Planck Network emerges as a pioneering force in the fast-evolving landscape of decentralized computing and AI technology, offering users a unique opportunity to monetize their unused computing power. Founded by Diam Hamstra and Rohan Talwadia, Planck Network represents a culmination of entrepreneurial vision and technological innovation.
By harnessing synergies between Web2 and Web3 users, Planck Network leads the way with accessible compute solutions. Keep reading for more insights into their innovative approach and the future of AI technology.
Innovator’s Journeys: The Path to Planck Network
Diam Hamstra
Diam, hailing from Amsterdam, Netherlands, began his entrepreneurial journey at 17 with the launch of his first e-commerce venture. Seeking to address substantial challenges, he later founded EstateX, a trailblazing real estate investment firm. In partnership with Visa, EstateX introduced a pioneering liquidity solution allowing investors to use real estate assets for payments, thereby earning interest that would otherwise diminish in traditional bank accounts.
Moreover, securing substantial funding, including a notable investment from Brock Pierce, the founder of USDT, underscored EstateX’s early success. However, amidst uncertain regulatory landscapes surrounding financial securities, Diam made a strategic decision 20 months ago to appoint seasoned financial experts to lead the company, allowing him to explore new ventures.
At a Y Combinator event two years ago, Diam met his co-founder, laying the foundation for their current venture, Planck. Within Planck, he plays a crucial role as one of the managing directors, focusing on business development and the Web3 domain, leveraging his experience in sales and community building from his previous experiences. Collaborating closely with Rohan, their partnership began to bear fruit last summer as they embarked on tackling significant challenges with enthusiasm and innovation.
Rohan Talwadia
Rohan, originally from India, embarked on his entrepreneurial journey in the mobile gaming space with the launch of BNB Tech, a venture specializing in RPGs. Despite initial enthusiasm from players, the Indian market proved unreceptive to in-app purchases and virtual goods, prompting Rohan to exit the company after a few years in search of new opportunities.
Consequently, his next venture led him into the world of Decentraland and NFTs, where he collaborated closely with Decentraland’s founders to establish the very first NFT jewelry store on their platform — a pioneering move that immersed him in a rapidly evolving industry.
Following this immersive experience, Rohan spent a stint at Google’s cloud division in Mumbai, gaining valuable insights but realizing that corporate life did not align with his ambitions for creating significant impact. Inspired by his work with cloud computing infrastructures, particularly in reducing the cost of compute, he conceived the foundational idea for Planck — a platform aimed at lowering computational costs for AI companies.
“The concept emerged when I envisioned an AI-driven platform capable of coding in natural language,” Rohan explained, reflecting on the platform’s origins. “After launching and gaining traction, the high cost per user prompted me to explore ways to make compute more affordable for AI applications.” As co-founder and CO-CEO of Planck, alongside Diam, Rohan oversees the company’s strategic direction and operational facets.
The Planck Platform
We asked the team for an overview of the platform and to elaborate on how Planck harnesses unused compute capacity across various devices and platforms to optimize resources for AI and other computational tasks.
During the podcast, Diam detailed how Planck addressed the escalating need for computational power in AI development. Notably, AI demands tenfold more computational power annually, with compute costs comprising a substantial 30-40% of startup capital. At Planck, they aimed to democratize access to scalable AI infrastructure through a decentralized computing network. Recognizing the vast untapped potential in everyday devices, Diam contrasted Planck’s approach with competitors focused solely on GPUs for AI processing. He highlighted the billions of underutilized smartphones and PCs worldwide, underscoring their integration alongside GPUs to optimize AI training and processing.
Crucially, Diam outlined Planck’s strategy: developing an inclusive network that harnesses CPUs from smartphones, desktops, gaming PCs, data centers, and mining farms. Moreover, he stressed the importance of user-friendly mining applications, ensuring accessibility for non-technical users to contribute processing power effortlessly. Diam invited all device owners to explore Planck’s mining application, describing it as the most intuitive and aesthetically advanced in the AI and crypto sectors, highlighting a seamless path to earning passive income through their network.
Planck’s Vision: From Desktop to Mobile, Innovating Decentralized Computing
Diam, reflecting on his early endeavors, recalled the genesis of their desktop application with a sense of nostalgia. Version one, he noted, was incredibly basic, designed primarily to gauge network behavior across various devices. Users have access to essential settings, a wallet feature, and a straightforward ‘start mining’ button. Whether on a Mac or Windows device, users could contribute their processing power to the network.
Transitioning to the present, Diam eagerly shifted the narrative to version two of their mining application. He emphasized that version two marked a significant leap forward. The setup screens alone showcased a sleek, professional interface that guided users effortlessly through the installation process. Once your device’s information was gathered, you were seamlessly directed to the dashboard.
Moreover, version two introduced a plethora of new features. For instance, users could manage their Planck tokens, $PLANK, directly from the application, facilitating easy withdrawals to an exchange slated for a 2024 summer listing. Diam highlighted the application’s versatility in hardware configuration, which is a rarity in the AI compute space. Unlike competitors who relied on complex mining scripts, their application allowed users to adjust processing power allocation dynamically. Whether prioritizing CPU mining during the day for gaming or switching to GPU mining in the evening, users had granular control over their contributions.
