Storage Mining, the Ultimate Passive Income. High Yields Staking Cloud Data Storage
Staking is a big part of cryptocurrency. Whether it’s a Masternode or the latest trend, DeFi, staking is a way to earn more of a certain coin or even an entirely new asset passively by locking up your coins. ScPrime offers ‘staking’ by providing storage on the network and it’s easier and safer then any other option in that the only way you stand to lose your stake is based entirely on your own performance.
Masternodes are a very well known way of staking. Simply put, you lock up or ‘stake’ your coins in order to be a node on a currency’s network and you then validate transactions on said network and earn a percentage of the coins minted as a reward. What’s the downside?
Masternodes require you to lock up a significant amount of coins to support the network as well as to keep you, the Masternode owner, honest. Any coin legitimate enough to make running a Masternode worthwhile is going to have a hefty price tag to get started. DASH requires around $75,000 USD worth of the currency to run a Masternode. And any other project where you can run a Masternode cheaply, has a good chance of not being worth the effort or perhaps even being a scam. It’s go big or go home when it comes to this type of staking. Masternodes also have a hidden effect of centralizing coins into a small number of holder hands, who often gain some form of governance in the process.
So what is DeFi really?
Decentralized Finance, or DeFi, is the current craze in cryptocurrency staking. It has you locking up ETH, various ERC20 tokens or a stable coin like USDT in order to ‘farm’ yields on an entirely new asset. This takes place in liquidity pools. You may recognize the yielded coins for their colorful food names like Yams, Creme or Cake. It has proven to be quite lucrative if you have the capital to get into it and the time to understand it. Unfortunately at the same time, it can be extremely high risk as you are locking funds into a contract that may not be audited and allow the creator or others pull liquidity (ie dump) before you have a chance to retrieve your funds. Recently this occurred where the owner of the ‘Sushi’ pool drained 14M worth of ETH from his venture before returning it when he realized the challenges of walking away with other people’s money.
DeFi is sold as replacement for everyday financial services. Loans, insurance, retirement funds, etc. In reality, right now, it appears to be an experiment in P2P lending where the stakers are the borrowers and smart finance guys are locking down huge returns. Did I mention it’s risky?
Swimming with sharks
DeFi is the classic tale of the rich getting richer. You have experienced finance guys well versed in collateralization, arbitrage and valuations alongside scrappy crypto traders spending every waking moment reading code and talking to founders to find the best new project. It doesn’t leave much for the average human with normal amounts of spare time. Though yields are currently high, everyone winks and smiles knowing a pool can go up in flames at a moment’s notice. The risk may equal or surpasses the reward.
A better stake
Becoming a Storage Provider with ScPrime allows you to stake the SCP cryptocurrency in smart contracts created to provide storage on the network. Coins are locked into contracts as collateral against you performing the job of storing data for customers on the network. Storage providers use standard computers and hard drives to provide distributed storage all over the world that is combined thru our software to create a global ‘distributed’ datacenter. Successful contracts are concluded with a small bit of public key cryptography, then the smart contract releases both the earned rent AND your collateral.
On top of the collateral being returned and receiving rent, storage providers earn extra incentives for various abilities, features and performance mechanisms.
Cloud storage is on an upward trend
Other forms of staking suffer from declines as more individuals join the party. ScPrime is building a distributed network to offer cloud storage to a world that by 2025 will see a demand of 175ZB (175 trillion gigabytes). The need for providers is growing as the demand for affordable digital storage explodes. Storage providers are rewarded with more data and more rewards as the network grows, not less. And, though there may be an effective limit on needed data capacity, we won’t hit that limit for decades.
You aren’t going to lose money staking SCP
Offering storage is a cost effective way to put some computer parts to use as an effective side hustle while helping to solve the world’s hunger for storage capacity. Like a Lyft driver, you are rewarded for providing a service and can only lose if for some reason you do not follow thru on the commitment which typically involves setting up a device and forgetting it (except for cashing out your profits regularly!). You can get started with as little as a single terabyte of spare storage. SCP coins can be purchased on several exchanges or can be “mined” using custom equipment that pays coins in the process of validating the blockchain. And you can always find a helpful community member in our Discord if you run into technical challenges.
The future of cryptocurrecy is business and products
ScPrime is building a product that will be the backbone of a business. Many in the crypto-sphere express aversion to this type of ethos. You will see investors and influencers shun the idea of ‘business’ in crypto in comparison to following the latest and greatest crypto trend, even if that trend turns out to be a scam or little more then a pump and dump.
The cyrpto landscape is littered with the remains of dead projects and scams, noble ideals and chances for massive gains. Eventually, to break into the world where cryptocurrencies serve a purpose, besides a store of value, blockchain businesses, run like actual businesses, will have to become the norm. While an investor may champion masternodes for continually paying out a coin, even when it is well passed a project’s best before date, we must look towards the future and how this space will evolve towards profitable enterprise instead of just experiments and trading.
When staking your SCP into data storage, ScPrime’s success will be your success. The more customers, the more data, the more profits for our providers.
If you are interested in learning more about becoming an ScPrime Storage Provider, have a look at these links below:
ScPrime Quickstart Guide for Storage Providers -This handy guide is for beginners to learn how to quickly and easily setup a provider on Windows.
Rent and Incentives info -An article that dives a bit deeper into how Storage Providers get paid and stay profitable.
ScPrime Discord -Please visit the ‘network’ channel in our Discord to learn more about SCP data ‘staking’ as a provider.