How DePIN platform Uplink created a "WiFi master key" after raising $10 million

Uplink aims to reduce dependence on traditional centralized telecommunications providers, and users and businesses will be able to earn tokens as rewards by contributing to the network or using the network.

Written by: 1912212.eth, Foresight News

In the crypto world, apart from consensus on AI and other topics, the East and the West often have their own narratives. Although DePIN has been tepid in the East, it has been very popular in the Western crypto world. New projects in vertical tracks such as computing, storage, AI, and data continue to emerge and are highly sought after.

Recently, the DePIN platform Uplink completed a $10 million financing, led by Framework Ventures. Interestingly, this is the first time Framework has made a move in the DePIN field.

Uplink Introduction

Founded in 2016, Uplink provides decentralized network connectivity and aims to create better distributed and user-operated infrastructure.

The core idea is to reduce dependence on traditional centralized telecommunications providers. Users and businesses will be able to earn tokens as rewards by contributing to the network or using the network. They can integrate existing infrastructure into the ecological network and install compatible hardware for the community/enterprise.

To make a more vivid analogy, Uplink is equivalent to a decentralized version of the WiFi master key. A decentralized WiFi connection network means security, reliability, and no single point of failure. Attackers need to gain control of multiple decentralized nodes to crack or destroy the network.

Ecological Mechanism

The network ecosystem created by Uplink is not only a product, but also an architecture. It is not intended to replace existing solutions, but to solve the complexity of network connectivity. By creating a self-sustaining and wirelessly scalable system, operations and incentives are widely distributed to many participants. Specifically, these participants include validators, network operators, telecommunications companies, and equipment manufacturers.

Consumers, who can be individuals or businesses, are the end users in the network ecosystem. Ordinary users need to log in to the Uplink wallet with their mobile phones or computers to access their network, while corporate users can choose a dedicated “plug and play” to provide high-quality connections for many devices.

Providers provide data by connecting to routers and receive rewards. Providers can not only provide device connections, but also act as validators to obtain more returns. Currently, the providers in the Uplink ecosystem are mainly venture capital providers, and the other is enterprise providers. Although the former are not familiar with the network planning and deployment process, they have made a significant contribution to the coverage of remote areas.

In addition, Uplink also stated that its ecosystem also supports the operation of various types of apps, including VPN, content distribution, core and as-a-service.

Token Model

Uplink adopts a dual-token model of ULX and NC. ULX is not a governance token and does not have any voting rights. Its value is affected by market dynamics.

NC is responsible for providing stable value and is generally used for proof of delivery (PoD) to ensure consistent user service costs and promote stable network operation and service payment. In addition, NC cannot be transferred and can only be used for network access.

The specific token usage scenario is: consumers obtain network connection services from providers and need to pay fees to exchange ULX for NC to purchase services. ULX is recovered to the system and used to reward network service providers, validators, etc. In addition, when ULX is received by the system, NC is minted and destroyed to further introduce ULX tokens into the ecosystem. This economic model design not only incentivizes providers, but also ensures that value within the network can continue to flow.

Uplink plans to launch its token later this year.

Proof Mechanism

Uplink uses three proof mechanisms to ensure the reliable operation of the network. The first is the proof of delivery (PoDL), which is used to ensure that data is successfully delivered to consumers. The second is the proof of density (PoDS), which is generated based on the location of the device. “Density” can be understood as the ratio of insufficiently connected devices to network-connected devices in any given area. Density proof can help identify high-demand areas and guide providers to provide services where they are most needed. The third is the proof of activity (PoL), which is used to verify that the device remains functional when not in use.

Summary

Traditional telecom companies have not really shared their development dividends with ordinary users, and decentralized networks intend to fill this gap from an incentive perspective. In the midst of the booming DePIN wave, it is still worth looking forward to what outstanding performance Uplink will have in the future.