On its website, IOST claims to be an ultra-fast, decentralized blockchain network based on the new consensus algorithm “Proof of Believability” (PoB). Its name is an abbreviation that stands for the Internet of Services Token. It aims to build an enterprise-level blockchain system that will meet the security and scalability standards needed for businesses to operate properly. The platform is fueled by a native utility token IOST.
IOST: the basics
Ethereum as the pioneer in the area of ICOs and decentralized applications proved to be unable to handle an influx of users that it faced in 2017 as the transactions became slow and the fees spiked. A lot of projects aiming to overcome this problem emerged as a result, and IOSTwas one of them. This China-based project positions itself as an alternative to existing blockchain platforms and recognizes resolving the scalability issue as the cornerstone of the future decentralized economy.
Although IOST doesn’t have such big coverage as Ethereum, the team has made big progress over the course of 2018 and 2019. Having launched its mainnet on February 25th, 2019, the project stated in a tweet a month later that it managed to surpass Ethereum in daily transactions. In the same tweet, it was mentioned that IOST was hoping to onboard over 20 million users in 2019 by integrating with the Berm Protocol.
Technologies implemented by IOST
In order to achieve its goals, IOST relies on the following technologies:
Efficient Distributed Sharding Technology (EDS). It helps IOST to improve the scalability of its network by partitioning it into subspaces and helping it process tens of thousands of transactions per second.
Proof-of-Believability Consensus Algorithm (PoB). Since the Proof-of-Work consensus algorithm proved to be too energy-consuming, IOST has invented its own method of verifying transactions which implies assessing the believability of every single node by looking into its past contributions and behavior.
Atomix. This is the system designed to prevent issues such as double-spend attacks on the network and thus enhance its security.
Private Token Sale
Since IOST targets large enterprises it has decided to rely only on private investors omitting the stage of an Initial Coin Offering (ICO). The token sale was conducted in January 2018 with Huobi, Zhen Fund, Nirvana Capital and a few other big names listed as the key institutional investors on the project’s website.
During the token sale, 40% of tokens were distributed helping the team raise $31 million USD worth of ether. The remaining supply was distributed in the following way:
35% was retained by the IOS Foundation
12.5% was set for the community building
10% went to the IOS team
2.5% went to investors and advisors
IOStoken is listed and available for trading on many reputable exchange platforms including Binance, Huobi, and OKEx. Initially, IOST was an ERC-20 token and could be stored on all Ethreum-compatible wallets. After the mainnet was launched and most of the exchanges supported the token swap, IOST could only be stored on a number of wallets such as TokenPocket and Cobo Wallet.
The Linkedin profile of the project lists Jimmy Zhong, Yannan Wang, Ray Xiao, Kevin Tang, and Tiancheng Li as co-founders. It’s also worth adding that prior to IOST, Jimmy Zhong has also founded a few other successful startups such as Studypool and the Aristo League.
At the time of writing, the team counts 32 employees more, most of them are operating from different parts of the world.