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a:I[3607,["792","static/chunks/792-c65e39965ee28f22.js","749","static/chunks/749-6d5973a15fc3665e.js","481","static/chunks/481-782ba70a4a0e4b12.js","357","static/chunks/357-5b1f937a9c7be0ae.js","946","static/chunks/946-855a4f4563f8905f.js","840","static/chunks/840-3ac029d5ed52b734.js","114","static/chunks/114-1c10046d4da7048f.js","227","static/chunks/227-b2f334878b839b8b.js","648","static/chunks/648-135c70ef7fdc9ec9.js","404","static/chunks/app/blog/page-600d6a76e31adbbf.js"],""] 10:I[2493,["792","static/chunks/792-c65e39965ee28f22.js","749","static/chunks/749-6d5973a15fc3665e.js","481","static/chunks/481-782ba70a4a0e4b12.js","357","static/chunks/357-5b1f937a9c7be0ae.js","946","static/chunks/946-855a4f4563f8905f.js","840","static/chunks/840-3ac029d5ed52b734.js","114","static/chunks/114-1c10046d4da7048f.js","227","static/chunks/227-b2f334878b839b8b.js","648","static/chunks/648-135c70ef7fdc9ec9.js","404","static/chunks/app/blog/page-600d6a76e31adbbf.js"],""] 11:I[840,["792","static/chunks/792-c65e39965ee28f22.js","749","static/chunks/749-6d5973a15fc3665e.js","481","static/chunks/481-782ba70a4a0e4b12.js","357","static/chunks/357-5b1f937a9c7be0ae.js","946","static/chunks/946-855a4f4563f8905f.js","840","static/chunks/840-3ac029d5ed52b734.js","114","static/chunks/114-1c10046d4da7048f.js","227","static/chunks/227-b2f334878b839b8b.js","648","static/chunks/648-135c70ef7fdc9ec9.js","404","static/chunks/app/blog/page-600d6a76e31adbbf.js"],""] b:T2fc9,### Introduction to Composable Proofs Composable proofs are a novel cryptographic method used to verify multiple, interrelated events or actions in a decentralized system, allowing for the dynamic interaction and aggregation of proofs across different network components. Unlike traditional proofs, which are typically self-contained, composable proofs are designed to interact with each other, enabling modular, flexible proof structures that can support complex workflows and interconnected systems.
In a decentralized infrastructure like Conduit Network, composable proofs play a central role in enhancing security, transparency, and flexibility across various network functions. They allow for secure, verifiable interactions between different layers of infrastructure, including nodes, smart contracts, and external protocols. By integrating composable proofs, Conduit Network provides a transparent, scalable framework that facilitates real-time validation, interoperability, and security for both network participants and external stakeholders. #### **Core Principles of Composable Proofs** The fundamental principles of composable proofs align with the modular, adaptable nature of decentralized systems. Below are the key characteristics that define composable proofs:
1. **Modularity:** Composable proofs are inherently modular, meaning they can be divided, combined, or extended based on system requirements. This enables Conduit Network to implement proof structures that adapt to specific use cases, from validating node performance to tracking tokenized asset ownership. 2. **Interoperability:** Composable proofs are designed to work across different protocols, ledgers, and consensus mechanisms. This interoperability is critical in Conduit Network, where decentralized infrastructure must interact with external systems and chains, providing seamless integration without sacrificing security. 3. **Layered Validation:** Composable proofs support layered validation, where each component of a proof structure verifies a specific set of criteria. This layered approach allows Conduit Network to authenticate a series of related events or conditions in a decentralized system, ensuring the accuracy and completeness of each proof. 4. **Scalability and Efficiency:** By leveraging composable proofs, Conduit Network can scale its validation processes to accommodate large volumes of network interactions. Composable proofs reduce redundant verifications, enhancing efficiency in high-frequency use cases, such as tracking real-time node activities. 5. **Privacy and Security:** Composable proofs incorporate zero-knowledge components, allowing for the verification of information without revealing sensitive details. This privacy-preserving feature is essential for Conduit Network, particularly in applications where sensitive data must be validated securely. #### **Composable Proofs in Conduit Network: Use Cases and Applications** Composable proofs underpin several core functionalities within Conduit Network. They allow for efficient, secure interactions across nodes, smart contracts, external protocols, and asset tokenization mechanisms. Below are the primary applications of composable proofs in Conduit Network:
#### 1. Node Performance Verification and Reward Allocation In Conduit Network, Proof of Economic Activity (PoEA) serves as the basis for validating node contributions, such as storage, compute, and bandwidth. Composable proofs enable efficient and accurate PoEA validations, ensuring nodes are rewarded proportionally based on their real-time contributions.
