IoTeX Network: Powering the Internet of Trusted Things

IoTeX Network: Powering the Internet of Trusted Things

Jun 09, 2025


The IoTeX Network, launched in 2017 as an open-source project, is a decentralized blockchain platform designed to bridge the Internet of Things (IoT) with blockchain technology. Its mission is to create the "Internet of Trusted Things," an ecosystem where humans, machines, businesses, and decentralized applications (DApps) can interact with guaranteed trust, privacy, and autonomy.


By combining blockchain, secure hardware, and confidential computing, IoTeX aims to empower a decentralized machine economy, enabling secure and scalable interactions between IoT devices and the digital world.


In this article, we’ll dive deep into what makes IoTeX unique, its technical architecture, the role of its native token ($IOTX), real-world applications, and why it’s a standout project in the crypto and IoT space.


What is IoTeX?


IoTeX is a layer-1 blockchain platform that connects IoT devices—such as smart home gadgets, wearables, sensors, and autonomous vehicles—with decentralized applications. Founded by Raullen Chai, Qevan Guo, Xinxin Fan, and Jing Sun, the project is backed by a team of over 40 research scientists and engineers with expertise in cryptography, blockchain, and IoT from companies like Google, Uber, and Bosch.


The platform addresses key challenges in traditional IoT systems, such as data privacy, security, and centralized control. IoTeX enables users to own and monetize their data while providing developers with tools to build privacy-preserving DApps. It has evolved into a leading infrastructure for Decentralized Physical Infrastructure Networks (DePIN), a sector focused on decentralizing real-world infrastructure like telecom, energy, and AI systems.


Since its mainnet launch in April 2019, IoTeX has processed over 10 million transactions and is managed by a global network of over 100 delegates. Its ecosystem includes innovative hardware like the Ucam (a blockchain-powered security camera) and Pebble Tracker (a decentralized asset tracker), showcasing its ability to bridge the physical and digital worlds.


How Does IoTeX Work?


IoTeX’s architecture is designed for scalability, privacy, and interoperability, making it ideal for IoT and DePIN applications.


Here’s a breakdown of its key components:

  1. EVM-Compatible Blockchain with Roll-DPoS Consensus
    IoTeX operates an Ethereum Virtual Machine (EVM)-compatible blockchain, allowing developers to port Ethereum-based smart contracts seamlessly. It uses a unique consensus mechanism called Roll-DPoS (Randomized Delegated Proof of Stake), which enhances the traditional DPoS model by randomly selecting 24 of the top 36 community-voted delegates to produce blocks every hour. This improves decentralization and security without sacrificing performance, enabling up to 1,000 transactions per second (TPS) as of the v1.14.0 mainnet upgrade in 2024.


    Roll-DPoS combines Delegated Proof of Stake with Verifiable Random Functions (VRF) and Practical Byzantine Fault Tolerance (PBFT) to achieve high scalability and immediate transaction finality, critical for IoT use cases where devices require real-time interactions.


  2. Modular Architecture for DePIN
    IoTeX’s modular infrastructure is a standout feature, particularly for DePIN projects. The platform offers DePIN Infrastructure Modules (DIMs), which are building blocks for developers to create decentralized applications. Key DIMs include:
    • W3bstream: Handles off-chain computation, enabling efficient data processing for IoT devices.
    • ioID: Provides decentralized identity solutions for devices and users.
    • Third-party integrations like Filecoin, Risc0, and NearDA for storage and computation.

    The Modular Security Pool (MSP) anchors the ecosystem, ensuring trust and security across all modules using $IOTX and other assets. This modular approach reduces build time and costs, making IoTeX a go-to platform for DePIN developers.


  3. Privacy and Security Features
    IoTeX integrates Decentralized Identity (DID), Confidential Computing, and Secure Hardware to ensure privacy and trust. For example:
    • Devices like Ucam use end-to-end encryption and decentralized identity to protect user data.
    • Pebble Tracker transforms real-world data (e.g., temperature, location) into blockchain-applicable data, enabling applications like weather derivatives and real-world NFTs.


