XYO Network (XYO) ICO Review – ICO Token News
Overview of XYO Network
Due to the growing use of location based technologies, privacy and safely of the users largely depends upon the accuracy and validity of the information related to the location. Attempts have been made in the past to eliminate the need of centralized entities that control the flow of data related to location. However, all these attempts relied on the integrity of the devices collecting this data. XY Oracle Network or XYO Network offers a trustless and cryptographic location network that makes use of a novel formulation which is based on a chain of zero-knowledge proofs. This allows for a high degree of certainty about the information related to the location. XYO facilitates layered, location verification across multiple protocols and device classes. At its core sits a set of novel mechanism of cryptography, known as Proof of Origin & Bound Witness. It combines the power of blockchain technology and real world data collection into a system for direct applications.
The concept of provable location has been around for long that can be traced to ground-based radio navigation systems like LORAN. These days, we have location services that stack multiple mediums of verification on top of one another. This is done to have a Proof of Location using GPS and triangularization services. However, these approaches can’t detect fraudulent signals and also disincentivize the spoofing of location data. In such a scenario, the crypto location platform that focuses on proving the origin of physical location system is going to be the most significant one.
Shortcomings of Proof of Location
The Proof of Location leverages the powerful properties of blockchain, such as time stamping and decentralization. It combines these powerful properties with off-chain, location aware devices that are expected to be resistant to spoofing. Weakness of the smart contracts is that they center around the oracle using single source of truth, and the same problem is faced by crypto-location systems. The vulnerability of the crypto-location technologies is dependent on the off-chain devices that report back the position of an object. Off-chain data source is an Oracle in a smart contract.
How XYO Network is Unique
The case with XYO Network is quite different. In this ecosystem, the off-chain data source moves around in the real world as a specialized type of Oracle, which they call as Sentinel. The core innovation of the network centers around an anonymous, location-based proof to create a protocol that is based on crypto-location and is trustless too.
XYO Network aims to create a decentralized and trustless system of location oracles which is not only resistant to attacks but also provides highest possible certainty when queried for the available data. The platform developers achieved this by implementing a set of abstractions that greatly reduce the risk of location spoofing. For this, they make use of zero-knowledge proofs along the components of the system. The system makes use of a protocol of connected devices to provide high certainty on the location data. The users can issue transactions or “queries” to get the location data on a blockchain compatible platform.
XYO Network Brief Analysis
With the wider adoption of smart contracts that are trustless and based on blockchain (similar to other ICO tokens such as ORIGAMI NETWORK, Lympo, Current , Cryptomon Token, Onyx, JOYSO), the significance of Oracle services has increased a lot as they arbitrate the outcome of a contract. Most of the currently used implementations of smart contracts depend on a set of authoritative oracles for the settlement of the outcome of the contract. This is sufficient in the cases when both the stake holders agree on the incorruptibility and authority of the particular oracle. However, there are numerous cases when the appropriate oracle simply does not exist or is not regarded as authoritative as there is always the possibility of it getting corrupted or encountering an error. Location oracles are very much the part of this category.
Problems Faced in Location Accuracy and Data Integrity
The divination of the location of a physical world item depends on multiple factors, like relay, reporting, storage and processing components of an oracle. All these components are not free of error and can be corrupted. There are additional risks of data pollution, manipulation, collusion and data loss. This causes the problem of accuracy and certainty of location which are adversely affected due to the lack of a decentralized and trustless oracle. Platforms like Ethereum and EOS have extensively been used as they allow for secure online interactions. The primary use cases of these platforms include fundraising escrows in the form of Initial Coin Offering. The problem with these platforms is that they give focus to the online world, not on the physical one. The reason for this is that the current information channels of the physical world involve the use of data whose integrity is corruptible.
Solutions Offered by XYO
XYO Network is working to allow the developers, like those writing smart contracts for blockchain platforms, to interact with the physical world like the way it were an API. It is the first of its kind protocol in the world that allows two entities to transact in the real world without the involvement of a centralized third party entity. The abstractions of the platform make the verification of location trustless. This has allowed for novel use cases with the protocol, which was not possible earlier.
