What is IOST? All You Need to Know About IOST

In the ever-evolving landscape of blockchain technology, the quest for scalability, security, and decentralization remains paramount. As various projects attempt to balance these factors, innovations emerge, setting benchmarks and redefining possibilities. From the onset, the focus has been on creating platforms that not only address the present challenges but also cater to future demands. Navigating through the plethora of options can be daunting. However, as we delve deeper, one particular project has made a noteworthy impact, establishing itself as a potential game-changer: IOST.

What is IOST (IOST)?

IOST (IOST) was conceived in 2017 with the vision of addressing scalability issues that plagued earlier blockchain platforms. Founded by luminaries like Jimmy Zhong, Terrence Wang, and Ray Xiao, the platform was designed to ensure a harmonious blend of scalability, security, and decentralization. By January 2018, their vision gained momentum with a successful ICO, amassing $31.3 million.

The subsequent year, in February 2019, IOST celebrated the launch of its mainnet, shifting from Ethereum and introducing its distinctive “Proof-of-Believability” consensus model. By that April, IOST had already earned its stripes as a top-tier public chain, sharing the limelight with giants like Ethereum, EOS, and Tron.

As 2020 unfolded, strategic collaborations further enriched IOST’s ecosystem, and its technological foundations underwent constant enhancements.

Come 2021, IOST delved deeper into the realms of DeFi and the burgeoning NFT sector, underscoring its drive for perpetual innovation and technical prowess.

In 2022, IOST announced plans to launch a decentralized algorithmic stablecoin, addressing core challenges like oracle price feed authenticity and price stability. This follows their history of stablecoin integration, including iUSD, XUSD, HUSD, JPYA, and USDA. IOST’s strategy aims to enhance its multi-chain ecosystem and offer competitive interest rates.

How does IOST Work? Proof of Believability and Efficient Distributed Sharding

IOST uses two pivotal mechanisms: Proof-of-Believability (PoB) for consensus and Efficient Distributed Sharding for scalability. Together, they redefine speed and security in blockchain, ensuring a seamless and decentralized infrastructure.

Proof of Believability

Proof-of-Believability (PoB) is a unique consensus algorithm. Unlike conventional methods where only a few top nodes partake in block production, PoB enables most nodes to participate, ensuring scalability and decentralization. It uses a dynamic committee formation process, based not solely on voting results but also on a point system called Servi, determining the rotation of committee members.

To become a block producer candidate, a node must surpass a 0.02% voting threshold. Once achieved, they can officially become a candidate for committee formation. While voting results don’t dictate committee members directly, they influence the Servi acquisition rate. In every round, 17 nodes are chosen based on their Servi points, forming the block-producing committee. This committee then sees a reduction in their Servi equivalent to the 17th node’s balance. Hence, the top 16 nodes lose Servi, but the 17th drops to zero.

In a simulated scenario, five nodes, A to E, with Servi points 10, 8, 5, 4, and 1 respectively, compete over multiple rounds. Initially, nodes A, B, and C form the committee due to the highest Servi. Their points are then reduced by the Servi of the 3rd node. By the ninth round, even the node with the lowest initial Servi (Node E) becomes part of the committee, showcasing the dynamism of the PoB mechanism. The committee undergoes rotation every 10 minutes in the IOST network, ensuring fair representation and decentralization.

Efficient Distributed Sharding

Efficient Distributed Sharding (EDS) is another critical component that bolsters IOST’s scalability. Unlike traditional sharding methods that can fragment the network and pose security risks, EDS ensures a more balanced and secure distribution of nodes. By intelligently partitioning the IOST network into multiple shards, EDS allows parallel processing of transactions. Each shard handles a subset of the overall transactions, leading to simultaneous processing and significantly increasing the throughput of the network.

To maintain robust security, EDS employs a randomized process when assigning nodes to specific shards, making it computationally challenging for malicious actors to target a single shard. This fusion of enhanced scalability with maintained security means that IOST can accommodate a higher volume of transactions without compromising on its decentralized ethos.

Source: IOST Foundation

In IOST’s quest for scalability and efficiency, several other mechanisms and features stand out:

• Micro State Block (MSB): Designed to streamline the blockchain, MSB significantly reduces storage and bootstrapping costs for validators. Minimizing these expenses invites more participants to the consensus, fostering a more inclusive blockchain ecosystem.
• TransEpoch: Currently under testing, TransEpoch safeguards the assignment of validators to shards during epoch transitions. Its primary function is to ensure transaction operability even during these transitions, thus promoting uninterrupted blockchain activity.
• Atomix: Another feature under testing, Atomix is a rapid inter-shard atomic commit protocol. Built to operate with the PoB consensus algorithm, Atomix guarantees the atomicity of transactions even in Byzantine environments. It verifies the authenticity of cross-shard transactions, ensuring the integrity of interconnecting sub-blockchains.
• Cross-Chain Compatibility: Amplifying interoperability, IOST has collaborated with Polkadot to develop a cross-chain transfer bridge, seamlessly linking the IOST and Polkadot ecosystems. This alliance showcases IOST’s commitment to versatile blockchain connections and broad network accessibility.

All this makes IOST a versatile blockchain network optimized for performance and broad ecosystem connections. With its high TPS (around 100,000 transactions per second), cross-chain compatibility, and commitment to continuous innovation, IOST stands out as a forward-thinking platform ready for future blockchain challenges and opportunities.

IOST Use Cases

IOST is a feature-rich blockchain platform designed for various real-world applications.

