Pocket Network

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Discover Pocket Network's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Pocket Network?

Pocket Network (POKT) is a decentralized protocol designed to serve as Web3's RPC base layer, providing a reliable and performant infrastructure for developers, applications, and users. It operates on the principles of decentralization, ensuring data accessibility, reliability, and cost-effectiveness through a global network of independent nodes.

How is Pocket Network used?

Pocket Network (POKT) is a decentralized infrastructure API designed for Web3 applications. It provides a trustless protocol that enables developers to access blockchain data through a relay network of full nodes. Here's how it works:

  1. Decentralized RPC Access: Pocket Network offers reliable, performant, and cost-effective RPC (Remote Procedure Call) access to various blockchain networks, including Ethereum, Polygon, Binance Smart Chain, and others.

  2. Node Operators: Node operators run full nodes that act as relays to external blockchains. These nodes are incentivized through a proof-of-stake consensus mechanism, where they stake POKT tokens to participate in the network. The more nodes a user runs, the higher their chances of serving relays and earning rewards.

  3. Staking and Rewards: Node operators stake at least 15,000 POKT tokens per node to participate. Rewards are dynamic and proportional to the number of relays and transaction fees processed. For each relay served, 0.01 POKT is minted, with 89% going to the serving node, 10% to the Pocket DAO, and 1% to the block producer.

  1. Web3 Applications: Developers can use Pocket Network to build Web3 applications by accessing blockchain data through the relay network. This eliminates the need for centralized services and ensures a secure, decentralized infrastructure.

  2. Gateway and APIs: Pocket Network provides a gateway to decentralized blockchain data, offering lightning-fast APIs, live tracking capabilities, and robust analytics. This streamlines the development process for Web3 applications.

In summary, Pocket Network is a decentralized infrastructure that enables developers to access blockchain data through a relay network of full nodes, incentivized by a proof-of-stake consensus mechanism. This infrastructure supports the development of Web3 applications, ensuring a secure and decentralized environment.

How do I store Pocket Network?

To store Pocket Network (POKT) tokens, you can use several wallets. The official POKT Wallet is recommended, which allows you to easily send, receive, and non-custodially stake your POKT tokens. Here are the steps to create a Pocket Wallet:

  1. Visit the Pocket Wallet website: Navigate to https://wallet.pokt.network using any browser.
  2. Create your wallet: Enter a passphrase (password) that meets the specified requirements (at least 8 characters, a mix of letters and numbers, including one uppercase letter and one special character). Click Create to proceed.
  3. Save your Keyfile: Download the keyfile and securely back it up along with your passphrase. Press Continue to complete the wallet-creation process.

Additionally, you can use other wallets like Ledger and NodeWallet, which are approved for wrapping and unwrapping POKT tokens.

How to buy Pocket Network?

To buy Pocket Network (POKT) tokens, follow these steps:

  1. Choose a Crypto Exchange: Select a reputable crypto exchange that supports POKT trading, such as Gate.io, Bybit, KuCoin, MEXC, or CoinEx. Compare fees, security features, and supported currencies before choosing an exchange.

  2. Create an Account: Register a free account on the chosen exchange. Provide personal information, including your name and email address. Complete KYC (Know Your Customer) verification to increase withdrawal limits and unlock additional features.

  3. Deposit Funds: Deposit fiat currency (e.g., USD, EUR) or another cryptocurrency (e.g., USDT, BTC, ETH) into your exchange account. Some exchanges support direct fiat purchases, while others require buying a stablecoin like USDT first.

  1. Buy POKT: Use your deposited funds to buy POKT tokens. You can place a Market Order or a Limit Order. Market Orders execute quickly at the best available price, while Limit Orders specify a maximum price to buy at.

  2. Store POKT: Store your POKT tokens in the exchange's wallet or transfer them to a personal crypto wallet (e.g., Trust Wallet) for long-term storage. Consider using a cold wallet for added security.

