Later this week, Pocket Network will be hosting its inaugural Infracon event in Punta Cana, Dominican Republic. Among the sessions on the agenda is “Infrastructure is the Most Important Layer of Web3 to Decentralize,” presented by Ankr’s Head of Product, Josh Neuroth. In that session, Josh will be sharing how protocols like Ankr and Pocket Network can offer better solutions than centralized providers by creating mutually beneficial economies and novel decentralized business models. The growing role of decentralized infrastructure that Josh will discuss is a huge positive for all of Web3. In fact, Ankr is using Pocket Network as one of its go-to node providers to serve traffic coming to its own protocol - as Ankr put it, Pocket Network is helping them “spread the load & the map.” Relationships like this, where Pocket Network is able to play a role in powering Ankr’s protocol, move the needle further and further towards true decentralization, and are for the betterment of the Web3 space overall.
What does “mutually beneficial economies” really mean, though? The term describes how decentralized infrastructure, and the protocols like Pocket Network and Ankr that are providing it, establish an economic structure that has clear benefits for parties on both the supply and demand side.Take Pocket Network’s own mutually beneficial economy as an example:Node runners (the supply side) get their share of the “mutual benefit” from the POKT rewards that they receive for servicing data requests to blockchains. This benefit incentivizes node operators to remain active on the network and keep providing consistent, high-quality servicing of relays.Meanwhile, developers (one part of the demand side) benefit not only from tapping into the reliability, censorship resistance, and multichain interoperability that the network provides, but also from the actual economic structure of the protocol. With the ability to stake POKT as a one-time cost, in exchange for the right to have relays serviced by node runners, developers don’t have to make the customary recurring payments that they’re used to with centralized node service providers. Over the long haul, this can be a huge benefit, as the cost-basis for tapping into the network moves closer and closer to zero. Not to mention, this stake can eventually be sold to others if the service is no longer required - it’s a recoverable expense for developers if needed.Effective and powerful decentralized infrastructure requires well-thought-out and carefully balanced benefits, incentives, and rewards like these. This is part of what makes up a mutually beneficial economy - otherwise, participants on both the supply and demand sides wouldn’t be properly motivated to play their part in the decentralized network.We’ll have plenty more on this topic during Josh’s session. We’re excited to see our community and our partners there!