TICKER: CUDOS
WEB PAGE: www.cudos.org
WHITEPAPER: https://www.cudos.org/wp-content/uploads/sites/17/2020/10/CUDOS-WHITE-PAPER-V.3.pdf
FIELD OF INTEREST: Cloud Computing
GOAL:
Cudo’s goal is twofold: to provide a secure, Turing-complete layer 2 to blockchains through the CUDOS network, and to provide a cost-effective, low-latency alternative to the main cloud providers, by tapping into the computing power of data centres, mining farms and the millions of underutilised PC’s, laptops and gaming consoles. By sharing part of its underlying technology with the CUDOS network, Cudo’s cloud computing can effectively be understood as blockchain’s layer 3, enabling any kind of workload to be requested from the blockchain and run in a decentralised way using SEV-secured hardware.
PROJECT OVERVIEW:
Cudo is a scalable computing network for both blockchains and consumers of cloud services. It connects blockchain developers and buyers of cloud services (consumers) with sellers (suppliers), who can monetise their idle computing resources. Cudo’s platform takes just a few clicks to install, after which the software immediately begins generating revenue. Cudo automatically and continuously generates passive income from anyone’s hardware, utilising spare computing power and providing instant ROI. Blockchain developers have access to compute oracles, and enterprises can obtain computation on demand that is cheaper and more flexible than that offered by the leading cloud providers. This creates a competitive compute marketplace that offers benefits to consumers and providers.
The team behind Cudo Ventures, headed by CEO Matt Hawkins, has over 16 years’ experience in cloud computing having built C4L, a cloud service provider that supported 1% of the UK’s internet infrastructure, with tens of millions of daily users on its infrastructure across Europe and the US. As a result, the team has consolidated an extensive network of industry contacts, including several enterprises and service providers that will become early Cudo compute consumers.
CHAIN /TOKEN TYPE: Ethereum ERC-20
CONSENSUS MECHANISM: Proof of Stake (POS)
PRODUCTS:
Cudo provides scalable compute solutions, and has identified two very clear opportunities: to provide secure layer 2 computing capabilities to blockchains, and to improve the offerings on cloud services. However, joining the dots Cudo has envisioned a step further: connecting the two, providing for the first time a novel layer 3 to blockchain networks, in order to allow them to run any kind of compute jobs, by seamlessly integrating its cloud solution to the blockchain one.
The CUDOS network provides a layer 2 to various blockchains, in order to solve the current scalability issues. The CUDOS network comprises a set of smart contracts that act as compute oracles, connecting blockchains to secure external sources in a decentralised way. By allowing smart contracts to request off-chain computation, CUDOS offers a Turing-complete solution which can run code in any language, such as Python, Go or C++.
The connection to the outside world is done via the CUDOS Validator Nodes (CVNs), which are one of the main pillars of the CUDOS network. Blockchain developers are able to choose through the CUDOS smart contracts the level of decentralisation that they want, by selecting how many CVNs should receive and run the desired code. This gives the power and freedom to developers to choose and select the most appropriate settings and configuration for each job.
Once each CVN has run the job, they all share the result and run the validation and consensus piece. Consensus in the CUDOS network can run either on-chain or off-chain, to further reduce the network’s transaction costs, at the will of the developer requesting the work. This system gives the control back to developers, not only allowing them to choose the level of decentralisation they want, but also controlling the cost for the overall request.
CVNs are the backbone of the CUDOS network. Initially, the CUDOS network will support a maximum of 100 service providers, with a maximum number of 1,000 CVNs. Each node needs to stake 2,000,000 CUDOS to become a CVN. The first batch of validators has hardware boxes validated by Cudo and in order to ensure that the specs allow all the intended work to run smoothly, and get rewarded accordingly. These work and rewards include:
• 24x7 revenue provided from the layer 3 cloud side (see section 3.2)
• Revenue from completed blockchain compute jobs through the CUDOS network
• Staking rewards for the contribution to the network
• Discounts on the fees paid
Another benefit from the CUDOS network is that, on top of the security added by its decentralised nature, all CVN’s will have hardware with encryption capabilities, adding an extra layer of security to the workloads for all sides.
CUDO Miner (https://www.cudominer.com) and CUDO Gamer (https://www.cudogamer.com/)
Cudo Gamer is a B2B application that integrates with any platform and provides instant monetisation of users’ hardware. Using spare or idle computing power for blockchain and cloud computations, the funds generated are automatically added to users’ accounts on our partners platform, enhancing their ecosystem and adding value to users. Users simply have to download the safe and secure Cudo Gamer application, log in to their accounts, and the application will do the rest.
