Bandwidth Markets
With the migration to Base, PKT is now able to begin tokenizing bandwidth using RWAs. These RWA’s will represent access rights to bandwidth over a period of time and serve as a unique way to quantify and monetize the value of the PKT node operators' resources.
These RWA’s should then be exchangeable in a decentralized bandwidth trading marketplace, or even sellable to internet service providers (ISPs) looking to expand their network capacity.
The challenge in creating a marketplace for bandwidth-backed RWAs is that bandwidth quality varies significantly depending on network infrastructure, the node operator’s location, and demand. These factors all make it difficult to accurately price these assets and ensure fair market dynamics. PKT is partnered with Allora AI to provide price predictions. This enables analysis of vast amounts of data to create highly accurate AI-generated prices to establish a reliable source of truth for bandwidth pricing. The result is for enabling PKT’s bandwidth marketplace to function more efficiently and transparently.
By integrating with Allora’s plug-and-play AI price predictions and self-improving machine intelligence network, the PKT project can operate at the forefront of AI development tools and computational resources. Allora is a network that enables different ML models to simultaneously evaluate and learn from other models on the network to collaboratively optimize shared ML objectives (for example, accurately assessing the price of an RWA). The network uses the results from these models to create an aggregated meta-inference which consistently outperforms any individual model on the network, thus creating a source of highly-performant collective intelligence.
Over the last 3 years, models built by the Allora Labs team (formerly known as Upshot) have effectively produced price predictions for more than 400 million assets with a 95-99% confidence for the most accurate predictions. As such, this collaboration blends Allora’s powerful AI price predictions with the development of PKT’s bandwidth-backed RWAs and decentralized markets, to create AI powered, bandwidth trading marketplaces.
Allora price prediction models will predict the fair value of bandwidth-backed RWAs based on various factors such as network quality, location, and demand. PKT node operators will be able to tokenize their bandwidth-backed RWAs into the marketplace, with prices calibrated using Allora's AI predictions. Buyers, such as internet service providers (ISPs) or other interested parties, can purchase these RWAs on the marketplace, confident in the fair pricing recommended by the AI models.