The network will be built over 1,000,000 devices circulating in the world. Bluetooth and GPS devices of the company allow the people to place physical tracking beacons on the things they want to keep track of. These things could include luggage, expensive items, automobiles and even pets! They can always locate these objects on their smart phone application. Currently, XYO boasts of the largest consumer Bluetooth and GPS network in the world.
XYO Token Specifications
The public sale of XYO tokens has a tiered pricing structure that starts at 1 ETH: 100,000 XYO and maxes out at 1 ETH: 33,333 XYO.
Other token specification details are provided below.
- XYO Token sale starts on 20 March 2018
- Token Ticker: XYO
- Token Name: XYO Network Utility Token
- Amount issued during the main sale: Unlimited
- Total Issuance: Finite and capped at the amount reached after the main token sale
- Contract Type: ERC20
- Whitelist: Yes, until 07 March 2018
- Accepts: ETH
- ICO Token Price: 1 XYO = 0.0236 USD (0.00003 ETH).
Unsold and unallocated tokens will be burnt once the token sale event is over. No further XYO tokens will be created after the conclusion of the main sale. So, the tokens purchased during the main sale by the investors become finite and scarce resource, which benefit and reward those who purchased them during the sale. The tokens use Ethereum’s ERC20 standard for secure purchase. A third party firm has been retained by the project developers to test audit the smart contract to ensure its compliance with the best practices of the industry. For more news on the trending ICOs like Pitch, Fintechbit, BunnyToken, KaratBank, HeadStart, JOYSO, FRIENDZ, Ponder, follow the ICO token list of the reputed crypto exchanges.
Token Sale Proceeds
Proceeds from XYO token generation event will be allocated as per the long-term development goal of the network. This includes funding of the important Ethereum projects like Casper Protocol, and location-specific blockchain projects.
XYO Token Economy
XYO tokens are used to incentivize the desired behavior by providing accurate and reliable location heuristics. The tokens can be thought of as “gas” needed for interfacing with the real world to verify the XY-coordinate of a specified object. One can set a desired confidence level and XYO gas price during the creation of query. The cost of query, which is to be charged in XYO tokens depends upon the market dynamics as well as the amount of data required to provide an answer. More the data needed, the more expensive the query will be and higher will be the XYO gas price.
In case the data provided by a Sentinel device such as Bluetooth Beacon is used to answer a query, then all the four components viz. the Diviner who searched for the answer, the Achiever who stored the data, the Bridge who was responsible for transmitting the data and Sentinel who recorded the location of the data, receive a portion of the XYO gas paid by the token holder. The distribution of the gas between the three components is always in the same proportion, with the exception of the fourth component Diviners whose involvement in providing the answer is more extensive. However, gas is evenly distributed within each component.
Innovations in Incentivizing the Use of Tokens
A system in which the use of tokens is not incentivized creates problems for the underlying economy in the long term. Such an ecosystem triggers a natural impulse to find the reasons for not using the token, and the utility and liquidity of the token is not boosted.
The problem faced by most of the crypto economic incentives is that they keep too strong focus on the token miners, with no focus on the users of tokens. XYO token takes account of the both – token miners and token users. It incentivizes the miner to not only provide accurate data, but also to know to not provide the data at all. On the other hand, the end-user is incentivized to transact more when network liquidity is low, not when it is high. This way, XYO ecosystem remains well-balanced, robust and fluid.
Arie Trouw – Founder and Architect
He is an accomplished serial entrepreneur with a rich history of technological breakthroughs and business successes
Scott Schepher – Co-founder and Head of Marketing
He has worked on many exciting ventures with talented group of people.
Markus Levin – Co-founder and Head of Operations
He has 15 years of experience in managing and growing some companies around the world.
William Long – Head of Hardware
He has over 25 years of experience in engineering management and the development of electrical engineering.
Christine Sako – Head of Analytics
She has an extensive background in mathematics and has worked in upper management for five years.
2017: XY launched the world’s first hybrid GPS and Bluetooth technology enabled device – XYGPS. The company crosses 1,000,000 beacon mark and its blockchain based Oracle network is born.
Q1 and Q2 2018: The company mints the first XYO Token for smart contracts to access XYO Network . Development of XY Oracle Testnet to be completed. Rolling out of location-based blockchain protocol to its sentinel devices.