  4. Interoperability
    IoTeX supports cross-chain communication through tools like ioTube, a two-way bridge that enables token swaps between IoTeX and other blockchains like Ethereum, Polygon, and Binance Smart Chain. This enhances interoperability, allowing $IOTX and IoTeX-based assets to interact with other ecosystems.


  5. Low-Cost Transactions
    IoTeX processes transactions with low gas fees, making it cost-effective for IoT devices that generate frequent microtransactions. This is a significant advantage over Ethereum-based networks, where high gas fees can be prohibitive for IoT applications.


    The $IOTX Token: Utility and Tokenomics
    The native token of IoTeX, $IOTX, is integral to the ecosystem, serving multiple purposes:

    1. Governance: $IOTX holders can stake tokens to vote for delegates and participate in network proposals, ensuring decentralized governance. Each $IOTX staked equals one vote, with bonus votes for longer staking durations.
    2. Transaction Fees: $IOTX is used to pay gas fees for transactions and smart contract execution, supporting network operations.
    3. Staking: Staking $IOTX secures the network and rewards participants with additional tokens. The staking process is user-friendly, accessible via the ioPay wallet.
    4. DePIN Applications: $IOTX powers DePIN projects, enabling devices to register on the blockchain and facilitating data monetization.
    5. Burn-Drop Mechanism: IoTeX’s innovative Burn-Drop tokenomics reduces the total supply of $IOTX by burning tokens for each new device registered on the network. Simultaneously, stakers receive “dropped” tokens as rewards. As of July 2021, over 350 million $IOTX had been burned, with 39 million dropped to stakers, creating a deflationary effect over time.


    Token Details (as of June 9, 2025):

    • Circulating Supply: ~9.44 billion $IOTX
    • Total Supply: ~9.44 billion
    • Max Supply: 10 billion
    • Market Cap: ~$497.94 million
    • Price: ~$0.0527 (up 16.34% in the last 7 days)
    • All-Time High: $0.50 (November 4, 2021)


    The Burn-Drop model, combined with balanced inflationary and deflationary mechanisms, ensures $IOTX remains a versatile and stable asset, incentivizing network growth and user participation.


    Key IoTeX Products and Use Cases


    IoTeX powers a growing ecosystem of devices, DApps, and DePIN projects. Here are some notable examples:

    1. Ucam: A blockchain-powered home security camera launched in 2020 in partnership with Tenvis. It uses decentralized identity and end-to-end encryption to ensure user privacy, allowing owners to control their footage securely.
    2. Pebble Tracker: Developed with Nordic Semiconductor, this IoT device captures real-world data (e.g., location, temperature) and transforms it into blockchain-compatible data. It’s used in over 50 countries for applications like supply chain tracking and environmental monitoring.
    3. DePIN Projects:
    • GEODNET: Uses IoTeX’s W3bstream to deliver hyperlocal weather data for sustainability and geo-location accuracy.
    • DIMO: Leverages IoTeX for vehicle data monetization, enabling developers to build mobility-focused DApps.
    • PowerPod: Focuses on decentralizing electric vehicle (EV) charging networks, with its $PPD token launched on IoTeX.
    • Inferix: A decentralized GPU network for AI inference and Proof-of-Rendering.
    1. ioPay Wallet: The official wallet for IoTeX, supporting $IOTX transactions, staking, and DApp interactions.
    2. DePINscan: A public utility for tracking and verifying DePIN metrics, connecting 2.4 million devices across 40+ verified projects.
    3. Cyclone Protocol: A privacy tool for encrypted DeFi transactions.
    4. Healthnet: A logistics platform for medical supply chains, developed with the U.S. Navy.


    These products demonstrate IoTeX’s ability to enable real-world applications, from smart homes to renewable energy and AI-driven DePIN solutions.


    IoTeX vs. Competitors


    IoTeX faces competition from projects like IOTA, which focuses on feeless machine-to-machine (M2M) payments. However, IoTeX differentiates itself through:

    • Real-World Products: Unlike IOTA, IoTeX has launched tangible products like Ucam and Pebble Tracker, proving its practical applicability.
    • EVM Compatibility: IoTeX’s compatibility with Ethereum makes it easier for developers to build and port DApps.
    • Modular DePIN Infrastructure: IoTeX’s focus on DePIN and its modular architecture provide a flexible toolkit for developers, unlike IOTA’s more singular focus on M2M payments.


