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2018 Press Releases

February 23, 2018

IoTeX Announces Security and Privacy-Focused Blockchain Purpose-Built for IoT

Note from CSA Editor:
After this press release was published, CSA contacted IoTex’s Co-Founder, Raullen Chai, to elaborate on how IoTeX’s decentralized architecture can be more cost-effective for customers compared to a centralized IoT network and he gave us the following answer.

“IoTeX’s decentralized architecture is cost-effective because the network itself is more flexible – easily scaling up or down – so resources match demand as closely as possible. Centralized networks aren’t designed for such demanding heterogeneous device environments, so customers end up paying for a lot of extra bandwidth. Decentralized networks are democratic; no one owns the network, each device in it helps to keep it up and running meaning users don’t have to bear the full network costs. IoTeX’s solution achieves this by extending the crypto-economy into the IoT space. Sharing themselves or sharing the data or function they provide, IoT devices can earn tokens to get compensated for operation and maintenance costs.”
 
However, he said, the underlying blockchain (or in this case, IoTeX’s blockchain-in-blockchain) technology won't help much to address security issues at the individual device level. Nevertheless, its decentralized nature can help to mitigate attacks at a network level. “It makes specific attacks like Man-in-the-Middle and Denial of Service next to impossible. Blockchain-in-blockchain architecture allows the rest of the IoT system to keep functioning should a certain portion of individual devices or subchains become compromised,” Raullen said.
 
IoTeX is currently working with IoT vendors and manufactures in the ASEAN region to incubate decentralized apps (Dapps) on top of its blockchain architecture.

The full press release follows:

IoTeX Foundation, the next-generation decentralized network designed for the Internet of Things (IoT), today launched out of stealth to provide privacy-centric blockchains and extend the token economy to IoT, while reducing go-to-market barriers for developers and manufacturers of supply chain, smart home, device identity management, autonomous cars, machine-to-machine and industrial IoT solutions.

Current IoT deployments are centrally connected and controlled making them and their data susceptible to breach and pigeonholing companies into using large cloud providers not optimized for dense and diverse IoT environments. These network challenges generate enormous costs holding back mass adoption and stifling innovation. Knowing the expenses associated with running IoT are prohibitive for many, no one has developed a killer app that would draw new users to the platform and motivate new or extend existing deployments. IoTeX is specifically built with IoT in mind to overcome these challenges.

“Our unique blockchain-in-blockchain architecture, available to developers in an SDK, creates a well-balanced distributed network that maximizes scalability, security and privacy in a cost-effective way,” said Raullen Chai co-founder of IoTeX. “We’ve solved for IoT’s technical pain points while creating value for developers that extends beyond just selling devices simultaneously giving users more control over their data, which is the most exciting part.”
IoTeX is a network of many blockchains, hierarchically arranged, able to run concurrently with one another while remaining interoperable. The rootchain is focused on scalability, robustness, preserving privacy and orchestrating independent subchains. Subchains share something in common either in functional purpose, operating environment or trust levels. Subchains can transfer value and data to the root or another subchain, but should a subchain suffer a cyberattack or software bugs, the rootchain is unaffected. This is one of four key innovations that makes IoTeX uniquely positioned to handle IoT environments.

Through incentives built around digital tokens – either their own or IOX – distributed to users, developers on IoTeX blockchain don’t have to rely on selling customer data in order to make a profit beyond just the one-time purchase of a device that doesn’t cover the operating costs of running IoT at scale. IoTeX Blockchain creates a marketplace where 1) end users are welcome to sell their data in exchange for tokens or not and keep it private, 2) lend something they own like a car or excess electricity generated by home solar panels in the sharing economy and 3) easily develop their own applications and services for subchains.

“We’re giving users a choice of whether or not to engage in the data economy rather than roping them in by default as with current devices and services. Developers and manufacturers using IoTeX blockchain won’t have to rely on data as their sole monetization strategy with mining, transaction fees and new services deployment as alternate options,” said Chai.

IoTeX’s innovative Randomized Delegated Proof of Stake (RDPoS) consensus protocol, greatly improves the throughput of the network while reducing transaction cost. IoTeX’s model lets small player pool resources and choose specific delegates to move consensus activities away from resource-strapped nodes, which can be selected dynamically to achieve higher overall availability for the network.