesses are unable to delete unfavourable content: a big incentive to perform well.
What Makes It Different?
Proof-of-Believability Consensus Mechanism
Consensus mechanisms are a critical component of any blockchain, and projects are constantly trying to come up with new methods that solve existing problems
Bitcoin has come under fire for the tremendous amount of electricity used to validate transactions using Proof-of-Work, as well as the long duration needed for the transactions to be verified. Some projects, such as Ethereum, have begun their move to Proof-of-Stake in an attempt to solve these problems.
IOST uses a variation of Proof-of-Stake, which they have dubbed Proof-of-Believability. A randomised Proof-of-Stake, it takes into account the IOST balance, Servi balance, reviews, behaviour of a user.
A key part of this new mechanism is the introduction of the Servi token.
Main Properties of the Servi Token
The token is not meant to be a store of value or medium of exchange. As such, it has been designed specifically to be un-tradeable in any way.
Servi tokens are created and distributed to users based on their contribution. Users who perform services for the network, or evaluating other services in the network, are awarded with Servi tokens automatically.
After validating a block, the balance Servi tokens that the node holds is destroyed. By doing so, the Proof of Believability mechanism will be able to fairly allocate block validation to various nodes, rather than only benefiting those who hold the most IOS Tokens.
Efficient Distribution Sharding (EDS)
Sharding is a technique that has its roots in distributed systems. By partitioning the total network into smaller, ‘mini’ networks, it allows these smaller networks to run their own consensus mechanism parallel to each other. This means that the network remains secure while increasing the total number of transactions per second.
It has the added benefit of increasing the total throughput as the network size grows, which is the opposite of traditional blockchain protocols. Sharding is also being implemented into Ethereum under the Casper Protocol, a sign that it is an extremely viable method to solve the issue of scalability.
While not a revolutionary idea, IOST has been gaining momentum recently, having grown 8.7% against the value of bitcoin in the past week, and has been experiencing a steady growth since 12 March 2018. From a technical standpoint, IOST still shows the potential for some healthy growth!
10 May 2018