If you're interested in mining to earn XYO, mining XYO tokens works in much the same way as mining cryptocurrency, but instead of your mining equipment performing calculations for transactions, your mining equipment performs bound witnesses. People who want to use that data then pay XYO tokens to get them.
You own devices which can be used as nodes (network components). There are two different "edge" nodes, which are called sentinels and bridges. Sentinels create bound witnesses, bridges collect and upload bound witnesses to XYO Network. A lot of devices can work as both kinds of edge node, meaning that they can create bound witnesses and then upload them.
Technically, the nodes of XYO Network run on devices and are not the devices, themselves. They're either software or firmware which makes the device run as a node, for example an app that uses your phone to be a bridge. For our purposes, we're going to refer to nodes as devices, because they'll usually be the only node running on a dedicated device.
- The bound witnesses are stored by a third kind of node, called an archivist, which will usually run on a server or computer that can keep the data safe long-term.
- The last node is called a diviner. The diviner is capable of complex functions which allow it to search through archivists connected to XYO Network and find specific bound witness data.
- A party interested in collecting data for their purposes uses a diviner to search the archivists on XYO Network. They pay XYO tokens through the diviner to get back the data they're looking for.
- The bound witnesses stored on the archivists have the payment keys (an I.D. number) of the users who own the nodes that made the data. If the diviner winds up using the data, a portion of the XYO tokens that the diviner was paid is doled out to every payment key associated with a bound witness that was used by the diviner. (And the owner of each node that was used gets a portion of the XYO tokens used for the transaction.)
- If your bound witnesses are used, your payment key is paid in XYO tokens.
- XYO tokens are an ERC20 token, which can be sold and traded on Ethereum-based cryptocurrency exchanges and whose value can be tracked on those exchanges. You can see the value of XYO tokens right now on Coinbase and other popular exchanges.
A good way to envision this, especially since we use words like "tokens," is as a vending machine. One party produces the goods in the vending machine, one party loads the goods into the machine, one party is the machine, and one party is the payment mechanism for the machine. The goods inside, let's say for the sake of this exercise, cost 100 tokens, and those 100 tokens get doled out to each of the four parties that got the goods to the person who bought them – 25 for the maker, 25 for the loader, 25 for the storage, and 25 for the transaction.
Real world transactions won't break down so neatly, but this is the basic idea of the model. ERC20 utility tokens like XYO have the same function as physical tokens you might use at an arcade or a laundromat. The proprietary token runs the machine, and in turn it can be traded for cash – or in this case, Ethereum cryptocurrency.
Third parties can choose to be any one of these four components, but archivists and diviners will be easier for developers, engineers, and advanced enthusiasts to produce and use. For most miners, producing the product – bound witness data – will be the mining method of choice.
How can I take action? What's available now?
Part of this process has been developed, and part of it is still in development. Here are some of the critical components available now:
- Geomining Equipment
SentinelX and BridgeX are XYO's own branded versions of the sentinel and bridge nodes. SentinelX is a Bluetooth beacon with a long-life battery, capable of detecting data like its proximity to another Bluetooth device. BridgeX is a small computer (a Raspberry Pi) with bridge firmware which is capable of connecting to Bluetooth and WiFi devices to collect and produce bound witnesses.
- XYO Network App for iOS and Android
Allows your phone to become an edge node, working as both a sentinel and a bridge and capable of connecting to other sentinels. The app, itself, is your bridge and will display your bound witnesses.
- Software Development Kits
SDKs are the XYO plugin that allows parties developing apps to make those apps XYO-enabled. They are open source and free to use, but very advanced and designed for software developers.
The official XYO diviner interface, currently in the beta phase, and available for use by anyone. The Explore interface is the first diviner interface capable of accepting XYO for queries and paying out XYO for queries. You can see the transactions here.
Want an easy way to start? Try COIN!
If you want an easy way to get your foot in the door, the best thing you can do is download the free COIN app. COIN is a division of XYO and the COIN app is a fun and easy way to produce data and get XYO tokens.
If you have a BridgeX or a SentinelX, you can even use them with COIN. But you don't need anything, the basic COIN app is free to use for anyone who wants to join in.
If you have any questions about or need help with COIN, please see the COIN help center for further resources or to contact the COIN support team.