Soarchain: Why blockchain and Why token?
Why Blockchain?
The need
Vehicles generate immense amounts of data. It is said that a connected vehicle can generate approximately 2 terabytes of data per day and this data is extremely valuable to countless parties such as nearby vehicles, car manufacturers, their Tier-1s and basically anyone who has something to do with car data. Nevertheless, this data currently cannot be utilized because vehicles lack data collection, processing and communication capabilities. They don’t have these capabilities because the ecosystem as it is right now, lacks a logical paradigm which incentivizes everyone in mobility so that they would deploy and support this technology. Car manufacturers acknowledge the benefits of such a technology but they lack the ability to integrate it to their manufacturing pipeline due to exceptionally long innovation cycles as well as the highly cost-sensitive nature of the industry. End users who are car owners in this case, don’t have access to this technology and as a result they have no control over their data and they have no way of monetizing the data because they lack this easy-to-use and secure data sharing technology in their cars. As a result, the revolutionary potential of this data ecosystem in mobility cannot be realized.
The solution
This ecosystem can only be unlocked by a structure that benefits everyone in it! We are building a mobility-focused Layer 1 blockchain called Soarchain to solve this problem. It is an appchain designed for serving highly-mobile nodes and handling extreme amounts of data. All transactions and interactions happen on-chain. We incentivize the network users through novel cryptographic proof mechanisms that provide useful work and security when executed correctly. Soarchain includes a novel scaling solution based on data availability through verifiable computing designed to verify and utilize the extreme amounts of data generated by participating nodes. A blockchain network offers numerous benefits over a conventional company for a number of reasons mentioned below -
Decentralization — Soarchain as a blockchain provides a decentralized network, which connotes that there is no central entity to control the data of the network rather than it is in the form of dispersed network where multiple nodes or computers that are connected to each other in a peer-to-peer fashion.
In contrast, in a conventional centralized network there is a central point of control that manages the flow of data between all participants. This central point is typically a server or a cluster of servers that are owned and operated by a single entity. These networks have a single point of failure. If a server or database goes down, the entire network can be affected, leading to service disruptions and potentially compromising user data.
Soarchain as a blockchain provides a network that is more resilient to censorship, data breaches, and downtime. This will ensure that the high volume of real-time data generated by the vehicles is shared efficiently and there is no single point of failure.
Security — By utilizing blockchain technology, Soarchain ensures secure and tamper-proof storage of data. This is critical when it comes to personal and sensitive vehicle data. Blockchain uses advanced cryptography, which ensures that only authorized users can access data on the network. Soarchain uses Tendermint (now Comet BFT) consensus module which is the leading BFT (Byzantine Fault Tolerance) engine for building blockchains, making the network trustless.
In web 2.0, networks rely on trust in centralized authorities such as governments, corporations, and other institutions. This trust can be eroded if these authorities are found to be corrupt or compromised, leading to security breaches or data theft.
Soarchain as blockchain provides confidentiality, authenticity, non-repudiation and integrity of the data. This ensures that sensitive information of the user is only accessible to authorized parties, no tampering of information and a trustless experience.
Scalability — Soarchain as a blockchain makes use of Tendermint (now Comet BFT) consensus to validate transactions and maintain the integrity of the network. Algorithms like these can be designed to be highly efficient, allowing for fast and secure transaction processing at scale and by choosing Cosmos Ecosystem, where horizontal scalability is achieved by having multiple parallel application specific chains operated by a common validator set. This makes blockchains more scalable by enabling smart contracts and transaction processing to execute simultaneously.
While conventional network companies have been highly successful in connecting people and facilitating online interactions, they can face scalability challenges due to their centralized architecture and reliance on traditional client-server models.
Soarchain as blockchain provides increased throughput to handle a large volume of transactions, low transaction fees, improved user experience and lower energy consumption. This ensures that there is no network congestion or transaction delays, affordability for users to access and utilize the Soarchain platform, faster load times and quicker transaction confirmations.
Transparency — Soarchain as a blockchain provides a transparent and auditable record of all transactions on the network, which can help to build trust among users as transactions are visible and recorded in a tamper-proof ledger. It provides better accountability as it is easy to trace the flow of funds and verify that transactions have taken place as intended. This makes it much more difficult for bad actors to engage in fraudulent or illegal activities, as they can be held accountable for their actions. It provides better data management by recording all transactions in a transparent and immutable ledger, it is possible to create a comprehensive and accurate record of all data associated with a particular asset or transaction.
Transparency in business builds trust and credibility, leading to stronger relationships and long-term success.
In the case of web 2.0, the network is normally close-sourced which limits transparency as users cannot easily verify how the software is operating or how it is using their data. Large amounts of personal data from users is often collected and stored which can raise concerns about privacy.
