What is XYO (XYO) and how does it work?

Online data from the real world makes its way to the blockchain by way of oracles, a form of data-sharing technology integral to running decentralized applications (dApps). The XYO Network describes itself as a "reality oracle," or a network of "XY oracles" gathering and verifying geospatial data. This term refers to digital information that carries along with it an implicit or explicit association with a specific spot on the planet. Google Maps is a good example of how geospatial data is put to use.

XYO Network is positioned for a future featuring a blockchain-based Internet of Things, according to Messari. That’s because it can execute smart contracts through geo-location confirmations, making it possible for the contracts (that run dApps) to access the real world, using the network's ecosystem of devices which collectively are able to determine if an object is at a specific XY-coordinate. If it is, CoinGecko explained, one can set up applications which execute transactions in the smart contract.

The XYO Network's native asset is XYO, an Ethereum-based ERC-20 utility token. It's used as a means of rewarding contributors to the ecosystem.  XYO tokens are the “gas” needed to interact with the real-world data and verify the XY-coordinate of a specified object, CoinDesk said.

The network was created one decade ago, initially as a global customer Bluetooth and GPS network, before pivoting to building an oracle protocol for blockchain-based transactions sans centralized third parties, Messari said.

XYO deploys this protocol across nearly 1 million devices.

"We're building the bridge between secure blockchain data and the physical world," XYO says of its efforts to engineer technology for a fully data-driven world.