Is Blockchain-Driven Bandwidth the New Super Currency?

It may not be talked about as much anymore but bandwidth continues to be a prime commodity that powers the internet. The rise of cloud computing may have created the notion that scaling up capacity is easy whenever an app or service demands more. However, the ability to scale up doesn’t mean that computing resources are limitless.

Resource and hosting providers may also claim that they can provide “unmetered” and “unlimited” services but the fine print would actually say otherwise. These service packages still have limits. It’s not like one can subscribe to a $5-a-month hosting package and run YouTube on it. Bandwidth also comes with a price.

Being finite and useful makes bandwidth valuable. The idea of bandwidth being “currency” has been floated around even a decade ago, back when peer-to-peer and streaming video were only emerging. Demand for bandwidth was rising and the global infrastructure was far from the size and complexity that it has today.

The challenge then was to make the economics work. However, it’s only recently that such a concept could effectively be explored thanks to the emergence of the blockchain. Now that new blockchain platforms allow just about anything of value to be tokenized and traded like bitcoin, blockchain-driven bandwidth could just become the new super currency.

Decentralized computing resources

Decentralized computing resource provision through blockchain is now gaining traction. Blockchain can be used to effectively pool together computing resources and make these available to other users.

Sia, and Filecoin, for instance, provide a decentralized file storage solution, by “renting” hard disk space to create a “decentralized Dropbox”. Golem allows users around the globe to rent their CPU processing power to other users seeking to enhance their computational capabilities, thus creating a worldwide supercomputer for hire.

Aside from hard disk storage and computing resources, there’s bandwidth.

Gladius.io provides a platform for users to rent out spare and underutilized bandwidth to be used for content delivery and distributed denial-of-service (DDoS) mitigation to create a “decentralized Cloudflare”. The company’s vision is to use bandwidth to build a marketplace which lets people all across the world buy and sell bandwidth to help safeguard (DDoS protection) and accelerate participate in a global CDN) websites. Distribution also eliminates the single point of failure, which in this case equals to better protection. When centralized SaaS solutions are being used a cyber attack on a resource provider could disrupt operations of all services that depend on it.

All these services allow users to tap distributed resources in order to better the internet and make it cheaper and more effective. Unlike traditional cloud storage where files and data can essentially be accessed by providers, a decentralized approach encrypts files and information and distributes data across the network. Only the owner could gain access to the information.

Clearly, among the advantages of a decentralized approach to resources are cost and security.

Lastly, decentralized resources are often cheaper since the cost of running the infrastructure is distributed among peers.

Tokenizing through blockchain

Other ventures are already attempting to tokenize a variety of real-world assets. Blockchain ventures are tokenizing real estate, gold, and even art in order for these to be traded faster and easier than traditional means.

As tokens, even fractional ownership will be possible thus lowering the barriers to ownership and access. While token and cryptocurrency trading has yet to mature, blockchain’s ability to tokenize just about anything creates exciting opportunities on how trading digital commodities.

Blockchain tokens can now be created to represent bandwidth and other resources. These tokens can then be traded for other services within the platform or even for other cryptocurrencies and fiat currencies through exchanges.

Blockchain transactions are fast and transparent. As such, there is potential for the creation of a fair marketplace where prices of computing resources are actually determined by supply and demand rather than be dictated by the dominant players.

In addition, the rise of bitcoin is proof that the market could already place value on virtual currency. What more if the currency represents something that has inherent value in computing such as bandwidth?

Rising demand

There is an ever-rising demand for such computing resources. Developments in other domains such as big data, analytics, machine learning, and the Internet-of-Things (IoT) push greater demand for bandwidth, storage, and processing time.

According to Gartner, adoption of cloud computing and security is expected to grow year-on-year for 2017. Public cloud services market is expected to grow by 18 percent. Spending on cybersecurity is also estimated to rise 7 percent.

In cybersecurity, for example, companies are struggling to keep pace putting up defenses against rampant cyberattacks. Due to the abundance of compromised devices that are hijacked to create botnets, DDoS attacks can be executed by malicious actors easily. Downtime caused by such attacks are costly and devastating so more organizations seek to adopt security solutions. However, the cost of such services remains prohibitive, especially for smaller businesses.

Security providers leverage their access to bandwidth and computing resources for their services. In turn, their top service tiers also command premium pricing. A blockchain-driven service like Gladius.io uses decentralized resources thus enabling packages to be customized and priced more accessibly.

A super currency?

So how could blockchain-driven bandwidth become a “super currency”? First, is the utility of bandwidth. The internet relies on bandwidth to function and this makes bandwidth inherently valuable. Second, there is an increasing demand for bandwidth and computing resources. Scarcity drives up prices of commodities. Lastly, blockchain can tokenize bandwidth making it tradable for other services or other stores of value. These make it quite the promising asset especially in a world that is shifting most of its activities to the online and digital space.

