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Feb 21 · 15 min read

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Smart Contracts, like those used by Ethereum and other cryptocurrencies,

will fundamentally change the way we interact and do business by
streamlining processes, reducing risk, and cutting out middle men. One thing
all Smart Contract platforms lack, however, is a de nitive way of proving that
something or someone was in a given location at a speci c time. An
authoritative, trustless, and decentralized proof of location oracle is essential
for the idea of Smart Contracts to be adopted by the mainstream world.

The XYO Network will be the de nitive location oracle because of two core
concepts it introduced: Proof of Origin and Bound Witnesses. The concept of
Bound Witnesses guarantees that two di erent components of the XYO
Network were in the same location at the same time. Proof of Origin ensures
that the information a component provides is valid and resistant to
falsi cation. Detailed information on both of these concepts is available in the
XYO Network white paper.

Providing authoritative proof of location has the potential to change the

world. Here are just a few ways the XYO Network will disrupt existing
industries.

1. Implementing a Pay-on-Delivery eCommerce

system using Smart Contracts and the XYO Network
The XYO Network incentivizes the reporting of locations and archiving of
ledgers by awarding XYO Tokens to nodes within the web. For example, when
a last-mile courier like a UPS driver encounters an XYO Network node on their
route, the node will record their XYO Network ledger to be archived.
Leveraging cryptoeconomics in this way takes advantage of a key feature of
blockchain technology — it’s a trustless, decentralized system. This means it
can o er third-party veri cation and a degree of reliability that current
tracking systems simply can’t provide.

Problem
According to a recent study released by Comcast, more than 30% of
Americans have had a package stolen from their porch or doorstep [1]. As the
market share of eCommerce continues to grow, this problem will only become
more prevalent. Megasites like Amazon are experimenting with di erent
solutions to o er con rmed secure delivery as a premium service to their
customers.

Solution
By utilizing the XYO Network and XYO Tokens, companies can o er an
independently con rmed ledger to track every step of a shipment’s progress,
starting at the ful llment center and ending with the package’s secure
delivery within the customer’s home. As a trustless and decentralized system,
the XYO Network provides independent con rmation not only of a package’s
delivery, but of its entire shipping history. This also allows a retailer or
eCommerce site to o er payment upon delivery, utilizing an Ethereum smart
contract to protect the merchant from fraud or loss.

How it Works
When a customer nalizes an order, an Ethereum smart contract is created
which will release payment to the merchant upon successful delivery of the
purchased product. The shipment will include an XYO Network Sentinel, a
low-cost electronic device that records its interactions with other devices on
the XYO Network on its blockchain ledger. Other XYO Network devices will
likewise record their interactions with packages being shipped. Every one of
these interactions will be independently veri able, asserting a web of
locational certainty that stretches all the way back to the shipment’s point of
origin. When the shipment reaches its destination, as con rmed by its
interaction with XYO Network devices within the buyer’s home, the smart
contract will be ful lled, and payment will be released. Should there be a
dispute, the ledger will provide a history that can con rm the delivery of the
shipment or show where it went o track.

The terminal point of the transaction — the point where the package is
delivered and payment is released — will be determined at the time the order
is placed. Amazon has experimented with multiple secure delivery systems,
including lockers in public places like convenience stores and even electronic
locks that give their delivery team access to customers’ homes. XYO Network
devices within these secure locations will con rm delivery. In an Amazon
locker, the shipped package will interact not just with its locker, but with XYO
Network devices in other lockers and the customers that use them. In the
customer’s home, the XYO Network nodes could include the customer’s
phone, IoT devices, and even the Amazon Echo that was used to place the
order.

2. Protecting public safety and privacy by creating a

universal location protocol for automated drones
There has been signi cant buzz recently around drone technology and the
role it will play in our future. From emergency medical supply delivery to one-
hour eCommerce delivery, advancements in drone automation bring these
applications closer to reality each day. This raises very valid and practical
questions for both the entities that will use drone technology and those
a ected by it. Where will the drones be able to y? How will accidents be
prevented? How will package delivery be con rmed? The XYO Network can
provide independently veri ed location data that can help keep drones within
approved ight paths, avoid collisions with both moving and stationary
objects, and report package location at key points. According to Amazon CEO
Je Bezos, the platform’s current plans for delivery con rmation require the
customer to print out their own pre-generated symbol from a physical printer.
The XYO Network provides trustless location veri cation that eliminates this
requirement, making the overall process and user experience smoother for
the customer. The integration of the XYO Network’s unique blockchain
technology will maximize the e ciency of the implemented drone systems,
which is imperative for all newly-established industries to thrive and scale.

