The XYO Network has four primary components, Sentinels, Bridges, Archivists, and Diviners. These four components enable geo-focused, consensus-building and trustless verification of location data. This means that when you write a smart contract that specifies for an object to appear at a specific XY-coordinate, if it appears there, you will know that it was at that location with absolute certainty. This is all done without risk of spoofing the location signaling device(s) verified by thousands of Sentinels in the XY Oracle Network with the longest Proof of Origin chain (thus yielding greater confidence in the heuristics).
Sentinel components are heuristic witnesses. They observe heuristics and vouch for the certainty and accuracy of the heuristic by producing temporal ledgers. The most important aspect of a Sentinel is that it produces ledgers that Diviners can be certain came from the same source by adding Proof of Origin to them.LEARN MORE IN WHITE PAPER
Bridges are heuristic transcribers. They securely relay heuristic ledgers from Sentinels to Diviners. The most important aspect of a Bridge is that a Diviner can be sure that the heuristic ledgers that are received from a Bridge has not been altered in any way. The second most important aspect of a Bridge is that they add an additional Proof of Origin.LEARN MORE IN WHITE PAPER
Archivist components store heuristics in a decentralized form with the goal of having all historical ledgers stored, but without that requirement. Even if some data is lost or becomes temporarily unavailable, the system continues to function, but just with reduced accuracy. Archivists also index ledgers so that they can return a string of ledger data if needed. Archivists store raw data only and get paid only for retrieval of the data. Storage is always free.LEARN MORE IN WHITE PAPER
A Diviner answers a given question by analyzing historical data that has been stored by the XYO Network. To accomplish this, heuristics stored in the XYO Network must have a high level of Proof of Origin to measure the validity and accuracy of the heuristic by judging the witness based on its Proof of Origin. Given that the XYO Network is a trustless system, Diviners must be incentivized to provide honest analysis of heuristics. Unlike Sentinels and Bridges, Diviners use Proof of Work to add answers to the blockchain.LEARN MORE IN WHITE PAPER
PROOF OF ORIGIN
In a trustless system, data may be lost, damaged, tampered with, or otherwise corrupted. Traditional Proof of Origin in a trustless system relies on a private key for signing transactions or contracts in a system. This works very well with the assumption that the node on the network that signs the data in question is physically and virtually secure. If the private key is compromised, then the ability to prove origin falters.
Proof of Origin (Proof of Origin) is the key to verifying that ledgers flowing into the XYO Network are valid. A unique ID for source of data is not practical since it can be spoofed. private key signing is not practical since most parts of the XYO Network are difficult or impossible to physically secure, so the ability for a bad actor to steal a private key is too feasible. To solve this, XYO Network uses Transient Key Chaining. The benefit of this is that it is impossible to falsify the chain of origin for data.LEARN MORE IN WHITE PAPER
In a trustless system, a witness node can either (through defect or corruption) produce false data. Invalid data can be detected and removed simply if it falls outside the allowed range for that heuristic. Valid but incorrect data (i.e. false data) is much more difficult to detect.
Given that an untrusted source of data used to resolve a digital contract (an oracle) is not useful, we can substantially increase the certainty of the data provided by first establishing the existence of a bidirectional proof of location. The primary bidirectional location heuristic is proximity, since both parties can validate the occurrence and range of an interaction by cosigning the interaction. This allows for a zero-knowledge proof that the two nodes were in proximity of each other.
This novel concept is called “Bound Witness,” and the XYO Network introduces this possibility, for the first time ever, to the world. The implications of this will change a multitude of industries and the way we trade in the world.LEARN MORE IN WHITE PAPER
The XYO Network natively integrates with the leading blockchain platforms of today, and its agnostic protocol enables integration with the blockchain technologies of tomorrow.
"The XYO Network is the world’s first XY-coordinate bridge between blockchain and the real world”
Arie TrouwFounder & Architect
The XYO Network enables developers to gain the power to interact with the real world as if it were an API.
Think of the XYO Network not as a blockchain application (i.e. like websites are to the internet), but as fully fledged blockchain protocol (i.e. like HTTP is to the internet).
Similar to blockchain platforms like Ethereum, EOS, omisego and others, the XY Oracle Network gives developers a platform to build decentralized location-reliant DApps.
The XYO Network works natively with the following smart contract platforms as well as other blockchain platforms with Turing-complete functionality.
All transactions running on the XYO Network require XY’s Utility Token: XYO
The XYO Network has a consumer-friendly Web App Interface, developer APIs, and software libraries that span popular smart contract languages (Solidity, Viper and more).
