Last week was brilliant for us here at Cudos. We took part in a very insightful “ask me anything” (AMA) featuring our VP of Sales, Pete Hill, in the Decentralised Club Community telegram channel with over 31,000 members! Needless to say, the AMA was a great success, and Pete answered some great questions from members of the community. Don’t worry if you missed it, though, as we’ve summarised it below for you to check out!
Q1. Can you tell us the goals that birthed the idea of Cudos?
It all started back in 2011. Cloud computing was really starting to take off at that stage and our last business C4L was a data centre, cloud and network services business. We were hosting many cloud service providers within our facilities, as well as running our own cloud environments. The problem that we saw was the heavy underutilisation of these server environments during off-peak hours, yet we were all having to continuously scale the environments to keep up with the peak hours demand. How could we find a solution to reduce that IT waste and provide additional revenue to these businesses?
That led to us selling C4L in 2016 and forming Cudo the next year. For those of you not aware, Cudo is the parent company of Cudos. Our vision is to make better use of the world’s computing power. Starting development in Jan 18, our initial focus was to build a global supply of computing power using other peoples machines. Service providers, miners and gamers. This has helped us scale a distributed computing base in over 145 countries. We are now focused on the demand side and this is why we created Cudos, the blockchain-focused subsidiary that will provide the new web 3 world with access to high-performance computing power.
Cudos Network is a special-purpose blockchain designed to provide high-performance, trustless, and permissionless cloud computing for all. Consensus on the network is achieved through the use of the Tendermint Core and its Delegated Proof of Stake (DPoS) algorithm.
In Layman’s terms, what this means is Cudos will be one of the few networks which can power other blockchains and scale to the demands of cloud computing required today.
The Airbnb of computing power for a new internet!
Our token carries the same name — CUDOS is a utility token with functionality including staking, payment and medium of exchange.
Q2. How does Cudos plan to make the best use of the world’s computing power?
The hardest part of any product development is to make something extremely complex, simple. Our first product; Cudo Miner, did exactly that for mining crypto. Create an account, download the miner, press start. Yes there are advanced controls for the experienced, but the initial user journey has to be simple.
We are using that same philosophy for Cudos, providing a permissionless network for anyone to contribute computing power and providing a highly automated user interface for cloud consumers. We have a few steps to develop through before we reach our target build of course, but we are well into that journey. My expectation is the first version of our full blockchain compute stack will be rolled out as part of mainnet v2 in the first half of 2022.
Because this is an Airbnb type model where anyone can earn from our network/application, this means that we can make use of all of that spare computing power that would ordinarily sit idle. This is not only reducing the carbon footprint of building new hardware but is also distributing the revenues of the network across all of those who contribute. So our model is environmentally sustainable and economically sustainable, providing people with more ways to earn a passive income.
Q3. What are the roles of validators on Cudos and how does a person become a validator?
Validators, meaning individuals who have financially committed funds through a process known as staking, notarize, and in fact validate, every transaction proposed onto the network with high availability and trust levels that are assessed in a real-time and predictive manner. The Cudos Network rewards the most performant Validators with predictable income streams and rapidly removes bad actors from its Proof of Stake network in order to assure a greater level of security for all participants. The combination of these factors, incentivise any individual today, from financial investors to data-center or compute infrastructure providers, to interact reliably on the Cudos network to either buy or sell compute capacity at scale.
Validators are therefore the backbone of the overall Cudos Network and ecosystem.
To become a validator, the individual or business will need to stake 2m Cudos and meet the recommended specification for both hardware and server uptime. Whilst this is open to anyone as a decentralised network, the running of a validator node will be technical and time-intensive. For passive earning, token holders can instead delegate their stake to a validator. They will still earn from the network in the same way, but there will be a small commission from the validator to cover the validator’s operational costs.
Q4. Could you briefly talk about the Cudos Network and the usecases of the native token?
The Cudos Network is built on the Cosmos SDK and Tendermint architecture. This immediately simplifies the process for both our internal developers and those developers wishing to build on Cudos, as there are a lot of pre-existing tools available through the Cosmos ecocsystem. For example, anyone that can write in Rust, can write a smart contract using the CosmWasm tool. Another example is the Gravity Bridge, a bridge between Cosmos and Ethereum, that we are integrating meaning that Cudos is interoperable with Ethereum.
As for CUDOS coin use cases:
Providing turing complete solutions to non turing complete blockchain networks:
Other blockchains will connect to Cudos through the bridges that we install to access computing power. Our network is then paid for these resources in CUDOS.
Providing a global scalable Decentralised compute for blockchains and smart contracts:
We have other networks we are working with like Noia Networks etc.. that are lined up to use the Cudos Network to expand their own network coverage. Our network is then paid for these resources in CUDOS.
Providing Scalable Cloud Computing:
Resources can be consumed on the network as required in the same way as traditional compute but in a greener more efficient manner. Consumers which are often businesses with high powered machines can actually use their spare workstation and server room compute to earn CUDOS in spare time, which can then be used to scale out to the Cudos Network for high-performance computing power when required. A post-production studio for instance. Our network is then paid for these resources in CUDOS.