Problem
Numerous entities are very close to implementing automated drone services,
from eCommerce giants like Amazon and Walmart to Google/Alphabet’s
Project Wing to the numerous drone mapping services already in operation.
Ensuring public safety, securing personal privacy, and maintaining
compliance with FAA regulation will become increasingly challenging as
guidelines are altered and skies become more crowded.

Solution
By utilizing the XYO Network, automated drones operating independently of
each other will be able to communicate their relative and absolute locations
using a universal protocol. Drones that are not inherently able to
communicate with one another can take advantage of the XYO Network and
still interact through third-party intermediaries, including independent
devices or other drones. Interactions between devices on the XYO Network are
also recorded on the blockchain, a decentralized ledger. This means that all
automated drones are held publicly accountable in the event of an accident,
regulation infringement, or breach in safety or personal privacy through the
availability of a permanent and unalterable record of all device interactions.

How it Works
Every drone that is connected to the XYO Network will include a device called
a Sentinel. Sentinels record and transmit heuristic data like time, location,
speed and temperature. They also communicate with other Sentinels and
keep a record of these interactions. This history is transmitted to the
blockchain via an XYO Bridges, which can either be included on the drones
themselves, or as independent devices. The entire history of heuristic data
and device interactions is archived on a decentralized, publicly accessible
blockchain.

Drones operated by di erent companies or produced by di erent

manufacturers may very likely lack a universal standard of wireless
communication necessary to communicate directly with each other. The XYO
Network is platform-agnostic and is not tied to any one radio broadcast band
or communication protocol. This means that Bridges can act as middlemen
between devices that would otherwise not be able to correspond with each
other. Devices on the XYO Network can help improve each other’s data,
allowing for greater accuracy among all drones. For example, if one drone
uses GPS for location calculation, and another triangulates o of cell towers,
comparing their data at the time of interaction will independently verify both
devices’ histories. A device on the XYO Network that doesn’t have an
independent geo-positioning system will also be able to use the drones’
heuristics to con rm its own location.

3. Reducing medical errors and increasing hospital

accountability using the XYO Network
Hospitals are among the most demanding and perilous establishments in the
medical eld. From medical equipment to identi cation of both patient and
sta , a single misplacement or mistake could mean the di erence between life
and death. The XYO Network can provide trustless, veri ed location reporting
that is critical in such a sensitive environment. The feasibility of error
reduction and increased e ciency in hospitals is made possible with the XYO
Network’s unique blockchain technology. The implications could reduce
prescription dosage errors, prevent unnecessary procedures, and ultimately,
save lives.

Problem
Medical errors are the third leading cause of death in the United States,
according to a study released by the Johns Hopkins School of Medicine. Many
of these preventable deaths are a result of operational or record-keeping
errors, including adverse drug interactions, improper medical records, and
even unnecessary surgeries. In a letter to the Centers for Disease Control and
Prevention, the study’s author, Dr. Martin Makary, stated:

“It is time for the country to invest in medical quality and patient safety
proportional to the mortality burden it bears. This would [include] research in
technology that reduces harmful and unwarranted variation in medical care.”

— Dr. Martin Makary

Solution
By tying the XYO Network into the operational frameworks that are already in
place in hospitals, care providers can signi cantly reduce failures in
communication and record keeping that result in patient injury and death.
Utilizing the XYO Network and XYO Tokens can provide a trustless,
decentralized, and independently veri able record of all patient interactions
with any sta as well as a log of relevant patient data such as the patient’s
vitals, treatment details, and test results for the duration of their stay.

How it Works
The XYO Network is a web of devices that record and archive heuristic data
using a blockchain ledger. Whenever a device on the XYO Network interacts
with another XYO device device, it logs this interaction. By reviewing this
ledger of interactions and the additional data it provides, it’s possible to verify
with a high degree of certainty that a speci c interaction happened at a
speci c time in a speci c location.

For example, imagine a patient, John Doe, who is admitted to the E.R. John is
given an identi cation bracelet that is also an XYO Network Sentinel, which
keeps a record of any XYO Network devices John interacts with. The monitor
that reads John’s vital signs is also a Sentinel. It logs John’s vitals as heuristic
data, and the communication between the two devices eliminates the
potential for human error in record keeping. The monitor also serves as an
XYO Network Bridge, reporting and archiving the blockchain ledgers of any
Sentinels it interacts with.

