XYO: 'Proof of Origin' in the Web3 world

Preface

This article delves into the operational mechanism of the well-known DePIN project XYO as a location information network Oracle Machine in the blockchain world, and makes corresponding analysis. XYO builds a verified Decentralization geographic information Oracle Machine network through over one million digital devices circulating globally, realizing the exchange and connection of physical world and digital world geographic location information. It plays a huge role in areas such as autonomous driving, logistics, and information management, and has the potential to become widely recognized as ‘Proof of Origin’ in the Web3 world.

What is DePIN?

The construction principle of XYO is closely related to the hot narrative theme of Block chain in recent years, which is closely related to DePIN. DePIN stands for Decentralized Physical Infrastructure Networks, which refers to the development of physical infrastructure in the real world in areas such as transportation, energy, and internet of things, and empowers and improves the interaction mechanism through Block chain technology, thus achieving Decentralization’s interconnection and effectively improving the efficiency of traditional infrastructure. Star projects in the DePIN field include[IoTEX]Helium,(https://www.gate.io/en/trade/HNT_USDT), Hivemapper and Natix network, etc.

What is Oracle Machine (Oracle)?

XYO’s essence is a location information Oracle Machine system. In the Web3 world, Oracle Machine (Oracle) is an important infrastructure that links real-world data and on-chain data. It obtains and verifies external information (usually stored off-chain), and passes this external information to Smart Contracts running on Block on-chain, providing critical data for related applications running on Block on-chain, including but not limited to natural environmental information such as weather, financial transaction information, macro data, etc. The most famous Oracle Machine currently is 01928374656574839201.Chainlink。

The Birth of XYO

XYO was officially founded by Arie Trouw in 2018. However, as early as 2012, Arie Trouw had founded XY Labs, which incubated XYO. Early products of XY Labs include XY Find It and Webble, with a shared vision of integrating the digital and physical worlds to achieve applications such as lost item retrieval, spatial treasure hunting, and access incentives.

As the blockchain technology became more popular in 2017, Arie and Markus Levin saw the opportunity to expand the vision of XY Labs on a larger scale. XYO was officially established a year later, and its core application COIN was simultaneously launched on multiple platforms in 2019.

XYO Network successfully held its Initial Token Offering (ITO) in March 2018, issuing a fixed supply of 13.96 billion XYO Tokens. The Token issuance adopted a tiered pricing structure, with prices ranging from 100,000 XYO to 33,333 XYO per 1 ETH. To ensure the scarcity and value of the Tokens, any Tokens that were not allocated or purchased during the Token sale have been permanently removed from circulation. This means that no new XYO Tokens will be created in the future. XYO Tokens are utility Tokens within the XYONetwork, providing users with various functionalities such as purchasing geolocation data, exchanging and selling location information, and buying products and services.

XYO Network aims to establish an ecosystem that incentivizes user participation, sharing, and collaboration through a clear Token economic model and diverse Token use cases, while maintaining the long-term value of the Token through a fixed Token supply and burning mechanism.

XYO’s technical architecture

XYO emphasizes the sovereignty, provenance, and permanence of data.

Sovereignty Data sovereignty is the right to own, control, and store the data created by users. Digital sovereignty is considered the core value provided by XYO to enable users to truly control their identity and other information.

Provenance Data provenance is a key feature of XYO. Through provenance, the creation and circulation details of data form the source information of the data.

Permanence Data retention includes maintaining the credibility, long-term storability, and accessibility of the data. By maintaining data retention, XYO greatly enhances the long-term value of the data.

To achieve this goal, XYO is committed to building a decentralized system for verifying and transmitting real information (mainly geographic information), including several modules that serve different functions:

Witness The Witness is a data output and loading module, equivalent to a small Oracle Machine in the XYO large-scale Oracle Machine system. It is usually used to collect information from the physical world and return it as specific data types.

Sentinel The Sentinel is an instruction module that is typically used to provide the final signature for a task and issue instructions to other modules. Examples of the Sentinel’s application include instructions related to information collection and verification in contactless payment modules and smart wearable applications that can record human body information.

Archivist The function of the Archivist is similar to that of a database, aiming to store data and information collected by the Sentinel. The Archivist can operate in a shared, hosted, or self-hosted manner.

Bridge The function of the bridge is similar to the processor in the physical world, such as smartphones, computers, and other electronic terminals. The core function of the bridge is to pass the load data from the Sentinel to the Archivist.

Diviner The Diviner transforms the received data for subsequent processing. The function of the Diviner is similar to the formulas or functions commonly used in spreadsheets, often used to organize decentralized data into a structured form.

By building a location information Oracle Machine system consisting of the above functional modules, XYO operates through the following mechanisms: firstly, constructing and maintaining the information ledger of a single module or Node, known as ‘Bound Witnesses’, which forms ‘Proof of Origin’ after sharing and signing. Then, it establishes a ‘Proof of Origin Chain’ that can be traced back to the original creator of the data, to complete the verification and recording of the corresponding information. At the same time, XYO introduces Zero-Knowledge Proof and instant Secret Key technology to ensure the accuracy and security of information transmission.

