• The ubiquitous but inefficient use of computing resources strains our environment.
  • Cloud and blockchain are promising but have limitations that prevent them from solving the problem.
  • Cudos’ robust decentralised cloud solution could solve this and benefit all stakeholders.

The challenge we face

The computational needs of a tech-driven world put an enormous ecological strain on the planet. Theoretically, cloud computing could reduce this impact through more efficient use of resources and partial reliance on renewables. Yet, one of the leading providers of such services, Google, uses approximately 12.4 TWh of electricity per year as of 2020. This is 5.1M tonnes CO2 equivalent. For context, a typical car generates roughly 4.6 tonnes of CO2 per year. Essentially, Google generates as much CO2 per year as approximately 1,200,000 cars. This happens to be more than all newly registered vehicles in the UK per quarter. Moreover, this doesn’t even consider the impact at the point of construction of a data centre and manufacture of the devices it hosts (Figure 1).

Figure 1 — The material environmental cost of a 1MW data centre

Another critical factor compounds this problem. The already available computational resources are not used efficiently. According to estimates, even data centres utilise IT hardware less than half the time. Office computers in the UK, for example, are used for 6.5 hours a day on average, sitting unutilised 75% of the time. Furthermore, there are 2 billion PCs, 2.7 billion active smartphones, 30 billion IoT gadgets, and 138 million gaming consoles, all capable of performing data processing. Yet, they are idle most of the time generating zero value. Finally, even 35% of cloud computing capacity is wasted. This translates to higher-than-necessary costs of about $62 billion per annum .

So, it is reasonable to wonder why these challenges and inefficiencies have not been addressed yet. Admittedly, blockchain can help with decentralisation. Yet, at present, it suffers from scalability issues and high transaction costs. On the centralised cloud side — the supply of services comes with a high environmental price tag, while on the demand side excess spare capacity and inefficient use are rampant. Evidently, at the moment, there is no viable solution that can help reduce the wasted computational energy on a global scale reliably and sustainably.

Cudos’ solution

We aim to overcome the described limitations of blockchain and centralised cloud. Cudos offers scalable compute solutions addressing two apparent opportunities. First, the Cudos Network is a layer 1 blockchain in the Cosmos ecosystem, thus using a delegated Proof of Stake (dPoS) consensus system. Inherently, PoS is also kinder to the environment. It doesn’t demand energy for crypto mining like the Proof of Work (PoW) protocol. By bridging into other networks and providing data and compute oracles, the Cudos Network can also effectively act as a layer 2 solution to other blockchains, solve scalability and throughput issues, and bring Turing-completeness to blockchains lacking it.

Second, Cudo Ventures is creating a platform for automating the process of managing and trading with unutilised computing power. This improves existing cloud service offerings, both for the supply and the demand side of computational power. Thus, Cudo’s solution will offer sustainability and economic remuneration and improved and personalised services. Ultimately, Cudo aims to connect the two by providing the first-ever novel Layer 3. This would empower blockchain networks to run any computational job seamlessly, integrating cloud and blockchain solutions into one.

Cudos Network

As mentioned above, Cudos is developing its dPoS network in the Cosmos ecosystem. That means that Tendermint Core powers the Cudos network and benefits from all the community and developer work from that community, including features such as the Inter-Blockchain Communication Protocol (IBC). The Cudos Network will offer a Turing-complete solution that can run any code as it enables smart contracts to ask for and use off-chain computation.

Our network, where the CUDOS token is the native utility token, is fundamental to our growth. We want to bring the same user-friendly approach to building smart contracts, dApps and minting NFTs that our miners have today with CudoMiner. We will abstract the technicalities so that users and developers (for NFT, games or other apps) can accelerate their time to coin.

Using the Gravity bridge developed in the Cosmos Ecosystem, we will have a gateway to and from Ethereum. That’s excellent news for the planet as the Cudo network footprint, a Cosmos-based chain, is considerably smaller than Ethereum’s (Figure 2).

Figure 2 — Energy consumption of Cosmos Blockchains

Today, we enjoy enormous support from loyal partners, token holders, and miners — the Cudo Network opens up future opportunities. Our Mainnet is just over the horizon, and when it lands, it will also be the enabling layer to our novel Cudo Compute platform.

Cudo’s Compute Platform

Cudo brings together years of experience in Compute through our team and outstanding partners like AMD. Our Compute Platform provides access to cost-effective unused compute resources. Essentially, suppliers with spare capacity offer these to consumers with unmet computing needs.

One application that many of our clients require, rendering, is a highly competitive field. Cudo provides top-notch service and operations because we understand the demands of operating at scale and pace. We have an obsessive focus on hardware affinity to ensure maximum efficiency, a level of detail that our clients appreciate.


We’ve worked with leading token economists to create a utility token that powers the network and transfers part of the generated value to all participants. Within the network and the broader ecosystem, the token has many functions. These include staking to become a Validator, delegated staking and medium of exchange as the backbone of the Cudos network.

How everyone benefits

Our decentralised cloud, the result of ultimately connecting Cudo Compute and Cudos, has the potential to benefit all stakeholders involved:

  • Consumers — those requiring the completion of computational work such as an SME, enterprise, service provider, NGO or researcher.
  • Suppliers/Providers — those offering computational resources to the Cudo platform to complete jobs put forward by consumers.
  • Society/Environment — those not directly involved in the workings of Cudo but indirectly benefited through reduced environmental impact.

Consumer benefits

As a client, you can expect to enjoy improved service management, greater efficiency, and reduced costs.

Supplier/Provider benefits

Suppliers of computational resources through our network benefit financially and functionally.

Societal/Environmental benefits

Admittedly, it is next to impossible to quantify with precision the positive impact of mass adoption of Cudos. Nonetheless, the energy and resources consumed by data centres are such that the efficiency gains realised of replacing even a single one through the use of Cudo are significant enough to be worth considering. Beyond this, people from low-cost energy and low-income regions with renewable energy supply such as Egypt, Ethiopia, and Kenya in Africa and Brazil, Venezuela, and Colombia in South American can generate computing revenues. Moreover, the approximately 1.7 billion unbanked people with no identity, passports or digital money could also benefit from financial inclusion.


The growing and yet inefficient use of computational resources strain the planet. Yet, two of the most promising technologies, cloud computing and blockchain, in isolation, cannot solve the problem. By uniting them into a decentralised distributed computing solution, Cudos has the potential to help the world reduce wasted computing energy. Reducing costs for consumers and giving a reliable steady income to suppliers are good mid-term targets. Ultimately, mass adoption of Cudos would mean financial inclusion for the unbanked and sustainable use of computing preserving our environment.

The Cudos Network is a layer 1 blockchain and layer 2 computation and oracle network designed to ensure decentralized, permissionless access to high performance computing at scale and enable scaling of computing resources to 100,000’s of nodes. Once bridged onto Ethereum, Algorand, Polkadot, and Cosmos, Cudos will enable scalable compute and Layer 2 Oracles on all of the bridged blockchains.