After Filecoin, what to expect from Swarm, Ethernet’s “own” storage project?

The spotlight of decentralized storage track is shining on Swarm this time.

If you ask, what is the most profound feeling of the vast crypto market for the uninvolved outsiders? The answer is probably that graphics cards, hard drives and even high-end gaming books are expensive. These essential computer hardware for ordinary people in the Internet era have all experienced a surge in the past year, with prices even doubling at their peak.

Graphics cards have been heavily invested in ethereum mining, which has happened in previous years, but hard drive mining fever is a first. Now, after Filecoin and Chia, another distributed storage project, Swarm, is coming online. The Swarm Foundation previously announced that it will soft-launch its Bee mainnet on June 13 and launch a token public offering on ColinList on June 15.

Swarm is well known to the community for its “Ether Foundation project” label (note: Swarm has now been spun off from the Ether Foundation and become a separate project). Despite its prestigious origins, Swarm had a low profile until it announced its airdrop plan earlier this year, which gradually attracted widespread attention.

After Filecoin, what to expect from Swarm, Ethernet's "own" storage project?

What is Swarm?
Swarm is a decentralized storage and communication system for a sovereign digital society,” according to the Swarm official website.

Swarm is a system of peer-to-peer network nodes that create decentralized storage and communication services. The system is economically self-sustaining thanks to a built-in incentive system executed through smart contracts on the ethereum blockchain.

Swarm, which literally translates to “bee swarm,” is so fond of “bee swarm” that its latest client is named Bee, and the token symbol BZZ simulates the sound of bees in flight.

Satoshi Nakamoto, the founder of Bitcoin, mentioned on the bitcintalk forum in 2011 that “Wikileaks has kicked the hornet’s nest and the swarm is coming to us. Swarm represents a distributed and collaborative kernel, implying that Swarm is a decentralized system that is designed to guide participants in the ecosystem to collaborate with each other to maintain ecological stability and development.

From a famous family: Vitalik Buterin and Gavin Wood
The community is excited about the origins of Swarm, an idea born out of Vitalik Buterin and Gavin Wood’s early discussions on Ether, which Vitalik Buterin wrote about in his essay on the prehistory of Ether.

Gavin’s contribution owes much to a subtle shift in his vision, starting with blockchain-based contracts (holding digital assets and transferring them according to predetermined rules) that saw Ether as a platform for building programmable currencies, and then evolving into a general-purpose computing platform. It all started with a subtle shift in focus and terminology, which became stronger with the growing emphasis on “Web 3”, which sees Ether as part of a suite of decentralized technologies, the other two being Whisper and Swarm.

After Filecoin, what to expect from Swarm, Ethernet's "own" storage project?

The relationship between Ether, Whisper and Swarm in the Trinity architecture

In its original conception, Ether is a trinity. The world computer is composed of three parts: computation, storage and communication. Ether takes the role of computation, while Whisper and Swarm provide storage and communication functions respectively. In the latest presentation of Swarm, Swarm incorporates both storage and communication.

Swarm was first funded by the Ethernet Foundation in 2015, but was later spun off as an independent organization, and closed a $6 million round of funding in February this year from KR1, HashKey, NGC Ventures and others. In its funding announcement, it disclosed a core team of 32 people divided into 8 groups: Leet Squad, Bee Team, Bee-JS Team, Comms, HR, DevOps, Ops, and Knowledge Management.

How does Swarm work?
The expensive computing resources on Ether are not destined to be used to store data at scale, but storage is an essential element for decentralized applications to reach the masses. As one of the original members of the Ethernet ecosystem, Swarm’s main purpose is to provide decentralized storage services for DApp code, user data and on-chain data within the ecosystem.

In the early days when Swarm was proposed, IPFS was not yet available and Bittorrent was the most popular distributed file storage protocol on the Internet at that time. However, the obvious problem with Bittorrent was the lack of incentives and the lack of motivation for users to share files without compensation. How to design a system to achieve stable and durable, decentralized data storage and exchange? Blockchain provides just the incentive idea, and Swarm chooses to implement the incentive mechanism through smart contracts.

The Swarm incentive system is built around three key contract components, Swap (exchange), Swear (guarantee), and Swindle (fraud), which operate as follows :

After Filecoin, what to expect from Swarm, Ethernet's "own" storage project?