When John is treated by a doctor or nurse, these interactions are recorded on

John’s ledger, the monitor’s ledger, and the ledger of a Sentinel embedded in
the sta member’s hospital ID. The XYO Network could even keep a log of
medications John receives, and because a Sentinel could be linked to the
medication itself, it could provide con rmation that the correct dosage of the
correct medication was administered, con rming the accuracy of John’s
medical record.

4. Implementing a decentralized, universal, and

transparent luggage tracking system using the
XYO Network
One of the largest fears an airline traveler faces is having their luggage lost or
stolen. Accounting for all baggage moving through TSA checkpoints, gates,
and airplanes is important not only for travelers’ piece of mind, but to the
overall safety and security of airports as a whole. The XYO Network can
provide independently veri ed location data that can help minimize luggage
mishandling and can ultimately save travelers and airport sta time and
money spent trying to track down missing baggage. Due to its decentralized
nature, the integration of the XYO Network’s unique blockchain technology
also allows di erent airlines to access the same data without needing to
implement of a unifying system. Usage of the XYO Network’s technology to
improve e ciency and safety for airlines has long-term bene ts which include
increased cost reduction, customer loyalty, and better business reputation.

Problem
Lost and mishandled luggage costed airlines $2.1 billion dollars in 2016,
according to a study by SITA. While systems are improving, the complexities
of air travel still result in millions of angry passengers with lost bags each
year. The baggage-handling and tracking systems currently used by airlines is
not only error-prone, but also lacks transparency and the proper
infrastructure needed to track and verify the location of their passengers’
items.

Solution
The XYO Network has implemented a decentralized, trustless system for
tracking and locating luggage. Its decentralized nature even allows airlines to
utilize each other’s networks without compromising the airlines’ network
security or needing to coordinate system updates — this means that if you’re at
the United desk in Dallas, but your bag is at the Delta desk at SFO, the bag can
still be instantly located by accessing the XYO Network Ledger. Should a bag
be permanently lost and a passenger le a claim with the airline, the
decentralized and trustless nature of the blockchain ledger allows both
parties (the airline and the passenger) to independently verify who had
possession of it last.

How it Works
The XYO Network makes use of a ordable hardware devices called Sentinels,
which record heuristic data like location, temperature, motion and other
signals. Each of these Sentinel also share and record the activity of other
nearby Sentinel creating a blockchain (decentralized ledger). For example,
every bag in a cargo hold would be able to communicate with other bags in
the hold, sharing information like when they were checked in, when they
were moved, and what baggage handlers or TSA sta handled them. IoT
devices called Bridges hand o all of this heuristic data to decentralized
nodes. These nodes will be rewarded with XYO Tokens for relaying and
archiving the information. This way, a cryptoeconomics-based incentive
aggregates within the system to provide accurate and trustless historical data.

The decentralized nature of the XYO Network means that the tracking systems
put in place by the di erent airlines can support each other without the need
for the airlines themselves to implement a uni ed baggage handling system.
As in the example above, a Delta-owned Bridge will be able to report the
history reported by a United-owned Sentinel, and vice versa. Since the
location and tracking information is communicated via a decentralized
ledger, there will be no need for Delta and United (nor any other airline) to
waste resources building out systems that need to communicate directly.

5. Insurers of high value goods can reduce the risk of

fraud and increase the possibility of recovery using
the XYO Network
Loss and theft protection is a major feature that many insurance companies
o er. From mobile phones to sports cars, owned assets that roam around on a
regular basis are prime candidates to be covered under this type of insurance.
The XYO Network can report an insured item’s location by providing
independently veri ed and trustless location data. The ability to recover an
item that has been reported as lost or stolen satis es the insured party, and
the ability to locate such an item in the case of a falsely reported claim
protects the insurer from fraud. The XYO Network’s decentralized blockchain
technology thusly gives both the insurer and the insuree access to the same
veri ed data and ultimately establishes unprecedented accountability for both
parties.

Problem
Insurance for vehicles, modular homes, and other high-value, high-mobility
objects can reimburse for theft, but can’t inherently assist in locating the
original good. The insurance industry is also susceptible to fraud, especially in
the case of insured items that are highly mobile.

