NKN is a peer-to-peer decentralized network aiming to disrupt the traditional centralized client-server model of internet and telecoms networks, which, according to NKN, are expensive, inefficient and prone to attacks.
By incorporating a blockchain layer on top of existing TCP/IP, NKN aims to help utilize unused bandwidth and data, which is often distributed inefficiently across different users, allowing both individuals and large ISPs to better optimize data usage for improved network speeds and reduced costs.
NKN can also be used to develop decentralized web 3.0 applications with less cost than traditional server-based applications. This entails web applications which currently depend on centralized servers being able to run more cheaply, steadily and in a distributed way over NKN. Whether messenger applications, online games or any app which can be negatively affected by downtime of centralized servers. From a developer standpoint, it is easier and cheaper to develop on NKN’s distributed network than the traditional approach.
This distributed network is powered by the $NKN token, an intrinsic self-incentivized digital asset which powers and secures the network.
NKN utilizes a mechanism called Proof-of-Relay 51, also referred to as “useful Proof-of-Work”. Unlike traditional Proof-of-Work systems which reward based on computing hash functions, PoR rewards miners for relaying real-world (useful) data along the network.