Netise Network Economic Solutions for a Sustainable Decentralized Cloud Storage
In the world today, there is no greater potential threat to the freedom of information than the operators of the Internet themselves. Server hosts, governments, and ISPs (Internet service providers) control the Web and can remove access to content through server shutdowns, blacklisting and DNS (Domain Name System) takeovers. The technology available was not mature enough to prevent these authorities and their attacks on the Internet. IPFS (the InterPlanetary File System) and other technologies are in a state of readiness to be leveraged to create a new decentralized Internet to mitigate the threat of censorship.
As a decentralized cloud system, Netise Network serves as a distributed network that is public and open to everyone to participate freely. This system will eventually be self-governed by the community after the growth period. In this system, whether it is a cloud service provider or demander, or various interested parties who maintain the system, they can freely enter and exit under the premise of following the system agreement. Netise’s economic model can maintains the interests of all parties and guarantee the development of the entire Netise system.
The goal of Netise economic design is to keep the interests of all participants increase in the same direction as the value growth of the Netise system. On the one hand, it is essential to protect the rights and benefits of all participants; on the other hand, it is also necessary to maintain the stability of the Netise system. That is, each participant will contribute to the Netise system while pursuing their interests. To achieve the goal of Netise economic design, we will consider from the blow several aspects:
- How to ensure the security of the Netise protocol
- How to keep the sustainable development of the Netise system
- How to protect the interests of participants
- How to manage the interests of the participants and the value of the Netise system in the same direction
Before describing the design of the Netise economic model, let us first analyze the model of the existing distributed system:
Bitcoin, as one of the earliest blockchain protocols, uses native tokens to incentivize nodes to verify transactions, and also applies PoW consensus to coordinate competition between nodes. In Bitcoin’s economic model, early block rewards act as the primary way to protect the interests of nodes. After the block reward decreased in the later period, the fee income has become the essential method to guarantee the node’s interest. There are two commonly accepted functions of Bitcoin: value storage and circulation payment. Regarding value storage, users expect to hold or increase the value of tokens, so they pay more attention to the security and deflation policies of the Bitcoin network protocol; regarding circulation payment, users employ the peer-to-peer value transmission function of the Bitcoin network, which is similar to the fiat currency payment function, so they pay more attention to Bitcoin transaction fees and value volatility. On the premise of without changing the existing bitcoin economic model, value storage defends the interests of users. In this kind of user-led network, transactions will not happen so much; so in the long run, it is difficult to retain the operation of the node while ensuring network security. This will affect the sustainable development of the entire system.
Ethereum is the largest smart contract platform, and its native token is used to pay for computing services. Similar to Bitcoin, after the block reward reduced, service fees may become the primary way to preserve the interests of nodes. The difference is that there are more users involved in circulating payment in the Ethereum network, and its monetary policy is not fixed yet and is now an inflation policy. The planned ETH2.0 system changes the consensus of Ethereum to PoS and is designed to protect the node’s interests with sustainable inflation. However, inflation will affect the value of the token and its economic model will try to balance this relationship as much as possible.
After studying the models of other distributed projects, Netise proposed the Netise economic model and asset system according to its characteristics.
The main problem solved by the Netise economic model is to reasonably distribute the interests of various parties under the premise of ensuring the security of the network protocol. The economic model can incentivize various participants to join the network, but also make the system stronger, safer, and more valuable. And can maintain the sustainable development of the system by using NET as the value bearing and value circulation.
NET is a utility token of the Netise network, its value depends on the Netise Network. Its value was correlated with the size of the Netise network, and demand for NET increased as the network was used by a large number of users. There are two main ways for NET to capture network value. One is to lock or occupy when it is used, thus reducing the total amount of circulation. For example, deposit for storage and retrieval services, payment for purchase of storage services, voting for governance on the chain, Staking in the consensus mechanism, and so on; The other is that it will be burned when used, thus reducing the total amount of token, such as some transaction fees.
Netise uses Substrate technology to build an on-chain governance mechanism. The main applications related to the economy are the processing of funds in the Treasury account, as well as possible future proposals for system improvements. When the network is running, nodes may be confiscated for some reason. This operation may be misjudged because of the imperfect network. We hope to correct such an error through a channel. The voting function of on-chain governance allows NET token holders to participate in theconstruction of the network. The on-chain governance mechanism is still under development.
Follow us on our Social Media Channels:
Twitter: https://twitter.com/netise_network
Telegram Annoucement: https://t.me/NetiseNetworkAnn
Telegram Chat: https://t.me/NetiseNetwork
