Taking Pocket Network as a sample, analyze whether decentralized AIP services are a false proposition?

In the rapidly changing world of cryptocurrency, emerging projects and innovative technologies continuously challenge existing boundaries, turning once seemingly impossible concepts into reality. In this context, Pocket Network stands out as a decentralized infrastructure protocol. Its goal is to fundamentally change the way developers access and interact with blockchain networks. In recent years, as blockchain technology has matured and become more widespread, Pocket Network has gained significant attention in the crypto space.
Recently, Pocket Network Inc announced that it has raised $7.9 million from Fidelity's Avon Ventures, Placeholder Capital, and Druid Ventures. This funding will be used to establish new partnerships to promote the mainstream adoption of DePIN technology in broader fields, signaling Pocket Network and its team's commitment and expectations for future technological development.

POKT Token Price Chart
Using this funding event as a starting point, the following will provide a detailed introduction to the Pocket Network project.

Pocket Network Overview: Providing Stable Decentralized AIP Services for Dapp Developers

Pocket Network is a distributed API infrastructure designed specifically for Web3 applications. It provides a trustless API layer that allows developers to easily access any blockchain. In the Web3 world, if various public chains (such as Ethereum, Solana, Terra) or Layer 2 technologies (like Polygon, Arbitrum) are likened to unique islands waiting to be developed, then middleware serves as the bridge or boat connecting these islands, enabling developers and users to more easily access the services of these islands.
However, assets between blockchains often cannot be directly interchanged. To achieve cross-chain asset transfers, we need to rely on cross-chain bridges as middleware. In addition to centralized exchanges (CEX) acting as cross-chain bridges, there are also some decentralized forms (such as POS validator groups) of cross-chain bridges emerging, such as THORChain and ChainSwap.
In addition to middleware aimed at DeFi protocols and users, there are also some specifically targeting developers, among which Pocket Network is a leader. Typically, when developers build decentralized applications (DAPP) based on certain public chains, they need to obtain the system's API for easier development. An API (Application Programming Interface) is an interface that allows applications to call system functions. Due to significant differences in the design of various public chain systems and high development thresholds, the role of APIs becomes particularly important.
In the early days of the industry, developers often had to pay centralized service providers for API services. These providers generally store various information and data on centralized servers. While they can ensure orderly operation of services under normal circumstances, once a failure occurs (such as server outages, natural disasters, etc.), they cannot guarantee the normal operation of applications relying on their services. For example, on November 11, 2020, the well-known Ethereum node service Infura experienced an API service failure, causing multiple services dependent on Infura to crash and display incorrectly. Such incidents are not uncommon. Therefore, in addition to being expensive, centralized service providers typically have low fault tolerance and may directly interrupt services to users due to policy, regulatory, or interest issues.
Thus, Pocket Network is crucial for DAPP developers. It not only provides a more stable and decentralized API service but also reduces the complexity for developers in developing and integrating across different blockchain platforms, thereby promoting the development of the entire Web3 ecosystem.

Pocket Network's Data Performance: An Average of 300M to 600M Relay Requests (RPC) Processed Daily

Since its launch in 2017, the Pocket Network project has undergone significant development and growth. The project's first mainnet went live on July 28, 2020, marking an important step in the blockchain infrastructure field. More excitingly, the Pocket Network V1 mainnet is scheduled for full launch in early 2024. This upgrade aims to enhance the usability of Pocket Network, introduce a new consensus mechanism, and improve peer-to-peer communication and data persistence modules. Notably, Pocket Network V1 will decentralize the gateway and access points for application developers, meaning the network will be able to handle requests from different sources more efficiently, improving overall efficiency and stability.

Pocket Network's Ecological Roadmap
In terms of business processing capacity, Pocket Network has already demonstrated impressive capabilities. Over the past month, Pocket Network has averaged 300M to 600M relay requests (RPC) processed daily. Particularly on December 4, the number of relay requests processed reached 625M, setting a new historical high. This indicates Pocket Network's capability and stability in handling large-scale requests.

Pocket Network Data Processing Situation
Pocket Network provides relay technology services for several internationally renowned projects, including Harmony, Fuse, Metamask, MyCrypto, and EthersJS. This extensive client base reflects the reliability and diversity of its technology, as well as its important position in the industry.
Currently, Pocket Network supports over 40 blockchains, with services for Ethereum, Polygon, and BSC networks ranking in the top three. Notably, Celo Network is one of the networks with the fastest-growing service demand recently. This diverse network support further demonstrates Pocket Network's capabilities and adaptability as a decentralized infrastructure provider.

