One of the most populated niches in the crypto space is for cloud computing. The reasons for this are that the blockchain is an obvious choice for it. Since the advent of DApps on the blockchain, projects have been looking for new ways to use these platforms as a means to power applications.
It’s a great use case, but as an investor, it can be quite confusing with so many options running around. However, the technology is strong, and you can be sure that the blockchain will come out on top in this area. When that will actually happen nobody can say for sure though. Adoption in this space could take many years to come to fruition.
While this sector could certainly be slow to evolve, the benefits that blockchain technology can offer this industry are undeniable, and investors would be wise to investigate some of these offerings. Adding a distributed computing crypto project to your portfolio would definitely be a smart move, and in this article, we’re going to go over why that is. First though, let’s talk about some of the problems inherent with the current centralized cloud computing system.
The current cloud computing system has a problem. It’s very centralized. Most serious websites actually use things like cloud storage and content delivery networks, because these services offer a certain degree of reliability in content hosting. The problem though is that the market share is controlled by just a few large companies.
When there is an outage with these providers it can cause an enormous domino effect, taking down a large number of websites with it. As the market share of providers like Amazon Web Services continues to grow, this will only get worse, and some are legitimately worried about what this could do to the internet.
Not only does this provide security and stability issues, but it also raises concerns about freedom of speech or privacy. With only a few companies controlling so much data, it would be very easy for them to silence content they disapprove of or misuse personal data.
Additionally, once power is centralized, there’s little reason to price competitively. The market is controlled by a few companies who could collude on pricing. In a decentralized hosting environment there is more pressure to offer fair pricing to those utilizing a particular service. If a fair price is not offered, they can easily walk away to a new provider, and that’s exactly what the blockchain is aiming to achieve.
Golem is a blockchain based supercomputer. The team behind this cryptocurrency has created a decentralized computing network that allows anyone to tap into superior computing power at any time. If you needed to perform some high-intensity work, but your computer is not quite up to snuff, Golem can connect you with a computer that can handle the load. This includes things like rendering, machine learning, and simulations.
Golem taps into the power of any computers on the network, and then it pays those individuals for the usage of their processing power. Their system makes it fast and easy to perform any tasks regardless of the hardware you currently have available to you. This makes them a great option for those who may not be able to afford the hardware that they need for their work.
Is a decentralized cloud storage provider that allows for total protection of your private data. The network is distributed and all files are end to end encrypted. Unlike a centralized provider like the one you would get when using Google, your files are yours alone. Their pricing is also more attractive and very transparent.
Users only pay for exactly the storage space that they need and nothing more. If you have extra hard drive space lying around, you can also sell that space on the Storj network to others who would utilize it, earning tokens for yourself in the process.
Likely the best part about Storj over competitors is that their pricing is easy to understand. This makes them a more friendly solution to mainstream users looking for more affordable cloud storage for their files.
iExec is a decentralized cloud computing platform. Their solution runs on the Ethereum chain, and they allow for developers to easily access computing resources to launch their applications. This solution will compete with centralized providers like Amazon Web Services, allowing developers to offload their application’s computing needs to a cloud server instead of paying for expensive dedicated servers which they would then need to maintain themselves.
Who would use something like this? Well, Netflix currently serves all of their content using AWS. Would a giant like this be open to a lower cost option provided by the blockchain? It’s a likely scenario, they have tight profit margins, and if there’s a viable way to cut their operating costs, any business would be stupid not to take it.
While Ethereum does already allow for the hosting of Daaps, it’s not very good at many of the required computations. iExec is looking to raise the bar, making blockchain applications a viable alternative for resource hungry cloud apps while offering them better prices thanks to their peer to peer network.
Resource providers can earn tokens by lending their computing power to the network to power these applications, and the developers gain access to a cheaper and more reliable hosting resource thanks to the distributed network.
At first glance, it doesn’t look like there’s anything really special about the token. In fact, they do a pretty bad job of explaining it in most of their material. However, if you dig a little deeper, you can see that this platform actually has a pretty interesting angle to spur adoption of their service.
Right now, their Token is distributed by Cloudwith.me, a platform that actually sells managed hosting from centralized service providers such as Amazon Web Services. They, however, make it a three-step process that allows anyone to begin using a host like this for their website without any technical knowledge at all. Additionally, users who purchase the token will actually be able to purchase services from these providers at about a 50% discount of the normal rate.
The second part of their plan involves creating their own decentralized cloud computing service. Customers of the initial centralized service will likely be transitioned here with little to no friction. In fact, due to the way everything is set up, they might not even know at all.
Their ease of use solution will likely be a serious boon to the blockchain sector, which is still very confusing to many people outside the space. Making distributed application processing easy enough that your grandma could use it is this company’s goal.
In closing, while there are a lot of projects in this space, it’s worth exploring them. Cryptocurrency is full of trash ICOs and bad projects, but once you dig through you can find some real gems that provide the space with true value, even to mainstream users with no intentions of ever using cryptocurrencies as payments for anything.
Blockchain is so new that it’s still hard to see where it will be most effective, but storage and distributed processing power look like ideal candidates that will aid people in not only finding cheaper processing solutions but possibly even creating entirely new income streams for them.
Imagine earning some spending money every month for renting out your idle computer resources! This could, in fact, be a reality for many people, especially in parts of the world where even small amounts of money could be life-changing. Or, where having access to cheap computing power could open up entirely new avenues of expansions for underserved communities.