Comments

tmosley Greenspazm Sun, 10/15/2017 - 10:02 Permalink

>blockchain’s ability to tokenize just about anything creates exciting opportunitiesMostly it has created a huge bubble. CryptoCURRENCIES are good, and will continue to increase in price, but these tokens are generally highly limited in their usefulness (at best, just fraud vehicles at worst), and most people seem to speculate based more on price than anything else. I thought Siacoin was a good idea when I saw it, but when I dug down into the numbers, I saw that even at its peak, the price of it was too low to cover people's costs. It's a money losing mother fucker. Having a service whose price is controlled by speculators is NUTS. Imagine the madness if Uber were to tokenize. You might wind up with Uber rides costing a penny a mile or a thousand dollars. Not good.I would say that it will be best to stay the fuck away until the market matures. Maybe buy Ethereum as a sort of "index fund" for the ICOs if you like. It will probably do fairly well, and will do better again as the market matures.

In reply to by Greenspazm

tmosley BaBaBouy Sun, 10/15/2017 - 11:23 Permalink

Easy for you, maybe (I doubt it, the ones I have seen look very convincing to me). But what about all the people you think are going to be accepting your prepper tokens for real goods and services?Do you think they will keep taking that crap after they have been burned even once for the value of a gold coin?

In reply to by BaBaBouy

GUS100CORRINA Greenspazm Sun, 10/15/2017 - 09:35 Permalink

Observation: I hate to throw water on the CRYPTO parade, but CRYPTOCURRENCIES are only good when one has a network and functioning communications and computing infrastructure. EMP weapons can wreck havoc on communications and computing infrastructure as well as CRYPTOCURRENCY valuations. NO NETWORK means NO BITCOIN.Of course the so called communication experts will tell you that a complete worldwide outage could never happen.This thought sure makes physical GOLD and SILVER in owners possession look pretty good should a global network outage event take place.

In reply to by Greenspazm

Arnold Sun, 10/15/2017 - 09:24 Permalink

"...fast and transparent..."
"...even fractional ownership will be possible..."

Nyuck, Nyuck, Nyuck..Hey Moe!

The Stooges remain classic.

BallAndChained Sun, 10/15/2017 - 09:49 Permalink

> Now that new blockchain platforms allow just about anything of value to be tokenized and traded like bitcoinWhen commodities are tokenized, people will start to ask the uncomfortable question of why am i paying $6000 for Bitcon nothingness when i can buy real blockchained commodities for much cheaper?But of course the Bitcon pumpers would say how great nothingness is. The big advantages of nothingness.

BallAndChained Greenspazm Sun, 10/15/2017 - 11:45 Permalink

Interesting comments:Coinbase / cant withdraw my money  sounderglint III on Sep 3, 2017 All the money I've made mining bitcoin I cant withdraw. Coinbase has a paypal account setup! BUT you can never get it verified. There doing this becases they don't want to send us our MONEY! COINBASE is a SCAMMMMM. Going to let the SEC and other govt agency that could crack down on these... 0 comments United States, Michigan, Grand Rapids Bad Business Partners

In reply to by Greenspazm

jimbos world BallAndChained Sun, 10/15/2017 - 12:03 Permalink

That doesn't even make sense.A. Coinbase doesn't have anything to do with PayPal, credit cards and bank accounts only.B. There is not any way mining and CoinBase can work together. To mine you want to have a wallet that you control the private keys to. That means no cluod based wallets.If this post is real, the person has been spoofed and only thinks they are using coinbase. Which is pretty funny if you ask me.

In reply to by BallAndChained

BallAndChained tmosley Sun, 10/15/2017 - 11:06 Permalink

You are referring to yourself.You can't deny the truth of this simple difference:Blockchained Commodities versusBlockchained NOTHING (Bitcon)One is backed by something REAL while the other is backed by NOTHING.Eventually the greater fool will realize one emperor has NO clothes on (hint, the emperor with no clothes on is the one backed by NOTHING).

In reply to by tmosley

tmosley BallAndChained Sun, 10/15/2017 - 12:22 Permalink

Real money doesn't need backing. Only cheap bits of paper need backing because paper is cheap. If anyone could print dollars, they would be worth no more than paper. Anyone can mine bitcoins, yet they are still worth thousands.Get your head out of your ass. There are a lot of people in this world that are smarter than you. Many of them own bitcoins. Get over it.

