To Develop an IoT Blockchain protocol using proof of assignment to integrate IoT devices with Blockchain such that a decentralized network of IoT applications and data exchange can be established.
Current consensus systems such as Proof of Work or Proof of Stake have drawbacks that make them difficult for adaptation to IoT devices. For example,
* The Proof of Work system requires strong computational power and large amounts of memory on the end-node side, which are costly for consumers to adopt. A “mining machine” for Bitcoin costs over USD 2000 per set.
* Mining under the PoW protocol is deliberately consumptive of power. It is estimated that the Bitcoin network uses 0.14% of the global energy consumption and more power than several developing nations.
* As the PoW system gets bigger, the whole network slows down.
* The Proof of Stake system still requires large amounts of memory on the end nodes, and also large amount of tokens to be able to win the Blockchain reward. The rich gets richer under the PoS system.
* Both PoW and PoS are leading to the centralization and accumulation of mining power into the hands of a few entities. Under PoW, giants like Bitmain’s mining pools control close to 51% of Bitcoin’s mining. Similarly, under PoS, original adopters of Ethereum who own large stakes can easily rake in all the fees from the network.
We have invented a completely new Blockchain protocol that
* Can run on most kinds of IoT devices without the need to change any hardware;
* Have a mining function to attract IoT device users to join up to the chain;
* Have a unique consensus protocol called “Proof of Assignment” that gives fair chance to all IoT devices to obtain mining rewards;
* Very light in overall power consumption; and
* Supports instant transactions even if the chain expands in size exponentially.
Features of our new Blockchain architecture
* Divide the Blockchain network into different layers to reduce system requirement on the IoT devices (end nodes) side;
* End nodes do not have to have strong computational power or large amount of memory; All IoT devices can connect to our Blockchain without any hardware change; All the end nodes have equal chances of getting Blockchain rewards;
* The chain does not consume unnecessary power; and
* The chain supports instant transactions no matter how big it becomes.
From the Proof of Assignment consensus protocol, we have developed the “Micro-mining” protocol. Micromining is introduced so as to incentivize IoT device users to connect their devices to our Blockchain and provide usage data. In order to make it easy for IoT devices to connect to our Blockchain, we have also designed a new Blockchain architecture with end-nodes and trusted-nodes separated. Under this innovative new architecture, most of the IoT devices in the world, be them big or small, can run our micro-mining software without the need for any hardware change. For the first time ever, Blockchain and IoT devices can seamlessly work together.
We aim to connect every household in the world with Blockchain and collect their usage data for betterment of the whole mankind. This can be achieved through our easy to adopt Blockchain design, and a token reward system (IOTW tokens system). IoT device owners who join our Blockchain network will be rewarded with IOTW tokens. We shall establish a decentralized purchase network for the IOTW holders to purchase goods and services with their IOTW tokens directly from the device makers and service providers. This is a decentralized purchasing ecosystem to do away with all unnecessary middlemen and agents. The following pages will explain our technology and business case in more details.IOTW-Whitepaper