Simultaneously with the desktop launch, Diam revealed the upcoming world’s first Android smartphone mining application for AI DePIN. Adapting the same user-friendly UI for mobile marked a groundbreaking step towards accessible, decentralized computing.
GPU Foundation and Network Expansion Strategy
Hamstra emphasized the pivotal role of GPUs as the foundation of their network. Currently, 26,400 GPUs are actively contributing from two data centers. These centers did not utilize the application due to their reliance on complex data center infrastructure managed by dedicated tech personnel. Instead, they employed custom mining scripts tailored to their specific needs, with the flexibility for immediate adjustments upon request.
Furthermore, Diam underscored that their desktop application was strategically designed to harness network effects and stimulate growth. Its broad compatibility — Windows, Mac, smartphone, or Linux — enabled widespread adoption, crucial for establishing brand recognition. Moreover, he highlighted the application’s multi-tiered network structure, accommodating various levels of computing power. Smartphones would handle smaller models, desktops would manage mid-sized models, while GPUs in data centers would tackle the most complex computations, illustrating the application’s practical versatility.
In essence, Diam conveyed that beyond capturing network effects, their approach was also deeply practical. It catered to diverse computational needs across different devices, ensuring efficient utilization of resources while fostering substantial network expansion.
Exploring Market Opportunities, Supply and Demand, and Strategic Insights
Genfinity asked the Planck team about the market opportunity for companies leveraging computing power contributions to earn income. Essentially, we were interested in how idle computing power could be effectively utilized. We also inquired about the future of this business model in Web3, exploring its integration and impact on the decentralized web landscape.
Diam highlighted the crucial interplay between supply and demand within their network. He pointed out the rapid growth they had witnessed recently, scaling from 400 GPUs to over 26,000 in just a few weeks. “It’s important to grasp,” he emphasized, “that with sufficient demand, individuals in the Web3 space can consistently earn passive income by contributing processing power. It’s a straightforward equation: if there’s demand for the supply, opportunities abound, whether from individual users or large data center mining farms.”
He reiterated the significance of their mining application in ensuring adequate supply to meet this demand. “This application,” Diam explained, “plays a pivotal role in scaling our supply capabilities. Furthermore, it integrates seamlessly with businesses, particularly AI companies and startups, offering essential infrastructure to support their operations.”
Planck’s Cost-effective Infrastructure Solution and AI Model Hosting
Furthermore, Rohan detailed Planck’s business strategy, highlighting their offering of a cost-effective, all-in-one infrastructure solution for AI companies. He emphasized that their platform allows for building and scaling AI applications without upfront costs or vendor lock-in, akin to services provided by AWS for larger enterprises, but at just 60% of the typical cost of AWS, Azure, and Google Cloud.
In the initial stages, Planck integrates APIs and open-source AI models sourced from industry leaders like Google and Meta. Unlike competitors, Planck focuses on providing a robust infrastructure for hosting these models rather than developing them internally. Notably, this approach ensures their platform is accessible to both small AI startups and large enterprises.
He emphasized their commitment to supporting custom AI models and facilitating network training. “For this purpose,” Rohan added, “we’re actively developing machine learning tools and infrastructure designed specifically for hosting and training these models. This move promises significant cost savings — up to 70% — for companies that transition their infrastructure to our network.”
Overall, Planck’s platform reduces operational costs and additionally enhances scalability and accessibility, thus enabling AI companies and enterprises to compete more effectively in the AI-driven technology landscape.
Web2 vs. Web3: Planck’s Approach to AI and Crypto Integration
Diam emphasized the stark contrast between AI applications developed in Web2 and those attempting to integrate with Web3. He pointed out that while the majority of AI applications are still rooted in Web2, many blockchain-based AI applications seem primarily focused on token speculation rather than delivering substantial value. Despite some exceptions with genuine utility, most are perceived as riding the wave of AI/crypto hype.
Subsequently, Planck’s strategy revolves around catering primarily to Web2 by offering comprehensive tools and infrastructure. Diam highlighted their approach of providing AI companies with complete packages, including APIs, machine learning tools, and end-to-end solutions, complete with flexible payment options. He noted that through conversations with over 100 AI companies, they have shown little interest in Web3 backends, particularly for paying operational costs with volatile crypto tokens.
To address this, Planck has tailored a payment solution that allows Web2 companies to transact in traditional currencies like dollars and euros for their services. Meanwhile, as a company, they ensure stability in their token’s value by performing daily market buybacks and maintaining consistent buy pressure. While Web3 plays a critical role in their mining operations, AI companies in Web2 can seamlessly integrate without direct involvement with crypto tokens.
Planck’s platform aims for an end-to-end solution supporting Web2 while leveraging Web3 in the background. This dual approach ensures both ecosystems thrive symbiotically, with the token’s value sustained by practical use and consistent demand from miners.
