What is IOST?
IOST is a blockchain project focused on scalability, which uses a unique consensus mechanism known as Proof of Believability (PoB) and a sharding approach called Efficient Distributed Sharding (EDS) to enable faster processing. The goal of the project is to build an infrastructure that can handle high transactions per second (TPS) in order to meet the security and scalability requirements of a decentralized economy.
The IOST token is the native cryptocurrency that powers the IOST blockchain, which is designed to be an ultra-fast decentralized blockchain network.
The history of IOST can be traced back to its founding by Jimmy Zhong, Justin Lee, Kevin Tan, Ray Xiao, Sa Wang, and Terrence Wang. On June 30, 2018, the project launched a public testnet and transitioned to its mainnet in February 2019, developing the Internet of Services (IOS), a proprietary blockchain focused on scalable and high-throughput smart contract processing. It aims to provide the infrastructure layer required to develop and deploy large-scale decentralized applications (DApps) requiring high-throughput processing. IOST is also working on new services, such as decentralized storage and a developer feedback system. It competes with other similar projects such as Ethereum, NEO, Stellar, and Zilliqa.
On January 3, 2018, the IOST Foundation conducted a token sale, raising approximately $35 million in ether (ETH). During a private sale, only institutional investors were eligible to acquire tokens; there was no further public sale. Tokens were priced at 200,000 IOST per ETH in the first stage, 150,000 IOST per ETH in the second stage, and 100,000 IOST per ETH in the third stage. At the end of the sale, a total of 21 billion tokens were generated. Participants in the private sale received 40% of the total supply (8.40 billion IOST).
The IOST Foundation received 35% of the entire supply (7.35 billion IOST), which was frozen until the mainnet launch. A separate allotment of 12.5% of the total supply (2.63 billion IOST) was made available for community incentives. The remaining tokens were distributed to the team, who received 10% of the entire supply (2.10 billion IOST); and to early investors and advisers, who earned 2.5 percent (525 million IOST).
IOST's unique architecture enables it to process up to 100,000 TPS, which is significantly higher than other blockchain networks such as Ethereum (20 TPS) and TRON (2,000 TPS) and EOS (4,000 TPS). This scalability and high TPS amount is a major solution for large corporations. To achieve these transaction speeds, the IOST team designed a novel blockchain architecture that combines various technologies, including the Distributed Randomness Protocol, TransEpoch, and Atomix.
The IOST token is primarily used as a medium of exchange for all transactions and commission fees in the IOST ecosystem. It can be used for payments (for services and goods provided by merchants or other community members) and commission fees (to validators as compensation for running smart contracts and processing transactions, etc.). The token also plays an important role in calculating a user's believability score. PoB is a consensus algorithm that enables high transaction throughput speeds while ensuring nodes stay compliant, using factors including IOST token balance, reputation-based token balance, network contributions, and user behaviours.
Users can acquire IOST tokens by contributing resources to the network, such as running smart contracts and providing storage. IOST also plans to launch a decentralized algorithm marketplace in the future, where users can participate in algorithm trading and earn IOST tokens as a reward.
In conclusion, IOST is a blockchain project focused on scalability, which uses a unique consensus mechanism known as Proof of Believability (PoB) and a sharding approach called Efficient Distributed Sharding (EDS) to enable faster processing. The IOST token serves as the fuel for the IOST blockchain, and it can be used for various transactions and commissions fees within the ecosystem. The platform aims to provide an infrastructure that handles high TPS in order to meet the security and scalability requirements of a decentralized economy.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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