XYO Network – Due Diligence Report

Pre-sale: sold 413 345 292 XYO (up to 100% bonus)

Public sale: 20th of March – 20th of May 2018

Whitelist: yes – KYC

Hard Cap: 48,000,000 USD

Total supply: base on the sale, but finite

Token allocation: 39,3%

Token base price: 0,00001 ETH/XYO

Accepted currency: ETH

Company information: San Diego, CA; USA

Underlying platform: Ethereum, ERC20

Ticker: XYO

 

Summary

 

Pros

  • Unique problem solution
  • A backing of an already established company with an active user base
  • Reasonable roadmap

 

Cons

  • Some team members have too much on their plate
  • Only about 40% offered to the public

 

Team: 3/5

Project: 3/5

Token Metrics: 2/4

Token use case: 3/5

Roadmap: 2/3

Community and marketing: 2/3

Hype: 1/3

 

Description

 

The XYO Network has been working towards the concept of enabling developers, such as those writing smart contracts for blockchain platforms, to interact with the physical world as if it were an API.

 

A trustless, cryptographic location network using a novel formulation reliant on a chain of zero-knowledge proofs to establish a high degree of data certainty on location information. The XYO Network (XY Oracle Network) is an abstraction that enables layered, location verification across many device classes and protocols. At its core sits a set of novel cryptographic mechanisms known as Proof of Origin & Bound Witness that tie together the power of blockchain technology and real-world data collection into a system with direct applications today. XYO is built on the foundation of XY Findables company: “XY strives to make everything in your life “findable”. We use various form-factors and technologies to accomplish this, including Bluetooth, Cellular, GPS, and NFC. This is one more “Star Trek” dream that we can now start to accomplish.”  https://www.linkedin.com/company/xy—the-findables-company/

 

Team

 

Arie Trouw – Founder & Architect –  A serial entrepreneur with a history of technological breakthroughs and business successes involving multiple 8-figure exit events. He currently serves as Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Chairman of the Board of Directors. Prior to starting XY – The Findables Company, Arie was CEO and Chairman of Pike Holdings. (later sterkly, LLC).  Received his Bachelor of Science in Computer Science from the New York Institute of Technology. For two years he was a consultant for Verizon.

https://www.linkedin.com/in/arietrouw/

Interview: https://www.youtube.com/watch?v=5uzJ7ulbD3s

 

Scott Scheper – Co-founder & Head of Marketing – His career has revolved around technology startups and digital advertising since 2008. Scott launched Greenlamp, a programmatic advertising agency specializing in direct-response media buying. The agency was fully automated; built entirely using algorithms to manage the campaigns.

https://www.linkedin.com/in/scottscheper/

 

Christine Sako- Head of Analytics – Worked in upper management for about 4 and a half year. During all that time she was also a musician and a performer. Her major is in Computer Services Support and Technician at the University of Minnesota.

https://www.linkedin.com/in/christine-sako/

 

Johnny Kolasinski – Head of Media – Almost fifteen years experience in marketing and media production, from e-commerce to video production to live performing arts. Before being recruited by XY, Johnny coordinated the marketing efforts of the Stanford Arts Institute and Stanford Live, the University’s performing arts organization.

https://www.linkedin.com/in/johnnykolasinski/

 

Jordan Trouw – Customer Experience Manager – She is completing her studies as a Visual Arts major at the University of Chicago. She is also a member of the UChicago Careers in Business Program. So far she has not much of a professional experience as she is still as a student.

https://www.linkedin.com/in/jordan-trouw/

 

Maryann Cummings – Client Support Manager – She worked extensively with many of San Diego’s leading web development companies. In addition to having experience in data curation, she also has significant experience in alternative club and concert promotion.

https://www.linkedin.com/in/maryann-cummings-783b7a119/

 

Zefram “3 Bullet” Liu – Blockchain Engineer – Was recognized and gained notoriety at ETHDenver’s 2018 Hackathon. Zefram takes computer science courses at the University of San Diego and works on blockchain technology projects at XYO. At the XYO office, he also works with the renowned Ethereum company, ConsenSys. He has created a blockchain project called “Betoken”, which is a decentralized crypto hedge fund. Previously he worked on his project GEO – GEO project creates distributed decentralized P2P processing, that will be able to process creation and transferring of any type of assets and values as simply as an email.

Owen Shen – Blockchain Engineer – Also worked on GEO project. He studies Computer Science at the University of California San Diego. In his spare time, he also blogs about rationality over at mindlevelup. –https://mindlevelup.wordpress.com/.

 

Project

 

Built on a basis of a company that has a consumer real-world use case network with over one million (1,000,000) Bluetooth and GPS devices in the world.


Most current implementations of smart contracts rely on a single or aggregated set of authoritative oracles to settle the outcome of the contract. However, in many cases, either an appropriate oracle does not exist or the oracle cannot be considered authoritative because of the possibility of error or corruption. Location oracles fall into this category. The divination of the location of a physical world item relies on the reporting, relay, storage, and processing components of the given oracle, all of which introduce error and can be corrupted. Risks include data manipulation, data pollution, data loss, and collusion.

