What if this scenario Arrives ?

in cryptocurrency •  7 years ago 

In this fictional example, Nicolas, a user of standard sophistication who has experience storing data in the cloud, is searching for a decentralized cloud storage provider in 2021. He is deciding between the Sia protocol and the fictional Decentralized Amazon Web Services (DAWS) protocol, Amazon’s “fork” of Sia.

Instinctively, Nicolas compares cloud storage prices between both protocols. DAWS costs around $0.75 per TB per month, and Sia costs around $1 per TB per month. DAWS is fractionally cheaper. Unbeknownst to the public, Amazon has elected to run DAWS at a loss, supplementing this strategic decision to maintain the lowest price with revenue from its other lines of business. Sia, on the other hand, charges slightly higher rates. Even though the protocol is operating “at cost,” network fees to maintain the protocol are higher than those of DAWS. Sia can’t run their protocol at a loss because they aren’t a conglomerate and have no other supplemental business units.

To Nicolas, decentralized AWS seems like a “better” option, because it comes with additional AWS features and functionality that he is already familiar with.

Nicolas already knows AWS, and has been an Amazon Prime customer for a few years. He is aware of the late-2016 AWS Uber hack, but Amazon has assured the public that they are taking all precautions necessary to secure data. Besides, DAWS offers cryptographically encrypted, decentralized cloud storage. Nicolas’s data isn’t being held by Amazon, but by a third party. The DAWS protocol is just facilitating an Airbnb-style open market for data.

Nicolas spends equal time exploring Sia’s website, but doesn’t see an order of magnitude better (around 10x better) value proposition. He decides to use the DAWS protocol.

Wouldn't this be the Scenario in few years ?

Original Link - https://bitcoinmagazine.com/articles/op-ed-potentially-fatal-flaw-open-source-blockchain-protocols/

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