Introducing ioID: The World’s First On-Chain Identity Solution for Smart Devices

Smart devices are appearing in our homes, businesses, and cities at an astonishing pace, connecting the physical and digital worlds with unprecedented integration. McKinsey predicts, by 2030 the number of smart devices will be ten times that of humans and create more than $12 trillion in economic value. These increasingly intelligent devices will form the foundation of the future global economy, and the decentralized physical infrastructure network (DePIN) will, for the first time, provide ordinary people with the opportunity to own and control their devices, as well as the data and rights they generate. Since IoTeX launched in 2018, we have always believed that smart devices will eventually become the largest user group of blockchain. With IoTeX 2.0, this belief is beginning to become a reality. By connecting millions of real-world devices to the blockchain, we achieve end-to-end trust based on verifiable data, identities, and utilities.

Today, we are excited to introduce ioID—the world’s most advanced on-chain identity solution for smart devices. ioID not only provides DePIN builders with a set of tools to register and manage device identities on-chain and off-chain, but also equips devices with their own smart contract wallets and private keys to sign data and verify their real-world activities. Additionally, ioID will serve as a gateway for devices to interact with other parts of the IoTeX 2.0 technology stack (including DePIN infrastructure modules for connectivity, storage, computation, etc.). With ioID, we bring devices as self-sovereign assets on-chain and introduce revolutionary new use cases to the DePIN space.

In 2024, we tested ioID with over 10 DePIN projects (including GEODNET, Network3, Nubila, WatchX, and Envirobloq) to understand the real-world needs of DePIN applications and further standardize our product, making ioID a universal identity solution across the entire DePIN space. To meet the needs of different industries and built on different blockchains, ioID is designed as a unified, fully chain-compatible identity solution with characteristics such as verifiability, programmability, composability, user sovereignty, and tamper-resistance. With various application options (such as hardware, firmware, software), any DePIN project can bring verifiability and demand to its network through ioID, unlocking new use cases and enabling interoperability with other DePIN projects. In this article, we will explore the architecture and design of ioID, new use cases, and the application extension of ioID in DePIN.

Design Principles of ioID

Over the past few years, IoTeX has worked closely with research institutions, technical colleges, and DePIN researchers to design an identity standard that can stand the test of time. After years of R&D, we are proud to launch ioID: an open-source system that integrates device identity, blockchain, and innovations from the IoT research community. Our design philosophy is not to build ioID as a black box solution limited to the IoTeX network but as an open-source and decentralized toolkit available to builders and users. To translate this philosophy into technology, we incorporated the following core principles into the design of ioID:

Architecture of ioID

ioID is a universal identity system that creates on-chain identities for devices and then verifiably binds them to the off-chain identities and on-chain identities of the owners through smart contracts. In the architecture of ioID, the on-chain identity of the device is represented as an ioID NFT (i.e., ERC-6551 NFT), while the off-chain identity of the device is represented as a decentralized identity (DID). The issuance and binding of the device’s ioID NFT and DID are conducted through the IoTeX Hub web portal and a set of smart contracts on the IoTeX L1 blockchain. In the diagram below, we provide a comprehensive overview of the ioID architecture.

• ioID Software Development Kit (SDK): The internal ioID SDK of IoTeX is a lightweight embedded toolkit for DePIN hardware that supports decentralized identity (DID) registration and DID-based encrypted communication on devices. The ioID SDK is integrated into the firmware or embedded libraries of DePIN devices, supporting various popular chipsets, including Raspberry Pi, ESP32, Arduino, Linux, etc.

• Off-chain Identity (DID): Once the device is powered on, the DID is automatically created in a decentralized manner, generating the corresponding DID document. The private key of the DID is stored in the device’s secure element or flash memory, used to sign any data/activities generated by the device. For lightweight devices, DePIN projects can utilize hosted servers to issue DIDs for devices and map them to existing unique device identifiers (e.g., serial numbers, IMEI).

