Panoramic analysis of AICoin's track project MXC: Distributed IoT Pioneer Ecosystem

Author: Black Mario, Binance

We have seen that in addition to Helium, Render Network, Theta Network, IoTEX, and other DePIN concept projects being mentioned and gaining attention in the market, the long-established IoT blockchain project MXC, which is also a DePIN concept, has once again attracted the attention of the capital market in this round of market trends. It is reported that MXC recently received a strategic investment from JDI Ventures, a DePIN investment fund under the well-known blockchain hardware manufacturer JDI Global, with a financing amount as high as 10 million US dollars. JDI Global will work with the MXC team to provide support in terms of funding, hardware development, and market influence for early-stage DePIN projects, accelerating the construction of the DePIN ecosystem. After the financing, MXC co-founder Aaron Wagener also attended the 2024 DePIN Global Hardware Conference held at Cyberport in Hong Kong on April 8 this year, once again raising the profile of MXC in the industry.

With the promotion of this good news, its token $MXC has also ushered in a new round of rise under the blessing of multiple favorable factors, and MXC has once again become the focus of the DePIN track ecosystem.

In fact, MXC is one of the earliest projects in the encryption industry with the concept of IoT blockchain, and it is also one of the pioneer projects in the DePIN field. Since its market launch in 2018, MXC's IoT ecosystem has been continuously expanding horizontally and has established cooperation with local governments in many countries in municipal affairs. Although MXC has not always performed well in the narrative of the encryption industry, on the one hand, it has excellent potential in the trend of the DePIN boom, and on the other hand, with the outbreak of various fields such as AI, autonomous driving, and home IoT, the global IoT field has ushered in a new development stage, and MXC is definitely an underestimated potential ecosystem.

This article will introduce and analyze MXC from multiple aspects to further enhance readers' understanding of MXC.

Distributed IoT Pioneer Ecosystem: MXC

MXC is an old-fashioned encryption project. Initially, it was initiated by a group of IoT and blockchain technology experts and enthusiasts in 2017, and after launching the white paper in 2018, it launched the mainnet. Focusing on MXC (Machine eXchange Protocol), it is a protocol aimed at providing a decentralized solution for data exchange and communication of IoT devices. By using blockchain technology, MXC aims to solve the problems of low efficiency and security in data exchange in the IoT field, and achieve seamless and secure data circulation between devices. MXC aims to establish a global, low-power IoT network, enabling individuals and businesses to easily connect and manage their IoT devices, while improving the efficiency and transparency of data transactions.

MXC is connected to hardware devices off-chain and uses the on-chain MX Protocol to collect and process data in a distributed manner, and under the support of the intelligent bidding protocol, the data system operates in an orderly manner. At the same time, through the "Proof of Participation" consensus mechanism, it can not only ensure the continuity and reliability of the LPWAN network, but also allow data providers to access the system through hardware devices and earn profits from it.

With the development of MXC, it has also expanded the MX Protocol protocol to Layer3 (based on Arbitrum and compatible with zkEVM) last year to help the protocol further expand and build privacy. Of course, the introduction of Layer3 is not only providing gains for its system operation, but also broadening the narrative direction of its ecosystem.

Core Features

1. LPWAN Technology

Low Power Wide Area Network (LPWAN) is a key technology in the IoT field, which allows long-distance communication (usually ranging from a few kilometers to tens of kilometers) while maintaining low power consumption, making it very suitable for devices that need to operate for a long time and cannot frequently replace batteries. Through its unique LPWAN technology, MXC provides a novel solution to promote decentralized IoT communication and data exchange.

The advantages of MXC's IoT ecosystem through the adoption of LPWAN technology include:

Long-distance communication capability: MXC's LPWAN technology can support communication distances of several kilometers or even farther, which is particularly important for covering vast urban or rural areas. Long-distance communication capability ensures that low-power devices can be connected without complex network infrastructure.
Low power design: A key advantage of LPWAN technology is its low power consumption, which means that the battery life can last for several years when devices are remotely communicating. This is very important for sensors and devices installed in hard-to-reach locations.
High connection density: MXC's network design allows for the connection of a large number of devices in vast areas. This provides the possibility for creating complex IoT application scenarios, such as smart cities, precision agriculture, or environmental monitoring.
Spectrum utilization: MXC's LPWAN technology typically utilizes unlicensed spectrum, such as the frequency bands used by LoRa (long-range) technology, which helps to reduce deployment and operating costs, while avoiding the complexity and expense of obtaining spectrum licenses.

In addition, MXC's MX Protocol is a decentralized network architecture (currently deployed on MoonChain), where anyone can deploy an LPWAN gateway, join the MXC network, and start transmitting data. This open network model promotes community participation and rapid network expansion. At the same time, the buying and selling parties established under smart contracts can automatically execute contract terms and use $MXC tokens as incentives, which is crucial for incentivizing network participants and supporting complex data economic models.

