On the morning of July 17th, Silicon Valley time, IoTeX released the version 2.0 white paper, officially launching a comprehensive upgrade. IoTeX was first founded in 2017. After 7 years, version 2.0 of IoTeX will be upgraded from the Layer 1 public chain to the modular DePIN open platform. It is currently the only ecosystem that supports the openness, modularization and large-scale adoption of DePIN. system. The white paper of IoTeX 2.0 shows the industrial landscape leading to the large-scale adoption of DePIN, which is technically driven by modular infrastructures (DIMs), matching modular security pools (MSP), and a new flywheel in the economic system. The trillion-dollar DePIN track has built a solid foundation.
Image source: IoTex IoTeX 2.0 overall architecture
Driven by the modular platform of IoTeX 2.0, lightweight construction, cross-ecological collaboration, DePIN Layer2 and other architectures can be realized, and the development pattern of the DePIN track may be completely changed. This change enables the entire open ecosystem to have the ability to access more than 100 million devices in the next 3 to 5 years, and the overall network value of IoTeX will also experience breakthrough growth.
Raullen, CEO and co-founder of IoTeX, said: "As IoTeX, which has led the infrastructure construction of this track before the concept of DePIN was born, the new upgrade will completely open up the high-speed channel of the trillion market. We hope that developers, innovative builders and far-sighted friends will join us. This journey of large-scale application of AI and DePIN will jointly build a future where the physical world and the digital world are seamlessly integrated, creating unparalleled growth opportunities."
IoTeX 2.0: Building the DePIN Highway
It can be seen from the white paper of IoTeX 2.0 that the core goal of this upgrade is to build a high-speed channel that can lower the construction threshold and increase the development speed of the DePIN project, so as to accelerate the large-scale adoption of DePIN, and also enable the IoTeX ecosystem to enter the rapid development stage. Comprehensive execution plan for lanes. For this reason, IoTeX has moved from a chain to a modular open platform. The original Layer1 public chain has also become the basic layer in the entire modular architecture, and opens up the construction space of DePIN basic modules and Layer2 on top.
In terms of technical architecture, IoTeX 2.0 is based on the nine core modules required for the development of DePIN. Through endogenous R&D and external cooperation, it has constructed DePIN infrastructure modules (DePIN) including unified trust layer, identity recognition, off-chain computing, etc. Infrastructure Modules (DIMs).
In terms of economic mechanism, IoTeX 2.0 integrates practicality and economic activities, and applies the economic balance adjustment system of pledge, re-pledge and inflation and deflation to the functions of modular security pools and other DIMs, and provides ecological An effective incentive mechanism has been established for long-term development.
In terms of ecological development, IoTeX 2.0 has also formulated specific implementation plans and incentive plans. It will provide incentives for ecological construction in a decentralized, fair and open manner through Marshall DAO, and launch a phased campaign to attract more builders and users. The addition of the person.
Modularization is the best solution for large-scale application of DePIN
The DePIN infrastructure module is the core of the technical architecture upgrade in the IoTeX 2.0 strategy. It is also the IoTeX team’s seven-year exploration of the most efficient path for the large-scale adoption of DePIN.
Unlike blockchain applications that are on-chain applications such as DeFi, NFT, Gamefi, etc., DePIN must interact with real-world smart devices that generate large amounts of data. The resulting numerous layers of augmented functionality from the DePIN technology stack can be difficult for a single team to develop in a holistic manner, and this complexity creates a high barrier to entry for builders trying innovative ideas in DePIN.
The DIM layer implemented by IoTeX 2.0 provides a modular approach, allowing projects to build technology stacks suitable for specific stages and personalized needs. The core development of IoTeX develops state-of-the-art solutions for several key modules, which are mainly focused on DIM's unified trust layer, hardware devices, identity recognition, off-chain computing, Layer2 SDK and public products.
Source: IoTex
In addition to the internal implementation provided by the IoTeX core development team, its modularization strategy is also supported by many excellent projects, including NEAR (data availability), Filecoin (storage), RISC Zero (secure zero-knowledge computing) and Espresso (sorting) device) etc.
Modular Security Pool (MSP): the perfect fit between technology and economy
The basis of modularization is a unified and trusted layer. IoTeX 2.0 has built a modular security pool (MSP) for this purpose, which is a key part of DePIN modularization. It enables IoTeX Layer1 to lease the security of its Proof of Stake to DIM for security and trust, with IoTeX Layer1 and MSP working together as the trust anchor and immutable ledger for all activity within the DIM layer, DApp and Layer2 layers. Validators can earn incentives by re-staking their Proof-of-Stake (PoS) security to DIMs and DePIN projects and provide security to the projects.
Simply put, the participants of MSP mainly include DIM builders, stakers and verifiers. DIM builders can provide off-chain services, data storage, identity verification and other modules. Verifiers provide nodes that run these DIMs and provide services for the DePIN project, while pledgers obtain incentive benefits from the above services by entrusting assets to verifiers.
The operating mechanism of MSP has many similarities with Eigenlayer, but their technical implementation and structure are different. As a trust layer natively integrated with the DePIN modular architecture, the DePIN project is more practical for DIM service needs, which also means that the incentives provided by MSP will be richer. Currently, IOTX has a basic income of 6% to 11% from node staking, and with the application of MSP, the re-staking superimposed income of the IOTX network may reach 20%.