Solution
XY is already working with an insurance company that covers high value, high
mobility goods to help them process claims and recover insured goods. Using
the XYO Network, a decentralized and trustless location-based blockchain
ledger, the company and its customers have access to an independently
veri able location history in the event of a claim. Additionally, police
investigators can access this location history in their attempt to recover stolen
goods.

How it Works
Each insured good is equipped with an XYO Network device that serves as
both a Sentinel and a Bridge. Sentinels record heuristic data like location,
temperature, speed, and other situationally appropriate information. They
also record their connection with other nearby Sentinels along with the
history of those Sentinels, building a distributed ledger or blockchain. Bridges
are IoT devices that report data received from Sentinels to decentralized
nodes, creating a decentralized ledger (blockchain). The interaction history
between Sentinels and Bridges, combined with the heuristic data that is
recorded, allows for a high degree of both accuracy and certainty for each
individual Sentinel’s record. Nodes which report and archive highly accurate
and certain data will be rewarded with XYO Tokens, which provides a
cryptoeconomics-based incentive to expand and grow the XYO Network.

When a claim is made on an insured item that is connected to the XYO

Network, the owner and the company can access its Sentinel’s historical data
on the blockchain. The decentralized and trustless nature of the blockchain
helps prevent insurance fraud, as data archived in the blockchain cannot be
altered and can be accessed by either the company or the insured party. The
installed XYO Network Sentinel/Bridge will also continue actively reporting,
aiding in the recovery of the insured item. Unlike systems like the Lojack, XYO
Network devices record location history and can be accessed by the devices’
owners, not just law enforcement.

6. Securing authorized rearms in high risk areas

using the XYO Network
The presence of government-regulated rearms in establishments where
weapons are strictly prohibited fundamentally introduces a considerable risk.
Tightly controlled security is imperative at major transportation hubs (i.e.
international airports) where tra c volume is high and potential dangers are
inherently evident. Firearms are not only carried by security and police forces
on the ground, but also by Federal Air Marshals in the sky. The XYO Network
can con rm a weapon is exactly where it is intended to be by reporting
independently veri ed and trustless location data. Through its decentralized
blockchain technology, the XYO Network is able to provide an unparalleled
element of safety and accountability to arguably the most targeted, at-risk
establishments in the world.

Problem
In operations requiring a high level of security, it is crucial to ensure that any
authorized rearms are strictly and safely controlled. Creating a system that is
secure, reliable, and publicly accountable poses an operational challenge.

Solution
A high-pro le government security agency has contracted with XY to secure
rearms in major transportation hubs throughout the United States. The use
of XY’s existing technology saves the agency millions of dollars, and the
decentralized nature of its blockchain creates a system that is both
independently secure and publicly accountable.

How it Works
The XYO Network is a web of devices that record and archive heuristic data
using a blockchain ledger. Whenever a device on the XYO Network interacts
with another XY device, it logs this interaction. By reviewing this ledger of
interactions and the additional data they provide, it can be guaranteed with a
high degree of certainty that a speci c interaction happened at a distinct time
in a precise location.

Each rearm protected by the XYO Network is a xed with a device called a
Sentinel which records heuristic data like its location, temperature and
movement. The Sentinel also records any interaction it has with other nearby
Sentinels, and both devices share their his- tories with each other. IoT devices
called Bridges relay Sentinels’ records to decentralized nodes which archives
this data on a decentralized ledger or blockchain. These nodes are rewarded
with XYO tokens when they archive, process or relay accurate historical data.
In this way, the XYO Network leverages cryptoeconomics to create a trustless,
decentralized, unalterable location and interaction history for each protected
rearm.

In other words, when the rearms are securely stored, they create a record of
where they are stored and what other rearms are in storage with them.
When a rearm is removed, each rearm’s record is updated, noting what
rearm was removed and by whom. The rearm’s Sentinel records where it is
taken, when it moves, who interacts with it, and when it is returned. Any
other XYO Network Sentinels also record their interactions with the rearm’s
Sentinel.

This decentralized ledger serves two important purposes. First, it provides an

unalterable, auditable archive of when a rearm was accessed and by whom,
where it was taken, and when it was returned. Second, the XYO Network’s
decentralized nature means that the information in this archive can be
independently audited and con rmed. This feature can also be implemented
in other industries where accountability is critical, such as law enforcement,
corrections, and health care.

About XYO Tokens

XYO tokens will be distributed through a Token Generation Event beginning
in March 2018. We’ll be releasing more details here on Medium and on our
website, xyo.network.

Have questions? Join our Telegram group or ask us in the XYO Network
subreddit!

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