FIO Protocol (FIO): Powering Effortless Crypto Payments
Blockchain technology has brought many benefits to its users, such as faster transactions, cheaper fees and better online privacy. However, due to its technical nature, navigating the blockchain landscape can be challenging.
In order to use blockchains, you need to understand private keys, master complex public addresses, understand how to transact between blockchains and many other technical functions. In short, the lack of user-friendliness has been a significant barrier to the broader mass adoption of blockchain.
Against such challenges, FIO Protocol was created to simplify the homogenous use of blockchain for the masses. Numerous crypto applications, including top crypto wallets such as MetaMask and others, have already integrated FIO Protocol’s features to boost the quality of users' experiences.
Let’s look at how FIO Protocol has made blockchain more user-friendly through secure, industry-standardized features.
Key Takeaways:
FIO Protocol is a web3 digital identity provider that simplifies the use of blockchain through human-readable addresses in the form of FIO Handles and FIO domains.
The FIO Token is used to pay for protocol fees and incentivize different stakeholders, and as a governance token. It's available as a Perpetual contract in Bybit’s Innovation Zone.
What Is FIO Protocol?
FIO Protocol is a feature-rich naming solution provider for blockchain users. It’s designed to remove the complexity of transacting across different blockchains by providing user-friendly and secure features. FIO Protocol’s vision is to provide a platform that mitigates the risks and complexities associated with blockchain use by integrating simple features, such as a human-readable handle, non-fungible token (NFT)–powered digital identities and censorship-resistant transaction requests.
Co-founded in 2019 by Pawel Mastalerz and David Gold, FIO (Foundation for Interwallet Operability) is operated and advised by a team of industry experts and leaders with the collective goal of simplifying wallet usability across blockchains. The FIO Foundation was set up as a non-profit organization that helps facilitate the adoption of FIO Protocol. It consists of a board of directors, voted on by FIO Token holders. The directors then appoint a Steering Committee to monitor key performance indicators (KPIs).
At the heart of FIO’s operations is the FIO Token. It’s the native token for FIO Chain, a Layer 1 blockchain designed to power the usability of the FIO ecosystem.
Source: FIO
How Does FIO Protocol Work?
FIO Protocol is powered by FIO Chain, a fully decentralized Layer 1 blockchain built to enhance the usability of blockchain and simplify blockchain use. FIO Chain is powered by a delegated proof of stake (DPoS) consensus mechanism, and run by block producers across the globe. It is a fork of EOSIO and runs using Antelope, an open framework for building secure and fast web3 apps.
Block producers (BPs) are critical in securing and governing the FIO Chain and the overall FIO Protocol. Anyone can register to become a BP on FIO, and if successfully voted using FIO Tokens, they can proceed to produce blocks.
Blocks of FIO Chain are produced every 0.5 seconds by a designated BP, with a complete block requiring 126 rounds. The top 21 active BPs are assigned the next round of block production, and are selected based on geographical location to ensure high performance.
BPs on the FIO Chain operate under a specific code of conduct that requires them to ensure the network operates at optimal capacity. Active BPs are required to run a node that can handle around 100 requests simultaneously. BPs also set FIO chain fees and the number of transactions to be included in each FIO Handle (see below).
FIO Protocol Key Features
To simplify the usage of blockchain technology, FIO consists of the following array of innovative features integrated into its ecosystem.
FIO Handle and FIO Domain
The FIO Handle is a secure, customizable and human-readable username in the form of an email address that replaces the use of complex public wallet addresses when transacting across blockchains. Designed as an NFT, an FIO Handle is your digital identity in the web3 space.
An FIO Handle consists of your username@domain, and can be mapped to any public address to receive cryptocurrencies. It can also be mapped to your social media pages, or even used as an NFT to sign for ownership of assets. The FIO Handle never expires, and it comes pre-loaded with 100 gas-free transactions. The basic format of an FIO Handle ranges from three to 64 characters.
To make things easier for crypto users, FIO Protocol has enabled the mapping of FIO Handles to the public addresses of any supported wallet. Wallets that have integrated with FIO have two options when mapping the FIO Handle. The first is automatic mapping of the public address to the Handle. Alternatively, applications may let the user decide which public addresses to attach to a FIO address.
As mentioned, you can use your FIO Handle as an NFT signature to prove ownership of a web3 digital asset. Furthermore, you can attach an NFT hash to your FIO Handle in order to prevent NFT forgery.
You can also attach your FIO Handle to a customized FIO domain, creating an NFT-enabled web identity that you can use across multiple blockchains. These domains are self-governed and secured using a private key on FIO Chain. FIO domains have to be transferred to the Polygon chain in order to be listed on OpenSea.
