Blockchain + Internet of Things: Everything Could Be a Mining Machine. IONChain Brings New Changes.
The concept of the Internet of Things (IoT) has been around for many years, but it still lies dormant. Industry data show that there is an enormous potential for development. According to statistics from IDC in the United States, 14.866 billion units of IoT devices were installed globally in 2015. This figure is expected to increase to 30 billion units in five years. At present, the amount of IoT device exceeds the total population of the world and will continue to grow.
Can blockchain become an enabler of IoT? Of course. Because IoT is naturally compatible with blockchain. For example, both blockchain and IoT are distributed networks, and thus some current problems of IoT such as value measurement, circulation, security, and interoperability can be solved with blockchain’s account book technology and token economic system.
IoT must enter the mainstream market if it wants to thrive. Therefore, a comprehensive underlying solution is necessary. A recent project, IONChain, combines the IoT with blockchain in an attempt to convert the potential consumption of IoT technology into actual consumption.
IONChain: Everything could be a mining machine
IONChain puts forward the idea of “Everything could be a mining machine.” What is “Everything could be a mining machine?” It means that once all IoT devices are connected to the IONChain network, it can get rewards from mining through an “ionization algorithm.” The incentive for IoT device to access IONChain comes in the form of a token called IONC. With the value measured and circulated by IONC, enterprises and users will be motivated to connect the device to IONChain, so that they can have a better experience and earn rewards at the same time.
“Everything could be a mining machine” connects each segment of the industry through a token incentive system. On this basis, IONChain has also mentioned the concept of “one device, one coin, one code,” wherein “device” refers to IoT device, “coin” refers to IONC, and “code” refers to the unique identification code of the IoT device connected to the IONChain network. The main purpose of implanting identification codes into IoT device is to bind data and device.
Everything could be a mining machine not only solves the problem of mining incentives, but also equips IONChain with the edge computing framework. Together, IONChain and the edge computing framework satisfy the demand for quick responses.
Chemical Reactions Between IoT and Blockchain Under IONChain
Here are some cases in which IONChain can be successfully applied to consumption-level IoT.
- Creating a data trading market
Those on the data demand side, such as enterprises, need user data. Users or enterprises with IoT devices can upload the device data to IONChain and quantify the value through IONC. When users buy cars with the IONChain network, users can get IONC as long as they authorize their data to be used by the data demand side.
After obtaining the users’ data, the data demand side can also place advertisements on their cars. Once this has been approved, the users can get token incentives again. These tokens can be used for refueling, maintenance, car washes, and so on.
- Realizing the real sharing economy
IONChain supports operation authority trading, and uses smart contracts to realize device-device interactions and device-user interactions. Take bicycle rental as an example. Anyone can become a lessor or a renter. There are no third parties or service charges throughout the entire process.
- Security and privacy protection
IONChain stores encrypted data through distributed nodes to ensure data security. At the same time, users get control of the data. Thus, the data can be converted into value under the authorization of the users.
- Edge computing to improve user experience
IONChain adopts edge computing methods to improve the response speed by deploying nodes nearby. For example, large warehousing enterprises deploy RFID device with data centers of private clouds. However, when the business extends to many new warehouses in different places, a timeout will occur, which will decrease the overall efficiency of management responses. This is where IONChain comes in handy. Deploying nodes in warehouses can greatly reduce response delay.
IONChain’s ionization algorithm: stratification of value creation and transfer
First, in terms of the technical architecture at the macro level, IONChain is similar to a lot of blockchain projects. This architecture includes the application layer, service layer, protocol layer, smart contract layer, blockchain layer, storage layer, and so on. But beneath this similar surface, IONChain has its own unique feature: the ionization algorithm. By separating value creation and transfer, IONChain can implement different consensus algorithms for different devices. This process is also related to recent changes in the diversification of IoT device.
- IONChain’s value creation system
The value creation system of IONChain is divided into four layers: value creation, verification, evaluation, and confirmation. IoT device and the edge computing center are combined to realize value creation.
- IONChain’s value transfer system
The value transfer of IONChain is divided into six layers: the application layer, service layer, protocol layer, smart contract layer, blockchain layer, and data storage layer.
The foundation of IONC’s value
IONC facilitates the value storage and circulation of IONChain. It is mainly used to reward providers of device and data access. It will increase annually with the growth of data access, but there is a limit to this growth. The owners of IoT device can receive IONCs by accessing the IONChain network and uploading the encrypted data from storage.
In terms of IONC consumption, manufacturers that need the valuable data produced by IoT device will be willing to purchase IONC. By paying IONC, they will obtain data from the device. They can then analyze the data for commercial benefit.
The value of IONC originates from the number of accessed devices and the amount of valuable data generated. As more IoT device becomes connected to the IONChain network, more valuable data will be generated. This will increase the demand for IONC. The amount of IoT device must reach a certain scale before enterprises will have the desire to purchase the data from device on IONChain. Ultimately, the value of IONC is based on the depth and scale of its integration with the IoT.
With the help of edge computing and ionization algorithms, IONChain can allow IOT nodes of any size and any type to be connected. This will make Everything could be a mining machine a reality. It will also make the stratification of value creation and value transfer through ionization algorithms possible. Once tens of billions of IoT devices finally realize value creation and transfer, the value of the IoT will explode. It is reported that IONChain has already entered into a cooperation agreement with several leading IoT device manufacturers in China. They will jointly develop IoT devices based on IONChain.
The IONChain team has a rich background in blockchain and IoT. For example, CEO Liu Tao is the former CTO of Zhiwang Fintech and the founder of Zhiwang’s blockchain and IoT team, Technical Director Feng Xiang and Chief Architect Wu Shouhe are two of the few Chinese core developers of Hyperledger. And Product Director Yu Handan has more than 10 years of experience in IoT product design. We expect the rapid emergence of IONChain to push IoT to the mainstream population.