IOST Crypto: Can Its Proof-of-Believability Platform Deliver?
Smart investors need to shop around the myriad of crypto projects to maximize returns. This often means looking beyond the likes of Bitcoin and Ethereum to seek out the diamonds in the rough. Is IOST crypto a candidate, or one to pass on?
Such an approach does come with risks, and for every diamond, there’ll be 10 false hopes. Considering IOST coin currently hovers in and out of the list of the top 100 cryptocurrencies by market capitalization, it’s fair to say that it’s still small fry. But does that make IOST crypto a good investment?
No, of course not. You’ll need more information to make a well-informed judgement.
To help you answer this question, we’ll run through how the IOST protocol works, the IOST crypto price history, and what the coin is used for.
IOST crypto review
IOST is the native token of the Internet of Services protocol, which is where the acronym comes from. Its focus isn’t on providing an alternative currency (like bitcoin) but to create an entire blockchain ecosystem.
Similarly to the Ethereum blockchain and other competitors such as Solana, IOST is setting out to form the foundation for all kinds of decentralized applications and services, from finance to gaming and everything in between. It focuses on scalability so it can be suitable for high-volume users such as large enterprises. We’ll get more into this shortly.
IOST price history
But before we delve into the technical details of how IOST works, let’s cast a look at its price history so you can assess the coin’s potential.
While most cryptocurrencies start off at a low point when they’re first launched and see their price climb gradually over time, IOST coin enjoyed its biggest spike almost immediately. After its launch in January 2018, the price shot up to $0.13 within weeks. Unfortunately, it seems this was down to an initial hype that wouldn’t last, because it fell to $0.017 by March 2018. Quite the fall from grace.
Although IOST saw a recovery a few weeks later, the IOST price remained around the $0.01 level (sometimes going even lower) over the next few years.
In 2021, there was finally a change of fortunes, and IOST enjoyed its next price spike up to $0.079. It was still a long way from the January 2018 value, but significantly higher than where it had been for the past few years.
The price fell down to $0.019 in June, before climbing up to $0.079 again in September. Naturally, it dropped promptly down, and the closest it’s got to returning to that previous value was reaching $0.04 in 2022. But could things turn around in the future? That depends on what you think of its features and how it compares to its competitors, which we’ll get to shortly.
What is IOST crypto used for?
IOST’s primary use is being the native token of the Internet of Services protocol, which means it fuels just about everything the platform offers. It can be used for fee transactions, and to pay for different services built using the protocol (e.g., charges for taking out a loan).
The place of IOST was once taken by ERC20 token, which processes smart contracts in Ethereum, but the team has since introduced its own token to perform this function.
However, the real value of IOST comes not from what it does as a token, but from the strength of the platform it’s behind.
Where to buy IOST crypto
You can buy IOST from many major cryptocurrency exchanges, including Binance and OKX. It’s currently not available on Coinbase and other big names, but this may change if and when the cryptocurrency secures its place solidly within the crypto top 100 for market capitalization.
IOST platform explained
As we’ve touched on already, IOST is essentially setting out to be a blockchain network that performs a similar role to Ethereum: A protocol that serves as a starting place for building all kinds of other blockchain applications.
However, it aims to be better, faster, and more efficient than Ethereum, which is known to have scalability problems. IOST can process 100,000 transactions per second—that’s much more than the 20 transactions per second Ethereum can manage, and blows other competitors out of the water too (although many protocols claim fast transactions are their selling point). All of this helps IOST to be faster and more efficient.
Its main target audience is businesses, especially tech firms. These companies could use the blockchain to improve their services, but as they have millions of customers to cater for, they need something that’s faster than any mainstream protocol.
Some of IOST’s most important features are:
- Hyper universe distributed system: Service providers can store their data on network nodes without facing restrictions.
- Efficient distributed sharding: Increases scalability by dividing its blockchain into smaller parts to handle data and transactions more easily.
- Node Partners Program: Used to find nodes, the network members that control everything on the platform in place of a centralized authority. Those who get involved have the chance to receive rewards and share profits.
However, what really makes IOST special is its consensus mechanism.
If you’re familiar with crypto, you’ve probably come across proof-of-work (responsible for bitcoin mining) and proof-of-stake (behind many popular crypto projects like Solana and Ethereum 2.0). It involves users staking their crypto to bet on whether a transaction is valid; when multiple people do the same thing, it makes it possible to reach a consensus.
Well, IOST uses something completely new: Proof of Believability (PoB).
This is similar to proof-of-stake, but has mechanisms that measure how much reputation each node has accumulated. In proof-of-stake, certain validators (the nodes that validate transactions) may start to become too powerful and lose the incentive to be compliant in place of manipulating the system for their own benefit. But PoB prevents this from happening.
A believability score measures how much IOST a node has and how many Servi tokens (a token that measures their contributions) they’ve earned, as well as positive reviews from other nodes. Also, every time a node verifies a block, their Servi balance goes back to zero, meaning other nodes will verify blocks, which stops one node from having the monopoly over verification. To earn more Servi, nodes must contribute to the IOST community.
Should you invest in IOST?
We could sell you a dream of all the things IOST is setting out to do and what makes it special, but the truth is, a lot of crypto protocols are trying to become the fastest, most efficient place to build applications.
While IOST has a chance of success, investing in IOST is a risk as it could lose out to competition. It has potential, but its success certainly isn’t guaranteed.
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