ComputeCoin announced yesterday that the company has secured $6.2 million in strategic funds, led by Aves Air.
The network provides decentralised infrastructure for Web3. This is interesting because despite decentralisation being one of the core aspects of Web3, the reality is that a lot of Web3 applications are still deployed on Web 2.0 infrastructure. This creates central points of failure, as well as being converse to one of the mantras of Web3. AWS is an example of one such company that drives a huge amount of the Web3 network.
With ComputeCoin, who only came together in 2018, aiming to “make global, distributed computing and storage power widely available for all Web3 builders to easily use”, we sat down with Dr Max Li, the Co-Founder and CEO of ComputeCoin, to get some answers to questions we had.
CoinText.com (CT): People often cite decentralization as a major advantage of the metaverse and cryptocurrency in general. But given that so much Web3 infrastructure is built via centralized providers (e.g. AWS), is Web3 actually far more centralized than people realize?
Dr Max Li (ML): Definitely! Many DAOs manage their communities on Discord, whereas OpenSea hosts NFT photos on GCP (a centralized platform that is happy to comply with DMCA takedowns). Our website is built on Webflow, and guess where Webflow is hosted? AWS!
CT: What problems can arise from a large part of this ecosystem depending on centralized mediums?
ML: Basically the main issue is that legacy cloud providers face significant limitations:
Compute capabilities (coverage and latency): We have been reading that VR, AR and XR are part of the new Web3 standards. Most people don’t understand that these experiences require ongoing computational requirements of a magnitude unprecedented in human history. Legacy providers don’t offer enough power; they’re simply incapable of meeting these demands. Latency and coverage problems will continue to ruin the experience of simultaneity and immersiveness that is fundamental to the next generation of the internet. For instance, network latency can cause VR gamers to experience motion sickness, which obviously runs counter to VR’s main goal: to evoke a sense of total immersion and verisimilitude.
Price: For users, access to high-quality, low-latency, rich computing and storage power is still too expensive. This dramatically affects the scalability of web3 applications. Prices will have to come down to maximize Web3 and metaverse applications’ prospects in the marketplace.
CT: We have seen with the success of BSC in the past that sometimes people are happy to sacrifice decentralization for ease of use, efficiency and low fees. Do you think this could be a trend going forward?
ML: Users will always consider ease of use a priority. However, the crypto space is always innovating more ways to make things easier and more efficient to use in the most decentralized manner.
For example, there is a debate about how decentralized L2s on ETH will be, but the innovation of ZKPs and other privacy standards will bring more attention to these chains. That’s why there is more TVL locked on Layer 2s than BSC.
Additionally, projects with large ecosystems, such as Solana, Avalanche, etc, will be connected by cross-chain bridges (i.e., interoperability), which enables users, miners and/or assets to move freely between these projects to facilitate decentralization without compromising on ease of use.
CT: What are the main benefits that Computecoin offers to the average Web3 user?
ML: Computecoin aims to provide all services that AWS offers but in a decentralized manner with low-cost, low latency and generally superior performance.
Just as Expedia provides an end-to-end booking solution that eliminates steps, simplifying the booking process and ensuring a smooth trip for customers, Computecoin provides an end-to-end solution that flattens the learning curve faced by Web3 developers when it comes to using decentralized clouds, such as Filecoin and Dfinity. Thus, Computecoin will simplify the development and deployment process and ensure a seamless transition to Web3.
CT: What are your predictions for Computecoin’s growth in the long-term? What is the potential size of the market here?
ML: Our vision is to do for Web3 what centralized cloud providers did for Web2. Computecoin aims to provide all services that AWS offers but in a decentralized manner, targeting SMEs (small and medium-sized businesses).
The worldwide cloud computing market was estimated to be worth USD 368.97 billion in 2021, with a compound annual growth rate (CAGR) of 15.7 percent predicted from 2022 to 2030, according to a report from Grand View Research. By the end of 2020, 35% of SMEs have spent between $600,000 and $1,200,000 on public cloud services, according to a Statista report published in 2022.
We estimate that there’s a five-billion-dollar market for Computecoin in cloud computing.
CT: Many companies have tried to fill this void in the past? What sets Computecoin apart?
ML: Web3 developers who want to deploy and run their Web3 dApps on other infrastructures in this space, like Filecoin and Dfinity, face a steep learning curve. This results in a key pain point for the industry today: Web3 applications are still deployed and running on Web2 infrastructure.
Conversely, Computecoin (CCN) is a decentralized cloud infrastructure that powers all-purpose Web3 and metaverse services with Web2-compatible APIs and developer tools. There is no learning curve developers need to overcome before they can make the most of CCN’s underlying decentralized clouds. Thus, Computecoin will enable developers’ seamless transition to Web3/metaverse.
CT: Amid all the macro headwinds and the downtrending crypto market, do you think retail capital will continue to move out of risk-on and high volatility assets and is this a concern for you?
ML: Maybe in the short term, but I see this as an opportunity over time. “Crypto fever” will cool down, but I think we can all agree that the technologies – blockchain, AI, edge computing, IoT, VR/AR, etc.– are here to stay. So what this bear market likely means is that the capital and the token holders will become more cautious and smarter, which is good news for us.
Why? Because we are here working on the computing infrastructure of Web 3.0 and the metaverse. We are not here to cash in on a trend. The innovations that make Computecoin unique are the product of the hard work of tens of researchers at university labs. We see investors and the market becoming more selective as an advantage and motivation for us to work harder. Pickier investors and a more sober market would mean we had less competition. In the meantime, we would have more time to cultivate and continue to improve our project without worrying too much about “keeping up” with the industry.