2. Intelligent Bidding Protocol and Decentralized Data Market

In the traditional IoT field, there are two main problems: competition for frequency resources and how to allocate and share the data generated by the IoT.

MXC has proposed a concept of a decentralized data market, aiming to promote the free flow of data and value discovery. By running on MoonChain, MXC ensures the security and transparent transactions of data, enabling multiple parties such as data producers, consumers, and analysts to exchange data in a fair and open environment. This not only opens up new sources of profit for IoT data but also helps unlock the huge potential of data, driving the development of intelligent decision-making and intelligent services.

Based on this, MXC has introduced a unique intelligent bidding system that allows devices in the network to dynamically adjust the bidding for channel usage rights based on data transmission needs and network conditions. In cases of abundant IoT data and network resource conflicts, MXC uses the intelligent bidding protocol to allow sensors to bid for network resources, ensuring the transmission of urgent data.

Owners of sensors (in offline IoT scenarios) can purchase network resources through market bidding.
Gateway owners (mainly data providers in the network) may use their idle resources to earn profits.

Unlike current network mobile operators, this price is determined by market competition.

This mechanism not only optimizes the allocation of network resources but also creates revenue opportunities for network participants, incentivizing more users to join the network, thereby further expanding the network scale and improving network quality.

3. PoP Consensus Mechanism

MXC network adopts the Proof of Participation (PoP) consensus mechanism, as an innovative blockchain consensus algorithm, aiming to provide a secure and efficient data exchange and communication solution for its IoT network, ensuring the continuity and reliability of the LPWAN network. PoP focuses on the actual participation and contribution of participants, rather than solely based on computing power or holdings.

Based on the PoP consensus mechanism, the contribution of network participants (such as data providers, data consumers, network operators, etc.) is evaluated based on their level of activity and participation in the network. This includes factors such as device online time, data transmission frequency, and quality, ensuring rewards for those who truly add value to the network.

According to the size of the user's contribution, the system automatically allocates rewards, which can be in the form of MXC tokens or other incentives. This reward mechanism promotes a healthier and more active network ecosystem. In addition, by rewarding users who truly participate and contribute to the network, the PoP consensus mechanism increases the cost and difficulty for malicious attackers to control the network, thereby enhancing network security and stability.

Currently, users can access the network through the M2 Pro Miner hardware device launched by MXC, which is a type of IoT miner designed specifically for the MXC network. The MXC miner works by connecting to the on-chain MX Protocol and provides connection points for surrounding IoT devices, collecting and transmitting data. In this way, miner participants (miners) can earn $MXC tokens as a reward. This process not only supports the development of the MXC ecosystem but also provides miners with a relatively passive source of income. Currently, users can easily manage the health status of the miner through the AXS App, further expanding the application scope of the MX Protocol.

4. Layer3 Chain MoonChain

For MXC, as more and more devices connect to the network, maintaining efficient operation of the network and managing thousands of communications has become a challenge. Currently, MXC is seeking to ensure scalability and efficiency by building the MX Protocol on Layer3, while also seeking privacy.

Currently, MXC has built a Layer3 chain called MoonChain around Arbitrum, which is compatible with ZkEVM, and has built the IoT platform MXProtocol as a dedicated chain for DePIN, using ZK-Rollup zero-knowledge proof technology to build an EVM network to further ensure the security and stability of IoT node data transmission. MXC is also the first blockchain ecosystem built on Arbitrum.

Relatively, Layer3 not only receives support from chains such as Ethereum and Layer2, but also has advantages in terms of scalability. It is reported that the cross-chain interaction between MXC zkEVM and Ethereum takes less than 1 minute, with a block time of 10 seconds. At the same time, the $MXC token serves as the gas token for network transactions, which is expected to improve transaction efficiency and reduce transaction costs. After the completion of the Cancun upgrade, the transaction costs of Layer2 and Layer3 are expected to decrease significantly.

Currently, MoonChain zkEVM has produced 401,894 blocks, with a total of 130,000 accounts and 317 types of tokens issued. The network is in a stable development process.

In addition, the introduction of ZkEVM not only brings privacy to MXC but also provides a foundation for building a large number of native dApps around the IoT system. MXC, from its early IoT infrastructure, is also expected to further develop into a Web3 IoT application ecosystem. It is reported that dozens of DePIN projects are planned to be deployed on MoonChain.

Current Status of Ecosystem Development

1. Business Development

MXC is one of the earliest projects to research blockchain IoT, and since its market launch in 2018, it has achieved multiple landing developments. From some of its current business situations, its main direction of cooperation is to enhance smart cities, integrating blockchain technology to achieve efficient and stable operation in various aspects of the city, as well as in other scenarios such as forest, ocean, or rural governance.

