BITCOIN IS JUST A SMALL FRACTION OF WHAT'S TO COME

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When Bitcoin arrived in 2009, it transformed how people carried out transactions online. It made online transactions safer, faster and more efficient; millions of people around the world started using and investing in it.

Today the combined market value of all digital currencies is over $275 billion… and some experts predict Bitcoin alone could hit the $1 trillion mark by the end of the year.

But why is this revolution happening in the first place?

It's primarily due to the technology at the foundation of it all, a breakthrough called "blockchain".

Blockchain, the fundamental technology underlying Bitcoin, eliminates the need for trust because it makes all transactions transparent, decentralized and secure. It has quite literally revolutionized online commerce.

People can now transact without knowing one another in what are called "trustless" transactions. There’s no need for a trusted third-party to settle disputes. People can send money from one person to another without a bank sitting in-between, taking a fee.

And then there was an even bigger breakthrough...

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MEET ETHEREUM

In 2013, there was another breakthrough...

A new blockchain platform called "Ethereum" was developed. It introduced a Turing-complete programming language into blockchain and opened up a new world of possibilities.

To understand how it works, think of Bitcoin as the Calculator app on your phone, And Ethereum as your phone's operating system which allows you to have many apps with many features. One of the main features built into Ethereum's functionality are called "smart contracts" - transaction protocols that essentially collapse payment and execution of an agreement into the same thing.

Instead of contracts being written on a piece of paper and signed in black ink, the world of Ethereum allows them to be written in computer code and executed when certain conditions are met. For instance, imagine if you want to place a $20 bet that a certain sports team will win a game. You can write a smart contract, and when the game is over, it checks the score and automatically send $20 worth of Ether (ETH) from loser to the winner.

Because the smart contracts run on decentralized Ethereum client nodes, you no longer have to rely on a third-party, like a sports book service, to facilitate this type of transaction. As a result, middlemen, and their fees, are eliminated.

The best part is that this is just the beginning.

Ethereum developers can also create their own applications which don’t rely on a central third-party authority. This is why they’re called decentralized applications or "DApps".

They run on a custom built blockchain, an enormously powerful shared global infrastructure which can move value around and represent ownership of property. All without any risk of downtime, censorship, fraud or third-party interference.

However, Ethereum had one major drawback. Because their smart contracts needed a centralized third-party for verification, it made them vulnerable to hackers.

Take the sports bet example. In the world of Ethereum, the source for where the smart contract gets the score of the game (i.e. a sports website that lists scores of games) is called an "oracle". A hacker or even an insider employee could hack into the oracle (e.g. like ESPN.com), where the contract checks the score, and change the score in their favor. Not much to worry about when it’s a $20 bet. However, it becomes a critical point of failure when you consider some transactions as high as $200,000 or more.

To get around this, multiple "oracles“ are used to build what is called "consensus"; meaning the smart contract must check with multiple oracles and they all must agree on the score of the game, for instance. That way, the contract is only executed when there's consensus and all third-parties show the same score.

Since the advent of Ethereum, there has been rapid-growth and creation of DApps and technologies related to cryptocurrency.

They’ve revolutionized how people transact online - a market which is worth $11 trillion a year.

Even in this early stage, blockchain technologies have had a major impact on the world. Yet, after seeing how they’ve changed the online world, the next natural question is...

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What if blockchain technology could be bridged to the real world?

Bitcoin and blockchain technologies have been limited to the internet. Every single new blockchain technology, cryptocurrency, or new "token", which are all economic tools used to align the underlying platform's economy, have focused on online applications, and not offline ones.

Yet the offline, real world market is still the biggest. It’s worth over $11 trillion a year. Since 2012, we've been developing location-based technologies aimed at connecting the digital world to the real world.

For the last several years, the XY has been developing the technologies critical to bringing blockchain to the offline world, in order to make them programmable and accessible to smart contracts.

To make this possible, we’ve had to overcome two extraordinarily difficult tasks: First, we've created a location-based consumer product business focused on getting Bluetooth and GPS tracking beacons out into the world. And second, we've developed ground-breaking research within the realm of location-focused blockchain technology so it is no longer limited to the online world.

After years of research and innovation, we’ve accomplished both.

XY has become the leader in the world of findable technology with Bluetooth and GPS tracking devices which allow everyday consumers to track real-world items in real-time, right from their smart phones.

XY now has over 1 million location beacon devices circulating in the world. In just a few years, we’ve created the single largest network of Bluetooth & GPS devices in the world.

HERE'S WHERE THINGS GET REALLY EXCITING

Because of the advancements we’ve made, we can track objects, from jewelry to cars, down to their exact location in real-time.

This is because everything in the world is defined by their XYZT coordinates; these things cannot leave that space.

As people or objects travel along their T coordinate (time), they interact with one another, creating what’s called metadata. A simple example of this is two or more people in a meeting or a conversation. The conversation is a record of the interaction. In the case of the XYO Network, we are taking this interaction as the time signature between these two parties - two people taking a selfie, making two copies of the selfie, signing both of them, and each taking one. That metadata which was generated is now also a permanent link between the two entities; this is a core protocol that underlies the XYO Network's platform and is covered in detail later.

But first, what all this means is, because of the XYO Network's confluence of it's location innovations combined with blockchain developments, we're able to introduce one of the most exciting ideas in blockchain today...

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The first decentralized cryptographic-location network built for the world of tomorrow

The XYO Network makes it possible for smart contracts to access the real world by using the XYO Network's ecosystem of devices to determine if an object is at a specific XY-coordinate. If it is, one can set up applications which execute transactions in the smart contract.

This has opened up a new world of possibilities. The applications of such a technology are infinite.

Take for example an eCommerce Company. With the XYO Network, they could now offer their premium customers payment-upon-delivery services. To be able to offer this service, the eCommerce company would leverage the XYO Network (which uses XYO Tokens) to write a smart contract.

The XYO Network could then track the location of the package being sent to the consumer along every single step of fulfillment; from the warehouse shelf to the shipping courier, all the way into the consumer's house and every location in between. This could enable eCommerce retailers and websites to verify, in a trustless way, that the package not only appeared on the customer's doorstep, but also safely inside their home.

Once the package has arrived in the customer's home (defined and verified by a specific XY-Coordinate), the shipment is considered complete and the payment to the vendor gets released. The eCommerce integration of the XYO Network enables the ability to protect the merchant from fraud and ensure consumers only pay for goods that arrive in their home.

This means e-commerce stores like Amazon.com can use the XYO Network to allow customers to only pay for a product when it arrives at their home.

This is just scratching the surface...