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With the advent of cloud storage, the way data is stored and utilized has drastically changed. The current cloud market is a monopolistic one with Amazon Web Services, Microsoft Azure and Google Cloud platform holding more than 64% dominance of this $500 Billion market. This monopolistic nature brings a huge risk to the companies and individuals relying on them such as dYdX that went down during an AWS outage.
As mentioned in our previous article on revolutionizing cloud storage, decentralized data cloud storage offers substantial advantages over its centralized competitors such as:
The article also touched on how the launch of Dragon1, Cere Protocol’s first decentralized data cluster, is leading this shift with the potential to disrupt this $1.1 trillion by 2028 industry.
The protocol's open governance and nominated proof-of-stake consensus create an ecosystem that minimizes the risks associated with Web2 centralization. Dragon1 brings us one step closer to Cere’s expansive vision of powering thousands of decentralized edge clusters globally.
How the $CERE token provides security
Cere Protocol improves on Web 2 cloud solutions both from the user's perspective and from the shareholder's perspective by introducing the use of a DAO and a strategic revenue flow protocol design. This is possible thanks to Cere Network’s open topology where data clusters can be truly decentralized, sovereign and autonomous.
How does it work? Well, Cere Network consists of a few vital entities namely:
Cere’s data infrastructure is provided by Node Providers that act as a content storage and delivery network. These nodes allow for a faster, better and more efficient delivery of content in a decentralized manner.
To become a node provider, any entity has to go through Cere’s cluster management governance process where token holders can vote on whether it should be approved or not.Once approved, they are admitted to the Cere Network and can start offering hosting and delivery services to the end users.
Validators then verify the work done by these nodes and post the results on-chain available for anyone to validate. Provided that the work follows expected protocol standards also known as Service Level Agreements or SLAs the Node Providers will be compensated for their efforts. In case of any bad actors or not complying with the SLAs, Node Providers will be punished via a mechanism known as slashing.
Finally we have the nominators that help in keeping the network secure by voting for validators in the block validation process. This type of consensus is also known as nPOS consensus mechanism.
The cluster participants undergo various rounds of private referenda until they agree on the SLA parameters. Once consensus between all participants is reached, a public governance referenda is launched announcing the cluster to the wider Cere community for them to approve.
Utilizing a decentralized governance model where validators can reward or penalize the nodes along with token holders having a say in the Network proposals to modify Service Level Agreements (SLAs) ensures that the data stored and streamed by the nodes to the user is of top quality.
The decentralized nature of the protocol also reduces any single point of failure thus enhancing the overall reliability of the system. Each DDC participant focuses solely on their assigned tasks: Nodes are responsible for storing/streaming data while validators are tasked with validating the work of nodes. This clear division of responsibilities ensures that each task is executed efficiently and effectively.
Additionally, as all the payments and penalties are handled automatically by the Cere protocol ensuring streamlined operations, maintaining a high standard of service across the board.
The backbone of this decentralized cloud storage system lies in the CERE token. Users pay for the applications they want to use with the $CERE token, similar to a subscription model. When a user makes a payment, the $CERE tokens are utilized to reward the network participants after validators verify the work done by the nodes.
Owing to its decentralized governance, the $CERE token also empowers token holders to vote on proposals within the Network, allowing them to influence key decisions and modifications to Service Level Agreements (SLAs). This democratic process helps maintain the protocol's transparency and accountability. Additionally, the $CERE token plays a crucial role in the nomination process. Token holders, known as nominators, use their tokens to nominate validators for the block validation process.
Fundamental to the CERE network are two robust validation processes namely, Data Node validation and Data Activity Capture.
The Data node validation is an automated configuration check to ensure that the nodes meet the technical and operational standards in terms of hardware specifications, internet connectivity and system capabilities and also evaluate these nodes against specific SLA parameters set in the referenda.
The Data Activity Capture system or DAC for short is a vital part in bringing the DDC infrastructure to life. It is responsible for monitoring the activity within any cluster to ensure that the content stored/streamed is being done so according to the agreed SLA. To do this, DDC users send signed receipts to the serving nodes after confirming each piece of content. These receipts are then validated and consolidated into an activity log or report. This report is then sent to the DAC system where multiple such reports are collected and aggregated by DDC nodes at periodic intervals. This process is followed by a Data node validation check which is an automated procedure to ensure that all the nodes meet the SLA standards.
During all this, blockchain validators review the aggregated data from DAC at fixed intervals called eras. They use this data to determine if the DDC nodes comply with the SLAs or not. The validators then exchange their results with each other leading to a consensus on reward distribution. Based on this result, validators can either reward or penalize the DDC nodes for their contributions.
Following this consensus, customers are charged for their usage while DDC providers receive rewards based on the resources they’ve contributed.
How does it look from a user perspective?
While the above might sound a tad bit complex if you’re new to Cere, the user interface is that much easier.
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Dragon1 - First step towards decentralized data economy
As highlighted in the previous article, Dragon1 is the first step towards Cere’s vision - to build an efficient, reliable and with an unrivaled speed data storage. Building a decentralized data storage is imperative as corporations regulate and misuse the stored data. Whether you’re a developer, a content maker or a game developer who resonates with this mission, head over to our documentation and start your journey now.
AI Integration
Cere’s commitment to building a decentralized data economy is also poised to disrupt the AI sector. Current limitations on massive amounts of data processing to help train AI tools and build a better user experience can be tackled by Cere’s RXB tooling combined with DDCs like Dragon1. Cere’s Dragon1 can be utilized to run MaaS or Multi-Agent as a Service. Utilizing a Multi-Agent system to work on user data thus making the user experience much more interesting. By enabling specialized workflows via pre-trained AI agents, it can enhance AI applications in terms of effectiveness and value.
Furthermore, Cere plans to host an AI marketplace in the future, where users can curate and pay to utilize various AI agents for their data needs. This will inevitably interconnect the global world of AI-powered data and thus create value for the stakers and token holders in the form of yield in this process.
For more information, check out Cere’s Real-time Experience Builder (RXB) and why you should integrate it if you’re utilizing AI to build a better user experience
Open Governance
As mentioned earlier, the Cere network utilizes an open governance model which plays a pivotal role in bringing fairness and trust to the data shared within the network. Nominators can choose which validator they want to support for the validation of the blocks and DDC activity, ensuring that reliable validators are enrolled in this process. Validators have to agree upon the final distribution of rewards or penalties to the nodes based on their performance and the SLA standards helping maintain the high standards of the work done on-chain.
For consumers, this model ensures that they can actively participate in the decision-making process through DAO proposals. Token holders can vote for newer referendums as well as treasury proposals thus having a much greater say in the whole process. By involving consumers in governance, the network enhances transparency and trust, as every step of the process is open to scrutiny and influence by the users.
Explore Cere’s governance model and discover how you can benefit from it as a consumer.
Given the rise of this $1.1 Trillion industry dominated by a few players, it is no surprise that there is a need for someone to break this monopoly and that is where Cere Network comes into play. Thought of as an alternative to its centralized counterparties, Cere’s decentralized data clusters like Dragon1 offer enhanced reliability, better data sovereignty and censorship resistance creating a truly decentralized data platform.
These DDC clusters as showcased above have the potential to massively impact various sectors like AI, video streaming services, gaming and digital marketplaces - something that we’ll be touching upon pretty shortly.
Looking to get started on this decentralized future? Visit our website for more information or delve into our GitHub to see how the magic happens. You can also fuel this decentralized growth by participating in the Cere DAO and voting on proposals to help democratize data ownership.
