The DoubleZero protocol has officially launched its mainnet-beta, providing a high-speed network of fiber-optic connections tailored for high-throughput blockchain traffic, alongside the public unveiling of the network’s utility token.
DoubleZero’s decentralized physical infrastructure network (DePIN) currently flaunts over 70 direct high-speed connections spanning 25 geographic locations, facilitating the direct routing of blockchain traffic from source to destination, which minimizes communication delays and enhances speed.
According to DoubleZero founder Austin Federa in a conversation with Cointelegraph in May, the public internet serves as a bottleneck for cryptocurrency, having been designed without consideration for distributed consensus protocols; it is congested with general-purpose traffic, like gaming and media streaming. Federa stated:
“The downside of the public internet is that it was never built for high-performance systems. It was always built for this sort of relationship of one big server talking to one little server.”
By launching a high-speed communication network specifically for blockchain and crypto sectors, DoubleZero indicates a significant evolution in the industry, moving away from dependence on the public internet and its inherent limitations on distributed digital networks.
Related: SEC clears DePIN tokens as ‘fundamentally’ outside jurisdiction
SEC clarifies DePIN tokens fall outside its oversight
The US Securities and Exchange Commission (SEC) released a no-action letter on Monday regarding DoubleZero’s proposed token launch, marking a significant win for blockchain DePIN networks.
“The person who operates a node, supplies storage, or shares bandwidth receives a reward. These tokens do not represent shares of a company or guarantees of profit derived from the managerial efforts of others,” SEC commissioner Hester Peirce stated.
“These projects distribute tokens as compensation for work done or services provided,” she continued, asserting that DePIN node operators resemble owner-operators of businesses rather than security investors.
The SEC’s no-action letter paved the way for the public release of DoubleZero’s native token, after its closed sale to validators in April.
This action also signifies a profound change in the SEC’s prior stance, which categorized most cryptocurrency tokens as securities and led to lawsuits against crypto companies launching innovative products not typically classified under existing asset categories.
The SEC, under the chairmanship of Gary Gensler, imposed at least $426 million in litigation costs on crypto firms, as per the advocacy group The Blockchain Association.
Magazine: Most DePIN projects barely even use blockchain: True or false?
