Imagine if the data center monopolies of Amazon and Microsoft could be broken down, decentralized, and owned by a community. The DePIN project we'll be covering today has the potential to transform how we use compute power.
Fluence is a "a decentralized and open computing platform that offers enterprise grade, low cost and resilient compute." You can think of it as a high-performance, decentralized version of AWS or Azure.
By rewarding participants in FLT tokens, Fluence is able to aggregate CPU resources from premier data centers around the world into a resilient, always-on DePIN platform. This enables companies to go "cloudless," reducing lock-in and enhancing flexibility.
Verifiable Off-Chain Compute
Similar to centralized cloud platforms like AWS, Fluence hosts applications off-chain, but enforces cryptographic proofs to verify correct execution by providers.
Developers can switch between providers dynamically, avoiding vendor lock-in and reducing costs. This is especially useful for applications that require flexibility across providers.
Staking
Fluence uses FLT tokens for staking to secure compute resources and jobs. Any token holder can stake, and liquid staking providers like Parasail support smaller stakers.
It relies on cryptographic proofs of execution to ensure providers serve applications correctly. Failure to submit proofs results in the slashing of staked tokens.
FLT Token
Fluence uses a two token model:
FLT for rewards, staking and governance.
The payment tokens - USDC or potentially any ERC-20, used by developers and customers to pay the compute providers.
The Fluence token (FLT) was minted on Ethereum, and can be purchased on a DEX like Uniswap.
DePINed Podcast
Fluence co-founder Tom Trowbridge hosts a thought-provoking podcast called "DePINed" in which he interviews, in video format, the founders of other various DePIN projects.
The show offers some great insights into DePIN use-cases and how founders are applying token incentives to crowdsource infrastructure for decentralized energy, telecom, compute, storage and mapping networks.
Until next time...
Fluence is a decentralized compute platform that uses FLT tokens to secure and incentivize a flexible network. By enabling provider switching and cryptographic proofs, it offers a scalable, Web3 alternative to traditional cloud infrastructure.
If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.
Further Reading
- Three Emerging DePIN Projects On The Polygon Blockchain
- Three Up-And-Coming DePIN Projects On The Solana Blockchain
- Three Promising DePIN Projects In The Cardano Ecosystem