A Deep Dive into Pipe Network

This week, we announced the Pipe Token Sale on CoinList, live until July 3rd 2025, at 17:00 UTC. 

We sat down with the Pipe team to discuss how they improve on traditional CDNs like Cloudflare and Akamai, why they are launching a token, top use cases, early traction, and go-to-market strategy.

Let’s dive in.

1. What fundamental problem is Pipe solving in the traditional and decentralized content delivery landscape?

Pipe Network uses a global network of hyperlocalized, decentralized point-of-presence (PoP) nodes to decrease latency and increase bandwidth for near-instant delivery of data. Its decentralized model, which allows any individual with enough extra bandwidth to serve as a node operator, is capable of reaching rural areas where traditional CDNs’ large data centers cannot. 

In addition to offering last-mile connectivity, Pipe Network reshapes the monetization model of CDNs by incentivizing node operators to contribute bandwidth as opposed to service providers charging users. Pipe Network’s scarcity-based rewards model gives payouts based on metrics like bandwidth served, uptime, and latency reduction. This encourages contributors to deploy where there is true demand rather than building based on commercial contract stipulations. 

2. How does Pipe’s architecture differ from traditional CDNs like Cloudflare and Akamai, as well as decentralized alternatives?

Pipe Network’s fleet of decentralized PoP nodes, which can be deployed as close as ~50 miles to end users, is infinitely scalable and eliminates reliance on data centers, which are typically near large metropolitan areas. This close proximity allows Pipe Network to cut latency to under 10ms plus optimize TCP performance and bandwidth utilization. The network is set to launch with more nodes than any traditional CDN has. 

Pipe Network operates a tokenomics system that leverages a burn-mint equilibrium model to balance token supply and network demand. Pipe Network offers two kinds of tokens: pipe credits (PC), used for purchasing data bandwidth; and data credits (DC) non-transferable tokens burned when consumed to use data bandwidth. These tokens are the foundation of Pipe Network’s rewards system, where users are incentivized to deploy nodes based on customer demand, especially in underserved areas. 

Additionally, Pipe Network reduces operational costs—100x cheaper to use than traditional CDNs—and boosts network security with features like real-time data transfer, DDoS protection, dynamic IP/geographical blocking, DMCA complaint handling, and access to rolling logs. 

3. Can you explain how Pipe leverages its Proof of Delivery and Incentivized Caching mechanisms to ensure fast and reliable content delivery?

Pipe accelerates delivery by coupling Incentivized Caching (IC) with Proof‑of‑Delivery (PoD): the origin slices each asset into hashed chunks, stakes the Merkle root on‑chain, and then fans them out using an application‑layer multicast overlay—essentially a tree of QUIC/TLS connections that replicates each chunk hop‑by‑hop inside Pipe’s peer mesh, so it works across the public internet without relying on native IP multicast; every cache node decides what to keep by maximizing a demand‑weighted profit score and posts a staked StorageCommit. When a client requests an object, a latency‑aware resolver selects the best ≈5 committed nodes, and during streaming the client issues nonce‑challenged vouchers for every k‑th chunk; nodes batch these vouchers into DeliveryReceipts, and the PoD contract verifies them before releasing micro‑payments, updating node reputation, and slashing offenders. Because rewards scale with “verified egress × distance saved,” hot objects drift toward edge nodes with the lowest RTT, poor performers are automatically deprioritized, and the network achieves low‑latency, high‑reliability delivery without any centralized control plane.

4. What types of nodes exist in the Pipe Network, and what roles do they play in the content delivery process?

Pipe Network is currently made up of more than 270,000 decentralized hyperlocalized PoP nodes around the globe. Nodes are permissionless, meaning that they can be deployed in any region on any device capable of running Linux. Unlike traditional CDNs that are limited by their reliance on centralized server farms, Pipe Network’s localized infrastructure optimizes content delivery for proximity, drastically cutting latency for users, notably those in underserved or remote areas. 

5. How does the PIPE token fit into the network’s incentive model for storage providers, validators, and users? Why launch a token?

Permissionless Labs’ Foundation launched the $PIPE token so network participants have true ownership within the ecosystem. $PIPE enables the network to become fully self-sustaining as it grows. 

$PIPE serves five main purposes:

• Staking – Node operators stake PIPE to participate in the network, improving their reputation and selection likelihood.
• Delegated Staking – Token holders can delegate PIPE to active nodes and earn proportional rewards.
• Payments via Data Credits (DCs) – Users burn PIPE to mint DCs, which are used to pay for content delivery and storage.
• Priority Services – Users pay in DCs for enhanced CDN services like faster delivery and premium caching.
• Governance – Staked PIPE grants voting rights on protocol upgrades, emissions, and key economic parameters.

$PIPE endeavors to build a self-sustaining ecosystem where users and node operators are continually rewarded for protocol maintenance, providing resources to the network, ensuring customer success, and active community participation.

6. What are Pipe’s strongest use cases and early traction signals?

A recent use case we saw is that by uploading Solana Snapshot data to the Pipe Network we increased the speed of these large Solana Snapshot downloads by 30%. In terms of early traction, we were  recently announced as one of the first builders on recently announced Shelby decentralized storage platform where our Point of Presence nodes will ensure a smoother user experience because our DePIN enabled footprint provides large coverage of last mile endpoints in the areas where Shelby doesn't have connectivity. 

7. How does Pipe ensure content availability, integrity, and censorship resistance across a globally distributed node network?

Integration with the Solana blockchain—distinguished for its high throughput, low transaction costs—ensures that all transactions are handled efficiently and securely. Pipe Network uses a distributed caching mechanism, where the cache management system (CMS) manages content coordination while PoP node handles content caching locally. Pipe Network plans to improve content availability and reduce burden on the CMS by introducing peer-to-peer connections between nodes, allowing them to sync and share cached content. 

8. What are the key milestones on Pipe’s roadmap, and how do they align with the development of its core infrastructure? What’s the go-to-market strategy, and how do you plan to grow adoption?

Participation in Pipe Network’s incentivized testnet was a major milestone in scaling the ecosystem. Within one week of opening, Pipe Network saw an increase of over 25K nodes. Permissionless Network also collaborated with Aptos’ and Jump Crypto’s decentralized, cloud-grade storage solution, Shelby, as one of its first builders which will leverage Pipe Network’s DePIN enabled footprint because it provides large coverage of last mile endpoints in the areas where Shelby doesn't have connectivity. 

Operator and community initiatives are the key to scaling participation on Pipe Network and in turn, adoption. During the incentivized testnet, operators could earn rewards through the PipeQuest Incentive Program, a multi-season initiative to incentivize high-performance, community engagement, and onboarding. Furthermore, Pipe Network is running bounty programs to drive operators to establish nodes in locations where there are gaps on the global node operator map, like Jackson Hole and Cheyenne, Wyoming. Other upgrades coming down the line include PipeGlobalCache (PGC),  Video Transcoding Pipeline, Edge Features (e.g., Edge-GenAI, Edge Agents, Edge Workers), Vector Fabric, Pipe-Box, and Price Oracle. 

9. What is the best way to get involved in the Pipe community?

The best place to get involved with the community is to join our discord and follow us on X for all the latest updates! Additionally you can visit our blog and our docs section for more background information on the Pipe Network and the $PIPE token. 

Learn more and participate in the sale »

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