 

The XYO Network is the world’s first oracle protocol that makes it possible for two entities to transact in the real world without a centralized third party.

 

The XYO Network will be built upon an existing infrastructure of over 1,000,000 devices circulating in the world that were distributed through their consumer-facing business. XY’s Bluetooth and GPS devices allow everyday consumers to place physical tracking beacons on the things they want to keep track of (such as keys, luggage, bikes and even pets).

 

The concept of provable location has been around since the 1960s, and can even be dated back to the 1940s with ground-based radio-navigation systems, such as LORAN. The most critical component we face in location technologies today: designing a system that detects fraudulent signals and disincentivizes the spoofing of

location data. The team proposes that the most significant crypto-location platform

today will be the one that focuses most on proving the origin of physical location signals. In whitepaper there is also reference to the first ever acknowledgment of the solution to this problem through blockchain on Ethereum´s Devcon 2016: Lefteris

Karapetsas project named Sikorka. Proof of Location can be understood as leveraging blockchain’s powerful properties, such as time-stamping and decentralization, and combining them with on-chain, location-aware device(s) that are hopefully resistant to spoofing.

 

Users of XYO are able to issue transactions, called \queries,” in order to retrieve a piece of location data on any blockchain platform possessing smart contract functionality.1 Aggregators from the XYO Network then listen to these queries issued to the contract and fetch the answers that have the highest accuracy from a decentralized set of devices that relay cryptographic proofs back up to these

Aggregators.

 

In the case that the same query is asked more than once, more than one answer may be produced since the answer that is produced at a given moment is based on the available heuristic the system can offer at that time. Submitting an answer to the blockchain takes two steps. First, an analysis must be done to determine the Best Answer to a query. If multiple answers are generated by the system, then nodes will compare the answers and always choose the better answer.

 

The XYO Network is designed to be an abstraction that can interact with any smart contract capable, public blockchain such as Ethereum, Bitcoin + RSK, EOS, NEO, Stellar, Cardano and others. To interact with the XYO Network, users on Ethereum, for instance, can issue queries to our XYO smart contract and pay in XYO Tokens (ERC20).

 

Given a series of data packets that are signed in sequential pairs with temporary

private keys and include the paired public keys, it can be determined with

absolute certainty that the packets came from the same origin.

 

Token metrics

 

The public token sale has a tiered pricing structure that starts at 1 ETH: 100,000 XYO and maxes out at 1 ETH: 33,333 XYO. Total issuance is finite and capped at the amount reached after the Token Main Sale. Hard cap is 48 million USD.

Unsold and unallocated tokens will be burned after the token sale event.

39,3% of tokens will be offered in the public sale.

Token use case

 

XYO Tokens to incentivize the desired behavior of providing accurate, reliable

location heuristics. XYO Tokens can be thought of as a “gas” needed to interface with the real world in order to verify the XY-coordinate of a specified object. A blockchain ledger that has more independent Proof of Origin will hold higher regard, so there is a crypto-economic penalty for a device acting as multiple components.

 

The XYO Token model incentivizes the miner to not just provide accurate data, but to

also know when to not provide data at all. The end user is rewarded to transact more when network liquidity is low, compared to when network liquidity is high. Thus the ecosystem of the XYO Token has the ability to remain well-balanced, fluid and robust.

 

Roadmap

 

MVP will be out on Q2 2018 according to the roadmap. In the second half or 2018 XY will be rolling out the GAMMA Application, which enables various tools and functionality for blockchain developers to begin generating smart contract code to interact with the real world and also XYO Network API that enables smart contract developers to write contracts to interact with XY’s network will be released alongside with the libraries. Another interesting thing on the roadmap for 2018 is the launch of the “XY-Stick” product which enables eCommerce retailers to track every single one of their products in real-time. A very important step in the year 2019 is the Formalization of business partnerships with enterprises and larger entities, which can benefit from a decentralized, trustless location oracle (e.g. logistics systems, supply chain companies, work hour auditoras, eCommerce businesses and countless other niches).

 

Community

 

5 people are currently active on their Github: https://github.com/XYOracleNetwork

Their Twitter https://twitter.com/XYOracleNetwork  has almost 3800 followers, on Youtube https://www.youtube.com/channel/UCyZDqb9pgntVHJVt1pxXtsw they have about 1300 subscribers. Their Linkedin https://www.linkedin.com/company/xyonetwork/ has about 500 followers, On Facebook https://www.facebook.com/xyonetwork  they have 4125 followers and on Instagram https://www.instagram.com/xyoraclenetwork/ there are almost 2700 followers. Telegram https://t.me/xyonetwork has about 8200 members and Reddit https://www.reddit.com/r/XYONetwork/ has 77 readers. Bitcointalk thread: https://bitcointalk.org/index.php?topic=3020460.msg31070532#msg31070532