Kryptolesson #31

What is the XYO Network?

The XYO Oracle Network focuses on geospatial location data within the real world and its recording on blockchain, and is a decentralized platform based on the Ethereum blockchain. In other words: XYO is building secure blockchain ledgers composed of real-world location data.

Right now, we start talking about an intersection of the digital and the physical space: geographic locations of any real objects happen in the physical world, and digital data about this occasion is then created and conveyed on a blockchain. Any such integration of off-chain data on blockchain happens by means of oracles ↗, as blockchains by nature cannot access data outboard their network.

The XYO Network is bases on four different types of network nodes: sentinels, bridges, archivists, and diviners.

Sentinels anonymously collect and validate geospatial data with so-called bound witness interactions: Whenever a sentinel in the XYO Network broadcasts a signal with its location and is in proximity of another XYO Network sentinel, these two devices broadcast that they have been near each other at the same time. This interaction serves as secure, tamper-resistant zero-knowledge proof of location. Smartphones can work as adequate sentinels for bound witness interactions. Furthermore, XYO distributes particular “SentinelX devices” that look similar as a key fob, which shall be used to expand the absolute number of sentinels within the XYO Network.

Next, bridges are physical devices (can be a smartphone, or alternatively a BridgeX device by XYO), that discover and validate bound witness interactions. Data is stored by so-called archivist nodes. The fourth kind of nodes are diviners, which are able to answer location-related queries via using on-chain bound witness data. Whenever it receives a question such as “Did some event (…) happen at (…) location?”, it can respond adequately by directly putting a request to the on-chain oracle contract, which relays it to the data aggregating off-chain oracle network for providing the respective data. The answer is fed back into the smart contract after a consensus on the best suited answer within the given parameters is reached.

Users of the XYO network are incentivized for the reporting of trustless location data and archiving of ledgers via receiving XYO tokens. One can download the XYO Network Mobile App (via Google Play Store ↗ or via App Store ↗) to participate and become part of the network. For an easy-accessible use, one can refer to COIN App, that enables to “geomine” XYO Network tokens with a gamification approach (Google Play Store ↗; App Store ↗).

The XYO Oracle Network has established partnerships with notable organizations, for example Chainlink ↗, the FedEx Institute of technology ↗, Re/Max ↗, or Microsoft ↗. On its website, the project also publishes an ambitious roadmap for the next few quarters and announces to evolve into a more dynamic platform via implementing “development phase XYO 2.0”. Further, it lists multiple industries as potential use cases ↗, for example those of e-commerce, aviation, or rental services. In fact, any field where goods and individuals wander around on a regular basis could benefit from trusted, tamper-proof geospatial tracking, thus could theoretically utilize location data out of the XYO Network. Furthermore, geospatially tracking the movement of goods along a supply chain could be the first step to reduce the carbon-footprint of a value chain- Even if the concept is thrilling, application fields are essentially only ideas at this stage and are yet in need for further future development.

Photo by Jo Wroten