IoTeX was founded as an open-source platform in 2017 with a vision for the Internet of Trusted Things, a decentralized ecosystem where humans and machines can interact with guaranteed security and trust. We are on a mission to ensure everyday people and businesses can own and control their devices, as well as the data/value they generate. By connecting the physical and digital worlds, IoTeX will democratize access to machine-backed DApps, assets, and services to deliver value to users and fuel the new machine economy.
What Is IoTeX?
Founded by Jing Sun, Raullen Chai, Qevan Guo and Xinxin Fan, IoTeX is an easily scalable, decentralized blockchain network serving the IoT. According to its developers, “[E]veryday people and businesses can own and control their devices” via IoTeX, which uses a blockchain-in-blockchain mechanism with a single root block and multiple sidechains connected to it. Its unique roll-delegated proof of stake (Roll-DPoS) consensu
IoTeX combines secure blockchain tech with the Internet of Things (IoT) to track and use data from connected devices and trade on their decentralized exchange. IOTX is an Ethereum token that powers IoTeX, a platform that aims to connect IoT devices (such as cameras and sensors) and decentralized applications. IOTX can be used to pay for transactions, for staking and governance, and to register new devices on the IoTeX network.
IoTeX works by connecting machines with humans through a scalable blockchain network. While scalability is a major issue for many blockchain networks, IoTeX overcomes this hurdle by enabling real-time transactions at very low cost. Different IoT applications have different needs, and it’s impossible to put all connected IoT nodes into a single blockchain.
The IoTeX blockchain focuses on this area by delegating duties via sidechains. Each sidechain is built to provide a unique function of a given application. Attached to the root block, these sidechains can interact with each other when required, decreasing the load on a single blockchain and increasing efficiency levels.
IoTeX: Pros and Cons
While the IoTeX network can positively impact the global blockchain infrastructure, it’s not free of flaws. Here are some pros and cons of its blockchain.
Low Cost per Transaction
Since smart devices can collect a huge amount of data, the biggest challenge is to transfer that data over the blockchain. With IoTeX’s Layer 2 chains, the speed of each transaction is increased while its cost is greatly reduced, making it easier for users to adopt the blockchain network.
As the IoTeX network enables users to control their data, they don’t have to choose between privacy and services, unlike with other IoT networks.
IoTeX’s root chain and subchain architecture allow interoperability among applications and smart devices connected with each sidechain. This interoperability allows devices to increase efficiency by engaging with each other when required.
Since the Roll-DPoS consensus selects specific delegators who govern the blockchain network, it isn’t completely decentralized.
Like many new cryptos, IOTX is highly volatile — which can be observed from the sudden ups and downs in its price thus far.
Is IoTeX (IOTX) a Good Investment?
IoTeX shows great promise, and could pave the way ahead for IoT and blockchain. One of its closest competitors is IOTA, a project which shares its vision of secure data exchange. Compared to IoTeX, IOTA’s transactions fees are higher, as it uses a tool called DAG (directed acyclic graph), which adds to costs.
IOTX has seen tremendous growth over the past few weeks. If this trend persists, we might see a long bull run. Of course, how the crypto will perform in the future also depends on factors such as new partnerships, products and MachineFi, which is similar to DeFi (decentralized finance) but tailored to machines. IOTX reached its current ATH of $0.26 following IoTeX’s MachineFi announcement in November 2021.
IoTeX is the first cryptocurrency blockchain that has a physical product associated with their network. They have a few unique features that we share in this video!