Proof of Utility (PoU)

How Modulr pays robot providers & ensures that users operating them get what they paid for

If you're not deep into the blockchain world, terms like Proof-of-Work, Proof-of-Stake, or Proof-of-Utility might sound a bit confusing.

Simply put, Proof-of-Utility (PoU) rewards and incentivizes real, useful work.

Rather than burning energy to solve meaningless puzzles (like Proof-of-Work), or earning passive rewards just for locking up tokens (like Proof-of-Stake), Proof-of-Utility (PoU) ensures that when people sign up to remote teleoperate a robot on Modulr's network, they get a fully-functioning robot that can complete the task as agreed upon.

This is no different than ordering something on Ebay. If the customer doesn't get what they ordered, the seller should not be paid for it! Thus, the PoU system ensures that the robots are fully functioning and that when their services are rendered properly, the provider gets paid accordingly.

Verifying these tasks—like welding beams, auditing retail stores, completing virtual campus tours, etc.—will ultimately be done by the network validators. If a user complains about an unsatisfactory experience, the session will then be reviewed by validators and a consensus will decide if the payment should be rendered or not. Just like with eBay, if the robot was faulty or some other incident prevented useful work from being done as agreed upon, then the customer should be refunded.

The same goes for any service or product (AI models/apps, data storage/management, compute, etc) offered on Modulr's marketplace.