Yesterday, a political crisis occurred in South Korea as President Yoon Suk-yeol suddenly announced a state of emergency, attempting to control the situation through military force. This decision sparked strong opposition from the National Assembly and widespread protests from the public. The situation escalated rapidly, and ultimately, the National Assembly voted unanimously with 190 votes to abolish the emergency decree. Under tremendous public and political pressure, Yoon Suk-yeol was forced to withdraw the emergency decree within six hours, temporarily calming the situation. This event is seen as an adventurous attempt by Yoon Suk-yeol to consolidate power through extraordinary means, but it backfired, making his presidential position even more precarious.
Then there was a drastic drop in cryptocurrency prices, with BTC plunging directly to 93,000, but it quickly rebounded to 96,000. What does this indicate? It shows that the lower support for BTC is still strong, with many funds waiting to buy at lower levels. Typically, short-sellers would try to short through certain events, but in the current bull market, the bulls are very confident, willing to take risks rather than miss out. The buying power at 93,000-95,000 remains strong.
Recently, we looked at a new project that tripled in value within a day, also a contender in the depin sector, called XYO. A community member suggested I take a look at this project. So how is XYO, and can we still get involved? Let's examine its fundamentals.
Introduction
The XYO network is a decentralized location network based on blockchain, aiming to create a trustless geographic location verification system that provides decentralized solutions for location-related data and services.
The XYO project achieves verification and transparent recording of location data through the use of a distributed device network (such as Bluetooth beacons, GPS trackers, etc.) and blockchain-based smart contracts. It allows businesses and users to verify the authenticity of location information, thus improving efficiency in industries such as logistics, e-commerce, and hospitality.
XYO Products
Core products of the XYO mission include:
--The XYO ecosystem, a complex protocol and node-based DePIN technology, can be integrated into any Web3 or Web2 product.
--COIN, a mobile application that allows users to earn rewards by contributing data to XYO's decentralized infrastructure.
--xyOS, the operating system powering the decentralized node network of XYO.
--xNS, a blockchain-based naming system that enables users to declare their unique decentralized identity.
The four core components of the XYO network include:
-Sentinels (data collectors)
-Bridges (data relayers)
-Archivists (data storage providers)
-Diviners (answer aggregators)
Overview of component functions
Sentinels: Collect location information through sensors, radios, and other means.
Bridges: Securely transfer data from Sentinels to Archivists.
Archivists: Decentralized storage of data for analysis by Diviners.
Diviners: Analyze location data from Archivists, generate answers to queries, and assign accuracy ratings before returning results to smart contracts.
Key Innovations:
The XYO network introduces a 'Proof of Origin Chain' that ensures trusted transmission of data from the original source device to the final component via zero-knowledge proofs. Each component generates its own proof of origin during data transmission and links it to subsequent components, providing highly trusted location information.
The XYO network also introduces POL (Proof of Location), a technology known in the field of cryptographic location technology as 'crypto-location.' Similar to the weaknesses in smart contracts, cryptographic location systems also rely on a single data source. For smart contracts, the off-chain data source is an 'oracle'; in the XYO Network, the off-chain data source is a special type of oracle called Sentinel, which can move in the real world.
How it works
The XYO network consists of four key roles that collaborate to form a complete data collection and verification process:
1. Sentinels
Primary data providers, recording and validating geographic and environmental data.
Sentinels provide encrypted signature location information to other components through the Proof of Origin Chain.
2. Bridges
Intermediate node for data transmission, forwarding Sentinel data to the storage layer.
Ensure the secure and reliable transmission of data from the source to storage.
3. Archivists
Stores data transmitted by the bridges and provides it to query nodes when needed.
Using distributed storage technology to ensure data persistence.
4. Diviners
Process user queries and generate answers.
Analyze and validate the data provided by storage providers to ensure the accuracy of answers.
Core Processes:
-Sentinels record location data and encrypt signatures.
-Bridges transfer data to the storage layer.
-Users submit query requests by paying XYO tokens, and oracles query relevant data and return answers.
-All participating roles receive XYO token rewards distributed according to their contribution.
TOKEN Economy
The project launched its token in 2018, currently valued at 380 million dollars, with a total token supply of 13.9 billion and a circulating supply of 13.4 billion, which is nearly fully circulated. The current token price is 0.028 dollars, with a peak of 0.075 dollars in 2021. In the past three days, it surged three times, from a low of 0.01 to a high of 0.04, but no information has been found regarding token distribution.
However, the actual development of this project is very slow. They updated their 2.0 plan in 2024, but as the year is almost over, there has been no specific roadmap planning seen, and I also checked their GitHub, where there are only four developers for a project valued at 300 million dollars. This is quite absurd, as they are not investing effort into R&D.
To summarize this project, although the project's white paper is well-written and focuses on the IoT field, allowing devices to verify their physical location is not difficult to achieve. It can be done without blockchain; for example, our shared bicycles already have location capabilities, and adding a GPS module to the device would suffice. However, the actual project progress has been lacking, and the ecosystem has not seen significant development. The recent surge of four times in just a few days is merely a rotation in the market as other sectors have also seen rises. Depin has started to rise as well. This project has already achieved full circulation without substantial backing from major stakeholders, so the funds have cycled through to attract smaller investors. Overall, I still do not recommend it.
