Introduction

Pocket Network emerges as a game changer in the blockchain environment, meant to decentralize how applications interact with blockchains. It acts as crucial infrastructure, allowing developers to access and integrate blockchain data reliably and efficiently without relying on centralized sources. This strategy improves application resilience and reduces associated expenses, making blockchain technology more accessible and viable for a wider range of use cases. The Pocket Network can create a strong, scalable, decentralized network of nodes, assuring consistent service and security for developers and consumers.

What is Pocket network?

Pocket network is a decentralized infrastructure that makes blockchain data accessible to apps. It serves as a bridge between application developers and a wide range of blockchains, allowing for seamless interaction without the need for middlemen. Pocket network uses a network of decentralized nodes to ensure that developers may access blockchain data on demand, efficiently and reliably. Pocket network supports any blockchain, allowing developers to interact with their preferred blockchain using a simple and uniform interface.

This universal compatibility is crucial for developers who deal with many blockchains because it simplifies integration and lowers the technological obstacles that have historically hampered blockchain interoperability. The network’s protocol incentivizes both node operators and developers. Node operators are compensated with POKT tokens for processing API requests, aligning their interests with the network’s health and scalability. Developers benefit from a cost-effective model that only charges for successful requests, allowing them to pay for what they use. This dual-benefit approach is the foundation for Pocket Network’s strong and user-centric architecture, making it an essential component of decentralized online services.

History of Pocket Network, Origins and Key Persons

Pocket Network was conceptualized in December 2016, just before the 2017 Initial Coin Offering (ICO) frenzy, a watershed moment for cryptocurrencies and decentralized systems. The founders, Luis C. de León, Michael O’Rourke, Pabel Nunez, and Valeria Benz, recognized that centralized infrastructure was a substantial barrier to the decentralized ethos of blockchain technologies. This realization inspired them to construct Pocket Network, a decentralized, permissionless network that offers scalable blockchain RPC access using Web3 native incentives and architecture.

In 2018, co-founder Michael O’Rourke convinced the Medellín team of Pocket Network’s potential to transform decentralized applications (dApps). Pocket Network’s mainnet was launched on July 28, 2020, amidst the global pandemic, marking a significant milestone in providing a decentralized infrastructure platform to support the dApp developers’ growing demand for reliable and censorship-resistant connectivity to various blockchains.

Since its debut, Pocket Network has expanded to handle huge-scale activities, with thousands of nodes and billions of data relays daily. This indicates the network’s ability to sustain a robust decentralized infrastructure. The platform’s growth is also evident in its dynamic community and active governance, which includes diverse stakeholders who contribute to its ongoing development and expansion.

How Does Pocket Network Work?

Pocket Network is a decentralized infrastructure solution that allows applications to interact easily across numerous blockchain networks. This feature is critical for decentralized applications (dApps), which require consistent and efficient access to blockchain data without relying on centralized points of control.

POKT Protocol

The POKT protocol is a decentralized network that facilitates robust and scalable RPC (Remote Procedure Call) services for blockchain-based applications. This is achieved through a decentralized physical infrastructure (DePIN) model, where multiple nodes across the network work together to service API requests.

Initially developed as a fork of Tendermint in 2020, the Morse protocol set the foundation for POKT Network’s decentralized RPC services. It introduced key features necessary for the network’s operations, including claim and proof lifecycle, which were hard coded to adapt the base Tendermint protocol to POKT’s specific needs. The latest major upgrade, Shannon, aims to transition the POKT Network into a fully integrated member of the Cosmos ecosystem by adopting the Cosmos SDK. This upgrade enhances the network’s modularity, interoperability, and scalability, enabling a wider range of decentralized applications to access multiple blockchain environments through permissionless gateways efficiently.

The network consists of applications that submit relays or API requests to be routed through the network and nodes that process these requests. This interaction is facilitated by a sophisticated network layer that manages sessions—a mechanism where applications are randomly paired with nodes to service their requests. Sessions ensure that the distribution of service requests among nodes is equitable and secure. They are generated using pseudorandom data to prevent potential manipulation and are refreshed periodically to enhance security.