Lowering the cost of compute/transactions and DeFi on blockchains:
The transaction costs and compute costs on the Cudos network are substantially lower and scale better. Able to scale on EVM, eWASM, Rust and other languages. Also, this provides greater language flexibility.
Connecting blockchains to external API’s and data feeds:
Using our Oracles, which will initially be live on Ethereum , and then Cosmos, the network provides direct access to external API’s and data feeds. We are able to support this with each blockchain we bridge onto.
Q5. What major news should we still look forward to from Cudos this year?
What I can share with you today is that our primary goal for 2021, is to release the Cudos Network mainnet. We are currently on track for Q4, with our Public Testnet ‘Project Artemis’ going live soon (join our Cudos channel for announcements). Project Artemis has already brought over 5,000 developers to our Discord server and we have received over 20,000 registrations.
Partnership wise, we have recently announced Accubits as technology partners. Accubits are experts in both AI and blockchain and our collaboration will see new dApps, tools and compute use cases emerge on the Cudos Network. We are also continuing to drive forwards with AMD. Many in our community will know that this is taking more time than we initially planned for. Nonetheless, the collaboration has been in place for over 3 years now and we are getting closer to the first big news / product launch. It’s worth following our podcast series ‘CudosCast’ as recently interviewed the Head of Blockchain at AMD and discussed our partnership. That will be pushed live in 1–2 weeks here: https://open.spotify.com/show/2lZuBXJ270g7taK06tnK35
Q1. What is the effect that the Ethereum’s Hard Fork/London had on Cudos’ staking and vesting portals? And how does Cudos provide a better and cheaper computing network for its users compared to the present industry leaders like Google for example?
Twitter Username: @SerenayEkraj
It’s a great question. I think we are all familiar with Ethereum gas prices and the hard-fork, whilst positive for Ethereum, hasn’t really made an impact on the Gas fees. It’s all about timing and making sure that you are transferring enough to justify the Gas fee. Last week I personally paid around $23 which is ok in ETh Gas fees right now, but a few hours later and it was closer to $100.
Our network is PoS from day one and has much higher transactions per second of ~1000. The gas fee over Cudos, once we move to our own chain for mainnet, will be SIGNIFICANTLY lower.
Comparing to Google and the other hyperscalers like AWS…. we are another market option. Not everyone will need a decentralised cloud computing platform and that’s fine. Not all enterprises will be looking for cheaper compute, their driver is service level. Cudos will bring the best of blockchain and the current cloud together and we will have environments suitable for all types of end-user (blockchainers, budget, enterprise). Naturally, purchasing computing resources from someones gaming PC is going to be cheaper than paying for the same resource within a data centre environment.
Q2. Cudos is founded way back in 2017. We all know NFTs only became popular recently so may I ask, during the project’s early days, did you already have the idea of including NFTs in your platform or does this idea of NFT implementation only occurred to you recently?
Twitter Username: @0JeanWayne
No, it wasn’t part of our original plan and this is reflective in our whitepaper where I’m 99% sure we don’t mention NFTs.
Cudos is a decentralised computing platform. Similar to AWS for cloud. Those guys are providing the infrastructure and just about any use case can run on top of that infrastructure. We are doing the same, so NFT’s are simply a use case that can be minted and traded on top of the Cudos Network.
However, we are of course working with projects focused on NFTs, because it has become such a large part of the current blockchain market. I also personally feel that NFTs are here to stay, they can and will be used across nearly all walks of life. Right now they are heavily associated with arts and collectables, but this is just the start of full digital transformation and in 5–10 years I will be surprised if we’re not buying and selling houses with NFTs
Q3. In July, Cudos was listed on Bitcoinist.com as one of the top green blockchain trends. How exactly is Cudos contributing to making the earth better environmentally?
Twitter Username: @TadesCorner
Sure, I mentioned further up that the ecosystem as a whole is about using spare power when we can. So each and every person who is contributing their hardware to the network is ultimately reducing the amount of computing power required in the big clouds, and those big clouds are having to continuously scale their server environments and build new facilities to cope with the peak demand, leaving a lot of underutilisation in non-peak hours.
For the Cudos Network specifically, our network is a proof-of-stake rather than the proof-of-work network. We have done the maths and we are over 99% more efficient than Ethereum in its current PoW state. To go further, we have signed a partnership with Climatetrade and we will be offsetting all of the carbon produced on the Cudos Network. So whatever our validators produce, we will offset that by purchasing carbon credits. Climatetrade is 100% on-chain and that is why we chose them, as we can provably track and trust their carbon project purchases.
In the future, we would like to go even further and help our hardware owners contributing to the network, offset their carbon footprint as well. This will likely entail a feature within the application to automatically set aside a % of their earnings to offset carbon.
In my opinion, there is no excuse as a new technology to avoid being carbon neutral. The technology is there and it is our responsibility to drive the right behaviours
Q1. On the Web3 framework will CUDOS retain exclusive rights to the decentralized applications designed by other developers?
