Trias Token Economics — An economic analysis of SaaS and DSaaS
WRITTEN BY JACK
Trias: Why did we propose the concept Dsaas?
So far, Blockchain and digital currency have been looking for a direction in which they can expand in future. At the present stage, the areas they have explored include payment, dapp and defi. Trias has always been exploring the technological innovation of blockchain from its very beginning till now. The core value of the Trias economic entity is based on the actual entity application and implementation. The increase of the economic value output depends on the efficiency increase and cost reduction of real industries.As the labor cost goes up, enterprises will pay more attention to their operation and become more willing to pay for the services they need,and the enterprise-level services tend to have more development potential in the traditional economy. Combining the automatic execution of smart contracts, the security, irreversibility and traceability of the blockchain technology have made more enterprise-level services possible. Therefore, the economic entity of Trias has proposed a new concept: decentralized SaaS (DSaaS), i.e. the combination of SaaS with the decentralized technology of blockchain.
Challenges and opportunities of SaaS in the traditional economy:
In the past ten years, China has achieved rapid development and, driven by the overall economic environment, China’s large, medium and small enterprises have all achieved growth in quality and quantity.However,the enterprises are now experiencing severe production management and cost efficiency tests in the stage of growth from scratch. In the past, the SaaS acceptance degree of Chinese enterprises was not high, most of the enterprises relied on human power in their management, which resulted in complex enterprise management and corporate inefficiency. The overall financing of Chinese enterprises is close to that of American enterprises. However, the enterprise service financing amount percentages of the two countries are quite different. The American percentage is 70% and the Chinese percentage is 12%. Because the objects of the enterprises providing products for companies are enterprises, not individuals, it should be made clear that what on earth the enterprises providing products for companies need to do. The most fundamental difficulty in the SaaS development is whether the SaaS can conform to the corporate management ideas and the scenario design. However, these difficulties and challenges are gradually becoming future opportunities. If we think that the development of most enterprises depended on their luck to seize their market shares in the past ten years, then we believe that their future growths will dependon their standardized enterprise management and expansion and the opportunities of SaaS and DSaaS of Trias will gradually appear.
IaaS and SaaS in economics:
Cloud computing is defined to be internet-based computing technology, where the term ‘cloud’ simply means internet. Cloud computing refers to services that are accessed directly over the internet. There are essentially three categories of cloud computing: 1. IaaS (Infrastructure as a Service), which is number crunching, data storage, computer and management services. 2. SaaS (Software as a Service), which is web-based applications. 3. PaaS (Platform as a Service), which is essentially an operating system in the cloud. Despite the major changes in technology in IaaS services, estimates indicate that more than 90% of the could computing market in terms of revenues involve operating systems and applications software services.
The first category IaaS generated sales of approximately $8 billion in 2018. This category provides data storage, data management, and manipulation of large databases. Amazon is the dominant firm in this sector, with a market share of 80%. The second category SaaS and the third category PaaS together generated revenues of $60 billion in 2018. SaaS and PaaS are essentially part of the same market. The dominant firms- Microsoft and Google with operating systems in this market provide most of the important in-house applications available such as Microsoft Office and Google Docs.
The revenue of the PaaS/SaaS market grew extraordinarily over the past decade and are expected to grow faster with the wide adoption of software across the world. However, the revenue of the IaaS market only experienced normal growth and are expected to maintain at the current level with small growth in the near future. From economics standpoint, this is in large part due to the fact that the cost of computer hardware will continue to drop. Like the laptop market, the IaaS market is characterized by relatively homogenous goods, so it is likely that it subjects to intense price competition and low profitability. In contrast, in the SaaS market, the products are potentially quite heterogeneous, and we expect greater consumer experience and consumer loyalty.
While the technical innovations have enabled low-cost, large-scale data storage and data management in remote servers, IaaS make up less than 15% of the cloud computing market. More than 85% of the cloud computing market in terms of revenues involve virtual operating system and applications software services, ie SaaS and PaaS.
Why is DSaaS of Trias better than Saas?
There are some important economic aspects of cloud computing that affect the operation and competition in SaaS market. The two economic aspects that have the most profound implications for the development of cloud computing are:1) Economic network effects. 2) The organizational model that emerges. 3) Compatibility and standards. 4) Cyber Security.The Trias network has improved and optimized the four aspects by combining the TEE with the blockchain technology.
1) Network effect
Trias has been built based on the decentralized network. It can involve a wide range of people. It can be smoothly switched from one application to another, andits compatibility is excellent. Since application software programs are typically compatible with a specific operating system, network effects played a major role in determining the type of market equilibrium. In particular there were very strong network effects in operating systems in on premise markets: consumers preferred to use operating systems that were readily available on many computers (direct network effect) and also an operating system that offered a large variety of application software (indirect network effect), while software developers preferred to develop software for operating system with many users. These effects often led to a setting where a single firm won the battle among standards.
2) The organizational model that emerges
Currently, the two main platform owners (Microsoft and Google) supply the critical complementary software (email service, office productivity suites) for their platforms in order to attract consumers. Different pricing models may be employed as well. In the cloud, users may rent ‘cloud’ software, rather than purchase it. The monopolistic market has caused software to fail to fully meet the demands and software prices to become a little too high. Driven by the decentralized system and consensus, Trias meets the requirements of high-quality experiences, it is compatible with different platforms and its prices are quite competitive.
3) Compatibility and standards
An additional key issue involves compatibility, in particular whether it is feasible for entrants to achieve one-way compatibility with an established standard. (One-way compatibility means that the software written for the incumbent technology can be used on the entrant’s technology.) With the network advantage enjoyed by the incumbents, entry may not be possible without compatibility with one of the incumbent platforms. This strategy is especially relevant in the cloud ecosystem because compatibility is easier to achieve and less costly. In the aspect of compatibility, Trias has provided the minus first layer of network, which can provide interfaces for different requirements. The developers can use various development components and various languages in their development.
4) Network security
By using the TEE technology, the full life cycle of the computer operation environment can be validated and protected based on the minus first layer of the hardware root. The running states of user applications and the correctness of the application versions can all be protected by the multi-node validator challenge model. Compared with the conventional security technology, the anti-attack capability is stronger. It can resist 99% attacks in permissible conditions. The attackers can have chances to destroy the node security of Trias only after they have simultaneously destroyed the multi-node TEE hardware-level validation challenge model built by Trias. Meanwhile, in the TEE security defense model of Trias, the conventional security has changed from a single passive anti-destruction mode to a new incentive-oriented security model, it makes the defenders actively contribute the nodes defended by the TEE and their hash power and according to the defense contributions made by the defenders in the security network of Trias, the defenders can obtain corresponding advantageous economic incentives.
