doctorrobinson

$POKT – A keystone for DePIN narrative I have been stumbling upon POKT 2 weeks ago and did some research on it. I will try to bundle what it does, why it’s so important and how I see it becoming a big part of the DePIN narrative. Messari recently came up with a DePIN research which is publicly available. For some reason, I’m surprised how it didn’t mention POKT. Anyway, this is why I’m going to cover it. DePIN DePIN means Decentralized Physical Infrastructure Networks. It’s a way to incentivize communities to build physical infrastructure networks like telecoms/maps/electrical vehicles/iot etc. You can kind of compare it with DeFi and NFTs: a new term coined for these systems. The biggest ones is Filecoin for example. For the OG ones: 2017 used to have something called Skycoin which was oriented on hardware mining for decentralized internet. Long story short, it’s a narrative that people are talking about rn and it will likely be a big hype coming into the bullrun. Ok nice, whats the deal with Pokt. Decentralized apps need a special type of node called ‘’RPC node’’ to read data on blockchain and send txs. As nodes are the only way devices that can interact with blockchains, dapps must: - Setup and run their own node - Connect to nodes provided by 3rd parties like infura / alchemy Most people lack the technical knowledge of hardware to run their own node. That’s why most use infura as their default choice when deploying a Dapp. Kind of like how AWS is owning most of the internet companies nowadays as people host their websites or servers on it. Very centralized. It’s kind of the elephant in the room most ppl in crypto are not talking about, just like how MEV was the same thing before people understood it. While doing research, these were the problems that occur: - Being dependent of Infura creates downtime because of outages - Infura has a monopoly for the pricing (expensive prices) - Censorship, infura apparently restricted access for users in Venezuela Infura even made a honest statement about it: “If every single dapp in the world is pointed to Infura, and we decided to turn that off, then we could, and the dapps would stop working.” We have all seen how everybody and their mums screamed about web3 so this whole thing doesn’t seem so web3 at all. This is why POKT came into the game and decided to make RPCs decentralised again. What does POKT do? They seem to solve this problem by focusing on providing a decentralized market for nodes. Instead of having their own nodes, they connect users with a network of independent nodes (service nodes). This creates a lot of benefits that solve the problem described before: - Using POKT is 10x cheaper than centralized nodes like infura - Network is incredibly reliable: latency is good with almost 100% uptime - No censorship: its decentralized This whole thing kind of reminds me of how Rocketpool tried to release decentralised way of liquid staking: Lido is the biggest one but has a very big centralised concentration. Rocketpool release a network of independent nodes to make liquid staking more decentralized. The same example can be used for infura/alchemy (Lido) vs POKT (rocketpool). Infura is owned by consensys which also owns metamask. JP morgan chase is even a shareholder of consensys, which kind of all shows that reducing the consensys tentacles is a must in order to claim the ‘’web3’’ ethos. Fun fact: ‘’It has become a core piece of infrastructure for the entire DeFi space: so much so that when it had an outage in November 2020, major crypto exchanges including Binance and Bithumb were forced to halt Ethereum withdrawals. Major services like OpenSea outsource the running of their Ethereum node to the service. Infura grew 250% from 100k to 350k developers over the course of 2021, and as of April, has hit 430,000 crypto/web3 developers and more than $1 trillion in annualized transaction volume.’’ (2022) Anyway, this kind of shows how there is a need to have a more decentralised option for it. If its also more latent and cheaper, it’s a nobrainer that POKT should be able to gain a lot of the marketshare of infura. It’s kind of hard to put a valuation on infura as its owned by consensys but based on some research, their biggest competitor (alchemy) is worth 10.2 Billion. Assuming these numbers, its fair to say that a sub 200m marketcap project with a better latency, costs and decentralized components should be valued way higher. The problem is the liquidity right now. A lot of smart money have been buying up everything on OTC markets and there is still a big demand for it. There seems to be a sell supply side crisis which could squeeze this coin once people catch up on it. Onchain research shows that people are accumulating the wrapped version as that seems to have more liquidity than the real asset on CEXs. I’m pretty confident that this coin will eventually go up in 2024 leading into the DePIN narrative. They seem to also focus on AI, see pic related. DePIN x AI is a good edge. There is still tons of data that can be found about POKT which you can find yourself. Be careful ape’ing as it’s very illiquid if you decide so (wrapped Pokt seems to have best liquidity). NFA etc. blabla. As I saw my thesis being leaked everywhere, I decided to post it myself. Tldr: Decentralised Infura. I like it. Bought a bag.

Less than 24 hours until the POKTOBERFEST twitter space. We're bringing together investors, supporters, builders, gateways, and foundation members. Tonnes of Web3 experience. To chat about POKT Network, crypto in general, and the future. Lineup in thread. Looking strong. 💪