Jinse Finance: ioeX-Contributing The Virtuous Cycle of IoT Growth On a Blockchain.
How Big is The Internet of Things?
Intuitive data information:According to IDC’s estimates, 2013 global IoT market is around 1,600 billion USD and can reach 4,400 billion USD in 2018, having a 22% growth in CAGR. The number of IoT device worldwide is forecast to grow to 25 billion in 2020. The potential of IoT has attracted many leading companies to engage in the market.[本篇中文版連結]
The business model of Apple is based on hardware distribution; they build an ecosystem that integrates both software and hardware and have lots of users in the iOS system, the well-received iOS system is then further expanding in IoT industry.
Google, on the other hand, had evolved the application from software to hardware. The core competences of Google are the data processing ability, the massive data center, and first-rate data processing ability which are far ahead of its time. They enter the hardware device market through the self-developed Google Glass and many smart home products, and have purchased smart hardware products ever since.
Furthermore, Tencent, HUAWEI, Lenovo, and other big players are all making moves to enter the market. It seems that the development of IoT is entering the next stage, which is the combination of software and hardware, that is, the model of Internet of Everything.
ioeX would not miss this blue ocean opportunity, the former team had established operation system of the distributed topological network for IoT 4 years ago, not to mention Aryan, the founder of ioeX has years of experience in development of mobile phone hardware and knows well about the collaborations and interactions between chipset firms and brand owners.
Aryan was aware how challenging to develop IoT technologies based on his years of experience in the smart hardware industry. The number of IoT devices was rapidly growing, so as the great needs in online transmission and the massive network transmission expenses.
Blockchain has opened up new horizons for the situation. Based on the distributed networking technologies developed by ioeX team, we further integrated it with blockchain technologies and built a whole new ecosphere.
The Negative Impacts of The Rising Cost on The Ecosphere
Since IoT is having a deeper penetration in our lives, we rely more and more on the Internet. Our lives become more intelligent as the number of smart devices and internet accounts grow, therefore, rapid repetitive computation of the software system is needed for fulfilling various needs.
Each smart device will experience multiple software/firmware updates in its lifespan due to the upgrades of OS or functional updates, and will conduct data transmission or interactions with other smart devices such as smart phone; however, the cost of each update or transmission is extremely high.
Assuming update package is 0.1GB and smart device provider sells 10 million smart devices worldwide, the cost of transmission will be more than 100 thousand USD. Since there will be multiple software updates annually for each smart device, the pressure is enormous. Based on our estimates, the cost of online transmission in the M2M market at the beginning of 2018 is around 18 billion USD, and the costs of servers, trans-regional upgrades, and human resource for system maintenance are excluded.
Secondly, a faster transmission speed will be the focus in the future development of IoT in order to satisfy the emerging needs of future users, business, and the Internet. It requires 5G networks to have more advanced functions to conduct data transmission anywhere, anytime. Theoretically, 5G will deliver up to 10Gb/s peak rate which is 10 to 100 folds of that in 4G system.
The explosive growth of data transfer rate has made the costs of online update even higher in the time when spectrum resources become more and more tense. Increasing costs reduces profitability, and that has made many SMEs to close down; once centralized enterprise goes bankrupt due to failed management, the smart device will not be able to work even the machine itself remains functional.
The increasing needs contribute to the sales of smart devices, yet the smart device providers in the ecosphere fail to gain profit due to the high costs which is contrary to the goal of positive development and leads to negative impacts on the ecosystem.
In view of this, ioeX project provides a solution that has redefined the approaches of data transmission and applications of data storage. By the establishment of the ecosphere in close collaborations with existing chipset manufacturers for smart devices, we will save enormous costs of data transmission for smart device providers with the whole new transmission approach for online updates.
ioeX project reduces online update costs by elevating the functions and effectiveness of the applications of distributed storage, and gives an opportunity to build an underlying network which supports data interaction in IoT as a new solution for online data transmission, temporary storage, software online updates. An estimated 12.6 billion USD can be saved annually for the entire market.
Positive Ecosystem of IoT
How ioeX reduces costs?
Based on the cost structure of online updates, the costs of establishment and management take around 80% to 90% of the cost of entire OTA; ioeX provides a combination of ioeX network and blockchain technologies as a solution which replaces the original relay servers and OTA servers built by device providers, and reduces the costs of storage space and data transmission.
ioeX has numerous “bootstrap nodes” as the basic framework of ioeX distributed network. Smart devices from chipset firms, device providers, software companies, and solution providers are equipped with ioeX decentralized functions to become the “peer nodes.” “Peer nodes” and “bootstrap nodes” search for and link to each other automatically to form the decentralized network, and enables direct links between each “peer node.” Enterprises can save 70% of costs of system upgrades by ioeX payment.
When general users utilize their smart devices or software with ioeX network functions, they may receive ioeX tokens as rewards by sharing bandwidth, traffic, and storage space. By conducting crypto technique on the document transferred from/to each peer node that has a unique ID, ioeX ensures the security of P2P direct link data transmissions and forms the reciprocal ecosphere for global users. Through the interconnections of user devices worldwide, ioeX network can fulfill software updates for users, expensive data storage and transmission centers will no longer be needed for the chipset firms, device providers, software companies, and solution providers.
Generally, there are the three types of playersin the industry chain. To begin with,chipset manufacturers, for chipset and terminals are necessary for performing OTA upgrades, and OTA is applied in upgrades of firmware like chipset; then, manufacturing solution providers,and finally, brand owners.
Brand owners are closer to the upstream in this industry therefore owningbetter bargain power, and they often request some specific designs on productsto the solution providers to ensure the quality, since the solution providers bear the high cost on online updates, they would like the chipset firms to share the load which gives the solution providers bargain power as well. Chipset firms are closer to the downstreamin this industry.
In this B2B relationship, we shake the ecosystem of smart devicesby selecting manufacturing solution providers as our market entry points and building collaborations with them. Since it reduces costs greatly by adopting ioeX solutions, the device providers are willing to integrated ioeX function and SDK into the smart hardware. The collaboration will gradually expand by a smaller scale of integration to validate the effects. Smart devices may join the ioeX network by downloading an APP to have personal cloud storage and distributed cloud backup functions.
Aryan regards transaction records and payments as the advantages of blockchain, and ioeX project adopts exactly the feature of blockchain, that is, the distributed ledger, which allows more participants in ioeX network to contribute their resources, have the contributions recorded and receive rewards. The three major players in the industry may reduce costs greatly and gain profit by joining the ioeX network and offering rewards to the contributors. The ioeX network is formed by the resource contributors, ioeX, and players, a firm loop on blockchain that leads to positive development in IoT ecosphere and creates a triple-win situation.
Neo Peng, the CMO of ioeX once said: “We aim to make ioeX –Internet of Everything X- as the next-generation term after Internet+. “X” refers to “multiplying,” which means the interconnected values”. As a matter of fact, the Internet usage growth is weak in recent years; Pony Ma, the head/CEO of Tencent has mentioned in the new company strategy that the Internet is in the transition from consumer Internet to industrial Internet. Lots of people are bullish about IoT to be the growing force in the future, and smart hardware industry is a good entry point. In the future, everything will be interconnected.
Source: Jinse Finance.
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