The protocol employs an economic model where nodes and applications stake POKT to participate, incentivizing the operation and usage of the network. The network governance is carried out through a DAO (Decentralized Autonomous Organization), allowing token holders to participate in decision-making processes. This layered approach ensures that the POKT Network can offer low-cost, high-uptime services to a growing number of blockchain applications, paving the way for a decentralized and scalable digital infrastructure​

Decentralized Nodes and Data Relay

Decentralized nodes are crucial to Pocket Network’s functionality. These nodes are run by multiple network stakeholders and deployed internationally to ensure redundancy and fault resilience. When a dApp needs to retrieve or validate blockchain data, it submits a request to the Pocket Network. The network then forwards these requests to one or more nodes, which retrieve the necessary data from the blockchain and provide it to the dApp.

Incentive Structure and Tokenomics

Node operators are incentivized using a tokenomic approach based on POKT. They earn tokens for servicing requests, which encourages them to provide high-quality service and availability. This incentive mechanism is critical to ensuring that the network remains stable and that data is transmitted promptly and properly.

Load Balancing and Scalability

Pocket Network implements complex load-balancing methods at the protocol level. This method not only optimizes data request distribution over the network, but it also improves the system’s scalability and efficiency. Pocket Network may scale dynamically in response to demand by decentralizing the workload in this way, without sacrificing performance or security.

Security and Decentralization

The decentralized design of Pocket Network improves security and eliminates the risks associated with single points of failure. This configuration is naturally resistant to censorship and interference because no single party controls the entire network. Each node functions independently, which contributes to the network’s resilience and integrity.

Integration and Developer Tools

Pocket Network offers a variety of tools and services to assist developers in easily integrating blockchain functionality into their applications. The Pocket Portal allows developers to construct and manage interfaces between their applications and blockchains, simplifying the development process and lowering the technical barrier to blockchain adoption.

Pocket Network uses these processes to ensure that it not only meets the current infrastructure needs of dApps but is also well-prepared to manage future expansions as the ecosystem evolves. Pocket Network is positioned as a key component of the decentralized web, providing developers with tools to create durable and scalable applications.

Key Features of Pocket Network

Pocket Network provides a rich collection of capabilities that facilitate decentralized applications (dApps) by ensuring a secure, scalable, and resilient infrastructure. The following are some of the important elements that make Pocket Network a significant player in the Web3 space:

Multichain Compatibility

Pocket Network supports a diverse range of blockchain ecosystems, including key Layer 1 solutions such as Ethereum, Solana, and Algorand, as well as Layer 2 solutions and sidechains like Polygon and Optimism. This multichain compatibility is critical for developers wishing to create versatile dApps that can function across many blockchain ecosystems without being limited to a single ecosystem.

Decentralized Infrastructure

Pocket Network’s fundamental concept is to provide decentralized API services over a globally distributed network of nodes. This configuration improves the infrastructure’s security and censorship resistance, making it less susceptible to attacks and failures that are frequent in centralized systems. The network’s design also assures that dApps can remain highly available and run consistently even in bad conditions.

Economic Incentives

POKT tokens reward node operators in the Pocket Network to deliver dependable data services. This incentive structure ensures that the network remains stable and service quality is maintained. Developers use the network by paying for services with POKT tokens, which aligns the interests of all stakeholders in the ecosystem.

Scalability and Uptime

Pocket Network’s architecture is designed to scale dynamically with demand. Its decentralized design enables excellent load balancing, which reduces bottlenecks and increases uptime. The network processes billions of data relays per day, demonstrating its ability to support large-scale operations efficiently.

Flexible Integration and Ease of Use

Developers can simply integrate Pocket Network’s services using the Pocket Portal, which enables the building of apps and the maintenance of API endpoints. This portal makes it easier to connect dApps to the necessary blockchain data, allowing for a wide range of use cases, from simple token transfers to complicated decentralized finance (DeFi) interactions.

