> For the complete documentation index, see [llms.txt](https://xnet-mobile.gitbook.io/xnet-mobile-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://xnet-mobile.gitbook.io/xnet-mobile-docs/deploy-connect-earn/how-xnet-works.md).

# How XNET Works

**Carrier Value Proposition: Lower Costs, Happier Customers**

XNET offers carriers a compelling **zero-CapEx solution** to rapidly extend their network coverage and capacity. By utilizing existing decentralized Wi-Fi infrastructure maintained by XNET operators, carriers avoid costly infrastructure investments typically associated with traditional 5G network expansion. Offloading cellular data onto XNET’s neutral-host network significantly reduces operational costs associated manufacturing and delivering data to their subscribers. This directly improves connection speeds, enhances network reliability, and boosts overall satisfaction—key drivers in reducing subscriber churn and increasing customer loyalty.

**Network Architecture:**

* Enterprise and Carrier-grade Wi-Fi access points form the network backbone
* Automatic authentication through carrier certificates
* Real-time traffic management and load balancing
* Distributed network design for optimal coverage

**Data Flow Process:**

1. Mobile device enters XNET coverage area
2. Device authenticates automatically via Hotspot 2.0
3. Traffic transitions from cellular to Wi-Fi network
4. Data usage is recorded and verified
5. Token rewards are distributed to AP owners

**Requirements:**

* XNET approved WiFi 6/6E/7 Passpoints
* Consistent uninterrupted backhaul (min. 100 Mbps down, min. 10 Mbps up)
* "Carrier Approved" Business, commercial and public locations

**Security Measures:**

* Carrier-grade WPA2/3 encryption for all traffic
* Network isolation prevents device-to-device visibility
* Compliance with all mandated telecommunications standards

### **Data Offloading Process**

* **Seamless Connection**: Utilizing Hotspot 2.0 technology, mobile devices automatically and securely connect to XNET hotspots without passwords, manual logins, credentials or additional apps.
* **Carrier Integration**: Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) integrate with XNET through standardized roaming agreements. This integration allows carriers to efficiently divert traffic to XNET's network in areas of high demand or limited coverage.
* **Reduced Congestion**: Offloading cellular data helps carriers reduce network congestion, especially in densely populated or event-driven environments (stadiums, transportation centers, urban centers).

### **Rewarding Network Participants**

Participants (Deployers, MSPs, ISPs) are rewarded in $XNET tokens based on their contribution:

* **Data Throughput**: Rewards scale with the amount of data offloaded through their deployed hardware. More Data = More Rewards
* **Proof-of-Coverage:** To ensure network growth XNET also employs a Proof-of-Coverage (PoC) mechanism.&#x20;
* **Strategic Placement**: Hotspots deployed in carrier marked, high-density and high-usage areas have the potential to earn substantially more, incentivizing rapid network growth in valued locations.

{% embed url="<https://xnet-mobile.gitbook.io/xnet-mobile-docs/xnet-foundation/foundation/xnet-token>" %}


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