XYO Network is the worlds first blockchain-based, human-centric location verification network. This technology will drive future developments in the world. As the fuel for the operation of XYO Network, we refer to it as XYO. XYO Network has been dedicated to enabling developers (such as those writing smart contracts for blockchain platforms) to interact with the physical world in ways similar to APIs. XYO Network is the world’s first oracle protocol that supports two entities transacting in the real world without a centralized third party. Our virtual network allows developers to perform location validation in a trustless manner, creating a new protocol with vast potential for future applications.

Project Overview

XYO Network will build upon existing infrastructure that encompasses over 1,000,000 devices circulating globally, through our consumer-facing omnichannel business channels. XY’s Bluetooth and GPS devices allow everyday consumers to place physical tracking beacons on items they wish to track (such as keys, luggage, bicycles, or even pets). If they misplace or lose these items, they can view their exact locations through a smartphone app. In just six years, XYO Network created the largest global consumer Bluetooth and GPS network.

XYO Network comprises four primary components: Sentinel nodes (data collectors), Bridge nodes (data relays), Archival nodes (data storage), and Diviner nodes (answer aggregators). Sentinel nodes collect location information via sensors, radios, and other means. Bridge nodes are responsible for fetching this data from Sentinel nodes and providing it to Archival nodes. Archival nodes store this information for analysis by Diviner nodes. Diviner nodes analyze the heuristic location data provided by Archival nodes to generate query answers and assign accuracy scores. These answers are then fed back to smart contracts (thus, Diviner nodes act as oracles). Accuracy scores, known as Source Chain Scores, are determined through a series of zero-knowledge proofs called Source Proofs. This chain ensures that two or more pieces of data come from the same source without revealing any underlying information. Each component in the query path generates its own Source Proof, which is then linked to the data as it travels through each component. Source Proofs are a novel formula that establishes a cryptographic proof chain along the relay path within the network to provide highly credible real-world data. This Source Proof chain encapsulates our confidence in a piece of location data from the very first devices collecting the data. We will explore how Source Proofs work in the following section.

To establish a decentralized consensus mechanism between Diviner nodes, XYO Network will rely on a public, immutable blockchain – the XYOMainChain, which stores query transactions and the data collected from Diviner nodes along with their associated source scores. Before delving into the functional details of the entire system, we will clearly define the responsibilities of each component within the network.

Project Highlights

Sentinels – Heuristic Witnesses
They observe and guarantee the determinism and accuracy of heuristics by generating timestamped ledgers. The most important aspect of Sentinels is their generation of ledgers to which Diviners can add Source Proofs indicating that the data originated from the same source.

Bridges – Heuristic Transcribers
They securely pass heuristic ledgers from Sentinels to Diviners. The most critical aspect of Bridges is that Diviners can ensure that the heuristic ledgers received from Bridges have not been altered in any way. A secondary important aspect of Bridges is that they add additional Source Proofs.

Archivists
The Archivist component stores heuristics in a decentralized form, aiming to store all historical ledgers, though this is not a requirement. Even if some data is lost or temporarily unavailable, the system continues to operate, albeit with reduced precision. Archivists also index ledgers so they can return a range of ledger data as needed. Archivists only store raw data and are compensated solely for retrieving data. Storage is always free.

Diviners
A Diviner answers given questions by analyzing the historical data stored in the XYO Network. To achieve this, the heuristics stored in the XYO Network must have high levels of Source Proof, allowing the measurement of the effectiveness and accuracy of the heuristics by judging witnesses based on their Source Proof. Given that the XYO Network is a trustless system, Diviners must be incentivized to provide honest analyses of heuristics. Unlike Sentinels and Bridges, Diviners use Proof-of-Work to add answers to the blockchain.

Use Cases

Airports
One of the top concerns for airline passengers is lost or stolen luggage. Tracking all baggage through TSA checkpoints, boarding gates, and planes is crucial not only for passengers but also for overall airport safety and security. XYO Network can provide independently verified location data, helping minimize mishandled baggage and ultimately saving time and money for both travelers and airport staff spent tracking down lost luggage.

Hospitals
From medical equipment to patient and staff identification, an error in location or oversight could mean the difference between life and death. XYO Network can provide error-free, verified location reports, which are critical in such a sensitive environment. With XYO Network’s unique blockchain technology, hospitals can reduce errors and improve efficiency. This translates into fewer dosing errors, prevention of unnecessary procedures, and ultimately, lives saved.

E-commerce
XYO Network incentivizes nodes within the network to report locations and archive ledgers by rewarding them with XYO tokens. For example, when a last-mile delivery person like a UPS driver encounters an XYO Network node on their route, the node records its XYO Network ledger for archiving. Utilizing cryptoeconomics in this way leverages a key feature of blockchain technology – it is a trustless, decentralized system. This means it can provide third-party verification and a level of reliability that current tracking systems simply cannot offer.

Insurance Industry
Assets that frequently move around, from smartphones to sports cars, are prime targets for loss and theft protection insurance. XYO Network can report the location of insured items through independently verified, trustless location data. The ability to retrieve items reported as lost or stolen satisfies the insured, while the capability to locate items in cases of fraudulent claims protects insurers from fraud. Thus, XYO Network’s decentralized blockchain technology provides both insurers and the insured with the same verified data, ultimately establishing unprecedented accountability for both parties.

National Security
Government-controlled firearms appearing in areas where weapons are strictly prohibited pose significant risks. At major transportation hubs with high traffic flow and inherently evident potential dangers (such as international airports), stringent security controls are imperative. XYO Network can confirm the precise location of firearms through reporting independently verified, trustless location data. Through its decentralized blockchain technology, XYO Network can provide unparalleled security and accountability elements for arguably the world’s most targeted and high-risk institutions.

Rental Cars
For many businesses, a significant revenue stream comes from leasing goods. To mitigate the high replacement costs of lost or stolen items, being able to track the location of leased items is paramount. XYO Network can provide independently verified location data, helping minimize asset losses and ultimately save the rental industry millions of dollars annually. Integrating XYO Network’s unique blockchain technology also increases the overall efficiency of rental companies, as less time is spent on lost item procedures.

Drones
Where can drones fly? How do you prevent accidents? How do you confirm package deliveries? XYO Network can provide independently verified location data, helping drones stay within approved flight paths, avoid collisions with moving and stationary objects, and report package positions at critical points. The trustless location verification provided by XYO Network can eliminate these requirements, making the overall process and user experience smoother for customers. Integrating XYO Network’s unique blockchain technology maximizes the efficiency of implemented drone systems, a necessary condition for all nascent industries to thrive.