Decentralized computing power is needed. Currently, major centralized public cloud providers operate an oligopoly, making them a prime target for censorship and surveillance, according to Dr. Max LiCEO of Compucoinand assistant professor at Columbia University.
The digital world is constantly changing, with new technologies and applications emerging every day. One of the most important trends is the rise of Web3, a decentralized peer-to-peer network that allows users to interact directly with each other without the need for intermediaries.
This evolution of centralized services has been driven by the growing popularity of cryptocurrencies and blockchain technology. Cryptocurrencies are digital assets that use cryptography to secure their transactions and control the creation of new units. Blockchain is a distributed database that enables transparent and secure record keeping.
Web3 projects are built on these technologies, enabling decentralized applications that can range from social networks and gaming platforms to marketplaces and financial services.
Currently, most Web3 projects are supported by centralized infrastructure providers such as Amazon Web Services (AWS) or Microsoft Azure, which goes against Web3’s decentralization philosophy. Additionally, these vendors are not well suited to support Web3 applications due to their high costs, inefficiencies, and lack of support for crypto-native developers and teams.
Web3 is needed to solve the problems that Web2 cannot solve: lack of trust, high costs, inefficient intermediaries and Security offences. Despite these advantages, few people use Web3 applications due to their complexity and lack of development tools.
What Web3 Projects Need from Infrastructure Providers
To be successful, Web3 projects must have access to a solid, reliable, scalable and cost-effective infrastructure. In the metaverse, for example, a number of demanding functions must be executed for things to run smoothly. These include 3D graphics rendering, media streaming, data reconciliation and synchronization, artificial intelligence (AI) and machine learning (ML), and more. A good computing infrastructure is essential to meet these challenges.
Additionally, it is important that this infrastructure be as decentralized as possible to avoid single points of failure. Traditional Web2 companies like Fortnite use centralized infrastructure provided by AWS. Similarly, Microsoft’s upcoming metaverse platform, Mesh, will also be run on Azure. Although these providers are able to offer the necessary computing power for these applications, they have a number of disadvantages.
Decentralized Computing vs Centralized Clouds
On the one hand, the centralized cloud becomes more and more expensive. First, major public cloud providers operate an oligopoly, which allows them to keep prices high. Second, the cost of infrastructure and labor increases as these providers expand their data centers and hire more staff. Finally, the public cloud is growing in popularity, which means that demand is outstripping supply and prices are rising accordingly. Work-from-home trends brought on by the pandemic are only exacerbating this problem.
The centralized nature of the centralized cloud also makes it a prime target for censorship and monitoring. In some counties, for example, governments have tight control over what can be viewed on the internet, and they are increasingly using cloud services to monitor and track their citizens.
Additionally, centralized cloud-related latency issues can be a major issue for Web3 applications. The further users are from the data center, the longer it takes for information to travel back and forth, which can lead to a suboptimal user experience.
Finally, the centralized cloud is simply not as resilient as a decentralized infrastructure. If a node breaks down, the whole system can be affected. This was painfully evident at the last AWS series of breakdownswhich took down a large number of popular websites and services.
As a result, many Web3 projects are looking for alternative infrastructure providers better suited to their needs. Potential solutions include IPFS and Filecoin, which offer decentralized storage solutions, and Compucoina web3 version of AWS, for decentralized compute and storage solutions, but there aren’t many options.
The importance of serverless clouds
One of the biggest trends in infrastructure is the rise of serverless computing. Serverless computing is a cloud-based computing model that allows developers to write code without having to worry about provisioning or managing servers.
This trend is particularly important for Web3 applications, as it allows developers to focus on building their application rather than worrying about the underlying infrastructure. Additionally, serverless computing is often more cost effective than traditional alternatives because it only charges for the actual resources used rather than a fixed monthly fee.
Decentralized providers are naturally well suited to offer serverless computing solutions because they are already distributed and do not need centralized servers. For example, Computecoin offers a serverless cloud platform that can be used to deploy and run Web3 applications.
Decentralized computing: how it works and why it matters
Distributed computing networks are a new generation of computing infrastructure that has the potential to revolutionize the way we think about and use computing resources.
With decentralized computing, there is no need for a central authority to manage and allocate resources. Instead, resources are aggregated and optimized by the network itself, resulting in more efficient and cost-effective use of resources.
Instead of a Web 3.0 application needing to create its own on-premises data center or use a public cloud provider like AWS, it can now access a large pool of computing resources distributed around the world.
This has many advantages for both developers and users of decentralized applications. For developers, it lowers barriers to entry and makes it easier to launch new applications. For users, it provides greater choice and flexibility in how they use applications.
Decentralized Computing Possibilities
Distributed computing also has the potential to improve application performance by reducing latency and increasing throughput. Indeed, distributed computing networks can aggregate resources from around the world, providing a geographically more diverse infrastructure than traditional data centers. Additionally, distributed computing can help reduce costs by taking advantage of idle or underutilized resources, such as idle computers or excess capacity.
Decentralized computing important because it has the potential to democratize access to computing resources and enable a new class of applications that are not possible with traditional infrastructure. Consider Metaverse gaming rigs, which require low latency, high performance computing, and high throughput to run smoothly. Decentralized computing can provide the resources needed to power such applications, without the need for a central authority.
In summary, distributed computing is a new type of computing infrastructure that has the potential to change the way we think about and use computing resources. It is more efficient, cost effective and scalable than traditional infrastructure and can enable a new class of applications that are not possible with traditional infrastructure.
About the Author
Dr. Max Li is the founder and CEO of Compucoin, co-founder of Nakamoto & Turing Labs (N&T Labs) and managing partner of a New York-based VC Aves Lair. He is also an assistant professor at Columbia University (in New York City).
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