Blockchain reaches data centers with Eggs DC and Emercoin

As a Chinese saying goes, an overcrowded farm produces fewer eggs. It comes in handy when you think about data centers. The more “chicken” use the same server, the more vulnerable each of them is. Alas, increasing the density at the expense of security has become a sad norm in the data center industry.

Dangers of putting all eggs in one basket, as demonstrated by Nintendo back in 1981

But the Eggs Datacenter project, presented on September 21st at the Moscow Crypto Bazar, is going to change the status quo — with the help of Emercoin technologies.

Eggs DC is a distributed data center that:

  • Needs no physical security systems, high fences, or angry dogs,
  • Discards the antiquated tier-based standards, and
  • Avoids ridiculous user per host densities

— while featuring a hybrid business model.

In its essence, Eggs DC is a peer-to-peer network of Mini-ITX servers hosted by small and medium businesses, who in return get cheap Internet from ISPs at rates 30–50% lower than the market. Each server has a 6-core Xeon CPU with ECC support, an Nvidia GeForce or Radeon GTX GPU, 16–32 GB of RAM, and a 1TB SSD. As a result, the mean TDP does not exceed 600 W. The distributed data center also acts as an MVNO operator and thus controls the network stack at Layer 3, carefully filtering and sieving the traffic. Upstream providers are various ISPs, who benefit from increased utilization of their fiber-optic networks. The hypervisor is an open-source XenServer 7.2 (Xen 4.0) powered by CloudStack.

Blockchain is both a database for storing information and a guarantor of its immutability. Emercoin’s innovation was to use the blockchain as a storage of any important information in the form of name-value pairs. This name-value storage (NVS) allows Emercoin to store SSH keys, SSL certificates, and DNS records locally, without having to rely on any central node. Thus, Emercoin-based projects are decentralized and secure at the same time.

The distributed data center provides remote workspaces for small and medium businesses, freelancers, designers, miners, and neural network researchers.

The hybrid business model helps reduce service costs, transmission latencies, and data theft risks, as all hosts are placed locally and the mean density does not exceed 6 users per host. The hosts have an antivirus installed and use FDE encryption to physically protect the hard drive in case of a theft or physical hacking. As for the blockchain, the server uses it to store SSH keys and SSL certificates locally, avoiding man-in-the-middle attacks and DNS poisoning.

Most users of the data center are small businesses from Moscow, Saint Petersburg, and other large Russian cities, while most hosters are major retail networks.

Distributed financing

The project is now crowdfunding the resources it needs to expand, install new servers, and re-connect the hosters to the Internet. To do this, it will release Ethereum/ERC20-based EGS tokens, which it will later use as cashbacks for the data center services. Eggs DC will pay 10% of each purchase in tokens, and users will be able to use them to pay for the Internet — whether you are a small business or a home user. The developers plan to use 13,320,000 tokens out of the total 30 mln for cashbacks.

How to take part in the pre-ICO

Eggs DC will use Emercoin for its Pre-ICO as it is the most suitable for running KYC/AML-compatible crowdfunding campaigns.

To buy an EGS token with a 20–50% discount, early investors have to apply via the Eggs Datacenter website. They will receive a unique ID and a list of wallets in 7 basic currencies: USD, BTC, ETH/ETC, EMC, and so on.

After a cryptocurrency-enabled transaction is confirmed in three blocks, the platform creates a DPO record in the Emercoin blockchain indicating the number of tokens purchased, e.g., like this: “dpo: EggsDC: SN100”.

Investors will be able to check their record right in the Emer blockchain or from any Emercoin wallet. By the time of the ICO, EGS tokens will be switched to Ethereum, and all pre-ICO participants will get payment links via email.

You can get in touch with the Eggs team in their Telegram chat.