Current state of affairs

Web 2.0 has created “Big Tech” conglomerates that control user date in a their one pre-defined ‘walled garden’. The incumbents have a strong incentive to keep the ‘walls’ to their garden as high as possible because it allows them to generate income. However, crypto projects are looking to disrupt the more traditional Web 2.0 players by introducing decentralization as their key competitive advantage. It is clear that the more traditional concept of ‘centralization’ within the cloud computing universe is ripe for disruption. Decentralization is a key trend and it may well be destined to disrupt the sector of cloud computing as well.

Newcomer to town

ScPrime is trying to disrupt the current data cloud storage sector by integrating decentralization and crypto-economics. Users can purchase storage hardware individually which is linked to the ScPrime network. The storage capacity is used to offer the network cloud computing abilities, for which the hardware providers on the ScPrime network are compensated - according to the capacity that they are actually delivering. The hardware provides storage capacity to the network which is priced based on demand. Surges in demand will most definitely lead to increased fees being paid and overall increase in value in the ScPrime network. Value is captured in the ScPrime token. Investors that speculate in the overall success of the idea/business model have an opportunity to invest in the ScPrime token in order to capture the value potential of this blockchain projects.

How the future will enfold

If decentralized cloud storage will actually take-off in the near future, ScPrime is destined to become one of the lead market players given their experience and history in this niche field. There are not many competitors to their innovative business model. Decentralization allows ScPrime to leverage ‘network effects’ and Metcalfe’s law in order to expand rapidly and reach escape velocity in a quick and swift manner. There are a couple of other large players competing with ScPrime’s model, such as Filecoin and/or Arweave for example. However, the hardware requirements of ScPrime are lower cost compared to other projects such as Filecoin for example. This provides ScPrime a competitive edge against the competition in the field.

Why it matters

Nearly all applications that are currently running on the internet are powered by the cloud. Cloud storage is an important tooling component in the current technology sector as well as a huge market waiting to be disrupted. It remains to be seen whether the decentralization concepts introduced by crypto projects focused on this particular industry have the ability to offer something meaningful and value-creating, however the future remains bright. It is a fact the sector will evolve rapidly, as with other tech sub-sectors.