CESS research report: DePin infrastructure is expected to become a hot topic

Author: Eric SJ, independent researcher Source: X, @SJ95E

This year's DePin narrative has once again attracted market attention to the storage sector. I actually suspected that this was a new cycle trick of FIL Gouzhuang, but the SOL series of DePin has taken off, and the storage concept has become the high-definition concept of the DePin track.

Outline of this thread:

1. CESS’s business model and multi-chain framework

2. Analysis of R²S consensus mechanism

3. Token Economic Analysis 

4.Depin&Extended Scale and Viewpoints of the Decentralized Storage Track

Read the full text with one picture:

CESS business model and multi-chain framework

The business model of decentralized storage is actually very simple to understand: that is, one party provides storage space and the other party uses storage space. This is the model that leading companies including FIL are doing.

Putting it into CESS means that the storage node uses CESS to provide storage space to the demand side, and CESS provides reduction to the node; and the demand side pays CESS requests storage space, which is the basic economic closed loop.

On this track, it is just that the implementation differences on different paths at the two ends constitute the characteristics of each project, such as setting penalties for nodes. Mechanism to ensure the integrity of node-dimensional data while using various technologies and isolation methods to provide higher privacy for user data.

Of course, CESS also has these methods. In addition, it should be mentioned that thanks to the Substrate framework, CESS also supports multi-chain scenarios, which is the relay model shown in the figure below. The multi-chain architecture design provides enough rich scenarios for the on-chain ecology and brings more native demands for its own data storage. I think this is more distinctive and competitive than other similar types of infrastructure.

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R²S consensus mechanism solution

Because in addition to providing storage functions, CESS is also A Layer1, so the nodes in the network also have different roles. I will briefly divide them based on the architecture: those that provide storage space and those that maintain chain consensus (not just two meanings)

I would like to focus on the consensus node and consensus mechanism: to become a consensus node, you must first pledge, but pledging alone is not enough. CESS has designed a mechanism called reputation rotation consensus.

Simply put, in a verification phase, 11 nodes are selected through the built-in credit system to complete the basic work of the consensus chain and other chains. The composition of the credit system 80% of the factors can be simply understood as the proof of work in the CESS network, and then add 20% of random numbers to make this credit ranking system rotate.

Token Economic Analysis

The blue part is the part that can only be controlled by the project. The red part is the controllable part of the community, and the orange part is the proportion of investors.

It can be seen from the token composition in the chart that more than half of the parts are divided into nodes, and they themselves have the effect of production reduction once every four years. In addition to these, the portion reserved by the project party or early contributors themselves is not large, and large amounts are designed to be locked.

The institutional proportion is only 10%. It is a project that emphasizes node scale effect. On this basis, I attach two links. This is why I think it is different from The attributes of FIL are quite similar.

-Node/miner hardware configuration and construction tutorial: https://docs.cess .cloud/core/storage-miner/running…

-CESS cloud computing power subscription participation method: https://cess.cloud/daocm/

Viewpoint extension

The current composition of the DePin track is still relatively chaotic. There are not enough phenomenal and deterministic things in the new projects. Continuing the old logic, the storage sector still accounts for 70% of the current [DePin] track. The above share, and in the storage sector, the leader FIL also holds a 25% share.

At present, in addition to several popular or market-focused projects launched by Solana, Depin has the highest certainty in the decentralized storage track. Between odds/certainty, some people choose odds and some choose certainty, but choosing high odds in the deterministic track is a more comprehensive direction of fund selection. This is what I think CESS is likely to do in the new cycle. Reasons that will lead.

PS: In this year's Polkadot series, Manta breaks out with the help of modular + L2 Rpllup, while CESS rides on the Depin craze and is expected to once again set off the sector narrative.