Decentralized storage report: the cornerstone of WEB3.0 development

1. Overview of Internet cloud storage business

Our society is in an era of unprecedented information explosion , with computers, smart devices, TVs, home security systems, wearable devices, cars, and even robots all generating and using data all the time. With the development of AI and the Internet of Things (IoT), the huge fleet of devices will generate massive amounts of data. The future will be a digital era in which data becomes the main factor of production. The exponentially increasing amount of data puts forward higher requirements for the current data storage system. Services include data storage, management, and retrieval.

Decentralized storage report: the cornerstone of WEB3.0 development

Global real-time data trends preview Data source: IDC

Traditional centralized cloud storage is a storage solution that puts storage resources on the cloud for human access. The business model of using Internet cloud storage as a service has a long history. Amazon Web Services launched Amazon Web Services (AWS) as early as 2006, leasing its own servers and storage space to users, reducing the need for developers to create and manage servers. infrastructure costs. At present, the Internet cloud service market is already huge, and the market size will reach 200 billion US dollars in 2021. Foreign companies such as Amazon, Microsoft, Google, and domestic Alibaba represent the leading companies in centralized cloud storage.

The market share of each cloud service market in 2021 is as follows:

Decentralized storage report: the cornerstone of WEB3.0 development

(Source: TelecomTV)

Among them, Amazon Web Services has maintained a leading position in the industry all year round, and its revenue in 2021 has reached 62 billion US dollars, accounting for about 33% of the cloud service market share. In second place is Microsoft, which has grown tremendously in recent years, and its market share has increased from 13% in 2017 to 21% in 2021. In the case of Amazon Web, the four core segments are: cloud computing, cloud storage, networking, and software, and the revenue growth for each segment is as follows:

Decentralized storage report: the cornerstone of WEB3.0 development

(Source: Amazon)

The data in the figure shows that the fastest growing sector is software services, with revenue reaching nearly $7 billion in the third quarter of 2021. The growth curve and revenue of cloud computing, cloud storage, and network services are relatively close, at around $3 billion, which has doubled from the 2018 revenue level. To sum up, in the era of big data, the market growth space of cloud storage is still very broad.

2. The pain points of centralized storage

Over time, centralized cloud storage services continue to improve and prices continue to decrease. However, because centralized storage centralizes data, the amount of data involved is larger, making data more vulnerable to attacks and leaks. The security, privacy and sustainability of centralized storage data all have certain risks, making the industry gradually fall into a bottleneck.

Data security includes two meanings: the first layer is “guarantee data privacy without leakage”, and the second layer is “guarantee the integrity of data without loss”.

In the current centralized storage mode, users upload all sensitive data, which not only makes users lose control over their own data, but also transfers the risk of data leakage to the cloud storage operator. If these private information is lost, damaged, leaked, or stolen, it may cause heavy losses to individuals, enterprises and even the entire society, and discredit cloud storage operators.

At the same time, cloud storage itself is just a business model. Centralized cloud storage operators may run away or stop services due to various market or own business problems, but users cannot have any restrictions on the behavior of service providers and act of claiming. This causes users to tend to store data in larger and more credible service providers, which makes the data centralization of the head company higher and higher, which also causes large-scale loss of data once the data is lost. Happening.

In terms of sustainability, the current centralized storage model has certain service limitations. With the proliferation of autonomous driving and the Internet of Things (IoT), a large number of smart devices will be connected to the network and generate exponentially increasing real-time data. In this case, centralized data storage obviously cannot meet the needs of network storage. In the future, the data storage system should not only store, share, and read data, but also achieve efficient and accurate data transmission and analysis, which poses a great challenge to the centralized data storage structure.

To sum up, the fragility of the data centralized storage model is not conducive to the development of the big data era to a certain extent. In order to fundamentally solve the problems of frequent data leakage, service limitations, and operator outages in traditional centralized storage, the concept of decentralized/distributed storage has gradually emerged.

3. Why Decentralized Storage Worth Concern

Decentralized Storage Network (DSN) is a storage business model that uses blockchain as the underlying technology to store files or file sets in shards on the storage space provided by the supplier through distributed storage. The reason why decentralized storage is important is that it solves the various pain points of the above-mentioned Web2.0 centralized cloud storage, and is more in line with the needs of the development of the big data era. Edge data, enabling technologies such as IOT and autonomous driving. At the same time, decentralized storage is also the cornerstone of web3 development.

