Chinese blockchain company BlockCDN is in the process of creating a bank for computing resources that makes it possible to offer crowdsourced bandwidth at competitive prices to content providers. BlockCDN, currently preparing for an ICO starting on November 28, 2016, is in talks with Youku executives — a Chinese online content provider, who may become the first to trial their technology.
Aiming to disrupt the $6 billion CDN industry with its blockchain-based service, 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. With the CDN market predicted to reach $23.2 billion by 2021, BlockCDN hopes to provide a way to meet the industry’s increasing bandwidth demand in the near future.
Tony Long, CEO of BlockCDN, said: “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. Expect a level of disruption in the CDN industry, similar to that caused by Uber and Airbnb in their respective fields.”
BlockCDN avoids the costs of building telecom machine rooms, servers, bandwidth, power, and equipment maintenance as it crowdsources power and runs 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 a saving of over 90 percent of the traditional CDN costs.
Following talks with Youku executives, the company— China’s version of YouTube – has confirmed its participation in the trial phase of the BlockCDN. 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 a passive income. BlockCDN will take a 5% transaction fee before passing the rest to miners. BlockCDN has also reserved 40 percent of the original tokens for rewarding early stage miners and 40 percent of the profits will be shared with early investors during the first three years.