Via the XYO Network’s Web App, users can instantly submit queries to the XYO Network by specifying the public address of the object they wish to track (i.e. a vehicle, package, luggage and more).
BITCOIN + RSK
An Ethereum smart contract written in Solidity using the XYO Network smart contract API.
Out of the countless blockchain projects launched to date, all have focused primarily on disrupting the online world.
But that changes forever, starting now...
Centralized location verification refers to institutions that charge both buyers and sellers involved in every transaction that relies on verifying a products delivery or XY-coordinate location.
Decentralized location verification centers around open protocols backed with the strong properties that blockchain technology provides (i.e. such as timestamping location heuristics), which are necessary for creating secure features like Proof of Origin.
Nearly 50% of the transactions involved in the buying, fulfillment, transaction and dispute resolution services for buyers and sellers is taken up by middle-men (which includes brokers, banks, payment systems, insurance, marketing agencies, product protection and more).
The XYO Network leverages cryptoeconomics to create an effecient market by requiring market participants to use the XYO Network Token to pay for use. This enables buyers and sellers in a transaction to pay only for the computation and location-verification execution, not overhead.
Traditional location-specific verification services (like specialized package delivery, automobile delivery and container delivery services) have upfront costs required to transact in the first place. This increases costs before participants even place a transaction.
The XYO Network is completely open and free to use, expand, and improve upon. There is no entry fee to join or use the network. It’s owned by the community and is publicly accessible to all, no matter what location or government jurisdiction a user resides.
The most sophisticated capitalists look for investment opportunities in businesses that have established barriers to deter competitors and new entrants from entering the market. Due to years of centralization, consolidation, lobbying government officials and government regulation, the biggest corporations and brokerages that rely on verifying location-specific heuristics enjoy virtually no competition from rivals. These corporate moats create a power-law distribution curve where the wealthiest corporations continue to distance themselves The rich get richer as they reap fees from consumers solely because consumers have no other option for transactions that rely on location verification..
As it stands today, consumers have no other choice but to transact using brokerages and middle-men for many transactions. Consider a used-car transaction involving between a buyer and seller of a used vehicle who do not already know one another. The buyer and seller are forced to use a used-car brokerage or service and pay exorbitant fees because they have no other option. An alternative cost is even higher. Thus, the middle-man brokerage continues to build a competitive moat that gets wider and more defensible each passing year. This all changes with the introduction of Ethereum Smart Contracts and the XYO Network.
Large corporations have an obligation to do what's in the best interest of increasing their share value; this creates controversial conflicts of interests between what's best for the stakeholders and what's best for consumers. It is to be expected that these incentives are not always aligned. Additionally, in location-verification dependent businesses and brokerages, there is internal corporate pressure to increase profit and rather than innovate to make location verification cheaper, more automated and trustless.
The XYO Network uses cryptoeconomics to create an autonomous system that benefits the buyers and sellers involved in transactions who rely on verification of location (i.e. package delivery). The rules and conditions of each transaction are governed by transparent smart contracts, which are programmed into the XYO Network. This enables buyers and sellers to trade in transactions involving location verification while replacing centralized middle-men with an open, autonomous platform.
There is an economic chasm between the world of cryptocurrency investment and blockchain development. The cryptocurrency investment realm is funded and well-covered; whereas the builders, developers and the researchers of critical blockchain technologies are underfunded, understaffed and under-resourced. We're committed to changing this.
We actively fund important development and research initiatives within the blockchain community such as Ethereum’s Casper CBC protocol, a technology that is critical for Ethereum to scale and fulfill its vision of becoming the “Web 3.0.” The success of this project would result in an internet where its foundational structures (like DNS and digital identity) are decentralized.
We are setting aside 5% of our resources and dedicating them to a full-time, non-passive initiative dedicated to discovering, researching and allocating resources (both funding resources and development resources) in order to get important projects the support they need. We are dedicated to funding blockchain projects, ideally ones that have ecosystems involving smart contracts (like Ethereum, EOS, IOTA and others). We are committed to funding prominent and well-known projects, as well as humble projects developed by smaller dev teams.
If you would like to notify us of a project, please apply for a grant here.
Blockchains are currently faced with a major problem: scalability. With Ethereum receiving over a million transactions per day, the network is desperate for a solution that will help sustain its massive growth and adoption.
Prysmatic Labs is composed of a small development team dedicated to building out the first sharding implementation for the Geth (go-ethereum) client, allowing the system to process transactions at over 10x-100x its current speed!
XY is actively involved in helping the geth-sharding project because its use in scaling across nodes in the XYO Network will be invaluable, and geth-sharding will be pivotal for scaling Ethereum’s leap into the world.