Operational Resilience

The Pocket Network protocol provides built-in redundancy and failover techniques to ensure that services remain functioning even if individual nodes fail. This resilience is essential for ensuring the continuation of service and dependability that dApps require.

POKT Gateways

POKT Network has developed specialized gateways such as Grove and NodiesDLB to optimize the interface between developers and the blockchain data they need. These gateways are essential components of Pocket Network’s infrastructure which enhances the ease of integration and the overall user experience.

Grove

Grove serves as a powerful gateway that offers seamless access to multiple blockchains, ensuring flexibility and ease of interaction with the decentralized ecosystem. It operates as an RPC (Remote Procedure Call) service that enables developers to send requests and receive responses for interacting with blockchain systems. Grove is known for its decentralization, multi-chain support, reliability, scalability, and speed, making it an efficient solution for developers looking to build or maintain dynamic Web3 applications. The gateway leverages a global network of decentralized nodes, which enhances its security and privacy by preventing any single point of control over data transmissions.

NodiesDLB

NodiesDLB is another gateway under the POKT Network, focusing on providing decentralized, scalable, and efficient access to blockchain services. Like Grove, NodiesDLB aims to streamline the process for developers and enterprises by offering robust features that simplify the complexities involved in blockchain interactions. This gateway contributes to the decentralized demand side of the network, driving innovation and optimization across the ecosystem​.

POKT DAO (OS)

The POKT DAO (Decentralized Autonomous Organization) operates as the organizational and governance backbone of the Pocket Network. It plays a pivotal role in coordinating stakeholders across the network, ensuring that all participants can contribute to and influence the key decisions that shape the platform’s development and operations. The POKT DAO is structured to provide a democratic governance framework where all stakeholders can engage in the decision-making process. This structure is deeply embedded in the network’s ethos, which is often referred to as the “POKT DNA.” This DNA emphasizes decentralization, community involvement, and transparent governance.

The DAO’s roles and powers are outlined in the Pocket Network Foundation’s (PNF) constitution and articles of association. It serves as a central hub where stakeholders from different segments of the ecosystem—developers, node operators, and investors—come together to discuss, deliberate, and make decisions on crucial matters impacting the network. The strategic direction of the POKT DAO is periodically defined by the PNF and focuses on broad, ambitious goals that align with the network’s long-term vision. These goals are referred to as Big Hairy Audacious Goals (BHAGs) and include targets such as reaching $1 billion in annual protocol revenue and establishing Pocket as the most trusted infrastructure brand in crypto.

Operational strategies are segmented into periods called “Eras,” each with specific milestones and objectives. For example, a current Era’s objective might focus on the successful launch and integration of a major network upgrade, such as the Shannon Upgrade. These Eras help streamline focus and resource allocation, ensuring that the DAO’s actions are aligned with its strategic ambitions.

The DAO employs a funding model that is activated at the beginning of each Era, detailing the budgets for key projects and community initiatives. This model is designed to be flexible, allowing for scaling based on the network’s revenue from block rewards, and aims to foster community contributions through a transparent and predictable funding approach.

Tokenomics of POKT (and wPOKT)

The tokenomics of Pocket Network (POKT) are designed to sustain the growth and stability of the network through a system of incentives that align the interests of node operators, developers, and token holders. The current token model involves minting new POKT tokens based on network activity. For every successful relay, a certain amount of POKT is minted. This is balanced by a burning mechanism, where tokens are burned to prevent inflation. However, the mint rate currently exceeds the burn rate to maintain a competitive Annual Percentage Yield (APY) for participants.

To facilitate the use of POKT within Ethereum-based decentralized finance (DeFi) ecosystems, Pocket Network introduced wPOKT. This wrapped token can be used in Ethereum’s DeFi protocols, enabling POKT holders to participate in liquidity mining, staking, and other DeFi activities. wPOKT acts as a bridge between the Ethereum ecosystem and Pocket Network, allowing users to leverage the security and decentralization of Pocket Network while engaging with the broader Ethereum ecosystem.

