The Future of Web3: A Revolution in Storage, Consensus, and Computing

Web3, as a prototype of the next generation of the internet, is centered around three core pillars: Consensus mechanisms, decentralized storage, and distributed computing. Blockchain technology has pioneered decentralization, while Web3 extends this concept to the entire internet ecosystem.

In the field of decentralized storage, peer-to-peer networks are building a global, trustless permanent database. As a leader in this field, a certain storage platform offers a cost-effective solution that ensures the permanence, immutability, and censorship resistance of data, meeting the growing demands of NFTs and decentralized applications.

According to predictions from authoritative organizations, the global data generation volume will reach approximately 221,000 exabytes (EB) by 2026. To facilitate understanding, 1 EB is equivalent to 1,048,576 TB, which means the total global data volume will reach an astonishing 23.17 billion TB by 2026. Such a massive scale of data highlights the enormous market potential of decentralized storage protocols.

A certain storage platform is actively laying out plans in the decentralized computing field. Its newly launched computing system aims to seamlessly integrate large-scale AI models with smart contracts. This system combines the speed of high-performance blockchains with the verifiability required by decentralized projects.

The global AI market is expected to grow at an annual rate of 19%, reaching approximately $257.516 billion by 2032. Decentralized AI technology is expected to address transparency and control issues in machine learning, fostering a more equitable and open AI ecosystem while protecting intellectual property and personal privacy. An innovative storage platform in the field of decentralized storage and computing positions itself at the forefront of the Web3 transformation, meeting critical demands and expanding its market potential.

Protocol Architecture and Economic Model

A certain decentralized storage protocol aims to achieve permanent data storage through a one-time payment. The protocol consists of two core components: the blockchain storage layer and the human-readable layer.

The storage layer is responsible for handling storage orders and replicating data. It employs a consensus mechanism called "Simple Random Access Proof," which requires nodes to provide cryptographic access proofs for previously uploaded data before accepting new data.

The human-readable layer imitates the structure of the World Wide Web. Unlike traditional web pages, content on this layer cannot be changed once uploaded, ensuring that websites and applications remain constant.

The protocol also supports smart contract functionality. Unlike traditional blockchains such as Ethereum, its smart contracts calculate the state only on the local machine where the execution is requested, improving efficiency and scalability.

The native token of the protocol is used to pay for the storage fund, which compensates miners and ensures long-term coverage of storage and network capacity costs. Users pay a one-time fee when storing files, with most of the fees going into the storage donation fund. This fund is designed to indefinitely cover storage costs based on conservative expectations of declining storage costs. Historical data shows that the average annual decline rate of storage costs is -30.57%, supporting the long-term viability of the protocol.

Miners in the network gradually earn rewards through a combination of transaction fees, inflationary token issuance (, and donations. The token economic model includes an initial issuance of 55 million tokens, with an additional 11 million tokens as inflationary issuance. These issuances will continue to decrease until the total circulation reaches 66 million tokens. The protocol does not adopt a token destruction mechanism, maintaining a fixed supply.

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Network Upgrade and Technological Innovation

An important network upgrade in March 2024 introduced a coordinated mining mechanism, allowing multiple nodes to work together, improving efficiency and computing power. It also added support for mining pools, enabling miners to share resources. This upgrade increased the difficulty of individual blocks to promote the generation of complete data copies, introduced new pricing measures, and reduced the checkpoint depth to 18 blocks. Despite initial controversies, these changes were ultimately recognized, and the network's performance and stability were significantly improved.

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A new computing system launched by a certain platform combines the security of blockchain with the efficiency and scalability of cloud computing platforms, creating a new computing paradigm. It addresses the scalability and efficiency challenges of zero-knowledge machine learning ) zkML (, providing a transparent and verifiable computing system supported by secure and permanent data storage.

The system uses parallel processing technology, capable of simultaneously running multiple programs on a large scale, similar to a computer's multitasking but on a larger scale. This approach optimizes resource allocation by transferring resources from less active tasks to those with higher demand, much like how busy websites allocate traffic to efficiently serve numerous users. Intelligent management makes operations smoother and faster, enhancing scalability and performance to meet growing demands.

The system's open data protocol offers a flexible and modular design, allowing for easy upgrades and component replacements, such as sorters and virtual machines. Its decentralized operating system enables developers to run command-line processes similar to smart contracts, combining the convenience of cloud server operations with the advantages of decentralized processing. The system uses the Lua programming language and supports the creation of blockchain applications compatible with various virtual machines.

In this system, processes act as autonomous agents that frequently interact with the storage layer, facilitating efficient data exchange for applications such as gamified tokens or AI chatbots. Unlike traditional smart contract platforms, it allows contracts to be executed automatically at predetermined times, paving the way for truly autonomous blockchain applications.

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Competitive Landscape and Performance Comparison

In the field of decentralized storage, a certain file storage platform is the main competitor. The main difference between the two is that one focuses on long-term data storage, while the other aims to disrupt the current market with low-cost temporary storage. The former is exploring a new market for permanent storage, while the latter needs to compete with tech giants like Amazon and Alibaba in the cloud storage market on price. How this competitive landscape evolves in the coming years is worth paying attention to.

As of late February, a certain storage platform has achieved a processing capacity of over 600 transactions per second in terms of blockchain performance, making it one of the highest throughput permissionless blockchains. Considering that its new computing system is still in the early stages, this achievement is particularly remarkable, with its transactions per second )TPS( surpassing several well-known high-performance blockchains.

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Team Background and Ecosystem Development

The project was co-founded by two scholars during their PhD studies at a university in the UK. Their inspiration came from a hiking trip in Scotland and a deep insight into technology, ultimately leading to the creation of this blockchain-based permanent data storage platform.

The project successfully raised funds through multiple rounds of financing, including pre-seed, seed, community token sales, and private placement rounds. Well-known investment institutions participated in the investment. The project is managed by the decentralized autonomous organization )DAO(, ensuring community-led decision-making and voting mechanisms.

The ecosystem of the platform is a vibrant component in the Web3 space. As of the third quarter of 2023, there are over 130 projects based on the platform within the ecosystem. The network has processed over 1 billion on-chain transactions, showcasing its growing adoption and robust infrastructure.

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Development Prospects Analysis

Favorable factors:

• The launch of the new computing system has enhanced the platform's position in the AI field.
• The system enables decentralized applications to access and store data, expanding the possibilities for machine learning and AI integration.
• Its super-parallel architecture promotes the efficient training and deployment of AI models.
• Modular design provides an ideal environment for developing DeFi applications.
• The new system addresses the scalability and efficiency challenges of zero-knowledge machine learning.
• The volume of online transactions significantly increased in 2023, processing about 100 million transactions per month.
• With the deployment of the new system and the expansion of AI applications, trading volume is expected to further increase in 2024.

Potential Risks:

• The new system testing phase may expose technical issues, including vulnerabilities and network access problems.
• The ability to effectively scale AI models on-chain is yet to be validated.
• The integration of old and new tokens may face challenges, introducing additional uncertainty.
• With the increase in storage and computing demands, scalability challenges may arise.
• The new system and its integration with the existing platform are in the early stages, and unexpected technical and operational challenges may arise.
• Speculation on potential token fluctuations in the market may lead to value volatility.

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