Bridging the Divide: How IoTeX is Connecting Cryptocurrency with Everyday Technologies

In this interview, Raullen Chai , Co-Founder and CEO of IoTeX In this interview, discover how IoTeX is leading the way in integrating blockchain with real-life use cases, addressing critical obstacles like privacy, scalability, and user adoption. By exploring novel solutions and outlining a bold roadmap, we gain insights into the future of decentralized technology, which promises to revolutionize our interactions with smart devices and digital systems.

Could you share your journey into the world of Web3? What sparked your interest and what was your initial project?

I kicked off my journey focusing on IoT, which eventually transitioned into blockchain technology. The intersection of IoT and blockchain began to gain traction around 2016-2017. Initially, there were attempts to use blockchain for handling micro-payments on IoT devices, but this approach proved to be less than effective.

Our second approach revolved around enhancing privacy, leveraging blockchain to safeguard data originating from consumer IoT devices like smart home cameras, smartphones, and automobiles. This was somewhat effective, yet the general public did not seem to prioritize privacy concerns.

Currently, we are innovating with our DePIN concept, using tokens to cultivate networks of devices that provide value while generating revenue for users. This model resembles the collaborative economy exemplified by Uber or Airbnb, but with a tokenized twist.

What distinguishes your company's privacy approach in IoT and DePIN applications from other blockchain initiatives?

Back in 2021, we explored privacy-centric architectures with a smart home camera equipped with blockchain technology designed for data protection. Our sales reached around 20-25k units in the United States, which was a commendable start.

However, we recognized that the public's concern for privacy was not as strong as expected. For crypto and blockchain to resonate widely, we must provide offerings that capture their interest. This is precisely why DePIN is relevant—it allows people to earn passive income, a feature that resonates well with the average user.

How would you describe DePIN to someone unfamiliar with blockchain technology?

DePIN operates on two fronts. On one hand, it delivers essential services—including wireless coverage, 5G access, and transportation—to people, whether they reside in fully developed cities or remote communities.

On the other hand, our mission involves simplifying the process for developers to launch DePIN projects. Creating DePIN networks can be complex, as it often integrates hardware components, interoperability with blockchain, smart contracts, and both web and mobile applications.

Our goal is to alleviate the challenges faced by DePIN creators, making it as accessible as constructing a decentralized finance (DeFi) solution. By lowering these entry barriers, we anticipate a surge of DePIN networks emerging, stretching their capabilities to genuinely cater to everyday users.

How does the IoTeX DePIN liquidity hub seek to tackle liquidity challenges for DePIN tokens?

Our DePIN liquidity hub is one of the key public resources we offer. It targets the liquidity dilemma faced by nascent DePIN projects whose tokens haven't been listed on significant exchanges yet. This hub provides that essential initial liquidity for these tokens backed by IoTeX, thereby aiding projects in scaling their device networks from a few initial units to hundreds or even thousands, enabling them to realize their vision.

Have you encountered any obstacles while deploying DePIN solutions and fostering developer adoption?

The primary hurdle lies in the intricate technology landscape surrounding DePIN projects. They demand collaboration across various domains, including firmware, hardware, software, blockchain, smart contracts, and mobile applications, which raises the bar for many developers.

That’s why, with IoTeX 2.0, we are emphasizing modularity. Each element of our technology is being separated into manageable modules, which developers can directly utilize without needing to grasp all underlying complexities. It’s akin to assembling structures with LEGO bricks—DePIN creators can easily launch their initiatives by piecing together distinct modules.

What’s your take on the current state of modularity within blockchain technology?

Modularity has long been a fundamental concept in the software domain, particularly within infrastructure applications. This principle is gradually making its way into blockchain technology, with projects like Celestia emerging as noteworthy instances in the layer 1 and layer 2 sectors.

As blockchain systems evolve and become increasingly complex, adopting a modular approach seems essential. Take Ethereum as an example; it's now operating with multiple layers, including layers 1 and 2, as well as data availability layers, and discussions are ongoing around proposer-builder separation. Embracing modularity allows these intricate systems to be divided into smaller, more manageable segments that various teams can focus on. Our objective is to channel this successful model into DePIN, which itself presents a particularly intricate set of technologies.

In what capacity does IoTeX see itself contributing to the decentralized AI sector, specifically regarding the challenges associated with decentralized computations for large AI models?

AI stands to gain tremendously from DePIN initiatives. Successful AI ventures hinge on three crucial elements: computational power, effective models, and abundant domain-specific data. DePIN assists in fulfilling all these criteria. For instance, projects like Iodanet and Akash are pioneering decentralized GPU sourcing for AI algorithms.

BitTensor is exploring competitive methods for different AI models to tackle specific problem sets. Within IoTeX, we're actively engaged with numerous initiatives aimed at sourcing and aggregating data for AI models, such as Network 3, Environment Blocks, and PowerPoint. We serve as an infrastructure backbone for these AI-focused projects, and the outcomes look promising.

Does IoTeX leverage AI internally for services such as data analytics?

Absolutely! We harness AI capabilities to enhance our team's productivity. For instance, we utilize ChatGPT for various tasks ranging from meeting summaries and policy documentation to coordinating logistics.

How does IoTeX technology tackle the challenge of guaranteeing trust in IoT data for executing smart contracts or engaging in AI-related training?

This question is a core aspect of our 2.0 vision, which we refer to as DePIN Verification. As DePIN expands, we will find ourselves managing inputs from countless devices relaying data back to the blockchain to confirm that tasks have been performed accurately. To manage this extensive data flow, we require off-chain computing solutions. Our collaborations with projects like Filecoin and RISC Zero aim to facilitate data storage and generate ZK-SNARKs to validate events, such as confirming that a vehicle traveled from one location to another. These succinct proofs can be substantiated by smart contracts, which in turn enable us to process and authenticate large volumes of IoT data efficiently.

How do you envision the future of DePIN technologies converging with cutting-edge trends like 5G networks and edge computing?

We have two initiatives actively working in these fields. For edge computing, a project called Network 3 is setting up devices in close proximity to users, capturing and processing data on the spot to reduce latency. On the 5G front, we have a project named Wayru that seeks to replicate Helium’s success throughout Latin America. While DePIN networks may not entirely replace conventional telecom setups, they can significantly augment connectivity options, particularly in areas lacking robust traditional infrastructures.

What advancements do you foresee in the DePIN realm over the coming three years?

There has been a notable uptick in DePIN projects emerging since the tail end of last year, particularly from individuals bringing expertise from transportation, energy, and consumer IoT backgrounds. This momentum shows no signs of slowing down. DePIN possesses the unique capability to introduce cryptocurrency to everyday users in a straightforward manner.

Just as people utilize smartphones without grasping the underlying mechanics, DePIN can deliver simple yet effective devices that offer value or revenue streams, transforming users into cryptocurrency participants, often without their conscious recognition. With significant investments flowing into the crypto landscape, evidenced by recent Ethereum ETF approvals, cryptocurrencies are firmly establishing their place in the world, and DePIN is leading the charge.

Could you provide insights into the current IoTeX roadmap? Are there exciting new developments or partnerships on the horizon?

Regarding IoTeX 2.0, we are collaborating with various infrastructure projects to integrate them into the DePIN ecosystem, including those concentrating on ZKPs, storage solutions, data streaming, messaging, and identity management.

We are also partnering with DePIN developers to simplify the launch process, offering an accelerator program that provides guidance and seed investment opportunities. Looking ahead to the next three years, we foresee impressive growth in the number of scalable DePIN projects—potentially expanding by a factor of 100 from our present capabilities.