3.1 Decentralized storage solves the pain point of WEB2 centralized cloud storage

As analyzed above, the centralized storage data used by the traditional Internet is all on the application platform server, and currently faces many problems such as user data security, ownership, privacy protection and sustainability. The advantage of decentralized storage is that data can be replicated across multiple locations and accessed in multiple locations, reducing the security problem of hackers attacking through a single node, enabling effective data confirmation and privacy protection, and allowing users to fully control own data. Such security and privacy are not available in centralized networks. In addition, projects led by Arweave focus on the permanent storage of data and contribute to the long-term stability of important data storage. It can be said that the challenges faced by centralized storage are the opportunities ushered in by decentralized storage.

3.2 Distributed storage suitable for unstructured edge data

Structured data refers to the content stored in the traditional relational database, and the data stored in the form of ordinary files, such as pictures, audio, video, documents, etc., are unstructured data. According to the IDC report, 75% of the future data will be unstructured edge data. Unlike centralized cloud storage services, distributed storage can migrate data storage from distant cloud servers to edge storage devices or edge data centers that are closer to the data, with lower network communication overhead and interaction delay. And bandwidth cost, higher adaptability and scalability, suitable for large and fast storage.

3.3 Cost advantage of decentralized storage

Decentralized data storage, especially for unstructured data, has obvious cost advantages. Because distributed storage changes the production relationship in the form of node and token rewards, allowing end users to use storage, indexing and other services at a very low price. For example, NFTs stored on the IPFS network cost almost nothing. In contrast, the traditional Internet disk business, such as Baidu’s network disk, actually has a very high centralized operating cost. Therefore, from the perspective of cost, decentralized storage has obvious competitive advantages.

3.4 The cornerstone of WEB3.0 in decentralized storage

Decentralized storage is one of the earliest and most talked-about infrastructures in the Web3 space. The earliest decentralized storage solutions Storj and IPFS protocols were launched in 2017. If there is no distributed storage, there will be no decentralized network, let alone Web3.0. Those projects that only have decentralized services but no underlying decentralized storage support cannot be regarded as a web3 project in the strict sense. Therefore, decentralized storage is the cornerstone of the long-term development of web3, which is of great significance.

In summary, decentralized storage not only solves the problem of traditional centralized storage, serves the data storage needs of traditional industries in the era of big data, but also empowers the emerging web 3.0. As an important infrastructure in the field of encryption, the business model of the decentralized storage track is clear and clear, and the market size has shown a significant growth trend. For miners and investors, the entire market is profitable. With the development of the Web3 ecosystem and the emphasis on privacy and user data ownership, the field of decentralized storage will bring significant returns.

Fourth, the development process of decentralized storage

Decentralized storage report: the cornerstone of WEB3.0 development

(Source: ASMP)

Different stages of decentralized storage development solve different problems:

Storj and Sia use smart contracts to achieve P2P supply and demand matching, which is suitable for large-scale data storage, but its essence is the connection of storage resources, lacking effective content addressing methods, which is not conducive to file sharing, such as movies, audio, etc.

IPFS realizes file addressing and is a major innovation to the underlying protocols of the Internet. Projects such as Filecoin and Crust have built the IPFS storage network through the incentive layer to provide stable decentralized storage services.

Arweave achieves permanent storage of files through an innovative consensus mechanism.

The Ceramic database storage protocol, which will be launched in 2021, can meet high-frequency data needs. Stratos has launched a Web3 decentralized infrastructure that integrates blockchain, storage, and computing.

However, even after 5 years of development, decentralized storage is still in its infancy. At present, the effective storage capacity of the entire Filecoin network is 59.6 PB, and the total storage capacity of Arweave reaches 76.3TB. According to Web3 Index data, Arweave has spent $185,000 in storage over the past 90 days and Storj has spent $55,000. It can be seen that whether it is storage scale or performance, decentralized storage is currently far from centralized storage. However, based on the advantages of decentralized storage, there is still a lot of room for growth in this track in the future, and more possibilities will emerge.

Five, Filecoin project analysis

5.1 What is Filecoin?

Before understanding Filecoin, we need to understand IPFS.

IPFS (InterPlanetary File System) is a decentralized network underlying protocol that was launched in 2015. It mainly targets the hypertext transfer protocol HTTP of the Internet, and aims to supplement or even replace it. The IPFS protocol defines how files are stored, retrieved and transmitted in a distributed system. It can permanently and decentralized save and share files. This is a content-addressable, point-to-point distributed protocol. The vision of IPFS is very ambitious, hoping to act as the storage layer of Web 3.0 and establish a new Internet architecture. At present, more than 5 billion files have been uploaded to IPFS, and more than 100 blockchain projects have used IPFS to store data and files, which has become one of the important infrastructures of the decentralized network.

