The premise of the IoTeX blockchain is to give ordinary people and companies the ability to control their devices. The IoTeX platform uses an innovative blockchain mechanism to enhance scalability and security. The blockchain mechanism achieves functionality by incorporating a single master block to which multiple sidechains are attached. The IoTeX blockchain also uses an innovative Delegated Proof-of-Stake (Roll-DPoS) consensus algorithm to optimize speed and scalability, connecting IoT devices using a block-to-block method.
IoTeX systems
Typically, private and public organizations control IoT devices and the data they collect. IoTeX aims to decentralize this process, giving users control over their smart devices and allowing them to regain control of their data. Essentially, user privacy and true decentralization are some of the core principles of the IoTeX blockchain.
IoT, and blockchain
The system implementing IoTex works in a relatively easy-to-understand way: through a blockchain network, which is used to connect machines to people. The blockchain used must be scalable, and IoTeX has proven that it is. The platform itself also offers the use of real-time transactions with a nominal transaction fee.
Keep in mind that IoT applications are diverse and have different needs, which makes it virtually impossible to combine all IoT nodes in a single blockchain. Therefore, the IoTeX blockchain implements sidechains, which are assigned different tasks.
What are sidechains?
Sidechains provide individual applications with unique functions. Because sidechains are linked to the main blockchain, they can communicate with each other in an optimized way, reducing the congestion and capacity that a single blockchain must handle. Simply put, the master blockchain is responsible for ensuring the management and security of the entire network, while sidechains facilitate the connection of multiple IoT devices that share similar characteristics or goals. This streamlines the entire process and ensures seamless service for all.
IOTX functionality and usage
The functionality of the IoTeX blockchain is supported by IOTX tokens. There are several uses for IOTX tokens, including network participation, delegation, and service provisioning. Essentially, the IOTX token provides optimal operation of the IoTeX network in a decentralized manner.
IOTX use cases can be as follows:
- It is used to pay gas fees – these are transaction fees that are paid to facilitate smart contracts.
- IOTX participants are given voting rights, which they can use to elect delegates to seek consensus and continuously improve protocol management.
- Services are paid for in the IOTX token, which is for connecting IoT devices.
- It is used to pay for registration of new devices and purchases in the IoTeX market.
- Charges for services for already connected devices.
In addition, IOTX tokens can be traded profitably.Many experienced arbitrage traders try to take advantage of token price fluctuations.
Advantages and disadvantages of IoTeX
Like any blockchain projects, IoTeX has its advantages and disadvantages, which we write about below:
Advantages:
- Focused on Web3 – Blockchain IoTex is positioned as a blockchain that can pioneer the growing web3 ecosystem.
- Work Products – IoTeX has already introduced Pebble and Ucam, which are physical products available for purchase worldwide.
- Web3 Wallet Staking – IoTeX is the world’s first blockchain to allow users to stake tokens in a web3 wallet.
- Scalability – IoTeX blockchain is more scalable than most blockchains on the market because it uses sidechains to improve scalability and security.
- Most IOTX tokens are in circulation – 95% of IOTX tokens are in circulation. This number is very high compared to most projects, and indicates that the project is unlikely to experience the severe price drop that usually occurs when blockchain tokens are released to the market.
Disadvantages:
- It’s not entirely decentralized – the IoTeX blockchain uses the Roll-DPoS consensus algorithm, in which delegates are entrusted with managing the network.Many believe this makes the IoTeX network centralized and therefore less advantageous than other decentralized blockchain networks.
