IOST is one of many layer 1 solutions out there, but it has several strong advantages over its competition.
First of all, it’s important to determine exactly where IOST stands in the competitive blockchain platform hierarchy. IOST is short for “Internet of Services Token” and is an ultra-high TPS blockchain for the internet services industry. Aiming to be the first blockchain platform that attains real world usage, it has a few notable applications on top of it with more daily active users (DAUs) than anywhere else in the industry:
- Berminal, a real-time cryptocurrency news platform and mobile app with a full-time staff of professional reporters creating and curating content. ~20K DAUs
- Bermi, a community of video creators sharing the best in short video content. Earn rewards as you watch, share and like engaging videos. ~10K DAUs
Ethereum, IOST’s most well known competitor, has had a long history of issues with scalability. In its most famous example, CryptoKitties (a game based on Ethereum where you can collect digital cats) brought the Ethereum network to its knees with 10K users.
IOST can scale to 100,000 TPS through the use of both full nodes and “Simplified Payment Verification” nodes. While the former is a traditional full node (with full throughput, and the entire blockchain stored) the latter is a lightweight node that can simply verify transactions. An eventual goal in the IOST ecosystem is to allow phones and other smart connected devices run nodes for the ecosystem.
As a reference to the 100,000 number TPS IOST can scale to, currently the Ethereum network can reach 15-25 TPS and Visa processes about ~1,700 TPS (on average).
Other well known blockchains such as EOS, Zilliqa and IOTA all can scale to ostensibly high TPS as well – these are associated with a level of centralization, however, that many argue removes the purpose of a blockchain.
IOST has large and reputable names in the financial space backing the project. These names include Sequioa, Matrix Partners, DHVC and FBG Capital. These are generally associated as a positive signal for other investors, and are sometimes a prerequisite for smaller funds to take a stake. Rival blockchains rarely have such reputable names backing their projects – believe this one of the true differentiators for IOST.
Reputation & Developers
In the development realm, we’ve seen a large migration of ETH developers leaving for other blockchains. It’s simply not feasible to wait another potentially 12-18 months for scalability solutions. In addition, building applications on top of a slow base architecture seems like dooming the application to failure – so developers feel like they have no choice. We’ve seen EOS take market share so far, but with the launch of IOST’s testnet back in late 2018 and the launch of their mainnet on February 25, we’re confident in IOST’s ability to gain traction within these communities. To serve as another positive metric, we can turn to IOST’s Telegram, where there are 55,000+ members.
With these three key differentiators, IOST has positioned itself excellently to capture the migration of developers from Ethereum. With the developer talent will come dApps – which increases the use of the ecosystem. Sutler is excited to invest in IOST projects, funding developer work and incubating world-changing applications worldwide.