What is Decentralized Cloud Computing (DeCloud)?
When a person named Satoshi Nakamoto proposed in the Bitcoin white paper in 2008 that funds transactions bypass traditional centralized institutions and are conducted directly on a peer-to-peer basis, this decentralized financial model was considered DeFi, or decentralized finance. People's fund transactions do not require the intervention of intermediaries or third-party financial institutions, but can be completed between two people.
As one of the hottest narratives of Web3, DeFi has seen the emergence of GameFi (on-chain games), SocialFi (on-chain social networking), DApp (decentralized applications), DeSci (decentralized science), DAO (decentralized autonomous organization), DID (decentralized identity), NFT (on-chain art/collectibles), DePIN and other fields, continuing to lead the Web3 craze.
The underlying concept of Web3 is that "everything can be decentralized", whether the object of decentralization is online virtual items or real-world infrastructure. As the infrastructure of the real world, cloud computing provides computing power for all walks of life involving the Internet, just as common as water and electricity in life.
Can computing power be decentralized? Undoubtedly, computing power can be circulated on the chain through blockchain, smart contracts and cryptocurrency, and can be used as DePIN infrastructure to empower thousands of industries on and off the chain. For example, the decentralized cloud computing project PowerVerse has built a decentralized cloud computing ecosystem through PowerVerse Chain and PowerVerse Coin ($PEC), combined with privacy technology, AI technology, intelligent supercomputing, and edge computing. It has currently deployed GPU/CPU servers in Hangzhou, Shenzhen, Tianjin, Chengdu and other places in cooperation with China Mobile, China Unicom, and China Telecom, forming a distributed computing power node.
Why decentralized cloud computing requires cryptocurrency
Decentralized cloud computing power is essentially the process of putting computing power resources on the chain, that is, RWA. The decentralized cloud computing power ecosystem has built a larger and richer form based on RWA. For example, DAO governance, "computing power NFT" pledge, etc.
As computing power resources that circulate and trade on the chain, cryptocurrencies are needed as a carrier for circulating funds. The security of cryptocurrencies (including traceability, privacy, peer-to-peer transactions, etc.), the economic model of the platform, and the distribution and incentive mechanism created by the platform through cryptocurrencies are all reasons why decentralized cloud computing power ecological projects cannot do without cryptocurrencies.
For example, in the actual operation process, when the computing power provider provides idle computing power for circulation and trading on the chain, the process of casting NFT with computing power, the process of trading computing power NFT, and the process of pledging computing power NFT all require cryptocurrency for payment and settlement. Legal digital currency cannot achieve the same functions and effects as cryptocurrency, which involves the right to issue currency, the right to speak, the right to distribute, and the right to formulate economic models.
What role does cryptocurrency play in decentralized cloud computing?
As the equivalent of platform funds
Cryptocurrency serves as the equivalent of funds in the decentralized cloud computing ecosystem. Payments, transactions, and settlements involving funds all require cryptocurrency as a carrier.
Presentation of the overall value of the project
The platform's cryptocurrency will show the value of a project in the form of price on DEX, which will be a presentation of the overall value of a project. The higher the price of the project, the higher its value.
As a certificate for project DAO governance
Users who hold the platform's cryptocurrency can participate in the platform's governance according to the rules and realize DAO governance. For example, in the PowerVerse ecosystem, users who have pledged a certain amount of PEC can apply to become the platform's "computing quality supervisor" and participate in the review and supervision of computing power providers. For users who pledge PEC for a long time, the platform will be given exclusive customer service, priority use of new features and other advanced membership rights.
Conclusion
Xiao Feng, founder of Wanxiang Blockchain, divides cryptocurrencies into five categories: payment tokens (such as USDC/USDT stablecoins); reserve tokens (Bitcoin); utility tokens (ETH); security tokens (RWA, tokenized money market funds); and Meme Coin (Doge).
In the future, when the on-chain economy serves as the underlying infrastructure for all walks of life, cryptocurrency may become an indispensable part. Just like "everything can be decentralized", "all economies can be tokenized". By then, not only the cloud computing field, but other fields will present the form of "encryption empowering everything".
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