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1/ $POKT / http://pokt.network
Time to take a closer look into one of the most ambitious projects to launch this year: Pocket set itself the daunting task to decentralize cryptos base layer infrastructure.
Here is why it’s needed and and how they will do it:
Time to take a closer look into one of the most ambitious projects to launch this year: Pocket set itself the daunting task to decentralize cryptos base layer infrastructure.
Here is why it’s needed and and how they will do it:
2/ Let’s start with the problem at hand. In contrast to blockchain’s inherent philosophy, we are increasingly seeing chokepoints of centralisation emerging within the base layer infrastructure of distributed networks today.
3/ This is due to two main reasons. Firstly, most Web3 applications today are hosted on large cloud operations like AWS (Amazon Web Services). Secondly, there is a big dependency on relay services who themselves host their nodes using AWS.
4/ Since it is technically challenging and data intensive, the hosting of full nodes is increasingly becoming outsourced to single service providers. A recent article by decrypt estimates that 57% of all ETH nodes are hosted using cloud services.
5/ This trend in only expected to pick up further since Amazon announced it will run ETH nodes on behalf of WEB3 developers, leading to a concerning concentration of power over the network. https://decrypt.co/60093/amazon-now-offering-to-run-ethereum-nodes-for-developers
6/ Amazon could theoretically shut down as much as 19% of all full nodes through AWS, crashing large amounts of WEB3’s frontend. But even beyond that, centralised chokepoints generally tend to be destabilising.
7/ This is vividly exemplified by outages on the most popular relay clients like openEthereum, who’s recent “consensus error” after the Berlin hard fork caused Etherscan to go down and Coinbase to pause withdrawals. https://www.coindesk.com/open-ethereum-clients-error-berlin
8/ Similar to that, Infura’s temporary crash in November 2020 caused dramatic network outages and left many exchanges without reliable price data. After the incident many raised the question of whether Ethereum is decentralised enough. https://coinmarketcap.com/alexandria/article/ethereums-infura-iating-outage-revives-decentralization-concerns
9/ Here is where @POKTnetwork comes in. Pocket is a network for a decentralised relaying of data requests on any blockchain. Its main architecture is structured by a two pronged approach: https://pokt.network/
10/ First, Pocket levels the playing field by creating a proof-of-work like coordination layer that randomly distributes data queries by WEB3 apps across all nodes, giving each one an equal chance to relay data requests.
See: proof of useful work https://eprint.iacr.org/2017/203.pdf
See: proof of useful work https://eprint.iacr.org/2017/203.pdf
11/ Secondly, a resource allocation layer facilitates value transfer to service nodes. $POKT rewards are paid out to operators, incentivising users to run and maintain full nodes across a number of different blockchains.
12/ The Pocket Network API is client agnostic, whether it’s e.g. Geth for Ethereum or Bitcoin Core. Pocket will simply route data queries to a random node. In the event that a node goes down Pocket automatically reroutes the query within the network.
13/ This makes @POKTnetwork an incredibly resilient and stable alternative with guaranteed constant uptime. The cherry on top: Compared to its centralised competitors, Pocket will be able to offer its products at a much cheaper rate.
14/ Why? Cloud services need to maintain large backup buffers in order to counter outages. These buffers inflate the overhead of WEB3 apps, which need cover costs for hosting and data queries - costs that are passed on to the end user.
15/ The efficiency of Pockets network design requires only a fraction of the backup buffer compared to cloud services, reducing the costs for its relaying services. This presents a powerful business case within the market segment.
16/ APPs using Pockets relaying service are required to stake $POKT once, while node operators are gradually paid through inflation. The more it’s products are being used and the more nodes get connected, the more Pockets supply will get locked up.
17/ Pocket’s main-net is live since last July, and some of the best developers in the space are using its relay service. I’m looking at you @thegostep. Both @MyCrypto and @MetaMask added integration with Pocket. https://medium.com/pocket-network/first-metamask-now-mycrypto-ad15a33c9775
18/ Pocket is planning its $wPOKT LBP on @BalancerLabs for Q2. $POKT supply is currently 660m. Depending on network traction this number will grow over time until the DAO caps the inflation upon maturity. https://forum.pokt.network/t/what-is-the-supply-of-pokt/723
19/ @POKTnetwork is cryptos native answer to centralised web hosting and relay services. With a working product and real traction in the space $POKT is a real bluechip in the making.
20/ Links and further readings.
Website: https://pokt.network/
Discord: https://discord.com/invite/uYs6Esum3r
Network Stats: https://c0d3r.org/NetworkCharts
Apps using Pocket: https://forum.pokt.network/t/list-of-apps-decentralized-and-powered-by-pocket/307
Website: https://pokt.network/
Discord: https://discord.com/invite/uYs6Esum3r
Network Stats: https://c0d3r.org/NetworkCharts
Apps using Pocket: https://forum.pokt.network/t/list-of-apps-decentralized-and-powered-by-pocket/307
