From cointelegraph by Victoria Li

“We first learned about projects like Filecoin in 2017, but the real interest started two years ago,“ said Chloe Phung, co-CEO of U2U Network, during a recent AMA with Cointelegraph. “There are existing Web2 companies looking to transition to Web3, as well as new companies emerging in the space. However, achieving growth is challenging and requires more than just a group of contributors. You need real demand for the decentralized resources you offer, whether it’s VPN, GPU or storage.“

Backed by KuCoin Ventures, Chain Capital, JDI and IDG Blockchain, U2U Network also aims to target several key areas. The EVM-compatible layer-1 platform, designed to support DePIN, features a variety of projects in the U2U chain, with U2DPN and a GPU-focused project as the flagship ones.

U2DPN, a decentralized VPN using U2U Network’s subnet technology, addresses key challenges faced by modern enterprises. Traditional VPNs, while providing advanced features, often suffer from security vulnerabilities, increased costs, and the risk of personal data exposure due to centralized servers and non-genuine IP addresses. U2DPN’s goal is to provide a secure and cost-effective solution using a distributed peer-to-peer network that emphasizes user privacy.

Chloe noted that U2DPN attracted more than 60,000 users from more than 70 countries within a month of launch. “We’re not the first startup to build a decentralized VPN, but we’re definitely the first to see VPN on top of mobile phones,“ she pointed out.

She then elaborated on the U2U Network’s tech stack: “We’re most proud of our layer-1, which has a superior Direct Acyclic Graph. DAG is ideal for environments that require high volumes of microtransactions. With sharding, the network has reached 72,000 TPS in testing and is targeting 500,000 TPS with full sharding. A transaction finality time of 350 milliseconds is remarkable,“ she noted, highlighting the network’s scalability and security, making it suitable for AI, DePIN, and IoT applications.

Chloe also pointed to Helios, the U2U Network’s consensus protocol. “Helios adds four layers of protection to the U2U chain,“ Phung said. “We recognize that DAG can be less secure than traditional blockchain, so Helios helps us maintain decentralization and security while providing high scalability.“

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Subnets to drive resource sharing

Through its subnets, U2U Network offers its node users a sharing economy model similar to platforms like Uber. A U2U subnet is a set of peer-to-peer cryptographic computers that inherit the consensus and security of the main network. To facilitate communication, the network uses a unique OVM (subnet virtual machine) that allows code written in different languages to run natively and securely.

“This subnet technology makes us a perfect fit for DePIN applications. Unlike other DePIN networks, we enable projects to create specialized subnets tailored to their needs, allowing node operators, builders, and users to contribute to the DePIN sector,“ said Phung. “With DePIN subnets, you can contribute your unused bandwidth and become a contributor to the network. Consumers who use your resources pay for the service, and we act as an intermediary, connecting the demand and supply sides.“

There are three types of nodes within the network: master nodes, verifier nodes, and edge nodes. They allow node operators to contribute computing resources such as CPU, RAM, GPU, storage, and unused internet bandwidth from various devices. Verifier nodes are the most accessible, enabling participation with minimal hardware, such as any device that can stay online. Hosting a U2U node also allows users to participate in transaction validation and contribute to data recording, backup, and overall network security.

The first round of U2U Network's public node sale was launched on Oct. 24, 2024, with all 1,000 available slots sold within 5 hours. The sale attracted the attention of KOLs and media across Asia and beyond.

To encourage participation and decentralization, the U2U network has allocated a significant pool of U2U tokens to reward node operators. “We want to ensure that our network remains decentralized and stable to host the DePIN sector,“ Phung emphasized. “Our nodes help us form a robust infrastructure capable of hosting applications that will stay up forever.“

The focus on contribution comes from the core principle of DePIN, as Phung explained: “Without contributors providing resources such as IP addresses or GPUs, the marketplace cannot function. Realizing this need, we launched the DePIN Alliance initiative two months ago. We’ve amassed nearly 800,000 community members and every project that joins our network shares that community.

She also noted: “Once users are familiar with sharing one type of resource, it becomes easier to encourage them to share others.“

DePIN for accessibility and affordability

Phung admitted the competition from established Web2 giants like AWS and Google. “To make DePIN sustainable, we need to build awareness and cultivate the demand side,“ she said. “If users and businesses don’t actively use these decentralized resources, contributors will lose their incentive and eventually abandon the network.“

She sees DePIN as an innovation that drives progress and improves accessibility: “The idea is to democratize access to powerful resources that will greatly reduce startup development costs and ultimately benefit the consumer.“

At the end of the AMA, the speaker also touched on the challenges of being a female founder in the Web3 space. “Only 8% of tech leadership roles in Asia are held by women. It’s a demanding industry that requires 24/7 dedication, which can be particularly difficult for women, but we know how to leverage our strengths. I’m optimistic that we will see more women taking leadership roles in Web3 startups,“ concluded Phung.