MXC – a symphony of LPWAN, Blockchain and Big Data
The MXC Foundation has developed a business model for the IoT that combines the potential of the Big Data Economy with Blockchain technology and the Low Power Wide Area Network (LPWAN). How it works explains this article.
The name MXC sounds cryptic, and what the Berlin-based MXC Foundation is doing has something to do with cryptology – specifically, crypto-assets. Nevertheless, it is not really something mysterious or even aloof. The charitable foundation combines important elements of the IoT ecosystem – LPWAN (Low Power Wide Area Network) and Blockchain technology. The goal of the new business model is “to revolutionize the Internet of Things” and to make a breakthrough for the data economy. “
Venture capitalist Jeffrey Wernick, who has already caused a stir with his involvement with Uber or Airbnb, explains his commitment to MXC as follows: “MXC’s vision is to create a systematic process to simplify and increase the number of IoT data transactions. I’ve spent my entire life trying to remove middlemen from business processes as much as possible and opening up this closed market to anyone who wants to participate. So my entry into MXC was just a logical conclusion. “
The MXC Foundation and its business model
And this is how it works: Through gateways that provide access to a growing IoT data network, organizations and individuals can feed data into the network and actively participate in big data trading based on smart contracts. The means of payment for the data is the MXCoin, which, in contrast to other crypto-coins, becomes a crypto-currency with a real
In addition, MXC’s business model eliminates existing barriers to unlocking the IoT market (such as lack of reach), eliminates the shortcomings of wireless standards such as WiFi or 3G / 4G, and allows for networking of things as well as large-scale data sharing distances. Last but not least, it clears the way for building business models based on data, as industry experts demand, especially in Germany, where data economy issues are concerned.
The technological concept behind MXC
Based on the blockchain technology and the LPWAN, MXC has laid the foundations for a decentralized IoT data network that offers potential for a variety of business models. The technological concept of MXC consists of the following elements:
Block chain technology
Blockchain is a cryptographic chaining mechanism in a decentralized accounting system and is considered the technical basis for cryptocurrencies. Later transactions always build on previous ones and must confirm them; Blockchain offers a tamper-proof and tamper-proof system for automatic data transactions. These data transactions are made directly end-to-end, that is without “mediation” by third parties (intermediaries) and are therefore more cost-efficient. The MXC technology works without “mining”, ie without securing data transfers by third parties. As a result, data transactions are quickly confirmed and no transaction fees are due to third parties.
The Low Power Wide Area Network (LPWAN) is a network protocol for connecting low power devices (e.g., battery powered sensors) to a network server. It is characterized by a high range (up to 40 km) and low energy consumption. Since LPWAN networks are an alternative to traditional mobile networks and therefore incur no license costs, they also offer low operating costs. The LPWAN is particularly suited to IoT business models that aim to connect a high (and growing) number of devices in the network and to facilitate the exchange of data between many market participants.
Connectivity standards such as WiFI or 4G / 4G were originally developed to connect people, but not an extremely fast growing number of devices of all kinds in the Internet of Things. WiFi has only a short range (around 100 meters), while 3G / 4G has a much higher energy requirement than LPWAN. This shortens battery life and increases costs.
LPWAN has a very high range (up to 40 km), requires little energy and thus allows a long life of sensor batteries (around ten years). These are factors that enable cost efficient and very fast data transactions. In addition, the network provides an extremely high number of connection points (over 60,000 for a single network cell) – also a key requirement to network many things. The “localization” or location of the devices does not require GPS data, thus ensuring data protection throughout the entire end-to-end data transaction process.
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