Pocket Network Describes Itself As

Pocket Network is a decentralized protocol that provides data relay services between blockchain networks and decentralized applications (dApps). Operating on its own Layer-1 blockchain, Pocket Network coordinates a global network of nodes to relay data across more than 50 blockchains and Layer-2 networks. Built on the Tendermint framework within the Cosmos ecosystem, Pocket Network decentralizes the traditionally centralized RPC (Remote Procedure Call) layer, offering Web3 developers resilient, scalable, and cost-efficient access to on-chain data.

Since its mainnet launch in July 2020, Pocket Network has processed over 700 billion relays using a network of 13,000 nodes distributed across 22 countries.

Project Function

Pocket Network addresses the growing demand for decentralized RPC services, enabling developers to access multiple blockchain networks through a single, permissionless integration. The protocol seeks to play a key role in the Decentralized Physical Infrastructure (DePIN) space and supports the efficient relay of data between dApps and blockchains.

• Live Protocol (Morse): The current protocol, Morse, is optimized for Pocket’s unique use case. 
• Upcoming Protocol (Shannon): The Shannon Upgrade, live on the public testnet, looks to further decentralize the network by enabling permissionless gateways, increasing scalability, and supporting new use cases beyond blockchain RPCs. It will allow anyone to create decentralized gateways, aiming to accelerate adoption and make Pocket Network a fully open and universal RPC infrastructure layer.

Token Utility

The POKT token serves as the core utility token within Pocket Network, facilitating payments for services and staking to secure the network.

• Payments: Gateways pay node operators in POKT for each relay they process. The current fee is $0.00000085 per relay, with aggregated fees burned weekly by the Pocket Network Foundation, creating a deflationary effect on token supply.
• Staking: Node runners must stake between 15,000 and 60,000 POKT to operate a node. This staking mechanism seeks to ensure that only economically committed participants can process data relays and earn rewards.

POKT also has cross-chain functionality through the Multi-Chain Bridge, allowing it to participate in DeFi ecosystems across multiple Layer-1s and Layer-2s.

The Evolution of Pocket Network

Pocket Network launched its mainnet on July 28, 2020, with its initial Morse protocol. The goal was to decentralize the RPC layer of Web3, providing an alternative to centralized service providers. Since its launch, the protocol has operated as a supply-side permissionless network, allowing any eligible node to join and contribute to data relays. The upcoming Shannon Upgrade will extend Pocket Network’s decentralization by making it demand-side permissionless, allowing anyone to create and operate gateways for decentralized RPC access. This upgrade will significantly scale the protocol’s capabilities and expand its use cases to other decentralized data services, such as AI inferencing and oracles.

About the Founders

Pocket Network was founded in 2017 by Michael O'Rourke, Valeria Benitez Florez, Pabel Nunez Landestoy, and Luis Correa de Leon. In 2016, while experimenting with Ethereum, the founders identified a key issue: decentralized applications were reliant on centralized RPC providers, undermining the principles of decentralization. This insight led to the creation of Pocket Network.

Risks of POKT

Like an investment in other crypto assets, there are some general risks to investing in POKT. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in POKT is subject to the following specific risks:

• The Layer-1 space is intensely competitive. Several new blockchains continue to emerge which boast high-profile teams, claim unparalleled transaction speed, energy-efficiency, as well as developer-friendly programming languages. Any potential success associated with POKT is reliant on the extent to which the Pocket Network is adopted by enterprises and developers.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with POKT. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The POKT community and Pocket Network founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of POKT have no recourse to the POKT community, Synternet founding team, or Uphold if POKT declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing POKT on the Uphold Platform, Uphold performed due diligence on POKT  and determined that  POKT  is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of POKT , including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of POKT .
• Any marketing materials put forward by the POKT  social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with POKT , including any code defects, security breaches and other threats concerning POKT  and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with POKT , including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of POKT.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on September 19, 2024.