Why bandwidth needs a layer-1 blockchain explained

Users can tokenize and sell their bandwidth in a decentralized trading marketplace to provide low-cost access to the Internet.

PKT is the only tier-1 blockchain designed to support bandwidth trading marketplaces and high-speed internet services. PKT uses the world’s first bandwidth hard proof-of-work (PoW) mining solution to create an economic incentive in building a high-speed data network. PKT, derived from Bitcoin (BTC), replaces the SHA-256 PoW standard with the collaborative PacketCrypt mining protocol.

Within the PKT network, users with unused bandwidth earn PKT Cash (PKT) coins by sending their excess bandwidth and computing resources to mining. Connecting bandwidth to the PKT network is called announcement mining. Announcement mining uses the miner’s CPU to produce small packets of data and uses upload bandwidth to move this data to various PKT mining pools around the world.

PKT mining pools pay miners for announcements because more announcements allow the pools to mine blocks more efficiently. Initially, miners only prove they have the bandwidth, but use cases are also being developed, such as bandwidth trading and bandwidth sharing marketplaces.

Because pools take in so many announcements from around the world, they require a very high network capacity of at least 40Gb/s internal connections. These infrastructure requirements build and scale the high-speed, high-throughput PKT network as more people plug in their unused bandwidth.

PKT is a fully decentralized blockchain project that follows the path of Bitcoin, with no company, no investors and no pre-mine. The PKT network is built entirely by the people who connect to it, with a focus on using excess bandwidth that would otherwise be lost and giving people worldwide access to cheap, high-speed Internet connections.

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