Filecoin is an incentive mechanism and public chain system based on the IPFS protocol. It has established an open decentralized storage network to store data from all over the world. It is not only the storage layer of IPFS, but also the incentive layer of the IPFS protocol. IPFS is the entire system. application layer. Both Filecoin and IPFS are developed by Protocol Labs, and the two protocols share multiple functional modules.

Based on its model, Filecoin can be seen as the Airbnb of data storage, renting out excess data storage space from servers around the world to hold data on a monthly basis. Its network enables a complete storage and retrieval economy and is the basis for various differentiated services. Filecoin received more than $250 million in financing at the beginning of its launch in 2017, and the mainnet was officially launched in October 2020.

The Filecoin network ecosystem is mainly composed of independent miners (participants who provide network storage capacity) and storage service customers who employ miners. By providing storage space, miners use effective storage as computing power, participate in network governance, and compete for block packaging rights. The network has two types of miners, one is retrieval miners, the other is storage miners, retrieval miners earn retrieval fees, and storage miners earn storage rent and block packaging rewards. Every participant in the ecosystem has a role to play, and the underlying protocol pushes network participants toward behaviors that benefit the network. Customers of storage services can hire miners through two distributed, verifiable, and incentivized marketplaces for storage and retrieval. Miners are key contributors to the ecological development of projects, and investment in miners and developers by token holders is also critical to the growth of the ecosystem.

In Filecoin’s open economy, anyone can become a storage miner, but miners are only eligible for rewards until a certain amount of storage is loaded onto the network. Onboard storage serves as a proof of network reliability and capacity, and if the promise of these storages is breached, the network loses credibility. Therefore, miners who commit capacity to the network must put Filecoin tokens (called FIL) as collateral to prevent the possibility that miners will fail to meet their commitments. In return for their risk taking, storage miners are eligible to receive block rewards, which are paid to storage miners in proportion to the amount of storage they contribute to the network. Storage miners are also able to conduct staking transactions with clients, who pay them FIL in exchange for storing specific data.

Filecoin adopts a mixed consensus mechanism: Expected Consensus (expected consensus mechanism) + PoRep (replication proof) + PoSt (space-time proof).

PoRep (Proof of Replication) means that the storage service provider proves to the verifier that it stores the corresponding data in a certain device, while PoSt (Proof of Space-Time) is PoRep (Proof of Replication) plus timestamps and other related technologies to prove that the storage service provider Data storage for a certain period of time. Filecoin’s consensus mechanism is similar to POS (Proof of Stake), except that the Proof of Stake in POS (Proof of Stake) is replaced by Proof of Storage, but the storage service provider that can generate new blocks needs to lead the storage service provider within a cycle. Selection, which is the Expected Consensus (expected consensus mechanism).

The selected leading storage service provider broadcasts the new block created to the network to obtain block rewards. Filecoin’s consensus mechanism shows that each storage service provider needs to keep its storage contribution at the forefront of the entire network in order to obtain the right to block rewards, which also motivates the majority of participants to continuously maintain the network.

Compared with the traditional consensus mechanism, Filecoin’s hybrid consensus mechanism has two advantages: First, the network transaction efficiency is high. Without a lot of calculations, storage service providers only need to use storage space to obtain corresponding rewards, which can effectively prevent the waste of costs paid by storage service providers. Second, it can effectively prevent blockchain forks. Filecoin enables the storage service provider to select the most effective chain through the pledge mechanism and storage space weight, and at the same time punishes the forked storage service provider correspondingly through the penalty mechanism.

5.2 Filecoin Token Economy

Decentralized storage report: the cornerstone of WEB3.0 development

(Source: Filecoin)

Filecoin’s ecological token is FIL, with a fixed maximum supply of 2 billion FIL.

70% of the total token supply (1.4 billion tokens) is used to reward miners, which is divided into:

— Simple Minting: 330 million FIL tokens, released in a 6-year half-life based on time. A half-life of 6 years means that 97% of tokens will be released in about 30 years.

— Benchmark minting: 770 million FIL tokens, the major portion of miner reward tokens, minted based on network performance growth. These tokens will only be fully released when the Filecoin network reaches Yottabyte’s storage capacity within 20 years.

