BlockCDN, the Chinese blockchain company is in the process of creating a bank for computing resources that makes it possible to offer crowdsourced bandwidth at highly competitive prices to content providers.
Currently preparing for an ICO (sale of tokens) starting on 28th November, BlockCDN is in talks with Youku executives to be the first to trial their technology.
Youku is China’s leading online content provider.
With the CDN (content delivery network) market set to reach $23.2Bn by 2021 (according to MarketsandMarkets), BlockCDN will provide a way to meet the industry’s increasing bandwidth demand at competitive prices in the near future.
“Internet use has doubled in a decade putting pressure on traditional CDN providers. Video and rich media content is gaining popularity and the rise of social and mobile media mean the consumer is demanding faster higher quality web experiences. BlockCDN believes the share economy model holds the only real solution to the problem,” said Tony Long, CEO of BlockCDN, who advances that it is to expect “a level of disruption in the CDN industry, similar to that caused by Uber and Airbnb in their respective fields.”
The Block CDN team have worked for traditional CDN companies for over 8 years.
About 90% estimated cut in costs
This service based on blockchain may well disrupt the $6Bn CDNindustry. The built-in trading platform offers an online marketplace for network “demanders” to input their workloads to be fulfilled by “sharers”. The sharers will receive compensation in the form of rewards for their contribution. The platform is open for anyone to join as a Sharer by connecting their devices smartphones, tablets, computers and TV boxes, sharing excess capacities for mutual gains.
As the industry expands, traditional CDN providers will be forced to spend on construction of telecom machine rooms, servers, bandwidth, power, and equipment maintenance. BlockCDN drives these costs down with crowdsourced power and an automated trade platform. It uses Ethereum smart contracts to handle trade transactions, which are published on the blockchain for added transparency. Through these design efficiencies, BlockCDN estimates saving of over 90% in the traditional CDN costs, which can be passed along to the customers.
Once BlockCDN goes live, it will create a blockchain mediated ecosystem that allows participants to have absolute control over their contributions, enabling them to earn passive income. BlockCDN will be taking a 5% transaction fee before passing the rest to miners. With a healthy incentive structure in place, the system will propel users to actively increase their node capacity, which in turn will boost BlockCDN’s offering. BlockCDN has also reserved 40% of the original tokens for rewarding early stage miners and 40% of the profits will be shared with early investors during the first three years.
Image over the headline.- Blockchain powered CDN network. © BlockCDN.