• Decentralized Applications (DApps): IOST’s high throughput and scalability make it an attractive choice for developers looking to create DApps, ranging from games to decentralized finance (DeFi) solutions. Developers can use Solidity and JavaScript to develop DApps for the IOST network.

• Smart Contracts: Smart contracts provide organizations with a way to automate procedures without middlemen thanks to IOST’s effective Proof-of-Believability consensus mechanism.

• Digital Identity & Data Storage: With its strong security characteristics, IOST may act as a base for digital identity verification systems, guaranteeing the privacy and protection of user data.

• Token Creation: Projects can mint their own tokens on the IOST platform for crowdfunding, loyalty rewards, or other utility functions.

• Cross-Chain Transactions: With its Polkadot partnership, IOST offers cross-chain operability, enabling seamless asset transfers between different blockchain networks.

• Decentralized Finance (DeFi): The platform’s capabilities extend to supporting DeFi projects that offer lending, borrowing, staking, and yield farming opportunities.

Overall, IOST’s flexibility and scalability make it apt for a multitude of use cases, driving the future of decentralized technologies.

What is the IOST Coin?

IOST is the native cryptocurrency for the IOST blockchain platform. It currently has a total supply of 18,708,894,189 units (September 2023).

In December 2017, a private sale (conducted in three phases) successfully raised 35,000 ETH, equivalent to $35.0MM, selling tokens at approximately $0.004167 each. From the total token supply, 40% was allocated to the private sale, 10% to the team (unlocked in January 2019), 2.5% to advisors and equity investors, 5% for strategic sales, 35% to the token treasury, 5% to the community, and 2.5% for BD & marketing.

Source: CoinGecko

IOST manages its funds in a cold multi-signature wallet, requiring two out of three signatures from the CEO, CTO, and CDO to access. By January 18th, 2018, 9.81% of raised funds were used for community building, and token distribution will continue until 2036.

IOST coin facilitates payments for services, goods, and smart contract fees on the platform. It’s used to process transactions, secure storage space, reward contributors of network resources, and can be exchanged for other IOST network tokens issued by third parties.

IOST’s Main Features

The IOST ecosystem boasts a range of features and collaborations, underlining its diversity and expansive capabilities:

IOSTSwap

It addresses Ethereum congestion by enabling token transfers between IOST and Ethereum, unlocks new liquidity and broadens user accessibility, and provides an optimized cross-chain protocol, gas price calculator, and zero fees for gas and handling. IOSTSwap enhances user experience by offering a streamlined cross-chain transfer system. Its zero gas and handling fees make it exceptionally cost-effective, attracting a wider range of users.

Wallets

The iWallet and Jetstream wallets are both Chrome Extensions ensuring easy and secure access for users.

Both the iWallet and Jetstream wallets are designed to offer user-friendly experiences, integrated right into the Chrome browser for convenience. These extensions provide robust security features to protect digital assets while making transactions effortlessly accessible, right from the browser toolbar.

HUSD Integration

A U.S. dollar-pegged stablecoin that enhances IOST’s DeFi offerings. It acts as a bridge between fiat and crypto, offering a stable and efficient medium for transactions, trading, and other DeFi applications. By utilizing HUSD, users can confidently participate in yield farming, lending, and other decentralized financial activities without worrying about crypto volatility.

Partnership with ChainUp Cloud

A strategic alliance that furthers IOST’s commitment to a decentralized Web3 digital infrastructure. It focuses on ecosystem development, brand integration, technological innovation, and community building.

NFTs

The IOST blockchain offers a robust environment for NFT development and trading, showcasing platforms like Revival and TokenLink. Whether tokenizing artwork or integrating NFTs into gaming, IOST provides a highly scalable and efficient ecosystem. It supports the IRC-721 NFT standard, allowing for a smooth developer experience. With features like ultra-fast response time and practically fee-less transactions, IOST stands out as an ideal platform for NFT marketplaces.

This overview provides just a snapshot of the many elements that make up the IOST ecosystem. As the platform continues to evolve, it remains dedicated to introducing more innovative solutions, fostering partnerships, and expanding its reach in the blockchain world.

Is IOST a Good Investment?

IOST places a strong emphasis on scalability, especially with its unique Proof-of-Believability (PoB) consensus mechanism. This paves the way for swift transaction handling and creates a solid system for choosing nodes. Even though the main nodes are limited in number, the intricate selection mechanism appears designed to deter any malicious actors from compromising the network’s security.

Beyond its technical foundation, IOST’s dedication is evident through its various partnerships and applications. Their active involvement in the blockchain ecosystem, combined with strategic alliances and the development of practical use cases, underscores the project’s potential. Potential investors should always conduct their own research and consider the project’s long-term vision and relevance in the evolving blockchain landscape.

How to Own IOST?

To own IOST, you can use the services of a centralized crypto exchange. Start by creating a Gate.io account, and get it verified and funded. Then you are ready to go through the steps to buy IOST.

News on IOST

According to announcements on IOST’s social media in September 2023, two notable partnerships have been forged.

First, IOST is joining forces with Cregis, a digital asset collaboration platform in the Web3 era. This partnership aims to enhance on-chain asset management solutions, leveraging MPC technology for heightened security. Cregis has a six-year safety record, boasts over 3,300 active users, and reported a $5.83 million income in 2022.

Secondly, IOST is aligning with MetaChain, a blockchain-driven P2P network security system. MetaChain emphasizes the protection of personal data and promotes the free sharing of information, thereby offering users a more secure, free, and efficient internet experience.

Take Action on IOST

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