—Mining Reserve: 300 million FIL tokens are reserved to incentivize future mining types. It is up to the community to decide how these tokens are released and which stakeholders should be incentivized, but for now this portion of the total supply is reserved.

The Filecoin Foundation owns 5% (100 million), Protocol Labs 15% (300 million), SAFT investors 7.5% (150 million), and other early investors 2.5% (50 million).

Token vesting period:

Miners receive 25% of the reward immediately, and the remaining 75% are unlocked linearly within 180 days. Block rewards earned by unreliable storage nodes will be slashed and burned. The mining reserve has not been released yet, and it will be decided by the community how to allocate it. According to the data of Filescan on August 23, 2022, the daily output of miners is about 290,000.

SAFT investors’ 150 million FIL is subject to linear vesting terms of 6 months, 1 year, 2 years, and 3 years, and the distribution is:

— 58% of SAFT tokens are unlocked linearly within 3 years,

— 5% of SAFT tokens are unlocked linearly over 2 years

— 15% of SAFT tokens are unlocked linearly within 1 year

— 22% of SAFT tokens are unlocked linearly within 6 months

The Filecoin mainnet was launched on October 15, 2020. It has been nearly two years so far, and 63% of SAFT tokens are still being unlocked, with a daily unlocking volume of about 150 million* (0.58/3*365 + 0.05/2*365) = 89,726 pieces

The 100 million FIL of the Filecoin Foundation is unlocked linearly over six years, with an average of 45,662 per day.

Protocol Labs’ 300 million FIL will also be unlocked linearly within six years, with an average of 136,986 per day.

According to the data on August 24, the pledged amount in the past 24 hours = 5.72354 FIL / TiB * 6551.5 TiB = 38,070 pieces

Note: The total circulating supply on Filescan equals the total token inflow (including mining rewards, vested SAFT tokens, paid mining reserves, and vested tokens originally owned by the Filecoin Foundation and Protocol Labs) minus the total Token outflows (including tokens locked on-chain or burned). Sites such as CoinMarketCap and CoinGecko define circulating supply using their own specific definitions to make comparisons between projects as standardized as possible. They only consider vested tokens of project teams (such as the Filecoin Foundation, Protocol Labs, and project team members) as part of the circulating supply when those tokens are transferred from their original wallets. As a result, the Filecoin circulating supply, as defined by the cryptocurrency price and market cap website, may be lower than the supply returned by the native Filecoin protocol API.

5.3 Filecoin Prospect Analysis

Filecoin directly competes with the big players in the traditional cloud storage industry, aiming to provide cheaper alternatives and subvert the centralized cloud storage industry dominated by large companies led by Amazon, Google, and Alibaba. Filecoin’s revenue in the second quarter of 2022 was $5.7 million, up 118% from the first quarter. In terms of charging model, it is basically the same as traditional storage, and is charged on a monthly basis. For Filecoin to succeed in the cloud storage market, it needs to be able to compete on price. Even though Filecoin may be able to charge a premium in the long run due to the security and decentralized nature of its network, large centralized companies still have a significant competitive advantage in terms of economies of scale and can keep reducing prices. In the short term, the decentralized cloud storage service provider represented by Filecoin still has a certain difficulty in overtaking the curve.

Competitive Advantage:

1. The project is huge and has sufficient funds. The current ecosystem is complete, which is conducive to expanding the scale of applications.

2. In terms of Filecoin’s mechanism, the entire network uses block rewards to pay miners’ hardware costs to provide storage services. The storage service uses bidding to match transactions, and this bidding mechanism is conducive to reducing the price of storage services.

Competitive disadvantage:

1. Filecoin’s mining hardware requirements are relatively high, and it is impossible to guarantee that ordinary users’ personal computers participate in mining. The entire network has the risk of major computer rooms and data centers that tend to be centralized.

2. In terms of the current download speed of the IPFS network, in order to meet the requirements of enterprise-level services, its performance and speed need to be further improved.

6. Analysis of other items on the track

6.1 Arweave

Decentralized storage report: the cornerstone of WEB3.0 development

The Arweave project was founded in 2017, and the main network was launched in June 2018. It is a protocol for one-time payment and permanent file storage. It provides a storage solution called Permaweb permanent network, which takes advantage of the immutable characteristics of the blockchain. , directly write the content into the block for storage, in order to realize the real permanent data storage for the first time. Currently, the Internet loses 95% of network information every 20 years. Arweave set out to solve how to store data reliably for a long time, using Proof of Access (POA) to incentivize miners to store history forever and share it according to requirements. While miners get new block rewards, they will also be affected by random randomness in the storage chain. Rewarded for old blocks, which means that the more total blocks miners store, the more they earn.

