What is IOST?
There is quite a bit of uncertainty about the direction the crypto industry is heading. On the one hand, there is a camp that believes that we are just on the eve of a frenzied spectacle and that the crypto industry will take on gigantic proportions.
The other side thinks that the hype of crypto has faded a bit and that it is going downhill from here. What both camps do agree with is the enormous potential of the blockchain concept.
Where in practice there are regular scalability issues, many parties are working hard for a solution to this problem. And IOSToken, or IOST and the associated IOST coin are committed to this. Today you will read how they do this.
So here is a short introductory video of just over three minutes that shows you all the basics surrounding IOST. Specifically, the video discusses the IOST Mainnet going live.
In short, IOST is the solution for other blockchain projects in the field of scalability. The developers of IOS, which stands for Internet of Services) developed the project in an effort to mitigate the shortcomings of other crypto projects. According to the developers of IOST, IOST is the “next-generation blockchain technology” that will facilitate the infrastructure for blockchain service ecosystems.
IOST mentions organizations such as Amazon and Facebook as an example . These huge platforms demand a transaction speed that virtually no blockchain can currently meet. In their white paper, IOST speaks of examples that have tried to give a twist to this in their own way, but there is still no success. They are talking about parties such as EOS , Ethereum and Steemit.
What goes wrong, according to IOST, is that every blockchain essentially encounters two problems that pose the challenges surrounding scalability, namely:
- Each node must keep a full version of the blockchain.
- Every node in the network must participate in every transaction.
According to IOST, the combination of these two properties is the reason that most blockchain projects are doomed to failure, because at any given time the blockchain will no longer be scalable.
This problem therefore ensures that the transaction costs for transactions in the longer term will skyrocket and that the difficulty of the PoW mechanism will increase sharply as the blockchain grows. As a result, participation in the network will only be possible for a small club of the elect.
The solutions from IOST
It is always easy to point the finger at one or more problems. But what is a solution that does work? IOST focuses on new techniques that ensure that these problems are solved. They do this by working on a fully decentralized way of exchanging services and products.
They are also setting up a platform via the IOSToken on which dApps (decentralized applications) can be developed. These applications are supposed to allow large amount of users to simultaneously use programs such as the mentioned Facebook and Amazon.
To accomplish this, IOST uses the following two techniques:
- Efficient Distributed Sharding (EDS) & † IOST
- Believable First Consensus
Efficient Distributed Sharding (EDS) & IOST
As mentioned, one of the causes of a scalability problem is the fact that every transaction must be validated by every node in the network. Only when each node has validated the transaction will the transaction be executed.
Using the EDS concept, the nodes are divided into smaller groups, which are called shards. These shards each become responsible for a miniature network and therefore only validate transactions carried out over that part of the network.
According to IOST, it is possible to perform many more transactions at the same time this way. They themselves mention as many as 100,000 transactions per second.
Thanks to this technique, IOST can ensure that organizations that require a huge amount of transactions (i.e. large internet companies in particular) can also effortlessly take the step to blockchain. The biggest challenge is that the validation of the EDS process is currently very expensive. These costs can drop sharply as the IOST network grows.
Believable First Consensus
Where in most blockchain networks the nodes represent an equal role, IOS works slightly differently. They work with a concept that they call Proof of Believability ( PoB ). The concept is actually very simple.
In the IOS project, the nodes that validate and protect the network are divided into two groups:
- The ‘credible’ nodes
- The ‘normal’ nodes
During the validation process, the credible nodes will first validate the transactions. These validations are then checked in turn by the normal nodes. In this way, IOST can monitor the transaction speed. See below the image of IOST how the infrastructure works
Did something go wrong during validation? Then a node loses its ‘credibility’ and a credible node is downgraded to a normal node.
The believability of the nodes is therefore strongly dependent on the following properties:
- The reviews and ratings of the community members
- How much a node has contributed to the community and network
- The amount of IOST the node is holding in a wallet or on the network
It’s been a while, but the IOST ICO was the beginning of the journey that IOS has made to this day. This ICO raised a whopping $31 million. Curious about more information about the ICO of IOST? You can find this on the ICOdrop – IOST page.
Don’t want to use your IOST for trading, or do you prefer to store them securely? Then it is best to use an IOST wallet. You can usually go two different ways in terms of IOST wallet. Either you choose an external software or you choose a hardware wallet . A hardware wallet is always the safest IOST wallet to store your IOST tokens. A popular hardware wallet is the Ledger Nano .
Would you rather go for a software wallet? Then IOST has an IWallet Chrome where you can store the IOST token. Alternatively, TokenPocket Wallet has been created. On this you can effortlessly store your IOSTokens and always have them at hand.
The least secure option is to leave your IOST tokens on the exchange . As soon as your IOS tokens are on an exchange, you run the risk that the exchange will be hacked or that due to a DDOS attack on freezing from a federal investigation, you can no longer access your IOST coins temporarily or permanently. Should you nevertheless want to park your IOST tokens on a reliable exchange at any cost? Then choose the cryptocurrency exchange Binance .
Do you want to buy IOST? Then there are now many platforms and brokers that allow this. Buying IOST is incredibly simple. The easiest for Dutch customers is to do this via the Bitvavo exchange. You can easily create an account here. After you have linked your bank account, it is possible to deposit euros via IDEAL.
After you have topped up your account with euros (or other cryptocurrencies) you can immediately buy your IOST coins. Have you made a profit and do you want to collect this profit? Sell your IOST token again on Bitvavo and transfer the profit back to your bank account free of charge.
buy IOST? Buy them directly on Bitvavo by entering below how much Iost you want to buy!
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com