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Web3 for ISPs: Decentralized Bandwidth Markets?

Simha Infobiz
June 18, 2024
6 min read

The internet is built on centralized infrastructure. Large Telecoms own the fiber, the towers, and the spectrum. But a new movement called DeWi (Decentralized Wireless) wants to change that using blockchain incentives.

The Concept

Projects like Helium or Pollen Mobile incentivize individuals to build the network.

  1. You buy hardware: A small 5G cell or Wi-Fi hotspot ($500).
  2. You deploy it: Put it in your window or on your roof.
  3. You earn crypto: You get paid tokens (like $HNT) for proving you provide coverage.

Reality vs Hype

  • IoT (Internet of Things): It works. Helium covers vast areas for low-bandwidth sensors (scooters, dog trackers).
  • 5G/Home Internet: It's struggling. A cell tower needs a massive fiber "backhaul" to feed 500 users. Your home cable connection isn't fast enough to be a backbone for the neighborhood.

The Future for ISPs

Web3 won't replace ISPs; it will extend them. ISPs can offload traffic to these "micro-cells" in dense areas, reducing their own CapEx. It's a partnership model, not a hostile takeover.

Key Takeaway

Decentralized networks are an exciting evolution, shifting power from monopolies to communities. While not a replacement for high-speed fiber yet, they effectively fill the gaps in the traditional coverage map.

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