Mining forms the cornerstone for all Proof-of-Work blockchains. While it started out as a well-paid hobby for early adopters of crypto, it has evolved into a sector that secures over one trillion dollars of value worldwide.
There are many types of mining, some of which rely on different computer processors (CPU) and others rely on graphics processors (ASIC and GPU). A new blockchain called PKT is introducing a new type of mining called bandwidth-hard mining, which enables people to monetize their internet. PKT uses a new Proof of Work (PoW), called PacketCrypt which is the world’s first bandwidth-hard blockchain that enables anyone to start mining from their Android phone, server, or computer.
What is PKT?
PKT is designed to become the world’s largest ISP powered by all the people connected to the PKT Network. The PKT Network utilizes mesh networking technology called cjdns, enabling anyone to access the Internet without connecting through a traditional ISP. The combination of cjdns and PKT is infrastructure powered by the people supporting the network.
By design the PacketCrypt algorithm is made to ensure cooperation between miners, whereby efficient mining is achieved when miners communicate between one another, expending bandwidth in lieu of processor effort.
This collaboration facilitates the transmission of data globally across the PKT Network.
Use Cases of the network
Miners transmit data in exchange for an economic incentive called PKT Cash. This results in a high-speed, low latency network that is being developed for several use cases:
- VPN: The PKT Network in conjunction with cjdns are being used to enable a VPN that enables users to get base-line VPN for free and only pay for speed using microtransactions with PKT Cash. This VPN technology is being developed by AnodeVPN (anode. co).
- Bill Pay: A company called PKT Pal is building technology to enable people to pay their utility bills, including internet, phone bills, and content subscriptions, such as Netflix with PKT Cash.
- Token Issuance: A new protocol is being developed called Token Strike, which enables token issuance NFT’s for negligible cost and no gas fees. These tokens will be the basis for the PKT Network bandwidth trading marketplace.
- Mesh Networking: Using cjdns technology, the PKT network will enable people to share their internet with their neighbors in local mesh networks. This will also allow people to get onto the internet without paying a traditional ISP.
PKT is a native blockchain based on the bitcoin code but replaces SHA-256 PoW with PacketCrypt. There is also a Network Steward address that receives 20% of each coinbase payout and then grants 100% of the funds for open-source technology development and infrastructure growth.
PKT was designed to support microtransactions with a total supply of 6 billion coins. Coins are mined with a steady 10% decay of block rewards every 100 days instead of the abrupt 4 years halvings like with Bitcoin.
Since PKT is designed to ensure fast and low-cost transacting in small denominations, each PKT is dividable into 1,073,741,824 units, whereas Bitcoin is dividable into 100 million.
How does mining work on PKT?
PKT uses a bandwidth-hard PoW meaning that emphasizes the need for bandwidth to mine. Mining is done in mining pools and is split into two stages:
- Announcement Mining- In this type of mining, miners create a small message of 1 KB to prove that they did some work. Announcement miners then send these announcements to block miners, which then collect them to create blocks. The main goal of announcement mining is to maximize bandwidth for optimal mining yields.
- Block Mining- Block mining involves collecting announcements and submitting blocks to get mining rewards. These mining incentives are paid out based on the number of announcements accumulated in memory at the time.
Cost, Trading and Profitability
Anyone can mine PKT using existing hardware or by renting a server for minimal costs. CPU and the bandwidth required for announcement mining is generally inexpensive.
PKT Cash yields are based on mining competition and network difficulty. The PKT Cash explorer provides data on mining difficulty and block reward payouts. At the time of writing, a 24 core server costing around $300/month will yield around 400-500 PKT coins in a day, which amounts to approximately 12,000 PKT coins in a month.
The PKT Cash is currently being traded via OTC in a public Telegram trading group between $0.03- $0.06/PKT as of June 2021. This represents a market cap of more than $100 million.
If a user mines 12,000 coins at $0.05 (valued at approximately $480) for $300 in server costs, this would generate a 60% monthly return. While profitability with PoW mining eventually equalizes around the cost to mine, miners who accumulate the coin are rewarded whenever there is significant price appreciation. PKT Cash has seen a 25x increase in its price since January 2021, when it was trading at $0.002/PKT so further growth is very likely.
PKT Cash is not yet listed on a centralized exchange, but will soon list under the ticker 1PKT. PKT Cash is also developing a 1:1 swap to an ERC-20 token called WPKT for trading on Uniswap.
PKT Cash’s Roadmap
PKT Cash’s Roadmap has 4 distinct stages which are not chronological
- A VPN Marketplace: Enabling a marketplace for VPN, with a minimum bid of zero, the prices in the VPN market can be decided by the community.
- Next-gen networking: To grow the viability of the edge network, high-performance networking hardware will be developed automatically sells its bandwidth into the bandwidth market.
- Leasing tokenized bandwidth: Growing a bandwidth market via mesh networking easily. By tokenizing bandwidth leases, internet sharing hardware can connect, and operators can buy, sell, and trade- bandwidth leases.
- Supporting low-cost internet: The PKT Network grows as more people earn PKT Cash by sharing their internet.
A protocol for decentralized access to the internet is an important step in moving towards getting the next billion people onto the internet. The PKT Network is built by people who operate the network. As a result of people monetizing their internet, the network topography and physical infrastructure grows. In the same way, solar enables people to capture the value of the sun hitting their roof to offset their energy bill, PKT empowers people to harness the value of their internet connection.
PKT challenges the current monopolized internet access paradigm and compensates end-users for supporting the network. With the developments that lay ahead in its roadmap, PKT expects to emerge as the next big change in the way people use and make money from their internet worldwide.
For more information check out their website and their socials-
This post has been sponsored by https://pktpal.com/.
Disclaimer: This is a paid post and should not be treated as news/advice