How PKT Cash Provides an Economic Incentive for People to Connect Bandwidth to the Decentralized PKT Network
3 min readPKT Network offers a revolutionary new way for diverse internet users across the planet to contribute to an open-source internet service protocol. This has a number of advantages in the real world. It provides easy-to-access, affordable internet communication for all sorts of people, and it also avoids the restrictions and limits of many state-influenced or monopolized ISPs.
One key feature of the PKT Network is how it offers an economic incentive for people to connect bandwidth to the decentralized network, with its own coin called PKT Cash. The model for this coin will help the network grow its reach by providing a real financial benefit for those who choose to connect and share bandwidth. Let’s have a look at how it works in a little more detail.
How PKT Cash Incentivizes People to Connect Bandwidth
When a node connects to the PKT Network, it supports the system by both using bandwidth and CPU time to mint new PKT Cash. With PKT Cash as incentive, miners increase their computing output and scale infrastructure, which both helps them get more coins and also helps increase the bandwidth of the PKT Network for all users.
PKT Cash has been built for scalability, including microtransaction capabilities, and is ten times faster when compared to BTC. The absolute total number of PKT Cash coins to be mined will be 6 billion, which will be issued over 63 years.
By reducing block rewards by 10% every 100 days, by a process known as the decimation, the PKT Network gives more significant gains for early adopters and miners.
PacketCrypt
PKT utilizes a proof of work process known as PacketCrypt, which enables communication between miners, thus routing network traffic worldwide. This process makes sure that all infrastructure is bandwidth-intensive, using two distinct stages, announcement and block mining.
The main benefit of mining for the PKT Network is that the PacketCrypt algorithm favors CPU mining rather than GPU or ASIC. Mining can thus take place on resources that may be idle, and prioritizes high-performance equipment that is also useful for VPN packet encryption. The mining infrastructure supports the PKT Network’s internet.
All of these measures help make the PKT Network capable of providing a real-world use case that benefits both miners and internet users. The PKT Network will continue to grow as more and more users with high-powered, high bandwidth infrastructure are encouraged to join and mine. As a result, the PKT Network improves the internet infrastructure, while decentralizing the cost of infrastructure maintenance. By artificially creating a background demand for bandwidth, PacketCrypt will drive more to invest in network infrastructure and thereby reduce bandwidth cost in the future.
PKT Network takes internet connectivity out of the hands of large corporations or government-backed ISPs by providing a unique ecosystem for collaboration and a decentralized internet landscape. The benefits are clear and by financially incentivizing everyone who supports the system, the network can grow. PKT Network is a great option for those who want to support the decentralization of internet access and who want to earn money contributing to that vision.
