HONG KONG, Nov. 25, 2016 /PRNewswire/ -- BlockCDN, the Chinese blockchain company is in the process of creating a bank for computing resources that makes it possible to offer crowdsourced bandwidth at highly competitive prices to content providers. BlockCDN, currently preparing for an ICO starting November 28, 2016, is in talks with Youku executives — China's leading online content provider who will be the first to trial their technology.
BlockCDN is on its way 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 set to reach $23.2 billion by 2021 (according to MarketsandMarkets), BlockCDN will provide a way to meet the industry's increasing bandwidth demand in the near future.
"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," said Tony Long, CEO of BlockCDN.
As the industry expands, traditional CDN providers will be forced to spend on construction of telecom machine rooms, servers, bandwidth, power, and equipment maintenance. BlockCDN drives these costs down with crowdsourced power and 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, which can be passed along to the customers.
"Expect a level of disruption in the CDN industry, similar to that caused by Uber and Airbnb in their respective fields," said Tony Long.
Having worked for traditional CDN companies for over 8 years, the BlockCDN team has a unique insight into the industry, which has led them to create the platform. Following talks with Youku's executives, the company— China's answer to 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 passive income. BlockCDN will be taking a 5% transaction fee before passing the rest to miners. With a healthy incentive structure in place, the system will propel users to actively increase their node capacity, which in turn will boost BlockCDN's offering. 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.
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