- **Performance Tracking:** Composable proofs verify the performance of each node by aggregating metrics like uptime, data throughput, and storage availability. These proofs are modular and can adapt to different node functions, ensuring that node operators are rewarded accurately and fairly. - **Layered Proof Structure:** The layered nature of composable proofs allows for separate validation of individual metrics, such as uptime, which are then aggregated into a unified performance proof. This approach reduces redundancy and enables real-time reward distribution. - **Temporal Ledger Integration:** Conduit Network’s temporal ledger tracks all composable proofs for node activities, providing an immutable record of performance that supports transparent, automated reward allocation.
#### 2. Asset Tokenization and Ownership Tracking In Conduit Network’s tokenization model, composable proofs are integral to Tokenization 2.0, a system that allows for the creation, ownership transfer, and management of tokenized assets.
- **Ownership Proofs:** Composable proofs validate token ownership without revealing the owner’s identity or transaction details, using zero-knowledge proofs to confirm that an entity holds ownership rights. This is essential for privacy and regulatory compliance. - **Interoperable Proofs for Asset Transfers:** When assets are transferred between participants or across ledgers, composable proofs validate each step of the transfer process. This interoperability ensures that assets can be transferred securely between Conduit Network’s temporal ledger and external blockchains. - **Asset Partitioning and Fractional Ownership:** Composable proofs allow for asset partitioning, where a single asset is divided into fractional tokens representing partial ownership. Each fractional token includes a proof of ownership and an aggregated proof that confirms the entire asset’s integrity.
#### 3. Cross-Protocol Interactions and Trust Bridges Conduit Network's infrastructure frequently interacts with external protocols, creating the need for trust bridges that verify asset ownership and transaction validity across different ledgers.
- **Composable Trust Bridges:** Using composable proofs, Conduit Network establishes trust bridges that allow secure, verifiable interactions between Conduit’s temporal ledger and external blockchains. This enables seamless cross-chain transfers, maintaining security without sacrificing interoperability. - **Proof Aggregation for Cross-Protocol Transactions:** When assets are transferred between Conduit Network and another protocol, composable proofs aggregate each validation step (e.g., sender’s ownership, recipient’s wallet address) into a single, cohesive proof, reducing the complexity and latency of cross-protocol transactions. - **Verification of External Events:** For external events that impact Conduit Network, such as asset revaluations or external token issuance, composable proofs provide real-time verification, ensuring that external updates are reflected accurately within Conduit Network’s infrastructure.
#### 4. Compliance and Regulatory Assurance Composable proofs support Conduit Network’s compliance initiatives by providing verifiable proofs that meet regulatory standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
- **Identity Proofs with Privacy:** Composable proofs enable Conduit Network to verify KYC information using zero-knowledge components, ensuring compliance without exposing sensitive user information. AML Transaction Monitoring: Composable proofs validate that transaction histories comply with AML standards, creating a record that can be presented to regulators if needed. Each transaction proof is modular, allowing the network to verify specific transaction details (e.g., origin, destination) in response to compliance requests. - **Real-Time Proof Generation:** Conduit Network can generate real-time proofs for compliance-related transactions, streamlining regulatory reporting while maintaining accuracy. #### **Advantages of Composable Proofs for Conduit Network** By leveraging composable proofs, Conduit Network achieves several strategic benefits:
1. **Enhanced Security and Transparency:** Composable proofs reduce the risk of fraudulent actions by providing verifiable proof structures for all network interactions. Each proof is recorded on Conduit Network’s temporal ledger, creating a transparent, immutable record that enhances trust among participants. 2. **Efficiency and Scalability:** The modular design of composable proofs enables Conduit Network to scale validation processes without sacrificing performance. By aggregating proofs dynamically, Conduit Network minimizes redundant computations, supporting high-frequency operations such as node performance tracking. 3. **Improved Interoperability:** Composable proofs facilitate cross-chain compatibility, allowing Conduit Network to interact seamlessly with external protocols. This interoperability enhances Conduit Network’s connectivity to the broader blockchain ecosystem, promoting greater utility and adoption. 4. **Privacy-Preserving Compliance:** By integrating zero-knowledge components, composable proofs allow Conduit Network to meet regulatory standards without compromising user privacy. This capability is crucial for maintaining data integrity and security in sensitive use cases like asset transfers and identity verification. 5. **Automation and Real-Time Proof Generation:** Composable proofs support automation within Conduit Network’s infrastructure, generating real-time proofs for rewards distribution, asset transfers, and compliance. This automation enhances operational efficiency and ensures that participants receive accurate, timely rewards. #### **Technical Implementation of Composable Proofs in Conduit Network** #### 1. Layered Proof Composition Composable proofs are created through a layered approach, where each layer validates specific components of a transaction, such as asset ownership, node uptime, or identity. Conduit Network’s infrastructure aggregates these layers into a single proof, simplifying complex transactions into an efficient, verifiable output.