Planck’s Collaborative Journey with Nexera and Fundrs
Diam recounted how he met Matthijs, the founder of Nexera and Nuklai, and discovered his involvement with Nexera and the Nuklai marketplace in the Netherlands. “It was a great coincidence because I don’t often come across crypto startups in the Netherlands,” he remarked. Intrigued by Matthijs’ work in data sourcing, crucial for training AI, Diam visited their office and discussed potential partnerships with Nuklai.
“The synergy between Nuklai’s data expertise and our infrastructure is evident,” Diam explained. “We’re currently exploring opportunities for collaboration, although our discussions are preliminary. In a few weeks, we aim to outline specific synergies more clearly.”
Following their conversation, Matthijs suggested Planck launch a token sale on the Fundrs launchpad to engage Nexera’s community. “It was a pleasant surprise,” Diam recalled. “After undergoing KYB and vetting processes, we finalized our plans and are now excitedly preparing for our token sale launch on the Fundrs platform.”
Diam expressed his enthusiasm about the launch, emphasizing his optimism and eagerness for this new phase of collaboration and growth.
Planck’s Proof of Useful Work (PoUW) Approach
Rohan explained that Planck operates on the proof of useful work (PoUW) consensus mechanism, not proof of stake. This mechanism allows anyone to install the application on Windows or Mac and start contributing computing power to the network.
Looking ahead, Rohan shared their plans for expansion. In the future, they intend to launch the application on Android devices first, followed by iOS. This strategic move aims to broaden accessibility across different platforms, strengthening network decentralization and user engagement.
Diam articulated Planck’s decision not to adopt proof of stake (PoS) for their platform, emphasizing accessibility and ease of use for newcomers to the crypto space. “Some projects find PoS suitable,” he acknowledged, “but we wanted to avoid limiting ourselves to the Web3 audience familiar with staking concepts. For newcomers, the idea of earning crypto through staking — first buying tokens and then navigating staking procedures—can seem daunting.”
“In contrast,” Diam continued, “our proof of useful work (PoUW) consensus mechanism simplifies the process. Users can download our application and immediately begin earning crypto by contributing computing power. This approach includes innovative features like CK machine learning, ensuring active participation benefits the network. Essentially, instead of staking money, our revolutionary consensus model involves staking computational resources.”
He concluded by affirming their belief that PoUW is better suited for achieving widespread adoption and network effects, aiming to make crypto mining accessible and understandable to a broader audience beyond the traditional crypto community.
Architecting Planck’s Own Network: A Strategic Departure and Unique Vision
As the interview progressed, we delved into the Planck team’s rationale behind launching their own network and the critical reasons driving this strategic decision.
Rohan delved into their reasoning, emphasizing a departure from the prevalent proof of stake model used by other chains. Instead, Planck opted to stake computing power rather than currency. This strategic shift aimed to address the diverse demands posed by different machine learning techniques such as federated edge learning and neuromorphic learning. Notably, each technique requires distinct infrastructure tailored to accommodate the behavior of AI agents, influencing network architecture in terms of nodes and connectivity.
Subsequently, recognizing these specific needs, Planck decided to forge its own path with a dedicated layer-one chain. This move enables them to construct infrastructure uniquely suited to support varied AI applications, fostering a robust ecosystem capable of integrating cutting-edge machine learning methods seamlessly.
Jumping in, Diam emphasized the importance of independence from the constraints of other chains. “To ensure we aren’t restricted by limitations of existing chains, we developed our own EVM-compatible substrate,” he explained. This approach facilitates seamless bridging between different ecosystems, particularly Ethereum, which holds substantial liquidity.
“For us,” Diam continued, “creating a network-specific chain was the natural choice. Although we operate as a layer one network, our infrastructure is specifically tailored to our unique use case.” This strategic decision allows Planck to optimize their platform for efficient integration and operation, ensuring flexibility and scalability while maintaining compatibility with broader blockchain ecosystems.
Planck’s Roadmap and Future Developments
Diam outlined upcoming developments, detailing plans that have progressed since then. Firstly, three weeks from the interview date, the team was preparing to launch version two of their mining application, a significant upgrade in their technology. Moreover, they were actively developing their first APIs tailored for Llama 3, the leading open-source AI model in the market.
In addition to technological advancements, the team had recently launched a new website to rebrand their platform, a strategic move aimed at enhancing their online presence. Furthermore, they had plans to roll out APIs the following month, marking a critical step in expanding their service offerings.
Looking ahead, they were gearing up for the release of their desktop mining application, aiming to broaden accessibility and functionality for users. Simultaneously, they were preparing to launch their Android smartphone application in the coming month, extending their reach to mobile platforms.
Their mainnet launch was scheduled for September 2024, representing a pivotal milestone in their network deployment strategy. However, they acknowledged that the timing of this launch could be influenced by prevailing market conditions, highlighting their adaptive approach to market dynamics.
While cautious about launching a new altcoin in the current market climate, they expressed optimism about potentially launching their token later in the summer under favorable circumstances. This forward-looking strategy underscored their commitment to achieving significant milestones while navigating the complexities of the market landscape.
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