Can the pNetwork (PNT) make money from crypto asset swaps?

Interest in the pNetwork (PNT) is growing. For example, pNetwork was CoinMarketCap’s eighth most trending cryptocurrency on 9 July 2023.

Conversely, pNetwork was CoinMarketCap’s 735h largest cryptocurrency with a 15.94₵ Coin Price on 10 July 2023. Hence, people will wonder what is pNetwork and what value it has.

“The pNetwork is a decentralized network of validators contributing to the verification of crypto asset swaps across blockchains,” the pNetwork v3 white paper states.* pNetwork’s goal is to create a “seamless multi-chain world” for dApps and decentralized finance.

pNetwork (PNT) is the blockchain formerly known as Eidoo (EDO). CoinMarketCap reports that pNetwork is an upgraded version of Eidoo.

Creating Connections between Blockchains

They will build this multi-chain world by creating connections between blockchains, sidechains, and L2 networks with a user-friendly process. To support the asset swaps pNetwork will try to provide decentralized liquidity spread across many independent blockchain protocols.

Currently, pNetwork supports connections between 15 blockchain environments. Those blockchain environments are:

• Bitcoin (BTC)
• Ethereum (ETH)
• Polygon (MATIC)
• Arbitrum (ARB)
• Litecoin (LTC)
• Luxochain (LUXO)
• BNB Chain (BNB)
• EOS (EOS)
• Telos (TLOS)
• ORE (ORE)
• Ultra (UOS)
• Algorand (ALGO)
• Libre (LIBRE)
• Dogecoin (DOGE)
• Fantom (FTM)
• Gnosis Chain (GNO)

They claim pNetwork can bridge over 50 assets among those 15 blockchains. Impressively, they claim pNetwork’s bridges offered cross-chain cumulative volumes of $1.11 billion and $27.3 million Total Value Locked on 9 July 2023.  They claim, the pNetwork generated revenues of $17,000 from lifetime fees.

pTokens and pTokens bridge

Essentially, pNetwork is a protocol that enables cross-chain connections. Those connections create pTokens.

The pTokens are wrapped tokens. To explain, a wrapped token is a cryptocurrency that contains a mechanism. The mechanism makes payment in a currency or asset held in a pool or account.

For example, a BTC pToken can make payment in Bitcoin. They claim a pTokens-to-pTokens bridge that can move wrapped assets from blockchain to blockchain. For exmaple, BTC to Binance.

Hence, pTokens achieve the pNetwork’s goal of facilitating cross-chain movement of assets between blockchains. For example, the first pTokens bridge will be pBTC on ETH. pNetwork’s decentralized app (dApp) allows users to move liquidity between blockchains.

The pNetwork (PNT) Swaps

pNetwork will offer two kinds of swaps. Native-to-native swaps allow users to move stablecoins between blockchains. pTokens-to-pTokens allow users to move wrapped assets between blockchains.

They will decentralize pNetwork with optimistic rollups. To explain, an optimistic rollup is a mechanism that assumes off-chain transactions are valid. Instead of invaliding all transactions (which takes time) an optimistic rollup launches a fraud investigations when it detects a discrepancy.

pNetwork relies on members called provers to investigate fraud. If two provers determine a transaction is fraudulent. pNetwork will reject the transaction.

The pNetwork contains three levels of fraud protection. They are:

Sentinels. Registered entities who investigate discrepancies and present fraud proofs (evidence).

Guardians. Elected decentralized autonomous organization (DAO) nodes that can submit requests for dismissal of users or transactions suspected of fraud.

The pNetwork DAO which settles conflicts over fraud and fraud accusations.

The hope is to make is pNetwork fraud resistant by having three elements that can detect and reject fraudulent transactions.

The pNetwork DAO

The pNetwork has four levels of actors. In addition, to the DAO, Sentinels, and Guardians, there are relayers.

Relayers propose execution of peg-in and peg-out transactions. The hope is that Relayers can make the process more efficient by monitoring the blockchain for swap requests. When they detect a swap request Relayers create issuances and unlock transactions in the destination blockchain.

They claim some relayers can relay requests without charging gas fees. To explain users pay gas fees for access to the virtual machines or digital computers, that run blockchains. For example, the Ethereum Virtual Machine.

Relayers can also relay their own transactions if they choose a gas-payment option. Plus they claim a new pNetwork v3, an ew architecture that makes pNetwork decentralized is coming.

What Value does pNetwork (PNT) offer?

I think pNetwork could achieve enormous value because I believe there is a demand for its swaps. In particular, I think pTokens could reach a mass market.

Notably, CoinMarketCap gave pNetwork (PNT) a $11.97 million Market Cap, a $25.11 million 24 Hour Market Volume, and a Fully Diluted Market Cap of $16.091 million on 10 July 2023. They base those numbers on a 74.408 million PNT, and a Maximum Supply of 96.776 million PNT.

If you are looking for a decentralized finance (DeFi) infrastructure token with a bright future. I think pNetwork (PNT) is worth a look because it works with many blockchains. I believe their is a market for pNetwork because connectivity is one of the most important attributes of DeFi.

To explain, I think enabling blockchains to communicate with each other will be key to making DeFi work. If pNetwork can achieve that communication it could be a lucrative DeFit protocol.

* https://cloudflare-ipfs.com/ipfs/QmP2n7gDhpn5gCNyiyYpKQ4x5bxkqgCf8H6PekzF77R8z1

*https://p.network/about-pnetwork

*https://p.network/