1 out every 10 stories that go out there is about blockchain. No, we don’t have statistics for this, perhaps it’s just in our bubble, but come on? Don’t you feel that blockchain is on a hype lately? However, I’ll keep this conversation for another time.

Now, in this article, I want to tell you honestly why we chose the blockchain infrastructure to build our product and what are the perks of this decision.

A few words about the IPSX concept

IPSX is a fully automated blockchain-based system, with a full clearing of utility tokens (the IPSX Token is an Ethereum ERC-20 Token). IPSX platform associates the price and distribution based on offer and demand for Internet Protocol addresses (IPs). To put it in human language, think about it as a decentralized marketplace where anyone who owns an IP (which can come from their smartphones, home appliances, computers and so on), can list it on our platform and let other people use it when the owners don’t need it. In exchange, they get money for this — IPSX Tokens in our particular case.

If we put this on a larger scale, IPSX is a global marketplace that allows VPN providers, Data Mining software, web crawling bots etc. to integrate their services with IPSX platform and use the already existing IPs to build new applications in a secure and transparent environment.

As the classic definition says, a blockchain facilitates secure online transactions. It’s a decentralized and distributed digital ledger that is used to record transactions across many computers so that the record cannot be altered retroactively without the alteration of all subsequent blocks and compromising the whole network.

IPSX is doing precisely the same with IPs. Without further ado, we’ve listed below seven stone cold reasons that made us chose blockchain for the technological infrastructure of our product.

7 Reasons Why IPSX Chose the Blockchain Technology

It eliminates the administrative burden of renting IPs through multiple providers

In major data acquisition processes, where a massive volume of IPs is required, businesses are forced to work with multiple providers to cover the necessities and complete their tasks. Most of the time this translates into enormous costs and monthly/yearly subscriptions that might end up being used just once or twice. Blockchain technology connects actors in a peer-to-peer network, enabling both data center owners and individual users (let’s call them “providers”) to rent IPs to other users (let’s call them “requesters”). That means anyone can be a provider, a requester, or both of them. Blockchain enables IPSX to allow all requesters in the network to rent IPs based on specific filters: location, speed, supported amount of data, type of network, payment system.

Another great added-value of the blockchain technology, the payment infrastructure, gave us the means to create our built-in feature: a dedicated Ethereum-based transaction system, which enables direct payments between requesters and providers. The infrastructure, not only reduces the costs, as users only pay for what they use, but it’s also increasing the liquidity of the IPs.

2. The tech infrastructure supports huge amounts of IPs

As a decentralized network, blockchain offers huge opportunities regarding scalability and use cases for our platform. Any individual out there who owns an IP can submit it on IPSX and share it on the marketplace when they don’t use it. How is this something spectacular? Let me give you an example.

One of the common problems VPN providers are faced with is the limited number of IPs from GeoLocations where the demand is high. When too many users use the same IP, the IP gets banned or restricted. Therefore the whole process slows down and gives businesses real headaches.

A merge between the blockchain technology and IPSX’s infrastructure allows us to integrate cross-platform clients and create a marketplace where demand meets the offer. To put it simply: by having access to a decentralized system of IPs, you can ask for specific addresses, for a specific period, with specific capabilities. It’s a custom, personalized subscription that varies depending on each user’s needs: time frame, price, GeoLocation, protocol.

3. A more transparent, distributed, trust-based marketplace

You know that, so I’m sure there’s no need to explain this all over again, but allow me to give you a little bit of context: the beauty of blockchain is that technology itself functions as a law. The transparency of blockchain tech allows us to attribute each transaction to every user in our network and build a more secure, more transparent, and more efficient marketplace.

In an industry where you get to buy stuff from third-party websites, apps or global users, the blockchain trust provides a simple, paperless way to establish ownership of money, information, and objects.

4. Faster international payments

The reasons we decided to write the code for our platform on top of blockchain weren’t tech-oriented only. It’s a question of business-economics as well. The adoption of blockchain and cryptocurrencies solves multiple issues: high transfer costs, limited money distribution methods, limited ways to deal with money, transparency.

You’ll say: ok, but in the financial markets, trades happen in a fraction of a second, whereas blockchain still has a long road to go. However, if you think about actually exchanging the assets and payments, this can take days, involving multiple banks and clearing houses. That can lead to errors, delays, added costs and unnecessary risks.

It’s not the case in the “block-building” environment. Here’s why. A contract written in code, named smart contract, can track multiple assets, execute the transactions faster, without any person being able to tamper with the transaction (less human interactions, less problems). It can very quickly verify the availability of the funds for processing the payment, and then makes the transfer between the seller and buyer. Aside from this, the Ethereum protocols and smart contracts, which also run on the blockchain, allow IPSX to manage micropayments and exponentially increase the speed of every transaction.

5. Trust

I know I’ve mentioned a few times now the blockchain philosophy but bear with me here. I think it’s important to have the right idea. At its heart, a blockchain is a record of transactions, like a traditional ledger. These transactions can be any movement of money, goods or secure data, or the assignment of a government ID number.

The blockchain is designed to store information in a way that makes it virtually impossible to alter, remove or change data without being detected by other users. Any member can verify the transactions at any given point and identify tamperings with minimum effort.

The long and the short of it, blockchain establishes trust.

Users can track all the records and ban from the network anything that seems illegal. The fact that every person is fingerprinted and has a Digital ID increases the trust and safety of every project.

All the above lead to more fairness in business, safer connections, but also to a better society as any profanity or illegal behavior can be traced and punished accordingly. I do want to tell you more about our social goals as well, but this topic makes it for a dedicated piece about how blockchain can change the society for a better tomorrow. Now back to our geeky-talk!

6. Security

We’re not hypocrites. There’s no 100% secure tech solution out there, and blockchain has its challenges in this respect. Still, some solutions are safer than others. The blockchain infrastructure and the Ethereum network allows us to build the product on multiple security layers and benefit from the blockchain security. This way, we can issue the IPSX utility token on Ethereum blockchain so that any Ethereum address counts as identification data (ID). What this means is that IPSX has two security layers, the application layer plus the the Ethereum Layer. You can never be too safe!

7. Easy to use solution

We’re all out there on the hunt for one-size-fits-all solutions for our problems. Want the truth? What makes IPSX different from other projects on the market is that we didn’t scout for a project that goes well with blockchain. We’ve found a problem on the market, we’ve built the prototype and blockchain fulfilled our needs from a tech perspective.

Anyone out there who owns IPs, regardless of device type or volume, can share it on our marketplace when it’s not in use and get some profits out of this.

The goal of this article was to give you, guys & girls, a perspective on why we decided to invest so much in this project and why we asked you to contribute to this. It’s a game-changing marketplace for the Internet service providers, but the fun part is that we’re not competing with anyone. We’re just boosting their business by using and implementing bleeding edge technology.

There’s more to come. Stay close.

Meanwhile, follow us on our social channels (Facebook, Twitter, LinkedIn) and join us for a geeky-talk on Telegram. We’re pretty talkative. Check us out!