Off-chain computing: the core of connecting real-world data
Unlike other ecosystems that are purely chain-based, extracting, calculating and verifying off-chain data is a very core part of the DePIN project. The white paper of IoTeX 2.0 shows the core module W3bstream that solves one of the important problems of off-chain computing. W3bstream is a decentralized off-chain computing network composed of heterogeneous nodes that perform verifiable computations. W3bstream is able to compress large amounts of off-chain data into verifiable ZK-proof, thereby triggering on-chain transactions. The main components include sovereign smart devices, data availability layer, decentralized sequential network (DSN), decentralized convergence network and Layer1 network.
In actual development, different projects have different requirements for proof mechanisms, and W3bstream can accommodate four types of proof mechanisms through a carefully designed intermediary software layer to achieve verifiable calculations of DePIN applications, namely zero-knowledge (ZKP) proof, trusted Execution Environment (TEE) Attestation, Secure Multi-Party Computation (SMPC) Attestation Mechanism, and Bring Your Own Attestation (BYOP). Developers can choose a more efficient and lower-cost method to implement off-chain computing requirements as needed.
With the support of modules such as W3bstream, dynamic data from thousands of DePIN networks can be uploaded to the chain. DePINscan, which has included more than 200 DePIN projects, connected to more than 17 million devices, and covered projects with a market value of more than 24 billion US dollars, is an AI and DePIN data center built on W3bstream. It can be said to be the DeFiLlama of the DePIN industry.
Source: DePIN device map of IoTex DePINscan platform
Looking further, based on large-scale decentralized verifiable real data, IoTeX has constructed the most potential open source data platform for the data layer, one of the three pillars of AI development. The platform will become a super-intelligent neuron, providing a decentralized and democratic base for the intelligent leap forward of human civilization.
Upgraded economic system: creating a healthy positive flywheel
As can be seen in the IoTeX 2.0 white paper, the new economic system mainly includes the following upgrades:
New usage scenarios: $IOTX will be applied to the entire IoTeX 2.0 infrastructure, including network verification staking, participation in governance, and gas fee payment for the first-tier network.
Balance of inflation and deflation: IoTeX 2.0 introduces inflationary staking rewards to incentivize network security, as well as deflation mechanisms triggered based on network usage, such as burning gas fees (similar to Ethereum's EIP-1559) and creating Things like device identity (ioID) and obtaining verifiable credentials.
Modularization rewards: The growth of DePIN infrastructure modules (DIMs) such as W3bstream, ioConnect, etc. will drive the destruction of $IOTX when devices interact with these services.
Incentivizing builders: The tokenomics of IoTeX 2.0 will allocate $IOTX to builders through a growth incentive program to promote the continued development of the IoTeX platform.
Image source: IoTex IoTeX 2.0 economic system
Combined with the above mechanisms, IoTeX 2.0 actually creates an economical forward flywheel structure. First of all, through node staking and MSP re-staking, the basic income of $IOTX on the native network can form a healthy superposition, which will help the active operation of network nodes and ensure the overall security. Secondly, the utility implemented in Layer1 and each DIM layer will consume $IOTX. The more projects and DIMs added, the more $IOTX will be deflated.
Overall, user growth will bring more devices and DApps, and more DApps will attract more users, thus forming a virtuous cycle. To enhance this flywheel, IoTeX 2.0 launched Marshall DAO, using $IOTX as an incentive to attract new users, devices, and DApps, thereby accelerating the flywheel and ultimately generating more utility and value for $IOTX in the future. As a result, IoTeX 2.0 has sufficient motivation to lead the way to the trillion market.
The Singularity of Mega DePIN: Toward a Smart Civilization
At the end of the white paper, IoTeX presents its roadmap for 2.0 construction. We can see that W3bstream’s test network has been deployed and the 1,000 TPS network upgrade has been completed. At the same time, core modules such as the authentication layer ioID and the v1 version of MSP will be launched in Q3. The most noteworthy ones in the near future are IoTeX’s upcoming DeFi4DePIN activities and the launch of ecological incentives Marshall DAO and Launchpad. Combined with the US$50 million in financing completed by IoTeX in Q2, what kind of ecological growth plan IoTeX will launch is worth looking forward to.
Overview The IoTeX 2.0 white paper points out a highway to the DePIN tera market. As a decentralized public infrastructure, DePIN's development potential is even higher than that of decentralized financial infrastructure. It will surely become one of the most important directions in the technical and spiritual development of Web3 in the future. A trillion market capitalization will not be the end of DePIN, but it may become the starting point for a higher dimension of development. This dimension is AI, smart civilization.
We have been evolving and developing in the singularity of alternating quantitative and qualitative changes, and IoTeX 2.0 has made structured preparations to accumulate huge amounts of data for the arrival of the singularity of smart society. IoTeX 2.0 envisions a future where massive amounts of real-world, instantaneous data can be collected, verifiably processed, and analyzed to form a more efficient data processing system, ultimately enabling super-intelligent AI that will revolutionize human intelligence and decision-making processes.
In the future, IoTeX 2.0 aims to become the largest decentralized hub for devices and data, with tens of thousands of DePIN networks connecting hundreds of millions of devices. This aggregated data will become the basis for cultivating and training the most advanced AI brains, bringing immeasurable value to the new world.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
This article is reprinted with permission from: "Foresight News"
Original author: IoTeX
