The Future of Web3: A New Era of Decentralization in Storage and Computing

The next generation of the internet, Web3, will be built upon the three foundations of consensus, storage, and computing. Blockchain technology has initiated a Decentralization revolution, and Web3 will extend this concept to the entire internet domain.

In terms of Decentralization storage, peer-to-peer networks have created a global, trustless, and immutable data storage system. As a pioneer in this field, a certain storage platform offers cost-effective solutions that ensure the permanence, immutability, and censorship resistance of data, meeting the increasing demands of NFTs and decentralized applications.

According to predictions by the International Data Corporation, the global data generation is expected to reach approximately 221,000 exabytes (EB) by 2026. To put this into perspective, 1 EB equals 1,048,576 TB, which means the total global data volume will be around 23.17 billion TB by 2026. Such a massive amount of data highlights the enormous market potential of Decentralization storage protocols.

In the field of Decentralization computing, a new type of computer launched by a storage platform aims to combine large-scale AI models with smart contracts. This system integrates the performance of high-speed blockchain with the verifiability required by Decentralization projects.

The global AI market is expected to grow to approximately $257.516 billion by 2032, with an annual growth rate of 19%. Decentralization AI is expected to address transparency and control issues in machine learning, promote a fair and accessible AI ecosystem, while protecting intellectual property and personal data. A certain storage platform's progress in decentralized storage and computing places it at the forefront of the Web3 movement, meeting critical demands and expanding its market potential.

Decentralization Storage and Computing Innovation Protocol

A certain storage protocol aims to achieve permanent data storage through a one-time payment. It consists of two core components: block weaving and the permanent network.

Block weaving serves as a storage layer, processing storage orders and replicating data. It employs a consensus mechanism known as succinct proof of random access, ensuring that nodes provide cryptographic proof of access to previously uploaded data before accepting new data.

The Permanent Web is a human-readable layer built on blockchain weaving, mimicking the form of the World Wide Web. Unlike traditional web pages, content on the Permanent Web cannot be altered once uploaded, ensuring that websites and Decentralization applications remain unchanged.

The protocol supports smart contracts through its smart contract platform. Unlike traditional blockchain networks, this design calculates the contract state only on the local machine that requests the execution of the contract, thus improving efficiency and scalability.

The native token of the network is used to pay for the storage fund, which compensates miners and ensures long-term coverage of storage and network capacity costs. Users pay a one-time fee when storing files, with most of the fee going into the storage donation fund. This fund is designed to indefinitely cover storage costs based on conservative assumptions of declining storage costs. Historical data shows that the average annual decline rate of storage costs is -30.57%, supporting the long-term viability of the protocol.

Miners in the network are rewarded through a combination of transaction fees, inflationary token issuance, and donations. The token economy includes an initial issuance of 55 million tokens, with an additional 11 million tokens issued as inflationary. These issuances will continue to decrease until the total circulation reaches 66 million tokens. The protocol does not adopt a token burn mechanism, maintaining a fixed supply.

Network Upgrade and Future Development

The network upgrade in March 2024 introduced coordinated mining, allowing multiple nodes to work together, improving efficiency and computing power. It also increased support for pooled mining, enabling resource sharing among miners. The protocol changes raised the difficulty of single block solutions to promote the generation of complete data copies, introduced new pricing measures, and reduced the checkpoint depth to 18 blocks. Despite initial controversies, these changes have been accepted, and the network's performance and stability have improved.

The newly launched Decentralization computing platform combines the security of blockchain with the efficiency and scalability of cloud computing platforms, forming a new computing paradigm. It employs parallel processing, running multiple programs simultaneously on a large scale, optimizing resource allocation. Its open data protocol offers a flexible and modular design, allowing for easy upgrades and component replacements.

The platform's Decentralization operating system allows developers to run command-line processes similar to smart contracts, combining the familiarity of cloud server operations with the advantages of decentralized processing. It supports the creation of blockchains compatible with various virtual machines, including EVM. Unlike typical smart contract platforms, this system allows contracts to self-execute at predetermined times, paving the way for truly autonomous blockchain applications.

Competitive Landscape and Market Position

In the field of decentralized storage, a certain storage platform focuses on long-term data storage, while its main competitor aims to disrupt the current storage market through low-cost temporary storage. The former is creating a new permanent storage market, while the latter needs to compete on price with traditional cloud storage services.

In terms of blockchain performance, a certain storage platform has recently achieved a processing capacity of over 600 transactions per second, making it one of the highest throughput permissionless blockchains. This achievement is particularly remarkable as its newly launched computing platform is still in the early stages, yet its transaction processing speed has surpassed that of several well-known blockchain networks.

Team Background and Ecosystem Development

The project was founded by two students during their PhD studies at a university in the UK. Their shared vision led to the creation of this blockchain-based permanent data storage platform.

The project successfully raised funds through multiple rounds of financing, including pre-seed, seed, community token sales, and private rounds. Notable investors include several top venture capital firms. The project is guided by the decentralized autonomous organization (DAO) to ensure community-led decision-making and investment.

As of the third quarter of 2023, there are over 130 projects based on the platform in the ecosystem. The network has surpassed 1 billion on-chain transactions, demonstrating its increasing adoption rate and robust infrastructure.

Development Prospects Analysis

Bullish factors:

• The launch of the new computing platform has enhanced the project's position in the AI field.
• The super-parallel architecture facilitates the efficient training and deployment of AI models.
• Solved the scalability and efficiency challenges of zero-knowledge machine learning
• The volume of online transactions significantly increased in 2023, processing about 100 million transactions per month.
• It is expected that in 2024, as the new platform transitions from the testnet to full operation, trading volume will further increase.

Bearish factors:

• The testing phase of the new platform may expose technical issues, including vulnerabilities and network access problems.
• The ability to effectively scale AI models on-chain has not been fully validated.
• The combination of old and new tokens may face difficulties, introducing additional uncertainty.
• As storage and computing demands increase, scalability challenges may arise.
• The integration of the new platform with the existing network is still in the early stages and may encounter unexpected technical and operational challenges.

Overall, the project demonstrates great potential in the field of Decentralization storage and computing, but still faces challenges in terms of technical implementation and market acceptance. Future development will depend on how the team addresses these challenges and the evolution of the entire Web3 and AI ecosystem.