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The DoubleZero protocol, a rapid network of fiber-optic connections aimed at facilitating high-throughput blockchain traffic, unveiled its mainnet-beta on Thursday, alongside the public introduction of the utility token that energizes the network.
DoubleZero’s decentralized physical infrastructure network (DePIN) now accommodates over 70 direct high-speed connections between 25 geographical locations to efficiently direct blockchain traffic between origin and target, minimizing communication latency and optimizing speed.
The public internet is a constraint for crypto, DoubleZero founder Austin Federa disclosed to Cointelegraph in May, remarking that the public internet was not intended for distributed consensus protocols due to its congestion from general traffic, such as video gaming and media streaming. Federa stated:
“The drawback of the public internet is that it was never designed for high-performance systems. It was always conceived for a scenario where one large server communicates with one small server.”
DoubleZero’s initiation of a high-speed communication network dedicated to blockchain and crypto ecosystems indicates that the industry has advanced, 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 victory for blockchain DePIN networks.
“The individual managing a node, providing storage, or sharing bandwidth receives a reward. These tokens are neither equity in a corporation nor guarantees of profits from the management efforts of others,” SEC commissioner Hester Peirce stated.
“These projects distribute tokens as remuneration for tasks completed or services provided,” she added, contending that DePIN node operators act like owner-operators of businesses instead of investors in securities.
The SEC’s no-action letter paved the way for the public launch of DoubleZero’s native token, following its closed sale to validators in April.
It also indicates a monumental shift in the SEC’s earlier stance, classifying most crypto tokens as securities and taking legal action against crypto firms launching innovative products that did not necessarily fit into traditional asset categories.
The SEC under former chairman Gary Gensler’s management imposed costs of at least $426 million in legal expenses on crypto firms, according to the advocacy group The Blockchain Association.
Magazine: Most DePIN projects barely even use blockchain: True or false?
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