FIO Request
A FIO Request is an on-chain transaction whereby a payee (sender) requests funds from a payer (receiver) using a FIO Handle. (Think of FIO Requests as Venmo-style crypto payments.) The details of FIO Requests are private and only readable by the parties to a transaction. All FIO Requests are encrypted using the Diffie-Hellman key exchange, which consists of a cryptographic secret between the payee’s private key and the payer’s public key. These Requests are included as part of the bundled transactions for your FIO Handle. Payers are free to accept or reject FIO Requests, and users only have to confirm payment details (instead of entering them manually), reducing the risk of sending payment to the wrong address or network.
FIO Data
FIO Data is another feature of FIO Protocol that lets you send and receive encrypted metadata using your FIO Handle across blockchains. Since data is end-to-end encrypted, only the sender and receiver can access the details — which makes this process private and censorship-free. The client can then match and display the metadata using a unique blockchain ID.
What Is the FIO Token?
FIO Token is the native utility token of FIO Chain, the blockchain that powers the FIO ecosystem. It plays various roles in the FIO ecosystem. Since it’s a governance token, FIO Token holders vote to approve block producers, who can secure the FIO network. These token holders also get to vote for the board of directors that runs the FIO Foundation.
To incentivize participation in FIO Protocol’s governance, token holders can stake FIO Tokens to accrue rewards. Block producers are rewarded using FIO Tokens as an incentive to act in the best interest of the protocol. FIO Token is also used to pay all on-chain transaction fees and registration fees when acquiring a FIO Handle and FIO Domain.
Furthermore, the FIO Token can be wrapped and used across various blockchains. Token wrapping can be done on the FIO Chain, and tokens can be unwrapped using the WFIO ERC-20 contract on the Ethereum network. The process requires a bridge between the FIO Chain and the Ethereum chain.
FIO Token has a maximum supply of 1 billion tokens and a circulating supply of 794.12 million, of which 98.57 million tokens are locked and 82.04 million are staked (as of Oct 16, 2024). There was no ICO or public sale of FIO Tokens. Instead, the tokens were distributed to different stakeholders and contributors to FIO Protocol in the early stages of the project, with 64.87% of the FIO Token max supply distributed as follows:
The FIO Foundation — 3.88 %
Foundation locked tokens — 5.00%
Initial listing — 0.28%
FIO Handles giveaways — 9.00%
Foundation service providers — 0.32%
IP creator’s employees —17.53%
IP creator’s investors — 16.42%
IP creator’s advisors — 1.05%
Initial wallets to integrate FIO — 7.54%
Initial integrating wallets (unclaimed) — 3.85%
The remaining 35.13% of the FIO Tokens continue to be minted per the following schedule:
Foundation reserves — 18.13%
New user bounties — 12.5%
Staking rewards reserves — 2.50%
Block producer reserves — 2.00%
Where to Buy the FIO Token
You can buy the FIO Token on Bybit as a FIOUSDT Perpetual contract. The token has been listed in Bybit’s Innovation Zone, a program that lists Perpetual contracts handpicked by Bybit's professional team. This program gives you direct and transparent access to innovative projects with potential for higher returns, as well as higher associated risk. Due to the risky nature of such projects, trading fees will be comparatively higher.
FIO Protocol Price Prediction
As of Oct 16, 2024, the FIO Token’s price is $0.031, a 94.5% drop from its all-time high (ATH) of $0.56 on Apr 06, 2021, and a 91.1% increase from its ATL of $0.016 on Aug 05, 2024.
Price prediction experts are pretty bullish on the future price of FIO Protocol’s FIO Token. According to price forecasting platform CoinCodex, FIO may remain at $0.031 in 2025 and rise to $0.12 by 2030. Another price prediction platform, DigitalCoinPrice, believes FIO could hit $0.08 in 2025 and gradually increase to a maximum of $0.23 by 2030.
While these price predictions are bullish, they aren't financial advice, and they do not guarantee the future price of FIO Token. We highly recommend that you do your own research before investing in the FIO or any other digital currencies.
Closing Thoughts
The complex and technical nature of blockchain technology has been a major challenge, hindering its broader adoption. The use of a human-readable address in the form of a FIO Handle that can replace a public address simplifies transacting across blockchains without compromising security and privacy. NFT-enabled FIO domains provide a forgery-proof method for securing digital assets, and a unique way to brand yourself in the web3 space through FIO NFT signatures.
Overall, the FIO Protocol and Token create innovation that significantly improves the usability of blockchain, potentially making FIO Protocol a critical player in the web3 digital identity niche.
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