In a recent episode of SlateCast, XYO co-founder Markus Levin spoke with CryptoSlate hosts about the evolving role of decentralized physical infrastructure networks (DePIN) and the reason behind XYO”s development of a specialized Layer-1 blockchain. This infrastructure is designed to meet the increasing data demands from artificial intelligence (AI) and various real-world applications.
Levin expressed a bold vision for XYO, stating, “First, I think XYO is gonna have eight billion nodes.” This goal, while ambitious, aligns with the projected growth of the DePIN sector, which, according to the World Economic Forum, could expand into trillions by 2028. Currently, the XYO network boasts over 10 million nodes, positioning it as a key player in the transition from theoretical possibilities to practical applications.
Addressing concerns surrounding AI, particularly regarding deepfakes and the erosion of trust in media, Levin argued that the primary challenge is not merely computational power but rather the issue of data provenance. He noted that DePIN allows for the proof of data origin, enabling verification of data throughout its lifecycle. This end-to-end tracking is crucial for AI models that may need to validate their training data when questioned about inaccuracies.
Levin outlined XYO”s decision to create a dedicated Layer-1 blockchain after years of operating as middleware between real-world signals and smart contracts. He emphasized that traditional blockchains often struggle with data bloat, an issue XYO seeks to mitigate through innovative mechanisms such as Proof of Perfect and constraints that keep node requirements manageable despite increasing data volumes.
A significant driver of user growth for XYO has been the COIN app, which transforms mobile devices into network nodes. This app strategically introduces users to the crypto ecosystem by offering dollar-tied points and various redemption opportunities, gradually guiding them towards cryptocurrency involvement.
Moreover, Levin discussed a dual token model, with $XYO serving as the external asset for staking and governance, while $XL1 functions as the internal token for transactions on the XYO Layer-1. This separation of roles is intended to align incentives within the ecosystem.
He highlighted real-world partnerships, including a collaboration with Piggycell, a major South Korean charging network requiring proof of location. Levin noted that XYO data has shown remarkable accuracy, resolving issues in datasets from major geolocation partners, thereby enhancing the reliability of mapping services for large enterprises.
In summary, Levin”s insights suggest that as AI and real-world applications increasingly depend on reliable data sources, the competitive landscape may shift towards the establishment of verifiable data pipelines rooted in decentralized networks, positioning XYO at the forefront of this transformation.
