Pocket Network is a decentralized infrastructure middleware protocol that provides abundant blockchain bandwidth from a globally-distributed network of 30,000+ full nodes to applications in Web3 across multiple blockchains. The POKT token incentivizes bandwidth providers and coordinating this decentralized ecosystem.
Genesis of Pocket Network
Pocket Network was launched in 2017 to solve the problem of inadequate blockchain bandwidth throttling the throughput of dApps.
Blockchains rely on node operators to validate transactions and relay data. However, most nodes are run by enthusiasts or validators rather than in reliable enterprise-grade data centers. This results in network congestion and rising costs during spikes in activity.
Pocket Network aims to provide high-availability decentralized infrastructure for relaying blockchain data that can scale with mainstream adoption. The network coordinates a geographically distributed pool of professionally hosted nodes that provide reliable bandwidth for services like dApp frontends, infrastructure platforms, and oracle services.
Anyone can supply bandwidth to Pocket in return for POKT rewards by spinning up a Pocket Portal node using cloud services like AWS, Google Cloud, and Hetzner. Nodes coordinate service using Pocket’s decentralized discovery protocol without introducing central points of failure.
Pocket currently supports bandwidth provision for major blockchains including:
- Gnosis Chain (formerly xDai Chain).
It aims to eventually support most Layer 1 and Layer 2 networks as activity in Web3 grows. Leading DeFi apps, NFT platforms and wallets rely on Pocket for their bandwidth needs.
Pocket Network recently launched its own base blockchain layer, Pocket Network Mainnet, for governing its decentralized node network.
POKT Token Utility
The POKT token is the native asset of Pocket Network coordinating the system:
- Node rewards — Earned by providers for supplying bandwidth and meeting SLAs. Rewards come from a 15% fee charged on bandwidth usage.
- Staking — POKT is staked for validating node uptime and performance to qualify for rewards. Staking also secures the network.
- Governance — POKT holders can vote on protocol upgrades like adding new chains or economic parameters.
- Bandwidth payments — Applications pay for bandwidth resources using POKT, creating built-in demand.
POKT has a maximum supply of 100 billion. 65% goes towards staking and node rewards in perpetuity to incentivize ongoing bandwidth provisioning.
POKT ranks #191 by market capitalization as of September 2022. It trades on major exchanges including Binance, Coinbase and Crypto.com.
Pocket Network infrastructure supports over 5 million daily blockchain requests across 70+ countries. With strong demand fundamentals amidst growing Web3 activity, POKT appears well-positioned as a long-term infrastructure play in the crypto ecosystem.
Pocket Network introduces a scalable, decentralized solution to provide the abundant bandwidth needed for mass blockchain adoption. By coordinating and incentivizing globally distributed node infrastructure, Pocket allows Web3 applications to reliably support user activity without centralized servers. POKT serves a key role in sustaining this ecosystem as usage grows.