PC Gamers have access to powerful GPUs, which they tend to use about 20% of the time for gaming — 80% of the time, a Gamers GPU is idle. Gamers earn an extra $5-$40 a month.
TOKEN OVERVIEW:
Cudo is introducing its own ERC-20 token, CUDOS, which powers the blockchain part of the network and allows all participants to stake and earn rewards and discounts. The token utility includes:
• Staking 2 million to become a CUDOS Validator Node (CVN) and get rewards
• Delegated staking to support CVNs
• MoE powering the CUDOS network
• Staking to qualify for receiving general compute jobs
• Staking to obtain a discount on the fees
CVN’s hardware is initially validated by Cudo, to ensure the extra layer of security provided by AMD’s SEV is available. Furthermore, all CVNs earn 24x7 revenue from various sources, in addition to the rewards obtained by facilitating the functionality of the network.
Cudo has put a lot of effort into the tokenomics and the token model, and has been advised by some of the industry’s leading token economists, including Michal Bacia, AmaZix and Outlier Ventures. As such, the token has been designed to reflect the success of the platform, and to incentivise a healthy ecosystem bringing together token holders, platform participants and the Cudo team. We refer to our whitepaper and to our technical paper for a complete description of the model.
TOKEN UTILITY:
The (CUDOS) token is a qualification, discount and staking token. It is used to transact and stake in the CUDOS network and as a discount token to transfer part of the value generated on the Cudo network to users who stake CUDOS. CUDOS can also be kept, shared or donated to charity.
In the CUDOS network, the key functions of the token are:
1, Staking 2,000,000 CUDOS to become a CUDOS Validator Node and get rewards
2, Delegated staking to support other CVNs
3, MoE powering the on-chain CUDOS network
4, Staking for discounts
In the Cudo ecosystem, the token can be used for:
1. Staking to receive a discount in fees or share the revenue from fees
2. Staking to qualify for jobs and earn greater revenue
USECASES:
EXISTING CUSTOMERS AND USERS:
Cudo is already generating revenue with users in over 145 countries. This network, comprising of tens of thousands of blockchainers, gamers and service providers, will become early providers to cloud consumers globally. The CUDOS network links the blockchain world to the extensive Cudo platform through a smart contract governed layer 2 oracle, reducing the cost and increasing the performance for DeFi and other popular blockchain use cases.
COMPETITORS:
iExec [$87M valuation]:
A multifaceted project that centres around blockchain-based decentralised cloud computing. iExec is building a P2P marketplace for computing resources, integrates dApps and has a strong team, many of whom are greatly respected in the fields of grid computing and blockchain. iExec is a member of the OpenFog Consortium which includes ARM, Cisco, Dell, Intel, Microsoft, and Princeton University.
While its RLC token was initially used for payments only, it also has staking utilities now. However, pricing and payments in the platform are still done in RLC, creating inherent price volatility, and the install and set up process requires technical expertise.
iExec has partnered with Intel and IBM for job security, but the platform has not yet been widely adopted by the community. The main challenges the project faces are:
1. Mass user adoption (both from the supply and demand sides).
2. No announced strategic partnerships to increase user base.
3. Pricing and payments are volatile due to their nature.
4. Decentralisation from the start slows down user adaptation and tech delivery.
Cudo has studied the project carefully and developed a strategy which avoids the aforementioned challenges, by:
1. Having an initial user base of over 20,000 monthly active users.
2. Actively seeking partnerships and signing deals to ensure demand and supply customers.
3. Pricing jobs in fiat currency to ensure price predictability and stability.
4. Keeping some centralised components at the start built for easy decentralisation.
Golem [$165M]:
Golem is a generalized distributed compute platform that focuses on developer experience. Originally developed with an initial focus on CGI rendering, Golem released Brass Golem version 0.22 on January 14 2020, considerably behind the original roadmap. After that, the company decided to depart from the original whitepaper idea, and have started working on a new version of the platform.
DFINITY [$9,5B]:
DFINITY describes itself as “a new blockchain computer that is similar in concept to Ethereum but has vastly improved performance and, ultimately, unlimited capacity.” DFINITY is a not for profit organisation, and thus is not a market competitor for Cudo.
