XYO Launches Public Beta of Its Own Layer 1 Blockchain

XYO is transitioning away from the Ethereum (ETH) Layer 2 ecosystem, where it previously operated, to a purpose-built Layer 1 blockchain

Decentralized physical infrastructure network XYO announced the launch of a public beta of its own Layer 1 blockchain.

This marks a departure from the Ethereum (ETH) Layer 2 ecosystem, where XYO previously operated its token and network.

The new Layer 1 blockchain is designed to enhance the network's capabilities in handling large volumes of real-time data with high throughput and low latency, aiming to optimize it for large-scale decentralized physical infrastructure applications.

At the heart of this new iteration lies a novel consensus mechanism termed Proof of Perfect. This system enables decentralized nodes to deterministically identify the correct chain to append a block to by algorithmically ranking chain tips.

Each chain tip is evaluated based on several factors:

Validity: Verifies that the block follows the protocol rules and transactions are valid.

Recency: Prioritizes newer chain tips over older ones to ensure timely chain progression.

Protocol Alignment: Checks if the chain tip adheres to the latest version of the protocol.

This ranking process minimizes the need for nodes to process the full chain history, improving efficiency without relying on energy-intensive consensus models.

Furthermore, a lookback windowing mechanism is employed, concentrating each node's active memory on recent transactions while archiving older data for future access. This setup allows for efficient handling of real-time data while maintaining the ability to retrieve historical information when needed.

Dual-token architecture with XL1

Along with the Layer 1 launch, XYO also announced a new utility token called XL1, joining the existing XYO token.

The original XYO token will continue to serve governance functions, such as voting on proposals and participating in network upgrades, as well as staking to secure the network and earn rewards.

On the other hand, XL1 will handle the network's operational needs. This includes payment of base and gas fees for transactions and smart contract execution, priority fees for urgent transactions, and rewards for active network participants.

This structure is designed to balance long-term governance with real-time transactional efficiency, offering tailored incentives for both token holders to guide the network's direction and active network participants to contribute to its performance and security.

"By decoupling governance from transactional utility and designing lcoins to drive both performance and security, this next-generation token model lays the foundation for a truly scalable, decentralised infrastructure network that is optimised for the next wave of DePIN innovation," the company concluded.