Q3 and Q4 2018: Launching of XY Oracle Main Network XY MainNet. API to be completed for smart contract developers to interact with XY Oracle Network. Release of XY sticker-based trackers for ecommerce packages.
2019: XY to grow the global network of diversified location sentinel devices. Launch of SatoshiXY VitalikXY LEO Satellite Sentinels. Formalization of business partnerships with enterprises to leverage the benefits of decentralized, trustless location oracle.
2020: Expansion of the global reach of entire XY Oracle Network.
XYO Network has four primary components.
- Sentinels or the data gatherers
- Bridges or the data relayers
- Archivists or the data stores, and
- Diviners or the answer aggregators.
Sentinels gather information about the location through multiple means like sensors and radios. Bridges collect this data from Sentinels and provide it to the Archivists who store the data for analysis by the Diviners. The Diviners analyze the location heuristics to generate answers to queries and relay the answer back into a smart contract. The accuracy score or the Origin Chain Score is determined through Proofs of Origin Chain, which are essentially a set of zero knowledge proofs. The chain guarantees multiple pieces of data which is originated from the same source, all the while not revealing any underlying information. Each component of the query generates its own Proof of Origin which is chained to each component it relays data to. The Proof of Origin is a novel formulation in the sense that it builds a chain of cryptographic guarantees along a path of relays in the network. This is done to achieve high confidence of real world data. The Proof of Origin Chain encapsulates the confidence a user can have about the location data. This can be tracked to the very first device that gathered the data.
In order to establish a decentralized consensus mechanism among the Diviners, the network relies on an immutable blockchain, known as XYOMainChain. This public blockchain stores query transactions and also the data gathered from the Diviners.
- Arie TrouwFounder & Architect
- Scott ScheperCo-founder & Head of Marketing
- Markus LevinCo-founder & Head of Operations
- William LongHead of Hardware
- Christine SakoHead of Analytics
- Johnny KolasinskiHead of Media
- Jordan TrouwCustomer Experience Manager
- Lee KohseSr. Design Engineer
- Louie TejedaWarehouse Logistics Supervisor
- Maryann CummingsClient Support Manager
- Maria CornejoRetail Management Supervisor
- Patrick TurpenHardware QA Supervisor
- Charles BulgerHead of Web Development
- Keri KukralHead of Public Relations
- 1Q4 2017 - XY’s Blockchain-Based Oracle Network Is Born
Development of moving the internal XY location network platform to an open blockchain implementation begins: the XY Oracle Network is born.
- 2Q1 2018: XY Mints “XYO Tokens” to Be Used For Smart Contracts to Access the XYO Network
The XYO Token is created and represents the official currency to be used throughout the entire XYO Network.
- 3Q! 2018 - Public Token Sale to Begin
The Public Token Sale is scheduled to launch on March 20, 2018 and to conclude on May 20, 2018.
- 4Q2 2018 - XY to Complete XYO on Test Network (”XY TestNet”)
XY will complete the development of the XY Oracle Testnet and begin rolling out its location-focused blockchain protocol to its Sentinel devices.
- 5Q3 2018 - XY to Launch XY Oracle Main Network (”XY MainNet”)
XY will issue a complete roll out of the XY Oracle Network to XY its Sentinel beacons and start tests with new Sentinel partners (specifically IoT companies and mobile app developers).
- 6Q3/Q4 2018 - XY to Complete API for Smart Contract Developers to Interact With the XY Oracle Network
- 7Q3/Q4 2018 - XY to Release XY Sticker-Based Trackers, Which Can Be Added to eCommerce Packages
Launch the low-cost XY Sticker product which enables eCommerce retailers to track every single one of their products in realtime.
- 82019 - XY to Grow Global Network of Diversified Location Sentinel Devices
Grow coverage of XY Sentinels (location data providers and verifiers) as well as other components of the XY Oracle Network (Bridges, Archivists, Diviners).
- 92019 - XY to Onboard Larger Businesses, Organizations and Retail Companies That Have Use-Cases for Location Verification
Formalize business partnerships with enterprises and larger entities, which can benefit from a decentralized, trustless location oracle (e.g. logistics systems, supply chain companies, auditors, eCommerce businesses and countless other niches).