    While IOTA boasts high scalability, IoTeX’s Roll-DPoS and low-cost transactions make it better suited for IoT devices requiring frequent interactions.


    Recent Developments and Partnerships


    IoTeX has made significant strides in 2024 and 2025, solidifying its position as a DePIN leader:

    • Binance.US Listing: In 2024, $IOTX was listed on Binance.US, increasing accessibility for U.S. investors.
    • Fireblocks Integration: In January 2025, IoTeX partnered with Fireblocks, enabling institutional access to $IOTX and IoTeX-based assets. This drove a 5% price surge to $0.036.
    • Eliza Labs Partnership: In April 2025, IoTeX collaborated with Eliza Labs to integrate AI agents with DePIN, advancing applications like BinoAI for real-world AI interactions.
    • Crypto’s Got Talent: IoTeX hosted this talent show in 2025, showcasing 11 DePIN projects and distributing $500,000 in grants, boosting ecosystem growth.
    • Get Goated Season 2: This community campaign distributed 100 million $IOTX to 1.7 million participants, driving engagement and adoption.
    • IoTeX 2.0 Whitepaper: Released in July 2024, it outlines IoTeX’s evolution into a modular DePIN infrastructure, aiming to onboard 100 million devices in 3–5 years.


    Price Performance and Predictions


    As of June 9, 2025, $IOTX trades at ~$0.0527, with a market cap of ~$497.94 million, ranking #143 in the crypto ecosystem. It has seen a 16.34% increase over the past week, reflecting strong market sentiment. However, it remains 95% below its all-time high of $0.50 from November 2021.


    Analysts are cautiously optimistic about $IOTX’s future:

    • 2025 Price Prediction: Minimum $0.0192, maximum $0.0237, average $0.0215.
    • Long-Term Outlook: By 2050, some analysts project a maximum price of $20.96, driven by IoTeX’s growing DePIN adoption and IoT market expansion (estimated at $1.5 trillion). However, market volatility and competition from projects like IOTA could temper growth.

    The Burn-Drop mechanism and increasing device registrations could create deflationary pressure, potentially boosting $IOTX’s value over time.


    Why IoTeX Matters


    IoTeX stands out in the crypto space for its unique blend of blockchain and IoT, addressing real-world problems like data privacy and centralized control. Its focus on DePIN positions it at the forefront of a $28.2 billion ecosystem, with applications in AI, renewable energy, and global connectivity.
    Key strengths include:

    • Scalability: Roll-DPoS and low gas fees make it ideal for IoT’s high-frequency transactions.
    • Privacy: Decentralized identity and secure hardware protect user data.
    • Ecosystem Growth: Partnerships with Fireblocks, Eliza Labs, and Binance.US, alongside products like Ucam and Pebble Tracker, drive adoption.
    • Community Engagement: Initiatives like Get Goated and Crypto’s Got Talent foster a vibrant global community of over 100,000 users.

    However, challenges remain, including competition from IOTA and limited interoperability with non-EVM blockchains, which IoTeX is addressing through tools like ioTube.


    Conclusion


    IoTeX is more than just a blockchain—it’s a vision for a decentralized, privacy-focused future where IoT devices and humans interact seamlessly. With its modular DePIN infrastructure, innovative tokenomics, and real-world products, IoTeX is well-positioned to lead the convergence of IoT, AI, and blockchain. For investors and developers, $IOTX offers exposure to a high-growth sector with tangible use cases, from smart homes to decentralized EV charging.


    As IoTeX continues to onboard millions of devices and expand its ecosystem, it’s a project worth watching in the crypto space. Whether you’re a developer building the next DePIN DApp or an investor eyeing the IoT revolution, IoTeX offers a compelling case for the future of decentralized technology.


    Disclaimer: Cryptocurrency investments carry high risk. Always conduct your own research before investing. This article is for informational purposes only and not financial advice.