Following a long-term research project approach, DFINITY launched in 2019 Mokoto, a programming language to be used in their internet computer technology. However, as of the time of writing no sample code is available for the general public.
Filecoin [$1,3B]:
Filecoin offers a distributed storage solution, allowing users to share and use spare storage. It is currently in testnet, and at the end of September 2020 started its phased approach to launching mainnet.
Filecoin focuses only on distributed storage, and thus it is not a direct competitor for Cudo. Cudo is expecting to launch similar decentralised storage services further down the road (please see section 8 for the roadmap), once the main compute platform is up.
Comparison with other decentralised cloud computing [undiluted market cap]
Blockstack [$220M] — a full-stack decentralized computing network that enables a new generation of applications where developers and users can interact fairly and securely. Blockstack uses blockchain technology to build protocols and developer tools designed to enable a fair and open Internet that returns digital rights to developers and consumers.
ThreeFold [$146M] — mining based Peer-to-Peer (P2P) decentralised internet. ThreeFold is an open-source project and has three main layers: the application layer, the autonomous layer and the capacity layer. TFT tokens represents a unit of reservation of capacity (compute or storage) on the ThreeFold Grid while TFT is a fully community-mined (farmed) token.
*Secret Network (Enigma) [$45M] — privacy protocol for decentralized computation of sensitive data with secret contracts feature.
Ankr [$100M] — Ankr Network is building a full-stack cloud infrastructure and marketplace for container-based cloud services. Data center owners can monetize on idle computational resources through the Ankr cloud platform. Ankr is building a seamless node hosting infrastructure, DApp management platform, and node marketplace for full Web3 stack deployment. Powered by Ankr cloud platform.
Cartesi [$43M]- is building an operating system for dApps. The project enables complex and intensive computations to run in a Linux environment, outside the blockchain, without compromising decentralization. Cartesi aims to make dApps significantly more powerful, cost-effective, easier to develop, and portable. It will bridge the gap between the centralized and decentralized worlds of application development.
Trias [$6,2M]- Trias is a Full-stack decentralized a trustworthy cross-cloud infrastructure built by blockchain. Using TEE, through the three layers of MagCarta\Prometh\Leviatom, and the original consensus mechanism HCGraph, Trias is creating a trustworthy Layer “-1” for Blockchains, Clouds and Enterprise Applications.
Render Network [$57M] — RNDR is the first network to transform the power of GPU compute into a decentralized economy of connected 3D assets. RNDR allows anyone with a modern GPU to contribute their rendering power in exchange for tokens, dramatically increasing the scale and availability of GPU compute for artists, designers, and researchers. The RNDR token is powered by breakthrough cloud rendering technology, creating a distributed global network of millions of peer-to-peer GPU devices.
Akash [$81M] — The DeCloud for DeFi and world’s first distributed peer-to-peer (P2P) open cloud computing marketplace.
Holochain [$106M]- a scable and agent-centric computing system and an open source framework for building fully distributed, peer-to-peer applications — dHapps.
TEAM:
Mathew Hawkins — CEO & Founder https://www.linkedin.com/in/mathewhawkins/
Related Article : https://www.cbronline.com/interview/cudo-ventures-five-questions
Matt is a tech entrepreneur, Building and founding C4L in 2000 which was one of the fastest growing ISP’s in the UK & winner of many fast growth awards including Times Tech Track 100, Deloitte UK Top 50, Deloitte EMEA Fast 500 & many more. C4L provided approx 1% of the UK’s internet infrastructure and was one of the largest private networks in the UK including their own data centre & scaled to over 1% of the UK’s internet traversing it. Customers included Government, FTSE 250, Top 100 VARs, ISPs, Resellers & SMB’s. C4L was acquired in 2016 so Matt could start Cudo to make better use of the world’s computing capacity.
Andrew Sturmey — CTO
https://www.linkedin.com/in/andrew-sturmey-118913a/
Andrew has 19 years of industry experience in software development and solutions and is adept at designing lean, highly-supportable and reproducible systems in hosted and server-provider environments. Prior to joining the Cudo team, Andrew was the lead architect at C4L. Andrew’s extensive experience in building platforms that support hundreds of thousands of users and that require the highest levels of uptime and resilience gives him the ability to rationally and logically reason complex problems and to develop solutions.
Andrew Walker — CRO
https://www.linkedin.com/in/andrewwalker67/
Andrew has worked in SaaS since 2001 & co-founded 4 startups, raised Venture Capital, bootstrapped and exited twice. He has experience in building scalable technologies companies, managing product and development teams. His focus is across product and development.