COIN: Core Application of XYO

XYO has three core products:

COIN A mobile application based on the Android and iOS platforms that allows users to earn rewards by contributing data to XYO’s Decentralization infrastructure.

xyOS An operating system built on the XYO Node network, which can access various proprietary and third-party dApps in the XYO ecosystem and assist developers in creating more dApps.

xNS Based on the blockchain naming system, allowing users to claim their unique Decentralization identity, each xNS name sells for about tens of dollars.

Among these three, the COIN app is undoubtedly the core application of XYO. The COIN app was launched in early 2019 and has been installed in more than 150 countries/regions for over 8 million times, paying users more than $10 million worth of Cryptocurrency (over 5 billion XYO tokens) so far.

The operation of COIN is to encourage users to create data (mainly geographic information data) and share it in exchange for XYO. Users can create data by passive location verification, completing location-based tasks and surveys, participating in unique partner offers, participating in mobile games, etc., and in the process, they will connect with other users.

COIN usage interface (source: [XYO official website] (https://xyo.network/ecosystem/earn-as-a-node))

After users upload and share their own created data, XYO will build a trusted location information network through the operation described above, and provide support for more applications as an Oracle Machine. Compared with traditional satellite positioning systems like GPS, the system built by XYO has the characteristics of decentralization, making it more difficult to tamper with or invade; at the same time, users have sovereignty over the location and other information data uploaded through XYO, facilitating traceability and income sharing.

In real life, the location information network provided by XYO can empower a variety of use cases, including but not limited to:

Automatic driving Assist in the development and testing of autonomous driving software and hardware through an immutable location information network, and provide accurate location information to drivers in actual road scenarios.

Express delivery Track shipments and transportation routes through a reliable location information network, and update in real time. Provide operators with accurate location information to complete necessary assistance.

Inventory management Provide logistics information for factories’ inventory or semi-finished products; provide accurate warehousing information for merchants to facilitate subsequent sorting and transportation.

City Management To provide urban managers with partial equipment location information within a certain range to assist in area security, access control, and activity planning.

The Investment Value of XYO

Undoubtedly, the Decentralization location information network built by XYO has unique value, which has obvious advantages over traditional positioning services in terms of security, interaction, and owner rights. At the same time, XYO actively cooperates with leading industrial/internet of things enterprises such as SpaceX and Zhicheng Wisdom City to explore new application scenarios.

However, as the current GPS system still dominates the global positioning and tracking market, if XYO wants to get a piece of the pie, it may face significant competition pressure from traditional enterprises. In addition, although XYO has its unique features, in the foreseeable future, it still lacks the “killer feature” that can completely replace traditional solutions, so downstream customers may not have strong motivation to switch to the current solutions.

To further enhance its competitiveness, XYO launched the ‘Build the Future’ program in 2024, strategically addressing key challenges in its development, including lack of standardized data and programming primitives, unrealistic code repositories, lack of necessary developer tools, and insufficient incentives for building. In addition, XYO hopes to form an ecological closed loop by launching the xyOS operating system, providing users and developers with a comprehensive ecological experience and a good interactive environment.

XYO Price Fluctuations and Purchasing Methods

Price Changes

Source:CoinGecko

As of the time of writing, the price of XYO is $0.004354, a fall of 1.8% in the past 24 hours, with a Market Cap of $60.66 million. Over the past year, XYO has seen a 53.3% increase. As can be seen from the chart, the price of XYO has a strong correlation with the overall market trend of Crypto Assets, reaching its historical high in July 2021, once surpassing $0.075, consistent with the pace of historical highs in the BTC range.

Purchase Method Users can purchase XYO through gate and other Cryptocurrencyexchange buy.

Log in gate account, place the cursor on the navigation bar [Trading], and click [Spot Trading].

Enter “XYO” in the [Search] box, and the system will display the supported trading pairs on the platform.

Gate.io supports multiple types of orders. Taking a limit order as an example, after entering the buying price and buying quantity, click on 【Buy XYO】. After the order is matched, XYO tokens will be deposited into your Spot Wallet.

In addition, Gate.io also supports purchasing XYO through credit/debit cards or bank transfers. After obtaining XYO tokens, users can choose to transfer them to a non-custodial wallet or continue to hold them in their Gate.io account.

Conclusion

Overall, as a pioneer in the DEP field, XYO has provided an innovative solution for connecting the physical and digital worlds by building a Decentralization location information Oracle Machine network. It emphasizes the sovereignty, source, and retention of data, ensuring users’ control and credibility over their own data. The successful promotion of COIN application proves the widespread recognition and demand for Decentralization geographic information sharing.

However, faced with the strong market share and technological advantages of traditional positioning systems such as GPS, XYO still needs to overcome many challenges. By launching the ‘Build the Future’ program and the xyOS operating system, XYO is actively improving its ecosystem to enhance the experience and participation of users and developers. These measures are expected to enhance its market competitiveness and promote the implementation of more practical applications.

Looking ahead, with the continuous development of blockchain technology and the deepening of the DePIN concept, XYO has the potential to continue to play a role in areas such as autonomous driving, logistics transportation, inventory management, and urban management, creating value for users and industries.

Please note that investing in the Crypto Assets market is highly volatile and risky. Before making any investment decisions, please be sure to conduct thorough research and make judgments based on your own risk tolerance. This article does not constitute financial advice, so investment should be cautious.