Live from ETHdenver 2022, Be[In]Crypto sat down for a live interview with Pocket Network about why we no longer need to own the infrastructure for blockchain with ‘pocket’ nodes.
In 2017, when CryptoKitties was launched, the Ethereum network became congested, causing gas fees to rise and ultimately crashed the network. Consequently, Ethereum was forced to solve future scalability issues.
However, we are now at the point where we know how to provide the right infrastructure as centralized companies become more decentralized, according to Pocket Network’s lead of growth operations, Rich Cuellar-Lopez.
Pocket Network, a Web3 infrastructure middleware protocol, provides ample blockchain bandwidth from a globally distributed network of over 30,000 full nodes to Web3 applications on 37 different blockchains, including Ethereum, Polygon, Solana, Avalanche, and Harmony.
Pocket Network jumps 3000%
Earlier this month, the company revealed that it broke its 30,000 node milestone, jumping 3,000% from 1,000 to 3,000 nodes. These blockchain nodes are capable of providing infrastructure services to over 3 dozen other blockchains, including Bitcoin, which has around 15,000 nodes. By hosting thousands of these nodes, other blockchains such as Ethereum can access their node services through an API or application programming interface.
In January, the $1.5 billion Tampa-based developer Web3 announced its $10 million increasesurpassing $56 million in December alone, thanks to New York’s Republic Capital, RockTree Capital, Arrington Capital, as well as other institutional funding.
In its press release, Pocket Network said it would use the newly created capital to fund the development of its network, also using funds to expand its operations in the Asia-Pacific region. This was the company’s third round of institutional funding.
Are we past Ethereum’s previous scalability issues?
Five years after CryptoKitties, the industry still relies on the same few centralized companies, which are just becoming “more decentralized,” Lopez told Be[In]Cryptography.
Lopez believes that we have overcome this hurdle and we no longer need to own this infrastructure – but instead, we can forward it, providing a truly decentralized blockchain network.
“This kind of structure in 2017 was such that we were counting on some companies that had servers and hardware, like AWS – and this is one way to do that. But if that happens, a big part of that permissionless blockchain is suddenly unusable,” he explained.
“We’re past that now.”
He says we’re now at the stage where companies can actually forward this to tens of thousands of nodes around the world, having a market for excess bandwidth. With each node costing 15,000 of Pocket’s native token, POKT, the company projects billions of retransmissions by mid-2022.
“I love the work that people do in the infrastructure space, and if they’re centralized, this is one way to do it. But if there is any downtime, even for an hour, it shouldn’t affect Ethereum or whatever blockchain you are using. With over 30,000 knots, even if a few thousand knots go down, no one is really impacted.”
Lopez, who leads Pocket Network’s market team, ensures that the supply side of nodes is healthy, while ensuring that demand remains healthy and stable.
“Having this network allows us to have 100% uptime, where if something goes wrong in one part of the world, we have nodes in other parts of the world that can help keep operations flowing. It’s no longer about running one type of machine,” he said.
Future legal status of DAOs
Earlier this month, the Republic of the Marshall Islands became the first sovereign to legally recognize Decentralized Autonomous Organizations, or DAOs, granting DAOs the same privileges as limited liability companies (LLCs).
Through the country’s newly revised Non-Profit Entity Act, DAOs are now dressed in the same corporate identity and ability to similarly own real estate. In other words, DAOs incorporated on the territory of the Marshall Islands would not have to register as separate LLCs.
Software developer DEX Shipyard Software is currently the first DAO putting the newly revised law to the test with its AdmiralDAO.
“I wouldn’t be surprised if more than half of the people I know are employed by a DAO when I leave this Earth,” Lopez shared. “I have no doubt that DAOs will have to ask for regulatory compliance or legal framework. All legal jurisdictions will have to go out and ask how to make an entity out of a DAO.”
Expanding on that, Lopez says he believes these conversations will happen in waves, as we are only now in the early stages of talking about DAOs as a hot and trending topic:
“Two years from now, if we hit a new cycle, we might not be talking about DAOs, but I guarantee that in six years we’ll be talking about DAOs again, because corporations will start to have DAO-like capabilities.”
Post ETHDenver: “Build again”
As for those who attended this year’s ETHdenver, Lopez describes the atmosphere as euphoric, placing importance on “filling our buckets before we head back to our respective Discord channels, audio rooms and crypto Twitter.”
“I truly believe that in an unsexy infrastructure, we can all collaborate, even at an event like ETHDenver,” he continued. “For those in attendance, soak it all up, fill your buckets – but then get back to building and getting ready for the next conference.”
Lopez also encourages each of Pocket’s competitors to collaborate, noting the potential for each company to spin these nodes and be a contributor to “keep improving their business model.”
“I’m already thinking about the conversations I want to have next year at ETHDenver, because I fully anticipate all the things that are building up there and what we’re going to talk about. I think it’s important to remember that we’re all here to build something and collaborate. If you’re doing those two things really well, next year’s ETHdenver is going to be really cool.”
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