Sentinel is one of the most exciting Cosmos-based blockchains. At the time of writing, Sentinel is the sixth most active zone in the Cosmos ecosystem. But what is the project all about? And what do the tokenomics of DVPN look like?
What is Sentinel?
Sentinel is a zone in the Cosmos ecosystem. So, it is an independent and highly interoperable chain. In addition, Sentinel is IBC enabled. Because of this, you can transfer assets from Sentinel to other IBC enabled chains.
But what is the project’s approach?
Sentinel’s goal is to decentralize the VPN industry. VPNs allow you to create a secure connection to another network on the internet. This technology is beneficial for people who live in totalitarian and freedom-restricted countries. With a VPN, they can access region-restricted websites and communicate with people from abroad securely.
Today many people know VPN services, like NordVPN or SurfShark, for getting better deals on the internet or access region-restricted websites. However, the VPN industry is affected by some problems:
- Today’s popular VPN services are not very reliable. Leading VPN companies collect and store the data of their users. That’s not the initial idea of what VPNs should do! The Sentinel whitepaper even described today’s VPN industry as a “cartel” because “vast amounts of the leading brands share the same owner.”
- Most VPN services are expensive to use
So, how can we fix these problems?
This is where Sentinel comes into play!
Sentinel offers a decentralized alternative to traditional VPN services. The network wants to provide a framework for the construction of decentralized VPNs (dVPNs).
Developers can build their own dVPNs on Sentinel. But also existing centralized VPNs can build on Sentinel to decentralize their backend. Besides, developers will be able to build DeFi applications on Sentinel very soon.
Sentinel: a peer-to-peer bandwidth network
In addition, you can call Sentinel a peer-to-peer bandwidth network. This is because the network created its own internal economy.
To build a dVPN, you need bandwidth. That’s where the dVPN Node Hosts come into play. They are community members that provide their unused bandwidth to dVPNs built on the Sentinel network.
Creators of these dVPNs pay the dVPN Node Hosts for providing bandwidth. Parts of the dVPN Node Hosts’ rewards are going to the validators. Validators stake Sentinel’s native cryptocurrency DVPN to secure the network.
Speaking of Sentinel’s native cryptocurrency: DVPN has a variety of use cases!
- You can stake DVPN to secure the network
- Community memebers can use DVPN to participate in governance procedures
- People can pay with DVPN for dVPN subscriptions
At the time of writing, DVPN’s market cap is $181,070,593.
Popular exchanges that enabled DVPN trading are Osmosis, KuCoin, and MEXC Global.
The project aims to decentralize the VPN industry and give people universal access to the internet. Besides, Sentinel provides a framework to build applications. If the project can develop a network effect is yet to see!
Still, it is one of the most popular projects in the Cosmos ecosystem. That’s also because Sentinel created a small internal economy. And in times of high inflation, this is very interesting – also, to institutions and VCs!