MXC's current product demand mainly comes from B-side clients such as governments and public institutions, spanning over 200 countries. Collaborators in the landing projects include: Deutsche Bahn, Bosch, Berlin Technology Bureau, Carnegie Mellon University, Canadian Tires, Enlink in Korea, Korea Electric Power Corporation, Citiesense in New York, and M2B in Japan. Potential scenarios include on-chain and transmission scenarios for data such as parking spaces, garbage bins, street lights, pedestrian flow, and traffic flow. Currently, MXC has achieved business revenue and profitability.

Currently, there are over 63,000 devices connected to the MXC network, with over 60TB of accumulated data, and the IoT network of MXC successfully covers 20% of the global land. MoonChain currently provides IoT data services to many entities, with a recent example being the collection of water quality, animal activity, and feeding system information through sensors installed at the Yangcheng Lake crab farm. Miners can earn mining rewards by processing this data.

2. Ecosystem Incentive Program

ISO Program

MXC previously launched the ISO program, which aims to promote the large-scale landing of IoT and blockchain projects. By supporting the construction of IoT projects on the MXC domain, developers can use DataDash and the community as a launchpad to raise funds using MXC, launch tokens, allow MXC mining network detection, and have sensors certified and mine tokens by miners.

Projects can release their native tokens, and miners can mine project tokens. They can invest high-quality network resources in projects they favor and receive project token incentives. Developers can use their sensors to connect to Moonchain, and miners on the network will be able to identify and certify these sensors.

Through the ISO program, MXC can attract a large number of IoT sensors to join the network, earn profits, and further enhance the data in the MXC domain network. Especially with the further growth of the MoonChain Layer3 ecosystem, this program will be further promoted and provide developers with a more convenient development and operating environment.

3. Token Market

Currently, the $MXC token has been listed on Coinbase, Binance.US, KuCoin, crypto.com, Huobi, Kraken, Gate.io, Bithumb, Uniswap, and Bitpanda, and trading is also available on the MXC Swap on the zkEVM chain.

4. Financing

In February 2018, MXC completed a $2 million Series A financing round, with investors including Atlantic Labs, Pre-Angel, and Distributed Capital, with a post-investment valuation between $10-20 million.

In February 2024, MXC announced a strategic investment from JDI Ventures, a DePIN investment fund under the well-known blockchain hardware manufacturer JDI Global, with a financing amount as high as 10 million US dollars. At the same time, JDI Global and MXC have reached consensus on some cooperation, and they will jointly provide support in terms of funding, hardware development, and market influence for early-stage DePIN projects, accelerating the construction of the DePIN ecosystem.

Future Development Potential

In fact, the DePIN market has already met the prerequisites for an explosion. On the one hand, the hardware industry is mature enough and offers a wide range of products, with low-cost construction solutions for the DePIN network. On the other hand, the development of modular blockchains and the widespread adoption of technologies such as ZKP are enabling the underlying infrastructure to closely match the business requirements of DePIN and provide support for a large volume of high-frequency business, a condition that was not present in the past few years.

Similar to RWA, DePIN is also seen as an important bridge linking the Web2 world with the Web3 world, and due to its wide-ranging scope, this track can accommodate a trillion-dollar volume. As one of the earliest blockchain projects to delve into the DePIN field, MXC has not only achieved large-scale practical implementation but has also launched MoonChain to serve more related DePIN projects and applications, aiming to further become a pioneer ecosystem in the IoT DePIN field.

In the booming DePIN field, MXC is expected to attract market attention as the overall track explodes and the ecosystem expands. Additionally, its ecosystem maintains good partnerships with popular DePIN ecosystems such as io.net and Aethir, indicating that MoonChain is likely to achieve more organic integration with these leading DePIN ecosystems, and the success of these partners will also benefit MoonChain.

Looking at the IoT track, the majority of scenarios can currently establish practical connections with hardware devices, including explosive growth in areas such as the general IoT smart terminal market. With the accelerated global digitization process, the number of IoT hardware device connections is expected to exceed a trillion in the coming years. In terms of market size, according to the International Data Corporation (IDC), the global IoT market is expected to reach nearly $15.5 trillion by 2026, with an average annual growth rate of 12.20%.

As an IoT DePIN network, MXC has the potential to support numerous IoT scenarios and has practical experience in many areas. Therefore, the enormous growth potential of the IoT market alone is expected to provide ample momentum for MXC's future business market development.

Currently, the market value of the MXC token is only $31.32 million, severely undervaluing the highly imaginative DePIN market project. In fact, whether it's the bull market effect in the crypto market, the explosive growth of the DePIN market, or the continuous expansion of the MXC ecosystem and the strengthening of the MoonChain system in the future, all of these factors are expected to drive the potential value growth of MXC. Therefore, whether in the short or long term, the expected market value of MXC has a high potential for growth.

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