Pete Hill — VP of Sales
https://www.linkedin.com/in/petehillcudo/
With 12 years experience within the cloud industry, Pete built and managed a 150-strong partner channel that included over 30% of the top 100 managed service providers and value added resellers, in the UK. He is again leading strategic partnerships at Cudo Ventures, a highly experienced team of entrepreneurs and developers, driving distributed computing and web 3.0 cloud adoption.
Nuno Pereira — VP of Partnerships
https://www.linkedin.com/in/nuno-pereira-060a86110/
Nuno was Group Sales Director for Foresolutions, responsible for the sales and marketing of the three companies within the group. A telecommunications business, after 13 years with DSD Food Group managing over 100 sales reps. He is experienced in building B2C and B2B relationships and creating strong strategic relations.
Lee Woodham — COO
https://www.linkedin.com/in/woodham/
A strategic leader with a proven track record of driving business growth resulting in increased profit margins and revenue in international multi- faceted organisations. Transforming business through change management, the introduction of innovation and technological support and rigorous corporate governance, in global blue-chip and Private Equity backed start-up organisations.
Christopher Grubb — FD
https://www.linkedin.com/in/christopher-grubb-info/
A Chartered Management Accountant, Chris made a name for himself whilst at the helm of the Finance Function of a Design Consultancy. During his 9 years, he supported the company through 4x growth before culminating in a multimillion-pound exit in 2016. He now supports a number of investor-backed Tech and SaaS companies as their Part Time FD.
Peter Willis — Development Manager
https://www.linkedin.com/in/peter-willis-02716a7/
With over twenty years of experience in web and mobile software development as a Co-Founder and Director of Sycora, Peter is an expert in architecting, designing and developing platforms and services that require access to millions of data points, specialising in software process improvement and software engineering innovation. Peter has a BA (Hons) degree in Computing & Internet Technology from Bournemouth University.
ADVISORS:
PARTNERS/INVESTORS:
3 Investors totalling 4 million pounds; Outlier Ventures, Ascention Ventures, and Burevalley Capital. (https://www.crunchbase.com/organization/cudo-ventures)
TOKEN SALE AND DISTRIBUTION:
Token sale: USD $3,000,000+
Token price for this Token Sale: 1 CUDOS Price
First $1m = USD $0.003 = $30m valuation (12 Months Vesting)
Second $1m = USD $0.0045 = $45m valuation (6 Months Vesting)
Third $1m+ = USD $0.006 = $60m valuation (Public Price)
Tokens available for private and public sale: 722,222,222 CUDOS
Private Sale period:
Sept — Nov 2020 unless fully sold prior.
Planned TGE and EOF Listing Nov 2020, CUDOS will specify the exact date on the website in due course.
7.22% for the Token Generation Event
500,000,000 CUDOS
5% is reserved for the Advisors with 24 months vesting and a 6 month
cliff.
2,000,000,000 CUDOS
20% of the tokens is reserved for the team, with 36 months vesting and
a 6 month cliff. To be released on achieved milestones.
3,377,777,778 CUDOS
33.78% is held in reserve over a 10 year period. This serves as a
liquidity pool, reward staking holders, support the treasury.
3,400,000,000 CUDOS
34% is for the Ecosystem & Community Development to encourage
adoption of the network over a 10-year period. To reward parties that
contribute assets, development, IP and services.
TOTAL TOKEN SUPPLY: 10,000,000,000
TOKEN DISTRIBUTION:
Ecosystem & Community Development: 34%
Team: 20%
Advisors: 5%
Private Sale: 2.22%
Public Sale (Listing): 1.67%
Strategic Investors: 3.33%
Reserve: 33.78%
ROADMAP:
SOCIAL MEDIA:
Telegram: https://t.me/cudostelegram (12,632)
Twitter: https://twitter.com/CUDOS_ (6264)
NOTES/SPECIALS
The CEO, Mat Hawkins had a similar company base in the UK which was sold for 20 million pounds. He has the expertise, knowledge and experience to make a success of this project.
There includes some very exiting partnerships, notably with AMD, Sapphire (graphics cards), Algorand, Outlier Ventures and apparently with Playstation.
There is an existing userbase in 145+ countries with around 150,000 users. It is known that the current userbase was acquired through the purchase of an existing company. *No proof of the revenue and the user base they mention — is it from the mining company?