Pocket Network Advantages: Low Cost, Decentralization, and Greater Stability

One of Pocket Network's core advantages is its low fee structure, which is an important attraction for development teams. The gateways operating on the network have successfully reduced RPC (Remote Procedure Call) costs to just $4.50 per million requests. Additionally, Pocket Network offers various discount packages, further lowering the cost burden for development teams using blockchain infrastructure. In this way, Pocket Network not only supports small and emerging development teams but also provides cost-effective solutions for large enterprises.

Since May 2023, the Pocket Improvement Proposal-29 (PIP-29) has made significant adjustments to the fee structure. According to PIP-29, Pocket gateways (i.e., access portals) must pay a fee of $0.00000085 per relay to Pocket DAO (Decentralized Autonomous Organization), which will then be burned. This fee is known as the GatewayFeePerRelay parameter, which specifies the dollar-equivalent amount of POKT (Pocket Network's token) owed by gateway operators for each relay sent through the network. Notably, for paid Pocket users, the average cost per relay is only $0.000004. This fee structure not only ensures the sustainable operation of the network but also provides users with highly competitive prices.
Moreover, the decentralized nature of Pocket Network is another significant advantage. Decentralization means not relying on a single centralized entity to process requests or store data, thereby enhancing the stability and security of the network. In a decentralized network, data is distributed across multiple nodes, reducing the risk of single points of failure and enhancing resilience against attacks and failures.
Overall, Pocket Network provides developers with an economical and reliable blockchain infrastructure service through its low-cost and decentralized characteristics, which is particularly important in today's increasingly growing Web3 environment. These advantages have enabled Pocket Network to stand out in the blockchain infrastructure market, earning it widespread recognition and usage.

POKT's Economic Model: Developers or Users Access Network Services by Staking Tokens

Pocket Network uses a Stake-for-Access (SFA) token model to acquire value, which is a method of obtaining access to network services by staking tokens.
For each relay service processed, the network issues 0.01 POKT as a block reward, with the distribution as follows: node operators receive 89%, block proposers receive 1%, and the remaining 10% goes to the Pocket DAO treasury. Under this mechanism, the initial total supply of POKT tokens was 65 million, while the current circulating supply has reached 1.6 billion, nearly tripling.
For nodes, the minimum staking amount is 15,000 POKT, while the minimum staking amount for applications is only 1 POKT, with a minimum unbonding period of 21 days for both applications and full nodes.

POKT Asset Unlocking Table
From the data of the past few quarters, over 60% of the POKT supply has been staked, indicating that most POKT has practical applications within the network. The circulating supply of POKT mainly depends on the volume of information relays in the network; when the relay volume is low, the circulating supply grows slowly. According to Messari data, as the volume of information relays increases, the network utilization is extremely high.
Pocket Network has multiple sources of revenue: first is supply-side revenue (minting), which comes from inflation, with 85% directly minted to service nodes based on the number of relays, 5% minted to block proposers (validators), and the remaining 10% going to Pocket DAO. Second is transaction fee revenue, where 1% of this revenue is used to reward block proposers, and the remaining 99% flows into Pocket DAO. Finally, protocol revenue (burning) includes the burned gateway fees, with each relay's gateway fee being $0.00000085, which is sent to Pocket DAO by gateway operators and then burned.
Since the implementation of Pocket Improvement Proposal-29 (PIP-29) in May 2023, this burning mechanism is expected to completely offset the inflation rate after the V1 mainnet update in 2024, protecting the value of staked tokens for nodes. The core of this token economic model lies in maintaining network vitality through staking and using tokens while controlling token inflation.

The Future of Pocket Network is Uncertain, but Blockchain Technology Innovation is Worth Affirming

As Pocket Network continues to develop and mature, its importance in the cryptocurrency and blockchain field is increasingly highlighted. As an infrastructure protocol providing low-cost, high-performance, and decentralized services, Pocket Network not only promotes the development of Web3 applications but also provides strong support for the popularization and acceptance of blockchain technology. Through its unique Stake-for-Access token model and careful management of token economics, Pocket Network has successfully built a sustainable and resilient network environment.
With the upcoming launch of the V1 mainnet and other technological innovations, Pocket Network is expected to continue expanding its influence in the coming years, providing services to more developers and users. Its model showcases a balanced and harmonious ecosystem, which is particularly important in the current technological environment.
As blockchain technology continues to evolve and its application fields expand, we can expect Pocket Network to continue playing a significant role in the cryptocurrency and blockchain space, driving the advancement and innovation of the entire industry.