No-hype conversations about crypto and blockchain.

Synopsis

The elephant-in-the-room problem with crypto is that lots of decentralized protocols aren't actually decentralized — they often depend on computing with centralized tech giants like Amazon, Google, IBM and Oracle.

All your favorite node operators that host on cloud providers, or use software from SaaS companies, could potentially be targeted and cut out of the market. This puts the core character of our industry in dire circumstances: indirect centralization.

How do we re-arrange the value stack to provide true and complete decentralization from top to bottom?

NuNet is a framework that will provide globally distributed computing power and storage for decentralized networks. With the power of IoT, edge computing, and mobile devices, there is a lot of compute power and data left on the fringes of networks.

Harnessing this compute power is not available for the centralized consortiums that offer compute infrastructure via 'cloud' or traditional servers, so NuNet aims to connect these (as well as data centers and servers) to offer a completely new workflow design.


Team

The launching team is a highly decorated cast of artificial intelligence PhD's and marketing directors who moonlight as software researchers with doctorates.


The Paperbyte

There is a global-scale war going on in the Software as a Service (SaaS) and Infrastructure as a Service (IaaS) world as cloud innovation has hit its crux and innovative ways to optimize computing power is at peak development.

During this time, alternative protocols have the opportunity to displace some of the massive control Big Tech companies have over consumers security, privacy, and data. The problem is that (as computing volume, data, and computer code are growing exponentially) value is being locked in the infrastructure silos of BigTech.

The world is beginning to realize that unlocking this value will address a colossal economic demand worth trillions. But, more importantly, to do this in a distributed and decentralized way on a global scale addresses a colossal social demand that is invaluable.

NuNet is building a framework that can not only take advantage of these massive data silos when the demand forces them to open their borders, but also to take advantage of all the unused data and computing that exists on mobile phones, PC's, IoT, and edge computing right now.

A new way to source that unused data and computation is to provide a fabric of interoperability over the existing web of computers. This interoperability layer will allow the owners of data and computing resources to utilize computational processes that require them on a global and decentralized scale.

The Meta-Marketplace

In a fully-functioned framework, this will allow the following:

  • Participants who own computing resources (PC's, laptops, mobile devices, smart refrigerators etc) can offer their computing power to processes that need them either for free or for a price.
  • Participants who own storage resources will publish their storage capabilities and offer them to data owners either for free or for a price.
  • Participants who own computational processes (algorithms & AI services) will publish their data and computational needs and bid for valid resources, as well as sell their processes to people who need them, for a price.
  • Participants who own data will publish access restrictions, descriptions, and privacy/security guidelines for processes to bid on and utilize.
  • Participants will be able to express their preference of how the network should utilize their resources (data, computing power, and algorithms) and what they want to be monetized or not.
  • All participants will interact with each other in this innovative marketplace using the native crypto tokens.

This is very interesting and sounds relatively straightforward in concept, but let's take a step back and look at where the world (and especially crypto) is heading.

The global computer (also called the network-of-networks, the global brain, etc.) is a future only possible by interoperability and inclusivity. So a marketplace that takes into account other decentralized protocols and other crypto-economies to create a meta-Marketplace is the end goal here. How does that work?

The Infrastructure

The NuNet framework is an incubation project spinoff of the SingularityNET Global AI Marketplace, using the SingularityNET X-Lab Accelerator program.

Following the same interoperable future as SingularityNET, NuNet will provide resources for and use SingularityNET AI Agents to facilitate network operations in the beginning, until they have enough project-specific data to spin up network agents for ad-hoc use cases.

These network operator Agents (NOAs) will facilitate the Meta-Marketplace Economy (MME) by self-regulating the interactions between the storage and data-providers, computation process providers, and the consumers. They will manage the creation, execution, and verification of workflows and broker the transactions between the participants, creating hyper-efficient meshes of consumers and providers across various networks.

Meta-Marketplace Economy (MME)

NuNet is apart of the Decentralized AI Alliance (DAIA) created by Ben Goertzel (Founder of SingularityNET). The DAIA consists of many decentralized protocols that use AI, and one of them is Ocean Protocol.

Ocean Protocol would play a very integral role in NuNet's MME. Imagine you are a data-provider on the Ocean Protocol, but you need to use the computational services from another protocol that doesn't exist on Ocean yet.

NuNet would facilitate this exchange-of-value using their native token and governance model, and the network Agents will manage the nuances of the exchanging protocols own native economy.

So not only will participants who connect directly to the NuNet protocol be able to exchange value, but entire protocols who integrate with NuNet will be able to exchange value across chains synergistically, and the network AI Agents can create efficient channels (hyper-efficient mesh networks) between them by recognizing exchange patterns.

The Architecture

To achieve an ecosystem that promotes and regulates the efficiency of cross-integration between human and AI within a global distributed computing network, NuNet combines the technical build out with a tokenomic incentive model that is split in 3 core components:

  1. An open-ended collection of pluggable API's enabling participants to inject and/or consume information into/from the decentralized data, management and control plane.
  2. A control plane for participants to autonomously create and execute specific workflows combining computational and economic actors.
  3. A library for tooling, services, and production environment for participants to design or change any network component.

This architecture design is based on the principle that decentralized networks need to be managed in a decentralized way, allowing one to increase security and privacy of the network parallel to the growth of the network. Network operating agents are AI algorithms that will have the capacity to fulfill these design requirements. These NOA's also have the capacity to form meta-agent processes for data transaction. Let's go over how that could work.