In reply to by BallAndChained

BallAndChained tmosley Sun, 10/15/2017 - 14:45 Permalink

> Real money doesn't need backing. Only cheap bits of paper need backing because paper is cheap.Real money doesn't need backing. Only thing is cryptos are not real, they are VIRTUAL.You clearly are extremely ignorant of what is REAL and what is VIRTUAL. (see, i can use the word ignorant just like you crypto pumpers that call anybody not holding cryptos ignorant).You clearly are extremely ignorant of what backing means.Paper and virtual fantasy world is worthless, that is why they need to be backed by something in the REAL world that has value. Without any backing from the REAL world, they remain worthless.Commodities are in the REAL world, so they don't need to be backed by anything else. They are in itself real value.> If anyone could print dollars, they would be worth no more than paper.That is true of all cryptos. You are making the argument against cryptos. Anybody can run FREE open source code to create virtual fantasy tokens. They are worth no more than electrons.Get your head out of your ass. There are a lot of people in this world that are smarter than you. Many of them don't own bitcon. Get over it.

In reply to by tmosley

tmosley BallAndChained Sun, 10/15/2017 - 16:22 Permalink

>Only thing is cryptos are not real, they are VIRTUAL.I guess math isn't real either.You don't understand the difference between the words "real" and "physical".>You clearly are extremely ignorant of what backing means.Clearly. Why don't you give me the definition?>Paper and virtual fantasy world is worthless, that is why they need to be backed by something in the REAL world that has value. Without any backing from the REAL world, they remain worthless.But that is wrong. Both unbacked paper and "virtual" cryptos are worth plenty. You seem to be caught up in some sort of delusion.>Anybody can run FREE open source code to create virtual fantasy tokensYes, anyone can create a new coin, but no-one can replicate the vast network confirming the transactions and securing bitcoin.>They are worth no more than electrons.If you find a way to isolate electrons, you would be a trillionaire. Energy would become so cheap it would be free, IF you didn't blow up the planet first.>There are a lot of people in this world that are smarter than you.A lot fewer than you would think, and fewer still who are also trained to resist bias as I am.

In reply to by BallAndChained

BallAndChained tmosley Sun, 10/15/2017 - 18:34 Permalink

> I guess math isn't real either.Math is so scarce, pay $6000 for math before it becomes extinct.Math is not a REAL hard asset. Math is virtual. You can't hold math in your hand, anymore than you can hold cryptos in your hand.> Both unbacked paper and "virtual" cryptos are worth plenty.You keep going back to price. Bernie Madoff scam was high priced too. Price doesn't make a scam and fraud legitimate. Already answered that same argument many times. That unbacked paper fiat always go to zero throught history.> Yes, anyone can create a new coin, but no-one can replicate the vast network confirming the transactions and securing bitcoin.Sure they can. The Chinese miners arguing with the developers can jump ship to another crypto. And so can every other miner jump ship. If mining Bitcon isn't profitable anymore, or they can't mine anymore because the token limit is reached, or mining another crypto is more profitable, they certainly can and will jump ship.If you think the miners are tied to Bitcon, then you are fooling yourself. If the Chinese government creates their own crypto and declares mining any other crypto illegal, then those Chinese miners would certainly jump ship or face the penalty (maybe even death if the Chinese government so decides).> If you find a way to isolate electrons, you would be a trillionaire. Energy would become so cheap it would be free, IF you didn't blow up the planet first.That has nothing to do with Bitcon, you are getting delusional.> A lot fewer than you would thinkThat is called Self-aggrandizing.

In reply to by tmosley

BallAndChained tmosley Sun, 10/15/2017 - 15:34 Permalink

A scam doesn't need to pay a dividend to be a scam.Satoshi and buddies didn't put in Billions of dollars into the scam. That is why they need new investor money to cash out.You are helping them perpetuate that scam with all your pumping.This would be obvious to you if your brain wasn't wracked by cognitive dissonance.

In reply to by tmosley

tmosley BallAndChained Sun, 10/15/2017 - 16:24 Permalink

You have proposed that bitcoin is a scam, and that Satoshi is cashing out his coins.But the addresses that contain Satoshi's coins are known. There has been no movement in years. Why do you think he hasn't cashed out yet? He could be a billionaire right now if he did.You don't suppose that it is because he has FAITH in the currency, do you?Also, don't claim other people are in CD if you don't even know what the signs are. It makes you look stupid.

In reply to by BallAndChained

BallAndChained tmosley Sun, 10/15/2017 - 18:04 Permalink

> But the addresses that contain Satoshi's coins are known. There has been no movement in years.He wants you to pull in more fools before cashing out. Remember there is not Billions of real cash put into Bitcon. Satoshi wouldn't be able to pull out Billions before it crashed. More real cash needs to be put in to support large sales.Just because those addresses haven't sold yet does not mean they never will sell.If those insiders start to sell (just like the stock market) it will come crashing down. A bubble based on NOTHINGNESS has more room to crash down.Now if Satoshi turns out to be the NSA, they may want to intentionally crash it at the time of their choosing.But don't worry, continue to put your life savings into extremely secure distributed NOTHINGNESS.

In reply to by tmosley