XYO Network — Interacting with Public Blockchains
As a counterpart to the previous theoretically heavy article, we’ll have a more practical outlook on the XYO Network in this one. Additionally we will look at the token economy and how the XYO tokens will be used. To jump right into it, let’s have a look at how a practical real life implementation could look like.
As already mentioned, the XYO Network can interact with any smart contract out there. This enables a direct implementation with public blockchains like Ethereum, Bitcoin (+RSK), NEO, Cardano and Stellar.
To give you a practical example of how this could look like, lets look at the process of sending a request and how it’s being executed:
Through the Ethereum blockchain users can issue a query to the XYO smart contract, fueled by the XYO Tokens. After the query hits the XYO Network, Diviners get to work and analyse data in order to provide the requester a correct and trustworthy solution to his query. The answer to the query will be delivered back to the requester which paid either with the ERC20 token version of the XYO tokens or the network intern currency of the XYOMainChain — also called the XYO Tokens.
The Diviners who are part of the XYO Network which conducted the Proof-of-Work and did the analysis work will be awarded these tokens as a reimbursement for their service. This currency can be exchanged to the ERC20 counterpart in a 1:1 conversion rate. This allows requesters of queries to directly use the XYO blockchain and issue queries directly without going through a public ledger first. Additionally, the XYO tokens will be used to cover payments and fees on the XYO network (similar to gas on Ethereum) which will be necessary once smart contracts and network intern interactions are being executed.
The need for the network intern currency is crucial in order to fuel the network and build a functional decentralized network. By doing so, the need and usage of tokens rises in significance which is a core interest of potential investors like us. By implementing tokens that are bond to a direct usage, the interest for the tokens will rise over time as the network matures, creating a scarcity for the XYO tokens over time which will make them rise in value.
Knowing this puts us in a good spot for a possible investment. In the next and last article of this series we’ll have a look at the basic conditions for the XYO token sale and if our speculations could unfold like this in the future.