Instead of making a blockchain, Arweave made a blockweave, similar to the way woven fabrics are joined together by multiple strands, block fabrics are joined together by multiple links throughout the data store. For example the only way to add new data to a blockweave is if the server can call a randomly selected file (or group of files) that is already on the blockweave. Only those servers that can call this previously random block can store any new data. This innovation in data storage and some new economic incentives for miners creates conditions for long-term preservation of data.

The arrival of Blockweave also unlocks several new capabilities for data storage. First, it makes the data both immutable and impossible to delete. If file copies are replicated countless times across servers around the world, it is nearly impossible to change any file that has been uploaded to a permanent network.

Second, payments for storing data no longer have to be paid monthly. Instead, permaweb works on a one-time fee basis. The invention of data permanence also allows Arweave to enable others to build a permanent application ecosystem that can solve innovation problems on top of the Arweave protocol, which is Arweave’s greatest potential and main focus going forward. Incubate more and more permanent web applications that interact with its protocol. The potential capabilities of these permanent applications will be enormous for both developers and users. Arweave refers to these permanent web applications as profit sharing applications because they have the same properties as Arweave itself, they are permanent and token-based and community-governed, Economic incentives for businesses. Similar to cooperatives, these profit-sharing communities aim to “share” profits among the developers and users of the app, as well as token holders. Profit-sharing communities change the incentive structure of applications to create better alliances between developers and users, and allow both parties to participate more fully in the success of the application.

Arweave reported revenue of $193,000 in the second quarter of 2022, up 31% from the first quarter.

Project Benefits:

Arweave focuses on one-time payment and permanent file storage, filling the market gap. Fundamentally, Arwaeve solves the problem of limited freedom of speech, excessive censorship, and easy tampering on the Internet today. At the same time, Arweave can also help institutions store complete, immutable knowledge and information, such as for storing climate change databases, and currently Arweave is working with the US National Oceanic and Atmospheric Administration to permanently store ongoing carbon dioxide measurements to test Permaweb.

Arweave said that it will provide a Moore’s Law-like drop in data storage costs. Users only need to pay a one-time upfront payment (about half a cent per megabyte), and the interest generated by the overpayment will help subsequent storage services continue to decline. Sam Williams, founder of Arweave, said, “Arweave data storage costs have dropped by an average of 30% per year in recent years, and as long as the ratio does not fall below 0.5% (according to today’s storage needs), the decentralized network can still afford the cost, and today’s Payments will cover the cost of storage space for the next 200 years.”

In terms of technology, Arweave’s mining adopts the RadomX algorithm, and on this basis, the parameter of the block integrity rate is introduced. Due to the characteristics of Arweave, its block size must increase exponentially with the use of the network. Considering the ever-expanding block data, there is a risk that future nodes may not be able to store complete block data. Therefore, the introduction of blocks The parameter of the completeness rate does not require all nodes to store complete block data, and competes for block packaging according to the number of blocks stored by the nodes.

Disadvantages of the project:

The Arweave feature can be applied to data preservation based on HTML5 web pages to establish a decentralized H5-APP. However, in actual use, the application scenarios for issuing the certificate are narrow. Currently, it can be seen that Arweave has the most storage. Here are screenshots of some of the anti-government rhetoric on Twitter, and the rise in explicit anti-government apps is worrisome.

At the same time, the feature of Arweave is that it can never be tampered with, which is particularly difficult in program development, because the program uploaded by the developer to Arweave must not have any errors. If there is an error, even if it is a punctuation, the previously uploaded content will be invalid. , it needs to be re-uploaded, which will inevitably cause a lot of useless garbage to accumulate. In addition, due to the openness of the blockchain, the content uploaded by Arweave is open to the whole society and is not suitable for uploading personal content.

Finally, Arweave focuses on one-time payment and permanent file storage. This model is relatively simple, and there is a certain risk that it will lead to the emergence of homogenized projects that use the same storage concept and start a price war.

