AIOZ Network (AIOZ)

One of the notable players in the DePIN segment is AIOZ Network, which combines some trending technology areas with the decentralized Web3 ecosystem.

What is AIOZ Network?

AIOZ Network is a comprehensive Web3 infrastructure solution based on blockchain technology for distributed and secure data storage, decentralized computing using artificial intelligence, and streaming (streaming user-generated video content).

Simply put, AIOZ Network is a kind of both Google Cloud and YouTube on the blockchain that only uses AI.

AIOZ Network provides users with their own Layer-1 (Layer-1 or L1) blockchain developed on the Cosmos Network and is also compatible with the Ethereum Virtual Machine (EVM).

AIOZ Network was founded in 2021. As of March 2024, AIOZ Network is among the top ten blockchain solutions in the DePIN space by capitalization, which exceeds $894 million, just behind BitTorrent ($1.18 billion) and MultiversX ($1.09 billion). By this indicator, AIOZ Network has already surpassed the decentralized protocols Livepeer, Helium, Ocean Protocol, and Golem in its segment.

How does the AIOZ Network work?

The AIOZ Network protocol is a multichain solution based on the Ethereum Virtual Machine (EVM) and WebAssembly Smart Contracts (WASM), a popular low-level programming language for developing cross-platform and secure applications.

The AIOZ Network blockchain connects all user nodes into a single global decentralized content delivery network called dCDN (Decentralized Content Delivery Networks).

The dCDN network consists of three fundamental types of nodes (nodes):

• Content Providers (CPS) — nodes that provide storage space or computational resources to other users in the network;
• Delivery Nodes (DNs) — nodes that enable the exchange of content or computational resources between nodes throughout the decentralized network;
• Edge Nodes (ENs) are users or, in other words, clients of AIOZ Network that rent computational resources or storage for their data. Edge nodes can join with other ENs, thus creating a more productive cluster network to solve specific computational tasks.

Users can run their node on their device by running any operating system: Windows, macOS, or Linux. The node launched by the user is managed by a special desktop application, AIOZ Network, which automatically optimizes computing resources, network bandwidth, and digital content storage mechanisms. AIOZ Network provides infrastructure for content distribution in various areas: virtual (VR) and augmented reality (AR), text and audio content, streaming video, metaverses, games, etc.

AIOZ Network, in addition to dCDN, provides 4 other key ecosystem products:

• AIOZ Cloud Web3 Storage (W3S), which provides secure distributed storage across multiple nodes;
• AIOZ W3IPFS — performant, secure, and scalable file storage with intelligent data caching with built-in CDN, also allowing to store and manage NFT tokens as well as game resources (characters, items, and so on);
• AIOZ W3AI — an innovative AI-based decentralized infrastructure that enables application developers to leverage cloud resources with artificial intelligence;
• AIOZ W3Stream — a distributed streaming platform designed to share video content between users.

What problems does AIOZ Network seek to solve?

Centralized cloud storage providers (Cloud Storage) charge relatively high fees for their services and, in addition, often cannot sufficiently ensure the security of stored user data. All customer data is stored on only a few servers, making them quite vulnerable to various cyberattacks.

Centralized providers are forced to charge high fees to compensate for millions of dollars in unused computing capacity.

AIOZ Network's W3S service provides better data security and resistance to censorship, which is another weakness of centralized cloud providers. In addition, W3S:

• Compatible with Amazon Simple Storage Service;
• Does not have any vulnerable node on which the entire system depends, unlike centralized services;
• Provides users with the ability to access their data quickly and, in addition, includes network scalability and privacy;
• Has transparent pricing with no hidden costs.

Both providers and users benefit from the model that AIOZ Network provides:

• Providers lease their excess computing resources to other users, generating additional revenue;
• In turn, customers in need of computing resources gain access to them at a reasonably low cost and without the limitations inherent in centralized services.

These are just a tiny part of the challenges that the AIOZ Network solves. Here are some more of them:

• Globally distributed content delivery system (CDN) that virtually eliminates the possibility of hacking and unauthorized access to user data;
• Optimization of computing resources resulting in low hardware maintenance costs;
• Broad application scope of the platform provided by AIOZ Network;
• Extensive scalability and no limitation on resource utilization.

AIOZ Network token

AIOZ is the primary service token of the AIOZ Network platform, used to pay for the services of decentralized providers. As of May 2024, the AIOZ token is issued on the Ethereum (ERC-20) and BNB Smart Chain (BEP-20) blockchains.

Users can rent computing power or space for distributed and confidential data storage for their needs by paying with AIOZ tokens.

About 1.09 billion AIOZ tokens have been issued, but they have a no-issuance ceiling. In other words, AIOZ is an inflationary token with a constant increase in quantity, which is why it is necessary to maintain a continuously growing demand to hold or increase the price of the digital asset. However, the demand for DePIN has increased so much that the cost of the token has increased by more than 4400% in the last year.