• IoTeX Hub (hub.iotex.io): A web portal that provides users with a seamless registration process, where DIDs can be bound to user identities and the corresponding ioID NFT on-chain identity can be registered. In the Hub, device owners deposit $IOTX to pay for smart contract interaction fees, DID + DID documents are extracted from the device via wired (serial, USB) or wireless (OTA, Bluetooth), DID documents are stored on IPFS (decentralized database), and finally, the DID + DID document information is submitted to the on-chain device registration smart contract.

• On-chain Identity (ioID NFT, ERC-6551 Wallet): Once the device’s DID information is submitted to the smart contract suite, an ioID NFT is minted and issued to the on-chain wallet of the device owner. The ioID NFT represents on-chain ownership of the physical device, allowing the holder of the ioID NFT to perform actions on behalf of the device, receive rewards from the device, and own/manage the device’s data.

• Smart Contract Suite on IoTeX L1: Four smart contracts provide a robust framework for decentralized identity management, ioID NFT issuance, and on-chain interactions.

  – ioID Registration Smart Contract: Registers devices on-chain and verifies the device identities of different projects as a DID resolver. Each DePIN will have its unique ioID registration smart contract to manage its ioIDs, and all registered ioIDs are publicly visible and verifiable.

  – Project Registration Smart Contract: Manages all DePIN projects, ensuring each project has a unique project ID for verification.

  – ioID NFT Smart Contract: Directly managed by the project registration smart contract, responsible for creating and assigning unique ioID NFTs to devices.

  – ioID Store Smart Contract: Manages the activation of ioIDs for all projects, including the lifecycle management of identities (i.e., device transfers, decommissioning).

Registering a decentralized identity DID for devices is free, while activating ioID on-chain will require a deposit fee of $IOTX, part of which will be burned, added to the Marshall DAO, or redistributed to device owners equipped with ioID. The tokenomics of ioID will be initially defined and updated through governance voting in the coming weeks.

ioID: The Gateway for DePIN Infrastructure Modules (DIMs)

In addition to providing devices with a robust on-chain identity solution, ioID also acts as a gateway for devices to interact with other parts of the IoTeX 2.0 technology stack (including DePIN infrastructure modules for connectivity, storage, computation, etc.). Devices and their real-world activities are the source of DePIN—if a device’s identity is unverifiable and untrustworthy, then all downstream activities (such as connectivity, storage, computation) will also be unverifiable and untrustworthy. Therefore, equipping devices with verifiable identities through ioID is a key prerequisite for achieving fully verifiable DePIN.

Devices equipped with ioID will be authorized to interact with DePIN infrastructure modules (DIMs) developed by IoTeX and top partners, which are part of the end-to-end DePIN value chain. The data from ioID-equipped devices will be verifiably connected, sorted, and stored through IoTeX 2.0 partners (such as Streamr, Espresso, NEAR DA, Filecoin, etc.). At the end of the DePIN value chain, IoTeX’s off-chain computing platform W3bstream will receive this verified data from the devices and run zero-knowledge proofs (ZKP) to ultimately verify the real-world activities of the devices and settle the “proof of real-world activity” on the blockchain.

Through ioID (identity layer), ioID SDK (hardware abstraction layer), W3bstream (verifiable computing layer), and our various DIM partners, IoTeX is opening the world’s first end-to-end verifiable DePIN system by leveraging ioID as a catalyst! The W3bstream development network is now live, and the test network will be launched in the coming months.

New Use Cases of ioID

The DePIN space has rapidly evolved in recent years, yet there remains a significant amount of untapped potential due to the lack of verifiability from demand-side participants. The only way to address this issue is to enable anyone to independently verify whether the identity and utility of the devices contributing to DePIN are genuine and trustworthy. Therefore, the primary and most important use case of ioID is verifiability itself, to drive new supply and demand for DePIN. With verifiable device identities, end-users will be more willing to pay for data/services from DePIN, exchanges will be more willing to list DePIN assets, regulators will be able to formulate more meaningful legislation around DePIN, and more.

