Detailed Explanation of IoTex: Building a Secure IoT Framework through Identity and Access Management

Original Title: IoTex and the Internet of Things framework

Original Author: Daolectic Research

Compiled by: Biscuit, Chain Catcher

The Internet of Things (IoT) industry is one of the most promising technological developments today, defined as a physical or virtual network that can interact via Internet Protocol (IP). Its applications include B2C smart home systems and B2B logistics monitoring and grid control platforms. Therefore, the concept of IoT encompasses hardware, software (referred to as "platforms"), services, and connectivity.

In 2021, the total value of the global IoT market reached $17.5 billion.

An increasing number of consumers are beginning to use smart home technology, with smart home devices accounting for 97% of global smart device sales. Compared to other categories, the growth of smart home technology has benefited from home upgrades during the COVID-19 pandemic.

The IoT industry is diverse in both applications and brands. The IoT market consists of pure players (such as PTC) as well as large integrated organizations that offer a variety of goods and services.

The introduction of 5G communication standards allows for rapid connections between IoT devices, and using edge computing on IoT devices instead of cloud computing to collect and analyze data in real-time can accelerate processes.

The automation enabled by IoT also benefits industrial production, leading to a new trend: the Industrial Internet of Things (IIoT). However, as the use of IoT grows, these devices become targets for hackers, and cybersecurity incidents are on the rise.

It has been shown that blockchain has a significant impact on IoT by enhancing security and scalability. Improvements in the security of IoT devices have led to widespread adoption of this groundbreaking invention and created new opportunities for businesses.

To date, few IoT systems utilize blockchain for data transmission. Blockchain technology can meet several security needs of IoT networks through immutable and decentralized data transmission, including integrity, secure communication, and resilience: it may provide additional security protections for micropayment systems, such as availability and accessibility.

The ideal blockchain solution in the IoT space is low-cost or even no-cost, with significant growth potential and scalable identity management programs. Traditional blockchains do not solve all IoT security issues: the privacy and protection of personal data require additional encryption. This is where IoTeX stands out.

IoTeX

IoTeX was founded in 2017 by Raullen Chai, Qevan Guo, and Jing Sun, and launched its mainnet in February 2018.

IoTeX is a full-stack platform that enhances privacy through fast consensus and immediate certainty, allowing data from trusted devices to be used in trusted DApps.

IoTeX aims to be a blockchain solution that meets all IoT needs. For this reason, the team has built specific platforms for communication with IoT devices based on the principle of task separation. In fact, the specified levels of the IoT architecture can only be managed through the complexity of blockchain.

The IoTeX platform consists of many technical layers:

• Roll-DPoS consensus with over 60 decentralized nodes
• Secure hardware: tamper-proof devices using Trusted Execution Environment (TEE) that work perfectly with IoTeX
• Real-world data oracles: converting real-world events into verifiable data for IoTeX DApps
• Decentralized identity framework that allows users/devices to control their data and credentials

IoTeX Main Chain and Subchains - Fast Consensus and Instant Certainty

IoTeX has a permissionless main chain and many subchains.

The main chain is a public chain focused on scalability, network resilience, privacy protection, and sorting subchain transaction blocks: it is currently deployed for cross-subchain value and data transfer, supervising different subchains, and settling and anchoring payments. To simplify transaction sorting, the IoTeX main chain uses the UTXO mechanism.

Subchains communicate with the main chain and other subchains, supporting the execution of smart contracts or connecting to private or public blockchains. Its key features are flexibility and scalability, which meet the requirements necessary for various IoT applications. Subchains are typically managed by operators who hold a significant amount of main chain shares.

Additionally, the system allows users to operate without collateralizing with one or more operators. To package new blocks, delegators act as light clients on the main chain and as full nodes on the subchains.

Consensus Mechanism

The IoTeX main chain packages new blocks in real-time through its consensus mechanism, which is Roll-DPoS (Randomized Delegated Proof of Stake): token holders vote for their nodes, and then the main chain ranks the nodes based on the votes received.

The nodes with the most votes are referred to as "consensus representatives" for the current epoch (1 hour), and then a subchain operator is randomly selected to maintain the protocol and generate new blocks for the next epoch.

IoTeX cross-chain communication uses Simplified Payment Verification (SPV) to ensure block certainty, allowing lightweight nodes to verify transactions using Merkle trees and block headers without downloading the full block data. IoTeX employs two-way peg (TWP) to allow token transfers between subchains.

Trusted Execution Environment

Hardware needs to be designed as a secure and tamper-proof Trusted Execution Environment to achieve the effect of running simultaneously with the device/host system while being completely isolated, protecting the privacy and integrity of all internal data and processes.

