UNET ICO

Abstract
The internet is constantly evolving. Twenty years ago, only large enterprises owned big
data centres and startups needed to invest large sums into their own servers. If they became
successful, they had a very short time to increase their capacity by investing even more in
infrastructure. Times were quite difficult for innovation.
Today there are multiple cloud providers which allow startups and large organizations to
rent “servers,” or rather computing capacity, on a per-second basis and to drop unnecessary
capacity in a few clicks. However, cloud providers are dominated by a few large players.
There is a risk of the whole server hosting market being consumed and dominated by them.
This will inevitably lead to lowered competition, price increases and dangerous
centralization of power in the hands of a few.
We present a solution which will help individuals, hosting providers, companies owning
unutilized datacenters and “ex-cryptocurrency-miners” to get worldwide reach within
...

Contents
Abstract ......................................................................................................................... 2
1. Introduction............................................................................................................ 5
1.1. Why is the cloud ready for major disruption?................................................. 5
1.2. Cloud ............................................................................................................ 5
1.3. Cryptocurrency Payments .............................................................................. 6
1.4. Decentralized blockchain apps....................................................................... 7
1.5. Note on decentralization ................................................................................ 8
2. Enter the Unchainet platform .................................................................................. 8
2.1. Unchainet for Providers .....................................................................

4.1.1. Quality parameters .................................................................................. 22
4.1.2. Quality rating process.............................................................................. 23
4.1.3. Participant and Voter lists........................................................................ 23
4.2. Main “UNET” chain .................................................................................... 24
4.2.1. Consensus algorithm - Proof of Beneficial Work ..................................... 25
4.2.2. How does Proof of beneficial work stand to avoid Sybil attacks? ............. 26
4.3. Computing Rental Blockchain App.............................................................. 26
4.4. General Blockchain Apps (decentralized apps, dApps)................................. 27
4.4.1. Example blockchain apps: Comparing Ethereum and Unchainet platform 28
4.5. Development phases .................................................................................... 30
4.5.1. First...

1. Introduction
1.1. Why is the cloud ready for a major disruption?
In 2006 Amazon Web Services started with then new business model of public cloud. With
the promise to convert high capital expenditure of businesses investing in private data
centres into operational expenditure, it was a revolutionary concept. Businesses simply
didn’t have to invest tens of thousands of dollars upfront into an infrastructure with a high
risk of losing the investment. Instead, they could run their workloads for a fraction of the
cost on an hourly basis. It was truly a remarkable shift enabling innovation. Shortly after
that Microsoft, Google, IBM and other large players entered the field and started to lure
small and large businesses into their platform.
However, in 2018 we see the original promises of lower costs not becoming true anymore.
Cloud companies are bringing large profits and companies which were originally bullish
on the cloud transformation are pulling back as they realize it is no longer profitable....

service and pricing based on their needs and allows Unchainet to serve even mission-
critical workloads on the high-quality nodes.
Clients can purchase computing resources in the same way they are familiar with on current
cloud platforms. Unchainet MVP will focus on spot instance pricing (or pre-emptible VMs)
which is an auction-based platform where clients bid to use resources and can use them
until higher bidder comes in. In later phases, we will introduce guaranteed per-minute
pricing and long-term bookings.
The optimal use cases for bidding platform and lower quality nodes are workloads
involving large-scale computations with frequent state commits. These tasks don’t suffer
from sudden shutdowns as clients design their computations to save progress frequently.
Example tasks are research computations, deep neural network training or 3D and video
rendering.
Higher quality tasks are standard longer-term resource allocations where high availability,
durability, and security are important. ...

●
Capacity – currently, bitcoin can only handle 3-4 transactions per second.
Compared to Visa which makes up to 24000 transactions per second
7
, there is a lot
of room for improvement
●
Energy cost - in the early bitcoin days it was possible to run bitcoin software on
personal computers. Today, to process the aforementioned 3-4 transactions per
second, the bitcoin network requires large specialized computer farms which
consume as much energy as a small country
8
●
Decentralization – the original idea of bitcoin as a decentralized currency is now
endangered by large mining pools who have power over bitcoin decisions and can
sabotage the future development of the network as a whole
9
While we love the original idea of bitcoin being a decentralized payment platform, there
are clearly too many shortcomings to make it viable as an everyday transaction platform.
Unchainet addresses these issues in the following way:
•
Transac...

platform and enjoy high transaction speed as well as they can choose a storage mechanism,
consensus algorithm or usage of any programming language.
Ethereum, Neo, and Golem have similar goals - to create a worldwide computer capable of
being a platform for decentralized apps. From our perspective, all of them share a large
disadvantage. They are creating new, untested technologies for problems that have already
been solved like storage, networking, and computing resource allocation. We believe the
best alternative is to use existing, proven open-source technologies (like OpenStack and
Kubernetes) and modify them to intersect with the blockchain only where payments,
identities (personal data), and voting is involved.
1.5. Note on decentralization
Unchainet provides software for cloud and hosting providers which allows them to
participate in the verified network and rent their computing/storage/network capacity to
Unchainet clients. Small amounts of provider capacity are set aside and used to power t...

2.1. Unchainet for Providers
Compute providers install the Unchainet platform on their hardware. Installation is
recommended on bare-metal, but the platform can be installed on virtual machines in
existing environments.
The platform allows providers to allocate all or partial resources to be available to the
network.
When initial setup and allocation is completed, providers receive a unique ID on the
network and start collecting reputation (quality score). Reputation is determined by
constant checks from peer nodes. They monitor availability, network throughput, latency,
and also ask for various checksums and puzzle solving to verify that the software running
on the node is genuine and not tampered with.
When a node consistently delivers good quality, it’s selected into a closed pool of approved
nodes which can be elected to propose and verify transactions on the network. Higher
quality and presence in the blockchain network gives better returns to providers so they are
motivated to...