  3. Monitor and Trade: Keep track of your POKT investment and trade it for other cryptocurrencies on the exchange if needed.

For more detailed information and specific exchange procedures, refer to the guides provided by CoinCarp, CoinGecko, and MEXC.

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History of Pocket Network

Pocket Network, also known as POKT, is a decentralized blockchain data platform that connects to various blockchains and services the data demands of Web3 decentralized applications (dApps). The network uses cost-efficient economics to coordinate and distribute data at scale, utilizing the POKT token to facilitate its services.

Launch and Evolution

Pocket Network's protocol first launched on Mainnet in July 2020 with its original protocol, called Morse. This initial protocol was built on top of the Tendermint framework in the Cosmos ecosystem and was significantly modified to optimize for Pocket Network's specific use case. Since its launch, the Morse protocol has served nearly 700 billion relays across over 50 different chains, utilizing a network of around 15,000 nodes located in 22 countries.

Upgrades and Development

A major protocol upgrade, named Shannon after mathematician and cryptographer Claude Shannon, is currently under development. Shannon is expected to deploy on Testnet in Q3 2024 and on Mainnet in Q4 2024. This upgrade aims to further enhance the network's capabilities and scalability.

Current Status

Today, Pocket Network operates as a decentralized RPC (Remote Procedure Call) provider, offering a robust infrastructure for Web3 applications. It is backed by thousands of independent, globally distributed nodes, enabling teams to deliver a multi-chain user experience at scale. The network's governance model empowers various stakeholders, including node operators, stakers, builders, and citizens, ensuring fair representation.

Market and Community

Pocket Network's token, POKT, has a market capitalization of around $179 million and a circulating supply of over 1.6 billion tokens. The network has an active community with various ways for contributors to participate, including protocol development, grants, and bounties.

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How Pocket Network works

Pocket Network (POKT) is a decentralized crypto project that provides a cost-effective, scalable, and resilient infrastructure for web3 applications. It operates as a "behind the scenes" layer, enabling applications to access blockchain data without relying on centralized API providers. Here's how it works:

RPC and Decentralized Data Access

POKT Network is built around the concept of Remote Procedure Call (RPC), which allows applications to request data from other servers or nodes. In traditional setups, this process can be expensive and centralized. Pocket Network decentralizes this process by creating a network of independent nodes that provide RPC services. These nodes are incentivized to participate by staking POKT tokens, which helps to lower bandwidth costs for applications.

Node Operators and Staking

Node operators play a crucial role in the Pocket Network ecosystem. They set up and maintain nodes that provide RPC services to applications. To participate, node operators must stake POKT tokens, which ensures that they have a vested interest in maintaining the integrity and performance of the network. This staking mechanism helps to secure the network and incentivizes node operators to provide high-quality services.

Gateway and API Access

Applications can access the Pocket Network through existing gateways or by hosting their own gateways. This allows them to tap into the decentralized RPC infrastructure, which provides fast and cost-effective access to blockchain data. The network supports multiple blockchain platforms, including Ethereum, Polygon, and Binance Smart Chain, making it a versatile solution for web3 developers.

Tokenomics and Incentives

The POKT token is the native cryptocurrency of the Pocket Network. It is used for staking, governance, and incentivizing node operators to provide high-quality RPC services. The tokenomics are designed to ensure that node operators are rewarded for their contributions, which in turn helps to maintain the health and resilience of the network.

Community and Governance

Pocket Network has an active community that contributes to the development and governance of the project. The governance model empowers node operators, stakers, builders, and citizens to participate in decision-making processes, ensuring that the network is fair and representative of its stakeholders.

AI Integration and Future Potential

Pocket Network has been exploring its potential in the AI space, particularly in using blockchain technology as a decentralized vector database for AI agents. This could enable the sharing of RAG data across AI systems, providing a new use case for the network. While this is still in the early stages, it highlights the potential for Pocket Network to expand its services into new areas.