The core idea of IoTeX is to provide users with trusted data collection devices, aiming to create the world's first decentralized machine capable of autonomously participating in a trusted IoT. In this regard, the company has manufactured the first hardware device that cannot be manipulated from the outside: the Pebble Tracker.

Pebble Tracker

The Pebble Tracker includes a Trusted Execution Environment and many sensors (GPS, climate, motion, and light) that can gather information from the real world and convert it into verifiable blockchain data. In addition to minting digital assets, smart contracts can also be used to train machine learning models based on different trends to enhance the verifiability and credibility of the data.

Decentralized Identity

Decentralized Identity (DID) is the "self-sovereign cornerstone" of the IoTeX platform. Unlike other blockchain networks, IoTeX has created a DID system for individuals and machines to interact directly with IoTeX, as DIDs are interoperable and standardized. IoTeX DID also enables people and devices to own and control their data and identity information through the IoTeX network.

The Industrial Internet Consortium is currently standardizing IoTeX's DID technology and Identity and Access Management (IAM) architecture (IIC). It can link various application layers and facilitate user-centric data exchanges with billions of IoT devices and millions of users in the global IoT ecosystem.

Data Oracles

Smart contracts require oracles to access off-chain data. In the blockchain space, IoTeX is building the world's first oracle focused on verified real-world data from trusted devices. Its data will be supported by thousands of use cases and on-chain assets from the real world. As an approved data center, IoTeX can now "provide" data to other blockchains, such as Ethereum and Polkadot.

Team

The founding team of IoTeX includes Raullen Chai, Qevan Guo, Xinxin Fan, and Jing Sun.

• In addition to co-founding IoTeX, Raullen Chai is an advisor at BootUP Ventures and a member of the Industrial Internet Consortium and the Industrial Distributed Ledger Task Group. He previously served as the head of research and security for Uber's cryptocurrency.
• Qevan Guo is also one of the co-founders of Hyperconnect Lab. He has worked as a researcher and technical director at Facebook.
• Before co-founding IoTeX, Xinxin Fan was a senior research engineer at Bosch Research and Technology Center in North America. He also served as a research assistant and project manager at the University of Waterloo.
• Jing Sun is a managing partner at Sparkland Capital, a limited partner at Polychain Capital, and an angel investor in Rippling.

The entire IoTeX team consists of about 30 people, including researchers and engineers from giants like Google, Facebook, Uber, and Bosch.

Token Economics

The token of the IoTeX blockchain is $IOTX. IOTX provides various utilities to facilitate trusted interactions among stakeholders, including users, miners, application developers, and service providers.

$IOTX provides financial and reputational incentives for governing and maintaining the decentralized IoTeX network. Users can spend, stake, or burn IOTX to access network resources. The increasing demand and value of IOTX will encourage network members to maintain and expand the network.

Nodes stake IOTX to qualify for participation in consensus, while service providers stake or spend IOTX to provide services to nodes.

The maximum supply of $IOTX is 10 billion and follows a deflationary model, where each new device and user registered to the IoTeX network will burn $IOTX to incentivize long-term holders.

With the launch of 1 million "Powered by IoTeX" devices, the "Burn-to-Certify" tokenomics will be enabled. Users will burn IOTX to access specific services/features of each new device. As shown in the image above, the total supply of IOTX will decrease with each additional "Powered by IoTeX" device.

• Maximum Supply: 10 billion IOTX
• Total Supply: 8.8 billion IOTX (after Burn-Drop)
• As 1 million devices will be registered and confirmed on IoTeX, 900 million IOTX (9% of the maximum supply) will gradually be burned
• As part of the Mainnet GA activation, 265 million IOTX (2.65% of the maximum supply) were burned in June 2020
• Circulating Supply: 9.54 billion IOTX

It is worth noting that applications "Powered by IoTeX" can create their own tokens and tokenomics based on their incentive programs.

MachineFi

MachineFi is a concept used to describe the integration of blockchain and IoT technologies, aiming to connect the physical world with the metaverse. MachineFi also defines a network of smart devices that communicate with each other on the blockchain via basic internet protocols.

IoTeX 2.0 aims to pioneer the decentralized MachineFi space, allowing smart device users to operate without the constraints of centralized data providers. The MachineFi upgrade introduces the idea of "Proof-of-anything," enabling IoT devices to provide on-chain proof of real-world events, such as health measurements and GPS locations.

Conclusion

The decentralized and tamper-proof characteristics of blockchain technology can meet several cybersecurity requirements for IoT devices. However, individual blocks cannot handle the complexities of functions such as smart contracts and edge computing, failing to meet the security requirements of IoT platforms.

The initial design of IoTeX leverages identity and access management to build a robust defense system, providing a low-cost and highly scalable security solution for IoT.