XYO Network: Introducing Blockchain Into the Real World
XYO Network is a project being developed by XYO team that’s aimed at bringing blockchain technologies into the real world. The system allows using multiple oracles for implementing smart contracts adapted from blockchain, which eliminates security issues and prevents hacking. Besides, tracking technologies built in the proprietary XYGPS gadget will be leveraged to define the location of contract/transaction participants, as well as physical objects: more than 1 mln of electronic trackers have already been produced. The team plans to launch XY Oracle Main Network offline in 2018 after token sale and start testing tracking devices and blockchain functionality with Sentinel collaborators (enterprises and application developers).
What is XYO created for?
Although third parties aren’t required to perform payments when blockchain is used, smart contracts should still be verified. This is where oracle services come in handy. However, one oracle isn’t authoritative enough because of vulnerability (hacking, corruption, and errors can still take place). XY Oracle system allows checking smart contracts via multiple oracles, which ensures incorruptibility and information integrity. That makes leveraging blockchain in real life possible, and totally eliminates the need of middlemen and banks. Location tracking is another criterion for making sure that parties comply with contract’s conditions.
Target audience of the platform and participants
Theoretically, the platform can be exploited globally by all keepers of electronic wallets and cryptocurrency, as well as companies and applications requiring versatile tracking services. For example, stores can track the pathway and location of parcels, and customers will pay for them upon receiving only (by transferring cryptocurrency automatically).
There’s no strict division of users, but the platform has four essential elements:
- Sentinels gather data from tracking devices, smartphones, players and all other gadgets with GPS or Bluetooth.
- Bridges are responsible for the delivery of information from the first component to the third.
- Archivists store information.
- Diviners process information about location variables to generate replies to queries and rate correctness for them.
Therefore, Diviners act as oracles supplying Smart Contracts with necessary information. The correctness rate is assigned to every Diviner. It guarantees that several sets of variables will be generated from one source. Several relayers are used to ensure total confidence.
Technical realization
With all above-mentioned parties involved, stages of system functioning look the following way:
- User/item/device whereabouts are gathered by Sentinel to be sent to various nodes together with origin proof.
- Bridges receive the information and send proofs while becoming accessible by the next parties.
- Archivists get and index the information from multiple sources (data is indexed).
- Diviner receives a request and it’s sent to smart contracts to start the generation of the reply.
- Diviner receives information and processes queries.
- Diviner generates a reply.
- Diviner checks all sets of data and digitally signs the content.
- Diviner prepares the results for the initiator of queries, and digital signatures are sent via a secure connection. Integrity is verified, after which Diviner is paid.
- XYO components get their reward for operations.
The system is based on Ethereum blockchain that allows leveraging smart contracts.
Team background
The team has been elaborating the system that laid foundation for XYO project starting from 2012. XYO headquarters is based in San Diego (California) and consists of tens of talented specialists, including Scott Sheper, Marcus Levin, William Long, and others. It’s supported by advisors from such spheres as cryptocurrency, corporate finance, programming, market economy, and so on. Team’s ambitions are grounded on wealth of experience coupled with current achievements.
ICO Details
The company didn’t organize token pre-sale. The main sale starts on March 20 and will last until May 20. The price of one ICO token (XYO) is $0.0154 (0.00003 ETH). ETH currency is accepted only. 100% bonus is offered for the sale. There are no limits of personal cap, and the fundraising goal isn’t define. The number of tokens isn’t limited: that makes the business plan unclear. Tokens that aren’t sold after termination of the ICO campaign are to be destroyed and won’t be generated afterwards. From one point of view, low XYO token cost and an unlimited amount of tokens allow for participation of personal and corporate investors, from another – it’s not known whether the creators will get enough funds to implement the stated goals. As far as the tokens are available during sale only, investors have 2 months to acquire tokens.
Funds will be distributed the following way:
- 40% - growth of XYO project;
- 35% - engineering and R&D;
- 15% - platform operations;
- 5% - support of crucial Ethereum projects;
- 5% - overhead.
Bottom line
The project upon consideration has a huge potential for businesses providing delivery, as well as personal users willing to define the location of parcels and any other object – no serious problems with implementation are expected. Although XYO project and the principle of action have been well-thought and properly elaborated, the conditions of ICO are confusing. Since there’s an unlimited number of tokens and no minimum limits for investing, the number of funders can be very high, and it’s impossible to predict a possible outcome and calculate theoretical revenue. There was no pre-sale, and the system hasn’t been tested properly, it’s hard to make some certain statements concerning the possibility of commercial success.
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