Telegram Username: @aylaevie
Not necessarily, we will also be targeting dApps with multichain strategies. With use cases like DeFi, I think it will be restrictive to those project developers to insist on exclusivity. It would be like asking an app developer to only build on iOS.
Developers will also earn a proportionate share of the networks transaction fees, providing them with ongoing network revenues
Q2. Algorand is listed as one of your partners, is there any way they or even $ALGO is involved in the network?
Telegram Username: @CloudJumper97
Algorand are a fantastic team and we also received investment from Borderless Capital which is a VC solely focused on the Algorand ecosystem.
We already support ALGO payouts in Cudo Miner. We are the only mining application that I’m aware of that pays out in a non-proof-of-work coin which I think is pretty cool.
Where we are heading with Algorand, is that our roadmap includes a plan to integrate a bridge between our blockchain and there’s. That will provide their ecosystem with access to high performance compute. As a proponent of zero-knowledge proof tech which is extremely compute-intensive (in blockchain terms anyway), our networks will be complementary
Q3. As Cudos Compute is a collaborative platform, are your collaborators your users or other business partners? Do you have provision for free cloud storage space on Cudos just like Google Drive and what is the relationship between Cudos and cryptocurrency?
Telegram Username: @AnhelinaKasy
Anyone can collaborate:
Gamer: idle time on gaming PC
Miner: mining rig, GPUs
Service provider: underutilised servers, bandwidth and storage
Those give us 3 very different supply environments:
low-cost consumer edge
High security, low latency, cloud environments
Then on the blockchain side:
Token holders can stake, contributing to the security of the network
People can become validators
It’s a network for everyone!
As Cudos is a blockchain, CUDOS the coin provides the utility over the network — Medium of exchange, staking, payments
Cloud storage will be part of the stack, providing that for free is difficult though due to our model. It is not our hardware after all. Our commercial model will be such, that the total costs are highly competitive at the data centre level and significantly lower at the consumer edge level.
As for our relationship with crypto, we scaled our current userbase with crypto mining services (Cudo Miner). This gave us a 24/7 guaranteed workload to help scale the user base and keep them retained as well. But it’s the MVP to other compute workloads and eventually, the prevailing revenue for the hardware owners providing compute nodes will come from compute workloads rather than mining.
Open floor questions:
Q: I just got curious by the fact that Cudos doesn’t need a burning mechanism, that very interesting, because right now is the most popular strategy to create more demand, so can you explain us which other strategies do you have to increase your token value?
This is asked quite a lot and I completely understand why. Out tokenomics do not currently include burning. I’m not saying never, but there are no plans at present. We would prefer those tokens staked into the network rather than burned, boosting the health of the network.
There is another point around regulation, particularly in the US with the SEC. Burning is a grey area. Yes Ethereum can do it, as they are provably decentralised, but as a relatively new project in comparison, we are not there yet. With the US being a huge future market for us, we want to ensure that we follow the rules and suffer no recourse in the future
Q: How many validators do you have currently and what’s your relation with LimeChain??
We currently have around 35 validators agreed. Because our on-chain staking is currently on Ethereum, we have enabled these validators to already register and start accepting delegated stake (wallet.cudos.org). About 20 of these have already set themselves up.
Next up, we will be inviting the first batch to spin up their physical nodes for the testnet. We’ll do this in batches to keep things controlled. Before any validator switches to the mainnet, they will have to run in testnet first.
In total, the advised limitation on Tendermint is 100 validators, so we have room to grow and add further validators at the mainnet.
Q: Can you explain how is your Tokenomics Distribution? How many tokens Will be minted ? And How many tokens Will be locked by the team??
10bn tokens released over a 10 year period (starting fast and scaling down over the 10 years)
20% for the team: an initial lock of 6 months which has just passed and 36 months vesting thereafter
However, these first vested team tokens have been staked into the network and will only be released to the team per milestone. We have 10 milestones to hit as a project to reach our vision. That keeps all team members motivated to deliver against the company vision
Elsewhere, we have 34% allocated for ecosystem and development. This is where the staking rewards come from for example. Operations, listings, marketing etc
Q: Can you tell what CUDOS’s Mission is? In other words, what problem was CUDOS founded to solve?
Cudo (parent company) — Make better use of the world’s computing power
Cudos — democratise that computing power
Q: “For example, anyone that can write in Rust, can write a smart contract using the CosmWasm tool. Another example is the Gravity Bridge, a bridge between Cosmos and Ethereum, that we are integrating meaning that Cudos is interoperable with Ethereum.”
Sir, you’re quoted above to say dApps deployment on CUDOS requires some knowledge of Rust. How about the more common language, Solidity? Can you say why exactly you picked Rust over the other languages? Any pros?
I’m glad you asked. I left that part out because I was asking in context to the Cosmos ecosystem.
Yes, with the Gravity Bridge in place between us and Ethereum, it means that people will be able to use EVM and write smart contracts in Solidity.
Rust as a language is commonly used. CosmWasm as a tool removes a number of the attack vectors that have been seen on Ethereum
The Cudos Network is a layer 1 blockchain and layer 2 computation and oracle network designed to ensure decentralised, 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.