On February 17, 2022, Multicoin Capital announced to lead a $9 million financing round in Fluence, a Web3 native computing platform. KYLE SAMANI, managing partner of Multicoin Capital, posted a detailed explanation of Fluence.
Computers do three things, and only three things:
1. Store data
2. Calculate data
3. Sending data to other computers (these computers then store the data, process the data and send the data to other computers, etc.)
Computation cannot be done without storage, so most of the earliest Web3 protocols naturally focused on storage. This includes Arweave (of which we are an investor), Filecoin and Sia.
We’ve been thinking about the Web3 computing space for years and have made several investments: Livepeer, The Graph, and Render Network. Notably, all three of these Web3 computing primitives revolve around a very specific, highly specialized type of computation.
Today, we’re excited to announce our latest investment in this category: Fluence, we recently led a $9 million funding round in Fluence, along with Alameda Ventures, Tiger Global, Protocol Labs, Arweave Capital, Polymorphic Capital, OP Crypto , Signum Capital and UOB Venture Management.
A simple model for understanding Fluence is the decentralized and permissionless AWS Lambda. Fluence can read data from any public data source (IPFS, Filecoin, Arweave, Ceramic, Ethereum, Polygon, Solana, Flow, etc.), compute on it, and store the newly computed data back to any of those repositories One.
Additionally, unlike blockchains where all nodes replicate the same data, Fluence manages execution through a peer-to-peer (p2p) network and can be customized for decentralization, fault tolerance, and cost on a per-function basis.
Fluence is powered by the programming language Aqua, which is designed to build distributed systems and manage execution across p2p networks in a trustless environment. Application developers can use Aqua to create custom p2p algorithms for data replication, computation validation, failover and load balancing. In addition to scalable computing, this opens up the design space for p2p systems that are easier to build and combine seamlessly with each other.
What is Fluence for? Can be used for calculations that require at least one of the following:
1. It needs to be verifiable in the public domain
2. No single point of failure
3. Need to resist censorship
4. Too heavy to run directly on the blockchain, but the output of the computation must be stored in a public ledger.
Here are some concrete examples of these applications in practice:
1. On-chain voting – Users sign transactions and send them to the Fluence network, which will count and aggregate all votes and submit the final vote to the chain.
2. Mutable NFTs – NFTs that change over time or allow for reorganization and other mathematical relationships have huge design space.
3. Games – As more and more games use both homogenized and non-fungible tokens for in-game mechanics, there will be more and more computation between these states and gameplay that users see . Many of these computations are currently performed in a centralized fashion (such as in Axie). As more and more people derive their income from the in-game crypto-economy, we expect users will increasingly demand transparency in these computations, moving from centralized to decentralized venues such as Fluence.
4. Cross-chain computing – The automatic transfer of assets from one chain to another requires staff to detect events on the initial chain (for example, token transfers or NFT destruction), generate corresponding data, and send the generated transactions to another. A chain to mint assets there.
5. Smart Contract Automation – Fluence can perform all the functions required for DeFi and DAOs, including limit order execution, automatic liquidity supply management, debt position liquidation protection, DAO proposal execution and software updates.
6. Oracles – Since Fluence provides a fully functional framework for creating decentralized systems, it can be used to create sub-networks powered by consensus or any other data validation model. Developers can set up sub-networks to provide on-chain data feeds and apply custom trust models.
7. Off-chain p2p coordination and multi-signature wallets – Fluence provides a solid foundation for threshold signature settings and multi-party computation.
Fluence embodies an extremely bold vision of the future: a logically centralized computer that can scale indefinitely and coordinate and process any number of functions across data inputs in a permissionless setting.
This year Fluence will launch an on-chain marketplace for hosting and computing resources and code. Code authors will share hosting revenue based on the usage of their code modules. Uploaded code is immutable, preventing malware from being inserted later, dependencies (the term used in programming to refer to software components that a piece of code needs to run) will remain functional as long as the module is used and hosted, while will not be deleted by the central party. The Fluence network generates compound interest as developers upload more code, all written by Aqua.
Additionally, Fluence fulfills the ultimate dream of open source: getting paid for writing high-quality open source code that others can use. This monetization model is at the heart of the Fluence ethos and will help reshape how we think about value capture in open source systems. Developers have dreamed of this monetization model since the advent of open source 30 years ago; Fluence makes it possible.
The Fluence SDK is available now and thousands of services are already running on the network.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/multicoin-managing-partner-explains-fluence-composable-web3-computing/
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