Data: ScPrime Storage Provider — Rent and Incentives information
One of the core features of the ScPrime project is a distributed network of Storage Providers. Think ‘masternodes’ without the cost and centralizing features. While not part of blockchain consensus, they lock the project’s utility coin ($SCP) into smart contracts in a process of providing hard drive capacity to the public. As a result of successful provisioning, they earn passive income through rent payments and additional incentives.
The first income a storage provider earns is rent. Providers enter into contracts primarily with SCP, Corp for sales to business customers, but also with community users with data to store. Through this contract, SCP is exchanged between the host and renter on a continuing basis until the contract is concluded. The costs of storage, upload and download fees, contract length, etc, are set by the Provider who is encouraged to stay within guidelines set by SCP, Corp to qualify for additional incentives, which we’ll talk further about below.
Under the contract, data is uploaded to the network. Now this may sound complex, but the process is automatic, with contracts formed currently based on a one-size-fits-all marketplace model. As contracts conclude, rent is paid automatically as coins are released from the locked contracts to the provider.
In building out the network, ScPrime seeks new storage providers and encouraging current providers to add more instances to the network. While rent payouts are based on contract cycles (typically 30 day increments), incentives are paid monthly to providers for each storage instance that follows project guidelines. Incentives serve two purposes; supplement Provider earnings during periods when rental income is modest, and encouraging Provider cost consistency as the network and project grow. In the future, the project envisions a robust tiered architecture where Providers gain additional income by meeting certain performance, capacity and availability metrics. For example, you might have a very fast Internet connection and a lot of extra hard drive space that generates additional revenue as you are rewarded for significantly surpassing average parameters. There is a large list of potential revenue enhancers where providers optimize based on equipment or geographical location or any other desirable characteristic.
Recurring rents provide baseline profitability, but keeping providers in a ‘narrow band’ is an important goal. Providers may always charge whatever they feel the market will bear, but may miss out on the incentive payments by straying from the guidelines. In this way, decentralization is preserved as nobody is forced to accept incentives, but make the decision to adhere based on increased profitability. Incentives are currently rich and will continue as such throughout the year as ScPrime releases the alpha version (code-named Chaos) of the new Relayer client. The goal is a stable and healthy network throughout this testing period as the project forecasts a full product launch in Q1, 2021.
Think Uber, think distributed
An engaging comparison for Storage Providers is to Uber or Lyft drivers who provide a car and taxi services to generate income. Drivers form a global network of always available and high quality service thru a friendly application with expected pricing. Similarly, storage providers use equipment they already possess or purchase new equipment to earn extra income from cloud storage customers. This distributed network in turn provides a robust, global datacenter with an environmentally friendly footprint and enormous cost disparity to giant centralized datacenters owned by Silicon Valley giants. The sharing economy comes to cloud storage!
To learn more about hosting on the ScPrime network, please visit the project’s Discord. You can also familiarize yourself further by following the links below.
ScPrime Hosting Guide -a ‘quick start’ guide to setting up a ScPrime host
ScPrime Renting Guide -the basics on becoming a renter on the ScPrime network
Incentives Application -sign up here for incentives once you have your host up and running.