Imagine if you are on your computer making an online order and you run out of funds and maxed out your credit lines from your cards tied to your banks. How, then, do you make the purchase and communicate with the receiver of your funds (that is, the seller on the marketplace you’re making an online purchase from) that your funds have been securely transmitted and used to successfully acquire the item you want to buy? That is the definition of a transaction.
From the earliest days of civilization, humans and animals have traded, bartered and exchanged goods and services. Why? Because someone always has what we need and we always have what someone else needs. Project IOTW’s technology focuses on minimizing roadblocks on both the extending and receiving ends of transactions utilizing the ever-growing database of information that blockchain algorithms collect in establishing trust and verification in transactions. This two-pronged approach is defined by the Proof of Assignment algorithm that allows every IoT device to collect rewards—creating a level playing field for all devices to acquire cryptocurrency—and by the Block Witnessing Protocol that sequesters the information from a large witnessing pool to ensure the legitimacy and reliability of all parts of a transaction.
Asymmetrical information and lack of resources plague the world today. According to the United Nations, these are two core problems that denigrate those who’re already living in poverty and those who’re living on the tipping point of severe insecurity and poverty. What can IOTW’s technology do to help improve every person’s life?
- First, micro-mining is a simple plug-and-play process whereby the only requirements are owning one IoT device to plug and a smartphone to track play. Imagine mining coins while you blow-dry your hair using an IoT hairdryer.
- Second, the Proof of Assignment algorithm dictates that mining rewards does not depend on computational power or how many coins you already own; since each device has an equal chance of mining due to the implementation of a random queueing system, the more devices you have, the more rewards you get.
- Third, the unique blockchain ecosystem (namely, the Block Witnessing Protocol) runs on an ever-growing pool of new information added and in turn (i.e. big data), establishes trust relationships with other users and computers who contributed the new information. Essentially, blockchain used in IoT devices is community owned and operated.
- Lastly, micro-mining on IoT devices uses minimal amounts of electricity as it uses the existing electricity used the power the primary functions of IoT devices. 55 cents is the contribution a person needs to start mining.
How, then, can this technology be applied as digital money? Is IOTW just printing fake money? For one, the IOTW token is decentralized and publicly owned by miners and the marketplace. Rules on the token are not going to change; there does not exist a Gold Standard or the like that’s subjects to the ebbs and flows of foreign policies, inflation or contractionary monetary funds. Hence, the currency is borderless, global and decentralized system. In effect, the marketplace is also decentralized; products on sale there are owned and listed by IOTW and miners. Because everybody is in the same system, transactions are more safe and secure and things that are currently centralized can become decentralized when accepted into the marketplace.
So you see, IOTW’s data-centric blockchain technology is an outside-in movement where anyone from anyplace can contribute and use. Sustainable, secure and decentralized. This is what we’re building at IOTW.