Diagram 1

So in Diagram 1, we have Consumer X who is requesting an output using Consumer Y's data. The transaction begins in model (b) and when the Meta-Agent receives Consumer X's inputs, it begins allocating resources from the mesh-network of hardware computing devices it has created for this type of transaction in model (a).

Once it has the necessary computing power, it contacts the individual agents distributed on the NuNet framework that can most efficiently process the consumer requests and begins sourcing. Once the computing power and processes are sourced, the Meta-Agent then facilitates the important transaction requirements to complete the deal.

  1. Calculating costs between consumers
  2. Calculating micropayments for computing power providers
  3. Calculating micropayments between individual network agents that facilitate intra-processes
  4. Calculating runtime
  5. Orchestrating proper execution
  6. Fulfilling individual data privacy and security guidelines

As you can see, NuNet will form a truly global, interoperable, and distributed layer for all enterprise, individual, and decentralized protocols to use in which they can access the global computing network.


The Governance Model

The non-proft NuNet Foundation, who is responsible for the initial development of the NuNet protocol will have a governance model that will ensure it's launch is secure and sustainable while having built-in governance models that will eventually shift into the hands of the people. Here is how the years will look down the road:

Network governance decisions will be categorized into 3 categories:

  • Minor - operating the network
  • Major - strategic importance for the protocol
  • Critical - large and direct impact to the network

In years 1-3 the NuNet Foundation will handle all 3 categories of governance to ensure a proper launch. The community will get to vote on 3 council members who will then take charge in making Major and Critical decisions. The Foundation will initially run all NOA's on the platform as well.

In years 4-5, the Major and Critical governance decisions will need to require both the council and the vote of the network participants.

Beyond year 5, Major decisions will be made by 60% supermajority of participants and Critical decision will be made by 70% supermajority. All decisions that are required by law to be made by the Foundation will by made with approval from the community.

Beginning of year 4, there will be a proposal to allow for any participant to run a NOA, and if so NuNet will begin transitioning into a fully democratic governance protocol.

In the future, when individual participants can run their own NOA's, a staking model in which incentivizes proper participation will go into effect and allow for a fully democratized, decentralized and competitive meta-market ecosystem. Proof-of-Receipt, Proof-of-Stake and Proof-of-Concept are all consensus mechanisms being worked on currently.


Tokenomics

Initially, the NuNet native token will be issued via crowdfunding and internal tokenomics. The crowdfunding direction and strategy is not released to the public, however, the internal tokenomics are.

Internal Tokenomics

NuNet will follow the generalized mining logic. Unlike Bitcoin and Ethereum, mining wont be based on one single algorithm where miners compete to find a nonce value such that the resulting hash of the block header is below a target value.

In generalized mining, where decentralized computing is the framework, this type of mining will happen on the local level via smart contracts during workflows and transaction settlements. Which means NuNet tokens will be minted after the physical transactions take place using Proof-of-Receipt, reputation systems, and payment logic.

This incentivizes a proper distributed computing token economy.

  • The computing providers will compete with each other to offer the cheapest and most powerful computing.
  • The AI service providers will compete with each other by providing the most efficient algorithms with the fastest runtimes.
  • NOA's will compete with each other in their abilities to construct the most efficient hyper-mesh workflows between data, computer resources and AI services and algorithms.
  • Consumers bid on various workflows created by the NOA's.

A successfully defined workflow with a fulfilled bid will create a smart contract and will mine the native tokens proportional to the computational work expended when executing the workflow.

So if the spot price of the NuNet utility token is based on the computing power and usage of the network, how are prices stable?

External Tokenomics

To create stability for the spot price of the NuNet utility token, the network employs multiple strategies.

First of all, the network will provide a composite computing price index, which will be available to all participants in real-time via a native API. This index will serve as a global benchmark and a dynamic 'bonding curve' (a mathematical concept used to describe the relationship of the price and supply of an asset) for NuNet computational pricing relative to the external market.

Secondly, the spot price will depend on supply and demand dynamics of computing resources and could vary depending on circumstances.

  • When demand for computing exceeds supply, the price of computing within the NuNet network will exceed the global average, as measure by the index, and incentivize people to add more computational power to take advantage of the price.
  • The index will provide simple transaction pricing that is easy to compare.
  • This gives the network the opportunity for DeFi instruments such as futures trading, staking, and other hedging strategies to help balance token value with network growth.
  • The dynamic pricing discussed in the internal tokenomics will help mediate computing boom and busts.

Supply and demand will be adaptive based on the amount and power of computing on the network. The mining rate will then need to be dynamically adjusted and will take into account global computing price via endpoints to create an index and will that will follow an algorithm to adjust periodically. This structure is architected to facilitate stable growth of the network via balancing supply-side incentives, token inflation and paying demand for decentralized computing resources.


Our Analysis

The NuNet protocol has massive goals and the perfect team and partnerships to back it. The entrance into the Web 3 world where the sprouting data economy will flourish will be led by protocols like this, that prioritize interoperability and have the right business approach/strategy to not only capture the value Web2 installments have, but to build out a framework to operate seamlessly, trustlessly, and dynamically within the decentralized and distributed computing economy.

I personally think with the partnership with DAIA, and the team of SingularityNET backing NuNet, the project will do incredibly well.

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