As you know, the year 2021 was marked above all by the craze for DeFi and for NFTs on the other hand. So, projects that surf between the two trends could only explode, right?
This is absolutely the case with the IOST protocol. With such an increase this year, we decided to tell you about it in this article.
According to CoinMarketCap, the IOST token is in 78th place in terms of market capitalization. This has increased by more than 600% since January. When we told you that the token had exploded, it was not half true.
Today, the company made up of a team of more than 50 recognized professionals who have worked in large groups (Google, Facebook, etc.) has offices in Beijing, Singapore, Seoul and even in Spain.
Now you are wondering what service they offer, right?
Don't wait any longer and read on ;)
What is IOST?
With a name like that, we can guess what it’s about, right? IOST is interested in the Internet of Services (IoS) industry. This involves analyzing the various data from all the devices used for IoT to improve the service. This is the sector that developed just after the Internet of Things (IoT). Thus, the acronym IOST is composed of the Internet-of-Service (IOS) and the word token (T)
The network being decentralized, it is made up of nodes which participate in the development of the IOST network. There are actually two types of nodes on the network: partner nodes (for non-technical users) and served nine (full nine for those who approve transactions on the blockchain).
The IOST blockchain is highly scalable and uses its own consensus algorithm: proof-of-believability/PoB (Proof of credibility in a simple translation). The credibility proof allows you to determine the credibility of a node.
Adding to sharding technology, IOST gives maximum convenience for users and makes the blockchain faster.
We can therefore run decentralized applications on IOST at high speeds. The goal of IOST is to meet the needs of businesses in terms of security and scalability.
Understanding IOST in broad terms
IOST is somewhat (a little) on the same line as Ethereum, EOS and Tron if we compare them as networks with smart contracts. IOST would make it possible to process up to 100 transactions per second, which places it far ahead of the 000 transactions of TRON, 2000 of EOS, 4000 of Tron or 2000 of Ethereum.
IOST is based on Hyperledger Fabric, making it a blockchain far ahead of other platforms. Likewise, for developers, this is very accessible because the programming language used is Javascript.
To offer such speed, IOST has developed a powerful and original type of blockchain with its own infrastructure.
IOST innovations
Now, without going too far into the technical aspect of IOST, we will tell you about the 4 major innovations of the network. We can cite Atomix, EDS for “Efficient Distributed Sharding”, proof of credibility and TransEpoch.
The IOST Token
Just as Ethereum has its own token and its ERC20 standard, the same goes for the IOST network which also has its IRC20 token. We are making this reminder because during the ICO in 2017, the IOST token was an ERC20 token. As with many projects, it starts like this before branching out and creating its own blockchain.
It is used for transaction fees and as a means of payment. Likewise, for network validators, it is with the IOST token that they are rewarded, of course.
Regarding the tokenomics of the IOST token, there will be an initial offering of 21 billion tokens. The network generates 2% additional tokens each year to reward validators. Likewise, 1% is created to reward all those who enable the development of the IOST network.
The IOST token is useful for payments, rewards, fees and also for credibility score calculations.
The reasons for success?
A craze for projects linked to NFTs
There are many parameters that explain such an increase. The first is that the project has NFT functionality. As the market was booming, he naturally benefited greatly from it. The token had in fact launched its NFT standard (IRC-722) in April 2020, but we had to wait for all the craze for non-fungible tokens in 2021 for investors to finally become interested in IOST. It's never too late with cryptocurrencies.
The IOST token has benefited greatly from the rise of NFTs, particularly thanks to its partnership with Japanese video game developer "Platinum Egg". Then, in the same vein, the founders of IOST also partnered with TokenLink, which was designed to allow IOST players to exchange NFT elements and other in-game items securely.
A launch in DeFi
The second reason is explained by the fact that the IOST token has been integrated into the DeFi platform: Donnie Finance (among others). Users therefore joyfully discovered this token. On the platform, you can stake these IOST tokens and even participate in the governance of the platform.
Staking is emulated
Finally, the third reason is explained by the update called "Stargate". This important update for the project also included the fact that 10% of the total token supply would be distributed to current holders in order to make them participate in this new platform. In the same vein as for staking, IOST has made many partnerships with platforms like Binance and Huobi. Some platforms like Huobi have even set up staking with an APY ranging from 20% to 54%. This is indeed a very high APY and which has greatly interested (which is understandable) the token holders.
More and more partnerships
The partnership with Huobi had a great impact as they added a HUSD stablecoin to the ecosystem. It was the first stablecoin added on IOST, allowing new liquidity to be added to the entire network. Likewise, the platform is also open to NFT. Here again, this will contribute to the increase in interest for this token.
You have the 4 reasons which explain the beautiful cocktail of prices that the IOST experienced.
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Disclaimer : This article is provided for informational purposes only. This is not financial, legal, tax or investment advice. Always do your own research before investing in any crypto.
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