Soarchain as blockchain increases trust among the users, accuracy of the data, better community feedback and demonstrates compliance to relevant laws and regulation to ensure that the platform operates in an ethical manner.
Interoperability — Soarchain as a blockchain built on the Cosmos Ecosystem provides interoperability like no other, by using a protocol called IBC (Inter-Blockchain-Communication). IBC can help in entering new markets, services and decentralized applications that are compatible with Soarchain with ease in a secure and scalable way.
In traditional companies, the concept of interoperability is missing. As a result, they have limited flexibility, increased long term costs since they would not be able to share the cost and resources.
Soarchain as a blockchain that uses interoperability benefits from expanded use cases, increased liquidity ( with AMMs/LSDs), Enhanced security as IBC is the most secure bridging protocol, cost effectiveness and improved scalability because of the horizontal chain architecture.
Data Handling — Soarchain as a blockchain handles data in such a way that it can only be accessed by the drivers themselves and whomever they would like to share. The checks on the validity and authenticity is not made through personal identifiable information. It uses ZK proofs to make sure the data is valid and checked while keeping it private. Soarchain does not have access to any of the unencrypted data, it merely provides a platform that incentivizes people for vehicle connectivity, computational and data resources available, so that users would deploy and use this technology on their vehicles.
On the flip side, conventional companies may silo the data, classify it and sell it without the consent and knowledge of the users. They leverage the data for monopoly which can have many adverse consequences like data breaches, exploitations, lack of control and other kinds of social engineering and manipulations. Moreover, these companies use the storage and bandwidth resources very inefficiently, by hoarding the data that may not be relevant or needed at a particular moment.
Soarchain as a blockchain provides increased privacy to the users and provides greater control of their personal information. This can help to foster trust between the users and the service providers and promote more collaborative and productive data sharing practices.
Why Token?
A token model is a type of business model that uses blockchain-based tokens as a means of generating revenue, incentivizing users, and building a decentralized ecosystem. Tokens are digital assets that can represent a variety of things, including digital currency, a unit of measurement, or a digital representation of an asset.
Soarchain chooses a token model rather than a subscription model and introduces $MOTUS as its token. The benefits of token model can be seen below-
Incentivization — Soarchain with a token model incentivizes the users for their availability. Soarchain utilizes various challenge mechanisms to reward the users with $MOTUS native tokens. A challenge is simply a request to receive data to be verified from a node which claims to have generated that specific data. Multiple types of challenges exist within the network to ensure the correct and honest operation of nodes which results in fair and timely distribution of rewards. Moreover, staking of tokens is encouraged to secure the network and in return stakers are compensated with tokens as reward. These rewards are available from the inflation of the token.
In comparison, the subscription model does not give any incentive back to the user other than the services it provides.
Demand and Utility — In a token model, the value of tokens is determined by the market and may fluctuate based on supply and demand. The value of a token is tied to the success and adoption of the platform. The $MOTUS token serves as the primary means of access to the rich ecosystem of mobility-related applications and services, creating consistent demand for the token. As more users, developers, OEMs, and other stakeholders participate in the ecosystem, the demand for the token will naturally grow. Additionally, token usage in services such as insurance, vehicle maintenance, energy road safety, and more will further drive demand. The diverse range of users, including non-crypto individuals, will further contribute to the growing demand for the token.
On the other hand, in a subscription model, the price is typically set by the platform and is not subject to market fluctuations. Subscription models generate revenue through recurring subscription fees, which can be limited by user churn and price sensitivity. This can limit the revenue potential for the platform
Governance — $MOTUS can be used to facilitate decentralized on-chain governance of the Cosmos Network by staking the tokens, allowing users to participate in decision-making processes and help shape the direction of the project. These benefits can create a sense of community and engagement among token holders as well as form a decentralized and distributed system.
Whereas, in a subscription model, users typically do not have this additional use-case and can only provide access to the platform’s features and services. This can limit the ability of the platform to build a sense of community.
On-chain Governance — One of the most useful features of the token model that really defines the direction of Soarchain.
Network Effects — The value of the $MOTUS token is directly correlated to the growth of the ecosystem. As more participants join and contribute data to the network, the overall value of the network increases, following Metcalfe’s Law. This creates a positive feedback loop combined with a growing application base, where increased value attracts more participants, leading to further growth and value capture for the token. This will have potential for long-term revenue growth as the project becomes successful and the value of tokens increases over time.
Subscription model can be effective in the short term, but it may be challenging to sustain in the long term due to limited revenue diversity, reduced customer lifetime value, difficulty in attracting new users, limited ability to monetize user data and difficulty in adapting to market changes.
Overall, Soarchain as a blockchain and token model can provide a number of benefits over a conventional company with a subscription model. These benefits can help to create a more equitable, democratic, and sustainable digital future, and empower users to take control of their own data and computational resources.
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