Operators who stake their POKT tokens to run nodes are rewarded based on the number of data relays they process. This incentivizes the provision of reliable and efficient services. Token holders can participate in the network’s governance, influencing decisions such as upgrades and changes to the network through a decentralized autonomous organization (DAO).

The Shannon upgrade aims to introduce permissionless gateways and nodes, allowing for a more decentralized and scalable network. Enhanced Token Logic Modules (TLMs) are designed to offer more tailored incentives for different services within the network. TLMs enable the network to deploy multiple economic models simultaneously, addressing specific needs of various network services.

With the new tokenomics structure, there is a shift towards making POKT deflationary over time. This is achieved by ensuring that the minting of new tokens does not exceed the burning, particularly as network demand increases. The proposed changes focus on creating a more balanced and sustainable economic model, which rewards network contributors while ensuring long-term viability. The introduction of TLMs allows for dynamic adjustments to token distribution based on real-time network performance and needs.

Is POKT a Good Investment?

Pocket Network has emerged as a leading revenue-generating protocol in the decentralized Web3 infrastructure. It is among the top revenue-generating protocols, showing its widespread acceptance and the value of its native token, POKT. POKT is important in the network’s revenue generation through relay processing. The network’s economic approach benefits both node operators and developers. Node operators receive POKT for processing data relays, which aligns their interests with the network’s health and scalability. This architecture fosters a self-sustaining loop of development and reward, ensuring the network’s long-term survival.

Monday Capital’s involvement in Pocket Network highlights the company’s potential and reliability. VC firms’ early investments emphasize the network’s critical position in Web3 infrastructure and ability to scale effectively. The network’s placement on platforms such as Token Terminal as one of the top revenue protocols suggests strong market positioning and promising long-term prospects. Increased visibility can attract more institutional and individual investors, increasing POKT’s market value. There are hazards to investing in the cryptocurrency market. While Pocket Network’s decentralized nature is a virtue, it also introduces variables such as legislative changes and market volatility, all of which can impact its value. When examining POKT as an investment, prospective investors should examine their risk tolerance.

How Can You Own POKT?

Owning POKT tokens involves a few straightforward steps, primarily focused on using the Pocket Wallet, which is Pocket Network’s official wallet solution. Visit the Pocket Wallet website and create a new wallet. This process involves generating a passphrase that acts as a security key for your wallet. It’s crucial to create a strong passphrase and securely back it up along with your keyfile. The Pocket Wallet is non-custodial, meaning you have full control over your private keys and, consequently, your POKT tokens.

In addition to creating a Pocket Wallet and participating in network activities, you can also purchase POKT directly from various cryptocurrency exchanges. It is available on several cryptocurrency exchanges such as Gate.io, allowing for easy purchase and trade. Once purchased, transfer your POKT to your Pocket Wallet for storage, staking, or to use for network services. This involves managing your tokens within the wallet interface, where you can also participate in staking to earn additional POKT.

News

Retro POKT Goods Funding program

Retro POKT Goods Funding is a program launched by the Pocket Network to support projects significantly contributing to its ecosystem. This initiative focuses on retroactively funding contributions across three main categories: Protocol, Ecosystem, and Adoption. Each category aims to recognize and reward efforts that have enhanced the network’s functionality, broadened its adoption, or strengthened its community and ecosystem impact.

The funding is not just limited to monetary support; it also includes the recognition of valuable contributions that may have been overlooked when they were made. Applicants are evaluated based on a detailed rubric that assesses the impact of their contributions, the quality of their submissions, and the overall benefit to the POKT ecosystem. This evaluation includes factors like the significance of the contribution to the main code, improvements to dependencies, user reach, and overall impact on the POKT protocol and its usage.

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