The rate of innovation in the 21st century is unprecedented. Every existing solution in the physical world has a better alternative in the digital realm. The shift has been beneficial, especially for centralized corporations in the first two decades of the new millennium. The advent of blockchain and the demonstration of its capabilities is proving to be an equalizer. According to Gartner, the business value added by the blockchain would rise to $3.1 trillion by 2030, up from $176 billion in 2025. With this forecast, many venture capitalists now invest in platforms integrating decentralized architectures due to expanding use cases.
Digital requirements have led to the underutilization of computing resources. Corporations, small companies, and individuals sink billions, if not trillions, for better computers and other gears only to be left idle 30 percent of the time. The wastage coincides with the increasing need for the same valuable resources to address minute details of businesses and corporations. Large IoT ecosystems, machine learning, and other data churning algorithms require stronger servers and bandwidth requirements to run demanding applications and crunch large data troves every day.
The blockchain can be used to reduce computing power wastage and improve efficiency. Due to the decentralized nature of distributed ledger networks, Harry Pokrandt–the Hive Blockchain founder–told Forbes that firms would enjoy more benefits if they use computing resources from blockchain-based providers. Beyond security, there is resilience and the avoidance of a single-point-of-failure. From decentralized computing portals, deploying firms enjoy 100 percent up-time, by-passing eras of service disruption that cost losses running into millions. A failure of AWS services in 2016, for instance, forced many websites offline. This would be a thing of the past because of the redundancy of networks providing decentralized cloud computing services.
With the growing demand for cloud service markets and infrastructure, we carried out extensive research on existing decentralized computing platforms. We sought to analyze how some of the leading blockchain solutions are preparing for this wave of adoption by positioning themselves with differentiated solutions as a competitive edge. In the end, we came up with a list of the top-10 leading crypto decentralized computing resource sharing platforms.
Our research showed that decentralized computing platforms offered different value propositions to their clients.
There were three primary computing resources available for buyers.
On one end, users could provide and sell their hard storage space and idle CPU cycles. Yet, on the other hand, some platforms could offer unused internet bandwidths trustlessly.
The arrangement is also straightforward. Both buyers and sellers could list their terms with payments being in the native token/coin.
Top of the list is the MBCC Protocol. Unlike competing platforms, they offer broader solutions with an in-built payment method—a deal maker for users who prefer flexibility.
From the Proof-of-Stake reliant MBCC Protocol, users can provide or purchase bandwidth, storage space, and general computing power. Tapped resources could then be used across the board in running heavy research Apps, for instance, or rendering, and gaming.
Competitors on the other hand were very specific. For instance, Filecoin only offered storage space and powered by Proof-of-Work while Golem is where users can source computing power, using validators for transaction confirmation.
We also noted that most platforms are still operating as dApps on Ethereum as the base layer. Some of them are Datum–offering storage, iExec–channeling computing power, and DFinity–where users will run dApps.
Overview of the Top-3 Decentralized Computing Resource Sharing Platforms MBCC Protocol (MBCC)
The MBCC Protocol uses the Proof-of-Stake consensus algorithm therefore incorporates validators who would stake.
The platform adopted a two-prong approach in solving pressing problems. On the one hand, its creators seek to harness, rent, and manage idle computing resources to meet various needs from Big Data processing, storage, AI, and others using the blockchain.
In a recent Medium post, MBCC noted that blockchain technology would advance the financial market. The solution allows the creation of unique products for securing income and improving the lives of millions.
On the other hand, the platform automatically handles payment by adopting existing payment processes using smart contracts without global restrictions.
That means payments—effected via mobile, point-of-sale terminal using stable streaming technology– will be in the MBCC token, which can be traded for any other coin/token/fiat in the open market, cheaply and readily.
The MBCC Protocol’s in-built payment solution is for users’ convenience. It is the main distinguishing feature that sets it apart from competing networks, placing the project on top, above the rest.
The Golem Network launched in Nov 2016 and successfully raised $80 million after an ICO.
During this time, it has transformed to be a force in the decentralized computing space, recently migrating to their Brass mainnet and striking various partnerships.
Golem draws computing power from individuals to data centers allowing users to utilize its rails to execute various tasks ranging in complexity from running CGI renders to machine learning and running of heavy applications required in scientific experiments.
All payment is via its native coin, GLM, executed in Ethereum Layer-2 for speedy settlement and reduced costs.
Filecoin is a creation of Protocol Labs and focuses on hard disk space availability in a decentralized manner using Interplanetary File Storage (IPFS) system with FIL as the main currency.
The coin is used for payment, and providers of hard disk space are rewarded using the coin. They will, however, need to convert it to fiat or any other currency through an exchange as there are no payment terminals or processors within the Filecoin network
For its decentralized storage provision, the project is different from other computing network solutions.
Filecoin also uses blockchain’s legacy consensus algorithm–Proof-of-Work, a controversial move considering the increasing calls for energy efficiency and environmental conservation.
Unique as it is, the IPFS as a decentralized means of data storage needs refinement perhaps explaining why it took years before Filecoin launched their platform in Oct 2020, three years after raising over $250 million in a 2017 ICO.
Other Notable Observations
Our analysis found that even though some decentralized storage solutions– even after raising millions from their ICO–have found it tough to deploy a working solution.
DFinity, for example, plans to launch anytime in 2021.
Filecoin took over three years to release its mainnet. At the same time, with CPUCoin, Datum, and iExec operating from the Ethereum core means more cost burden to the end-user since the network already has scaling problems.
Storj has a well-defined pricing plan denominated in USD, not STORJ tokens.
There are millions of terabytes of idle computing power available for distribution through the blockchain.
Existing platforms are working to create a blockchain-based sharing model with in-built incentivization for resource providers. This sharing economy is sustainable from a sustainability perspective, saving costs of setting up additional facilities and wastage of valuable resources.
The MBCC Protocol has embarked on an uncharted path to make the sharing of computing resources simpler and more accessible for providers to deploy and cash out using an integrated payment method.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.