The Internet of Things (IoT) is the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data. With such utility inherent to these systems, it is projected that the global IoT market will grow from $157 billion in 2016 to $457 billion by 2020, attaining a Compound Annual Growth Rate (CAGR) of 28.5 percent. However, also inherent to these systems is the problem of localization of information dissemination, or simply put, centralization.
In its current centralized form, it is difficult for IoT systems to accomplish true autonomous cooperation and effective transactions, as the relevant parties of such cooperation and transactions often belong to different stakeholders with complex, and often uncertain, trust relationships. Thus, IoT applications are significantly limited in their commercial value.
One blockchain project that hopes to offer a decentralized alternative to the current IoT systems is Waltonchain, which is developing what they call the “Value Internet of Things (VIoT),” an integration of RFID (radio-frequency identification) and blockchain technologies designed to enable all objects and information to be interconnected, even ones with independent functions. Waltonchain aims to integrate retail supply chains with VLoT to create an ecosystem wherein each component of the chain can be efficiently monitored and tracked.
Interested in Waltonchain? Here’s a quick rundown of the project:
Platform & Development
The two major elements that make up the Waltonchain platform are the RFID (radio-frequency identification) and blockchain technologies. RFID is a communication
technology that can identify specific targets and read and write relevant data through the radio signals through track tags attached to objects. WaltonChain is leveraging what is called RFID reader tags and RFID reader chips.
RFID reader tags serve as physical carriers of information that enables the tracing of items as they are circulated through the supply chain. RFID reader chips, which are considered nodes within the system, then take the data produced by reader tags to extract vital supply chain information. Here are the overarching benefits of IoT tagging that feeds into a blockchain system, as detailed in the Waltonchain white paper:
- Each tag does not need to store node data, only need to be responsible for signature verification.
- Tags automatically generate random public keys and private keys to ensure the security of Internet of Things applications, to ensure that the tag is unique, authentic and tamper-resistant.
- Tags can reduce the amount of information stored to solve the problem of blockchain overload by large amounts of data in the Internet of Things applications.
- Tags can solve the problem of slow encryption and decryption in asymmetric encryption technology.
- Tags can help truly achieve the decentralization of property management and asset management so as to make the data tamper-resistant.
The blockchain element of the Waltonchain ecosystem is broken into a parent chain and child chains. The parent chain is used for transaction management, subchain management, smart contracts, alias and account control, while the child chains can be used for subchain token transactions, subchain token and parent chain token transactions, cross subchain token transactions, smart contracts, aliases, voting system, account control, instant messaging and data storage.
Waltonchain leverages a Proof of Stake & Trust (PoST) consensus mechanism, a node reputation evaluation system which added a reputation system to adjust the difficulty of coinage based on proof-of-stake and highlight the importance of business reputation, including credit standing. Higher quality nodes earn more coinage, but subchains can choose PoS, PoST or other consensus mechanisms
The Waltoncoin is used for internal transactions, issuing subchains, distributed asset exchanges on the parent chain, and more. Currently, Waltonchain is focused on the clothing and apparel retail markets but ultimately plans to take on the entire retail space and beyond.
The Waltonchain team is based out of Asia, and have a strong R&D focus. The team has had a few blunders from a community management perspective, including the rewarding of a community giveaway to an employee, who forgot to change from the Waltonchain’s Twitter account before posting his response message. In response to the mishap, Waltonchain’s coin price dropped nearly $100 million in value.
Waltonchain (WTC) currently has a market cap of ~$310 million with a circulating supply of 24,898,178 WTC, a total supply of 70,000,000 WTC, and a max supply of 100,000,000 WTC.
Waltonchain is tackling retail supply chain, a low hanging fruit primed for blockchain IoT disruption. With stiff competition in the space, the Waltonchain team will need to be able to execute on the highest level to capture a significant market share, especially in the Western markets, for continued value creation.
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Disclaimer: The author(s) of this article may have a position in one or more of the securities mentioned above. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.