In addition to bringing legitimacy and demand to DePIN, ioID also introduces new primitives for DePIN builders, unlocking exciting use cases. Through ioID, DePIN builders can transform physical devices into programmable self-sovereign assets that can be authorized through on-chain permissions, interact with various decentralized applications (Dapps), and engage in trading, lending, financing, etc.:

• Authorization and Access Control: Devices equipped with ioID can issue verifiable credentials (VCs) that only authorize specific devices/owners to interact with smart contracts, Dapps, mining rewards, etc.

• Dual Mining and Reward Distribution: DePIN can utilize ioID to conduct fine-grained project-specific incentive distribution with higher transparency than what is currently calculated on cloud/spreadsheets. Devices equipped with ioID can also be programmed to contribute to multiple DePIN/Dapps simultaneously, enabling dual or multiple mining opportunities.

• Device Fractional Ownership and Financing: Since ioID is programmable, it allows for customized ownership structures and hierarchies to enable fractional ownership of devices. For example, the primary cash flows of a device can be split on-chain by a group of owners providing various contributions (such as financing, installation, maintenance), providing significant flexibility for the supply side growth of DePIN.

• Device Lending, Trading, and Financing: Since ioID is represented on-chain as an ioID NFT (ERC-6551), it can be treated as an on-chain asset for trading, lending, and financing, just like any NFT. This enables use cases such as device installers selling pre-installed devices to passive investors, or DePIN miners in urgent need of cash lending their NFTs and associated cash flows to other users, etc.

Case Studies of ioID

ioID is not only a comprehensive device identity solution but also flexibly adapts to the heterogeneous nature of DePIN projects. The main difference in implementation options lies in how the decentralized identity (DID) is created and where the private key used to sign device data is stored. For many projects, the preferred method is to create the DID by integrating the ioID SDK into the device’s hardware or firmware and storing the private key in the device’s secure element (TEE) or flash memory. Alternatively, a hosted server can be used to create the DID, mapping the DID to the device’s existing identifier (e.g., serial number, IMEI) and storing the private key on the server. Below, we share three case studies that showcase projects integrating ioID through various applications such as hardware, firmware, and software.

Recent Plans

The launch of ioID demonstrates IoTeX’s commitment to providing cutting-edge infrastructure to expand the possibilities of DePIN construction. In the coming months, ioID will be integrated into more projects that are already in development, catalyzing the industry to prioritize the verifiability of DePIN. Additionally, ioID will seamlessly integrate with W3bstream, combining the “identity proof” through DID with the “utility proof” through zero-knowledge proofs. The era of “verifiable DePIN” has arrived and will be rooted in IoTeX technology!

In the coming weeks, governance proposals regarding the tokenomics of ioID will be released to the IoTeX community for discussion and voting. The community will jointly decide the deposit fee of $IOTX required to activate ioID on the IoTeX blockchain, as well as how these $IOTX fees will be burned, staked, and distributed to the token pools owned by the ecosystem (such as Marshall DAO and Roll-DPoS reward pools). The goal of ioID’s tokenomics is to incentivize DePIN projects to adopt ioID, reducing the total supply of $IOTX through deflationary burns corresponding to ioID registrations and rewarding users who choose to verify their DePIN device identities and activities.

Another upcoming plan is to introduce dual mining rewards in collaboration with top DePIN projects. Through dual mining, device owners equipped with ioID will be able to mine two tokens (i.e., $IOTX and the collaborating project token) while providing utility to the cooperating DePIN project and contributing their verifiable device data/proofs to IoTeX. Dual mining tests with Network3 and WatchX are now live, with more to come—stay tuned!

Want to integrate ioID into your DePIN project? Check out our step-by-step tutorial and get in touch with our developer relations team: