The DePIN sector is emerging as the next frontier for blockchain, connecting physical infrastructure to digital networks. At Token2049 Singapore, BeInCrypto spoke with Markus Levin, co-founder of XYO Network. His vision focuses on making verifiable real-world data accessible to AI and Web3 applications.
XYO recently launched its own XYO Layer One blockchain after seven years as a decentralized data company. With more than 10 million nodes spread across nearly every country, the network addresses challenges of location verification, data validation bottlenecks, and prohibitive costs, among many other data processing issues inherent to holder blockchains. Levin’s ambitious goal: position XYO Layer One as the definitive blockchain for AI-ready data infrastructure.
XYO recently launched the XYO Layer One blockchain. After seven years in business, what drove you to build your own Layer-1, and what fundamental gaps in the existing blockchain landscape does it address?
XYO has been operating as a data infrastructure company in the blockchain space for years. Our middleware technology connected the physical world to digital systems and other blockchains, delivering verifiable data through innovations such as Proof of Origin and Proof of Location.
But during that time, no one built a Layer One that was realWith the rollout of the dual-token model, one for governance and one for utilities, how do you see the balance of incentives among node operators, developers and enterprise customers in your ecosystem?
We built our dual-token model between the XYO token, which is over seven years old, and our newly released XL1 token in a way that they reinforce each other: we call them yin and yang. XYO is outside Layer-1. It’s for the DePIN, the ecosystem, for the rewards and rewards for contributors, for deploying XYO Layer One for security, governance, and so on. It is the governance and DePIN network token, and you can stake it in XYO Layer One to earn XL1 tokens. The XL1 token is a gas and transaction token for dApps within XYO Layer One, so it is always internal. You bet XYO to get XL1. Of the total offering, a few percent of XYO has already been deployed, and we are very excited about the growth we see there. That limits the XYO offering. On the XL1 side, we see tokens being burned as we have transactions on the XYO Layer One, as each transaction burns the gas fee. So actually both tokens reinforce each other.
The AI, logistics and real-time data analytics industries have been highlighted as the key benefactors of XYO’s technology. Can you share examples of recent industry pilots or partnerships leveraging XYO Layer One capabilities?
We recently announced our partnership with a company called Piggycell from South Korea. They have a 98 percent share of the mobile charging market and are a Web2 company moving to Web3. They have charging stations in bars, restaurants and convenience stores. We’re working on providing proof of location for their charging stations and for the users of their devices, so you can prove it’s where it’s supposed to be and that the user didn’t run off with the charging cable. We also plan to tokenize the data generated there.
How does XYO’s approach to verifiable real-world data overcome the limitations and reliability issues of centralized location solutions and other blockchain oracles?
Here is an example of the Pokémon Go game. I made several calls to its creator, Niantic, and the problem was that a bunch of kids in their basement were fooling around with their location and pretending to be in the Sahara to get the rarest Pokémon. This destroys the gameplay for honest players.
It’s just a game, but think about something with higher value, like automated supply chains, smart cities or self-driving cars. You want to make sure your location can’t be spoofed or faked on a massive scale, and that’s what we’re here for. We also do this for other DePINs. For example, you can prove that the weather station you say is on your roof is actually there and not somewhere else. For us, it’s all about collecting and providing security around the data so it can’t be falsified or hacked. You can prove that the data comes from, for example, the temperature sensor or a location sensor.
XYO has more than 10 million nodes worldwide. What are the current priorities for increasing developer engagement and driving long-term participation in your ecosystem?
We have more than 10 million nodes in almost every country. We looked at all those nodes and saw that we were also in every African country. There are now about half a million nodes in Africa. DePIN transforms the world. We are motivated by collecting data from underserved communities to prevent bias in AI.
For example, we have translated our website into many languages, including Amharic, the main language of Ethiopia, with approximately 57 million speakers. ChatGPT made a lot of mistakes with the translation, and we were curious why. That was because Ethiopia is not a priority country for ChatGPT; it’s not where they make the most money. But we think it’s crucial for data collection. You must avoid biases in the field of AI so that they can truly become the voice of humanity.
What feedback has the existing COIN App user community given you regarding the transition to the new Layer-1 blockchain? How do you deal with their needs in this evolution?
We have a new feature in the COIN app that allows you to stake your COIN (the points you earn by using the app) towards XL1. We have a campaign and people love it. If there are economic incentives, they are enthusiastic about it. The main bet is from XYO to the XYO Layer One to earn XL1. People see that they can bet in the COIN App. Then they realize they have XYO because they exchanged their COIN points for XYO. It is to show them what they have and to give them education.
XYO was the original DePIN project and is now at the intersection of DePIN, DeFi and AI. What ambitious milestones or use cases do you want to achieve next year? How will these strengthen XYO’s role as a data infrastructure for the digital economy?
We want to be the blockchain for AI data. We are expanding our own DePIN network and offering more features to make that possible. Then we engage our external partners to integrate many companies into our XYO Layer One ecosystem because we can already expose our 10 million nodes and generate so much data. We are going to take the data world to the next revolution. That is our great mission. It is an exciting time to be in DePIN. According to the World Economic Forum, DePIN will grow from approximately 50 million to 3.5 trillion by 2028. It will be a memorable event.
The way forward: building the data economy
Blockchain is evolving beyond just finance. XYO’s Layer-1 infrastructure represents a strategic bet on authenticated data as the foundation of the AI-driven economy, deploying more than 10 million nodes worldwide. The DePIN sector is expected to reach a value of $3.5 trillion in the next three years. The company has positioned itself at the intersection of three transformative technologies.
The challenge ahead lies in converting this early-mover advantage into sustainable developer adoption and business partnerships. XYO’s seven-year journey has given the company an edge in a race that is just beginning.
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