The Pocket Network protocol incentivizes a decentralized network of RPC nodes to relay data from supported blockchain networks to the end users of decentralized applications (dApps). In this manner, the Pocket Network is decentralizing Web3 access and making the infrastructure more scalable and efficient.
Pocket Network’s multi-chain relay protocol functions as the TCP/IP of Web3 node infrastructure. As of January 2023, its infrastructure supports leading blockchain networks such as Ethereum, Avalanche, Harmony, Polygon, BNB Chain, Moonbeam, Moonriver, Klaytn, Optimism, Algorand, Solana, NEAR Protocol, Fantom, and more.
POKT is the native token of the Pocket Network and is used to offer incentives to remote procedure call (RPC) nodes. dApps can send their RPC requests to the Pocket Network’s globally distributed network of nodes. These RPC node runners relay the requested on-chain data from supported blockchains back to dApps and earn rewards in POKT tokens for their efforts.
The technology brings about true decentralization in Web3, challenging more centralized Web3 infrastructure. In addition, it lets dApp developers deploy their dApps without worrying about setting up and maintaining nodes, which could be an expensive proposition. In this manner, the Pocket Network makes Web3 far more accessible, affordable, and scalable.
Users can also stake $POKT tokens on nodes that relay RPC requests. Token holders can operate their own nodes, pay someone in POKT to run a node, or join a staking pool to earn rewards and grow their holdings in the token.
Pocket Network utilizes a proof-of-stake (PoS) consensus to secure its decentralized infrastructure. dApps accessing the protocol stake POKT when they wish to distribute data to the decentralized endpoints. The RPC request received by the nodes and relayed, processed, and validated using Zero-Knowledge Range Proofs.
Meanwhile, Service Nodes generate a batch of all requests received in a session to a single blockchain transaction on the Pocket Network. The Proofs-of-Relays of such transactions are then valeted by dApps on the client side and other nodes, producing new blocks on the blockchain. After validation of such proofs-of-relays and block production, new POKT gets minted and distributed to Service Nodes as rewards.
Pocket Network’s unique incentive design ensures that Service Nodes achieve economies of scale through load balancing at a protocol level. This way, decentralization is rewarded and supported while minimizing the need for buffers, making the distributed infrastructure extremely efficient.
The staking and inflation mechanisms are designed to ensure that resources are allocated more efficiently within Pocket Network. Additionally, the network has low marginal costs, making it easier for dApp developers to access Pocket Network’s services and utilize them for the scalable deployment of their solutions.
Pocket Network was founded by Michael O’Rourke and Luis de Leon in 2017, and its core team comprises people with experience in the blockchain space and high-tech industry. The protocol’s mainnet launch occurred in July 2020 and supports around 40 blockchains. Its infrastructure can work with any blockchain (RelayChain) that uses the RPC standard.
It is the largest Tendermint network in the market, supporting more than 27,000 nodes since its inception. The node operators within Pocket Network, application partners, and select community members for the Pocket Network, a decentralized autonomous organization (DAO), participate in the protocol’s decentralized governance.
Strategic users of the Pocket Network include established blockchain companies, such as Blockchain.com, Eden Block, Zee Prime Capital, and Monday Capital. Among its node operators also are well-known businesses in the industry, including Skillz, Rivet, and Chainstack.
At the time of the POKT launch, the developers behind the project had minted a genesis supply of 650 million POKT tokens. From the initial supply, 23.1% was allotted to the founders, while 11.7% was set aside for the pre-seed sale. $POKT tokens were also allocated to the Pocket Network team, reserves, DAO, liquidity provision, seed sale, advisors, and more.
Projects like Pocket Network could see considerable interest as Web3 adoption rises in the crypto industry. This could make the POKT crypto a good digital asset to invest in and hold.
As more dApp developers utilize Pocket Network’s decentralized infrastructure to relay their data, the demand for the POKT cryptocurrency could rise. This, in turn, could drive up the POKT to USD price and make it a valuable crypto asset in the market.
As Pocket Network supports more blockchain networks in the future, we could see a considerable increase in the use of its infrastructure. This could further boost the Pocket Network price and make POKT more attractive to hold.
Although it is impossible to offer an accurate POKT price prediction, several factors drive price action in the Pocket Network crypto. Here are some of the critical drivers to monitor:
As Pocket Network adds support for more blockchain networks, more dApp developers use its technology to relay on-chain data, or more users sign up to operate validator nodes on the network, the demand for the POKT crypto could increase. Such moves could contribute to bullish price action in the Pocket Network price.
As Web 3.0 goes mainstream and more dApps with real-world and commercial applications launch, there will be a greater need for efficient infrastructure like Pocket Network. Its decentralized infrastructure will make Web3 more decentralized, scalable, and capable.
Market sentiment is one of the most important drivers of price action in cryptocurrencies. A bullish mood or risk-on sentiment could drive more buying activity in the crypto market, supporting the price of Pocket Network. However, a bearish or risk-off mood could cause more sell-offs in the market, driving the POKT price lower.
$POKT is the native utility token of Pocket Network and has several applications, including:
Applications and Service Nodes stake POKT on the Pocket Network to access or provide work on the protocol. Applications stake POKT to receive an allocation of the network’s throughput. Service Nodes stake POKT tokens to receive work on the network and earn incentives for their efforts.
POKT is also used to pay transaction fees when leader-elected nodes use the Pocket blockchain for peer-to-peer transfer of payments. This mechanism prevents spam and dust attacks against the Pocket Network. 99% of the transaction fee is burned, while 1% is offered as a reward to the leader-elected node that validates and records transactions in the next block.
You can trade Pocket Network against other cryptocurrencies to profit from changing market conditions and volatility. Buy or sell POKT against other digital assets or hold it long-term if you believe in the future potential of the Pocket Network protocol. Review the live Pocket Network price, POKT live market cap, circulating supply, 24-hour trading volume, and the latest crypto news before trading POKT in the market.
Pocket Network aims to make Web3 more decentralized and accessible for all. Other companies that can be considered this protocol’s competitors include Chainnodes, Chainstack, NodeReal, Ankr, and Velas. Other possible competitors of Pocket Network include Infura, QuikNode.io, NOWNodes.io, The Graph, and Alchemy.
There are three ways to stake $POKT on Pocket Network - run your own node, pay someone else to run your node, or join a staking pool. The first option requires you to have the technical know-how and at least 15,000 tokens to stake; the second option needs a minimum of 15,000 POKT to stake but no technical skills, while the third option requires no minimum staking limit nor technical skills.
Here’s how you can stake POKT by joining a staking pool:
1. Set up an account on Pocket Wallet - the official Pocket Network wallet. Fund your wallet with $POKT tokens by buying the token on an exchange like KuCoin or other supported platforms and transferring them to your wallet.
2. Check out available staking pools within the Pocket Network community at this link: https://forum.pokt.network/t/overview-of-pooling-services/2437.
3. Select a staking pool after reviewing all options and finding the most convenient and safe option. Click on the link of the staking pool and connect your wallet to its interface.
4. Click on Stake and enter the number of POKT tokens you wish to stake. Review the lock-in period and rewards on offer and confirm your transaction through your wallet. Sit back, earn rewards, and watch your POKT holdings grow by staking Pocket Network.