Overall, Pocket Network provides a decentralized, cost-effective, and scalable infrastructure for web3 applications, making it an important piece of the puzzle for maintaining a decentralized and censorship-resistant crypto ecosystem.

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Pocket Network's strengths

Pocket Network (POKT) has several strengths that make it a robust and reliable infrastructure for Web3 applications:

  1. Decentralized Nature: Pocket Network operates on the principles of decentralization, ensuring that no single entity controls the flow of data. This decentralized nature offers numerous advantages, including improved resilience, scalability, and security.

  2. High Uptime: The network is designed to provide 99.99% uptime across 40+ blockchain protocols, thanks to a global network of 20,000+ independent nodes.

  3. Cost-Effectiveness: Pocket Network charges a small fee for facilitating the marketplace compared to centralized entities, which results in cheaper fees for DApps.

  1. Scalability: The network is highly scalable, allowing it to handle high traffic and large volumes of data without compromising performance.

  2. Security: The staking mechanism for Node operators ensures that they remain honest and vested in their duties, as they can be penalized if they consistently return invalid data or are down.

  3. Flexibility: Accessing the decentralized RPC service offered by Pocket Network is made flexible to cater to different needs and preferences, with options for web interfaces, self-hosted access points, and rate-limited endpoints.

  1. Community Engagement: The network has a strong focus on community involvement, with various ways for contributors to participate, including protocol development, grants, and bounties.

  2. Robust Infrastructure: The network is backed by thousands of independent, globally distributed nodes, enabling teams to deliver a multi-chain user experience at scale.

These strengths make Pocket Network an attractive solution for developers and applications looking for a reliable, performant, and cost-effective infrastructure for their Web3 needs.

Pocket Network's risks

Pocket Network (POKT) carries several risks, primarily related to its high risk score and potential for manipulation. Here are some key points:

  1. High Risk Score: According to InvestorsObserver, POKT has a high risk score, indicating that it is a relatively high-risk investment. This score is based on the amount of money required to move the price over the past 24 hours, considering changes in volume and market capitalization. A low score suggests high risk, while a high score indicates low risk.

  2. Potential for Manipulation: The scoring system used by InvestorsObserver suggests that POKT can potentially be easily manipulated by limited trading activity. This raises concerns about the stability and reliability of the token's price.

  3. Node Infrastructure Costs: The cost of running nodes is a significant factor in POKT's economics. There are concerns that the current infrastructure costs are too high, leading to unnecessary sell pressure and potentially affecting the token's value. There are ongoing discussions about incentivizing the consolidation of nodes to reduce these costs.

  1. Inflation and Tokenomics: POKT's tokenomics have undergone changes, such as the reduction of inflation to 26.8% through proposals like PIP-22 and PUP-22. However, the effectiveness of these changes is still being debated, and their impact on the token's value is uncertain.

Overall, Pocket Network's risks are primarily centered around its high risk score, potential for manipulation, and the ongoing challenges in managing its node infrastructure costs and tokenomics.

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Did Pocket Network raise funds?

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Pocket Network’s team

  • Michael O'Rourke: CEO and Co-Founder of Pocket Network, accomplished developer with a long history in high-tech companies and early innovator in the blockchain space.
  • Luis de Leon: CTO and second Co-Founder, professional developer with a decade-long background in full stack development roles.
  • Andrew Nguyen: Blockchain engineer and Pocket Core Protocol Lead.
  • Adam Liposky: Ecosystem Operations Lead, experienced builder and creator.
  • Patrick Maguire: Operations Lead, expert crypto operator.
  • Alex Firmani: Director of Engineering, technical wizard with experience in high-tech startups, including Amazon during the dotcom boom.
  • Daniel Olshansky: Head of Protocol, held key roles in POKT Network's Protocol team since 2021 and served as an advisor to the network prior to that.
  • Jack Laing: Instrumental in the design of POKT Network's protocol, governance, and economics, and in building the community.
  • Dermot O'Riordan: Drives POKT Network's success, focusing on strategy, culture, and resource allocation.

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