Swap: Swap contracts record bandwidth usage, compensate nodes for serving content, and promote wider distribution and faster access to popular content.

Swear: The assurance contract handles long-term storage, allowing nodes to sell their storage space while also allowing users to reliably store data on Swarm over time.

Swindle: The fraud contract consists of a dispute resolution litigation engine that is a candidate for state adjudication in the system.

Through three key smart contracts, Swarm provides a scheme for tracking liability, where the storer is responsible for specific content, while Swarm uses smart contracts to handle node deposit payments and retains coercive measures as a deterrent to fraud. Logically, Swarm provides the basic conditions for ecological users to freely exchange data value.

Token Economy
Swarm’s native token symbol is BZZ, a functional token that is also used for bandwidth and storage rewards. BZZ has an initial mintage of 62.5 million (note: not necessarily the final total number of tokens).

After Filecoin, what to expect from Swarm, Ethernet's "own" storage project?

The initial token allocation scheme is as follows.

Early token sales and public offering : 50%

Team : 20%

Foundation : 7%

Eco-funding : 20%

Swarm has published less information about the economic model, the exact way BZZ will be applied within the ecosystem, and the rules for mining after the mainnet goes live are unclear.

Test Network Airdrop
Swarm’s beta network airdrop program, launched in February, will airdrop 1 million BZZ tokens to participating Bee nodes to reward early adopters and stress test the network. Swarm, which also had high expectations given the initial wealth of Filecoin and Chia, has attracted a large number of community users and now has more than 240,000 test nodes.

Swarm says that before the end of the test, the network will identify 35 trusted nodes as “queen bee nodes” (qBZZ nodes), and nodes that have exchanged bandwidth with these 35 queen bee nodes will be eligible for the airdrop. The airdrop gives away exactly 1 million BZZ tokens, with the final number of individual nodes allocated based on the value of that node’s qBZZ check.

CoinList Token Sale
After completing a private funding round earlier in the year, Swarm is soon to launch a public token sale. The Swarm public offering will open on June 15 at 1:00 BST on CoinList. The public offering will be offered in two ways, both at a price of $1.92, and the tokens will both be unlocked around August 2, 2021.

The first will take place from June 15, 2021 at 1:00 BST to June 15, 2021 at 12:59 BST, with a minimum purchase of $100 and a maximum purchase of $500; the second will take place from June 16, 2021 at 1:00 BST to June 17, 2021 at 12:59 BST, with a minimum purchase of $100 and a maximum purchase of $500; and the second will take place from June 16, 2021 at 1:00 BST to June 17, 2021 at 12:59 BST. The second method will take place from June 16, 2021 at 1:00 GMT to June 17, 2021 at 12:59 GMT, with a minimum purchase of $100 and a maximum purchase of $10,000. The second sale will open when there are tokens remaining from the first sale.

A bright future, but there are obvious problems
As the “real son” of Ether, Swarm has not only gained the support and brand effect of the star team, but also the unique advantage of its integration with the Ether ecosystem. Relying on the powerful network effect of Ether, if Swarm successfully attracts DApps in the Ether ecosystem to use its decentralized storage service, its development prospect is easy to imagine.

At the same time, Swarm also attaches great importance to its ecological construction, and has launched an ecological project funding program in 2020, with 26 projects funded so far.

However, Swarm also has some obvious problems. These include slow engineering progress and unclear economic models.

Launched in 2015, Swarm was quiet for the first few years until last June, when it launched a series of initiatives, releasing a white paper, “The Book of Swarm,” and launching a network. According to the project’s development path, Swarm is in the research phase from 2015 to 2020, which raises doubts about the project’s true credentials and engineering advancement capabilities. In contrast, Filecoin, which started in 2017 and went live last year, was much more rapid in terms of engineering actions, and is more complex than Swarm in terms of mechanism design.

The lack of clarity in the economic model is also an issue that needs to be addressed. From the Swarm whitepaper and public information, there is no clear positioning of BZZ in the network, how to capture the value of BZZ tokens? In addition, the mining mechanism has not yet been announced, and the mining part is not included in the token distribution scheme, which may mean that the network will incentivize miners by issuing additional shares. The importance of the economic model to the project cannot be overstated, but Swarm has yet to announce specific information about it until it is close to going live.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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