6.2 History

Decentralized storage report: the cornerstone of WEB3.0 development

Founded in July 2017, Storj is an Ethereum-based distributed cloud storage protocol developed by the for-profit company Stroj Labs. Storj aims to build a decentralized cloud storage platform that is censorship-free, monitoring-free and non-stop. By utilizing idle hard drives and bandwidth, any node on the P2P network can conduct negotiation, data transmission, verification of data integrity and availability, Data is retrieved and stored. Storj reported revenue of $48,000 in the second quarter of 2022, a 64% decrease from the first quarter.

Storj focuses on enterprise-level storage services, and its model is more commercialized. It directly targets Amazon’s S3 service and has established a partnership with Microsoft Azure, hoping to provide enterprises with services that are comparable to or even surpass Amazon’s storage in various performance indicators. . So far, Storj has more than 13,000 nodes and rents out the network to thousands of users. Recently Storj has greatly improved the performance of video storage and management. If the project goes well, Storj will become one of the most commercially competitive enterprise-level decentralized storage platforms.

Users can use their platform token $STORJ to purchase storage services on the Storj platform, which is similar to Airbnb and Uber. Users use idle storage space to provide storage services and get $STORJ in return. Most small devices, such as NAS, personal computers, and Raspberry Pi, can install Storj nodes and rent out their own idle space, which is suitable for building an extremely decentralized cloud storage network and suitable for civilian mining. Storj bills itself as the Uber of decentralized storage, reorganizing idle social resources into usable commercial products.

6.3 Stratos

Decentralized storage report: the cornerstone of WEB3.0 development

Stratos – The next generation decentralized data network.

The Stratos network provides decentralized storage solutions. The storage testnet was launched in February this year, and the mainnet is expected to be launched this year. Stratos is based on a powerful decentralized platform and a native blockchain with high throughput. The project has received institutional investment from Fundmental Labs, Kenetic, Fenbushi Capital, Assembly Partners, etc.

The Stratos network consists of four modules and three layers, providing developers with the lowest-level infrastructure. The four modules are blockchain, decentralized storage, decentralized database and decentralized computing. The three layers are the value layer, the resource layer, and the metadata routing layer, each of which is associated with a different consensus method. The value layer uses Proof-of-Stake (PoS) consensus, the resource layer uses Proof-of-Traffic (PoT) consensus, and the metadata routing layer uses Proof-of-Authority (PoA) consensus.

6.4 Ceramic

Ceramic is a decentralized open source platform for creating, hosting and sharing data. Formerly known as 3Box, an Ethereum-based user identity data protocol that provides computation, state transition and Consensus synchronization, fetching mutable dynamic data from static and immutable data on the storage protocol.

Decentralized storage report: the cornerstone of WEB3.0 development

Ceramin Node Stack (Source: CoinOn)

Cermaic aims to solve the obvious defect of IPFS, that is, once the file is stored, it cannot be updated in real time, and it needs to be manually synchronized and dynamic, which is inefficient. Ceramic’s steam process enables developers to build secure, trustless, censorship-resistant Dapps based on dynamic information without a trusted database server. The core components of Ceramic include three:

1. Scalable, decentralized data infrastructure;

2. Open APIs for storing, modifying and retrieving data;

3. Community-created marketplace for reusable data models.

6.5 Crust Network

Decentralized storage report: the cornerstone of WEB3.0 development

Crust Network is Polkadot’s parachain designed to provide decentralized cloud storage services. As an important storage public chain in the Polkadot ecosystem, Crust Network is expected to become an important part of the Web3 infrastructure construction. Crust Network is specially designed for two main points: MPoW (Meaningful Proof of Work) and GPoS (Proof of Security Stake).

MPoW effectively solves the reporting problem of node workload, and has four characteristics of transparency, fairness, efficiency and development. To put it simply, the storage mechanism is simple and transparent, the workload of miners is proportional to the reward, the storage space is efficiently utilized, and the development of TEE has unlimited potential. Under the GPoS consensus mechanism, the Crust Network ecosystem has four roles, namely validators, candidates, guarantors and users.

The validator is the node that packs and generates blocks in the network, maintains the entire blockchain network, needs to store assets as a guarantee, and needs to be online in real time, which is similar to the miner node of the Filecoin network.

A candidate is a node that competes to become a validator but is not qualified for validation in the end. It also needs to store assets as a guarantee and needs to be online in real time. However, the role of candidates is not fixed, and candidates have the opportunity to become validators.

A guarantor is an account in the network that provides guarantee for any one or more nodes, and providing guarantee for the node can obtain guaranteed income.

Users are the main body of storage needs, and they use network storage space by paying for CRU and other Crust Network tokens to purchase storage services.

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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