- **Layer 1 – Core Verification:** This layer verifies primary actions, such as a node’s uptime or an asset’s current owner. Each core verification produces a fundamental proof used in subsequent layers. - **Layer 2 – Aggregated Proof Composition:** Aggregates individual core verifications into composite proofs for complex workflows, such as asset transfers or cross-protocol interactions. - **Layer 3 – Privacy and Compliance Layer:** Adds privacy-preserving and compliance elements to composable proofs, ensuring regulatory adherence without revealing sensitive transaction details. #### 2. Zero-Knowledge Proof Integration Conduit Network incorporates zero-knowledge proofs (ZKPs) within composable proofs, enabling the verification of facts without disclosing the underlying information. ZKPs are essential in preserving user privacy while verifying ownership, identity, or transaction validity.
- **Ownership Verification:** ZKPs confirm asset ownership without revealing user identities, supporting secure and compliant transactions. - **Identity Compliance:** For compliance, ZKPs verify that participants meet KYC requirements without exposing personal information, enhancing privacy in regulated environments. #### 3. Temporal Ledger Integration for Proof Storage and Access All composable proofs are recorded on Conduit Network’s temporal ledger, which serves as a transparent, immutable database for proof storage and verification.
- **Proof Immutability:** The temporal ledger ensures that all proofs are immutable, preserving the integrity of past transactions, node activities, and compliance verifications. - **Automated Proof Access and Retrieval:** Participants and external systems can access and retrieve composable proofs through the temporal ledger, supporting automated workflows and simplifying proof audits. #### **Future Implications of Composable Proofs in Conduit Network** The use of composable proofs positions Conduit Network as a flexible, scalable infrastructure for decentralized cloud services, data storage, and asset tokenization. As composable proofs evolve, they will enable more complex workflows, multi-chain integrations, and enhanced privacy features, making Conduit Network a pioneer in secure, verifiable decentralized infrastructure.c:T1753,### The Internet Wikipedia defines the Internet as:
_“the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices.”_
The origins of this technology came from packet switching in the 1960s to further adoption by DARPA for resource sharing on military and academic networks. Widespread adoption of the Internet protocol suite in the 1990s led to the mass adoption of the technology we see today. Increased network connectivity options with cellular based networking has brought about a dependency on the Internet in the “first world” similar to that of water and electricity. It aids the modern citizen in everything from navigating, learning new things, and entertainment.
This rapid mass adoption has resulted in many “bolt-on” solutions that make up the “online” experience today. Personal information is spread out redundantly in many different databases with no canonical source of truth, making it difficult to protect and keep up-to-date. Email which is inherently insecure has become the “modus operandi for” business communication. Banking has become increasingly digital, but the systems running it have proven to be far from infallible and many of the same frictions from before digital persist.
If one considers the automotive industry, where would it be today if the only protocol that was ever worked on was the engine? We would likely see very fast, very unsafe cars. To the benefit of all, massive advancements in protocols for steering, suspension, braking, and passenger safety have shaped the industry and produce the vehicles we enjoy today. These protocols have been revised and re-integrated with each other multiple times over, and international regulation has taken a healthy amount of oversight to not stifle innovation while helping produce a safer, higher performing product. A similar approach needs to be taken with the internet and is likely overdue. ### Core Internet Services One approach to this would adopt a similar model to the automotive industry where a suite of synergistic services are purpose built to provide a cohesive and robust end-user experience. For the sake of this article let’s call this suite of synergistic services Core Internet Services. To qualify as a Service in the suite the Service should provide a unique feature set as well as maintain the synergistic functionality with the other services that culminates in achieving the desired end-user experience. A break down of these services could look like the following: #### Accounting 1. General Accounting 2. Temporal Ledgers 3. Wallet Accounts 4. Secure storage and signing #### Data 1. Databases 2. File Systems 3. Data Replication 4. Message Queues #### Financial Services 1. Blockchains and DLTs 2. Payment systems 3. Registries 4. Treasuries #### Identity Services 1. Authentication 2. Authority and Authorization 3. Profile Management 4. Verification #### Resources 1. Allocation 2. Billing 3. Utilization 4. Directory Services Subsequent articles will dive into each of these services in detail, but for now let us consider how these functions are addressed in the current implementation of the internet.
### Accounting Current accounting systems retain the siloed nature from pre-Internet days, entire divisions of consulting companies build their businesses, on moving from one ERP system to another producing and inefficient cost typically passed on to the consumer.
Opportunities exist to standardize on data models and communication protocols promoting interoperability, which would go a long way in reducing friction (which should result in cost reduction) in a reality where the end-user is far from siloed in their online interactions. ### Data A tremendous amount of data is unnecessarily stored redundantly (in use cases not considered backup or disaster recovery) across the internet. Data storage comes at a cost and unnecessary copies increase both maintenance and security costs. Canonical data sources with deliberate replication strategies as well as robust caching paradigms will be more cost effective, by increasing efficiency, providing resiliency, and reducing security control points. ### Financial One major thing the Web 3 and cryptocurrencies have demonstrated to date is how friction can be reduced in markets and financial systems. Many types of transactions have been executed with the Smart Contract technology available today. New innovations in ledger technology such as Blockchains, Hash-graphs, and temporal event stores will enable the automation of more and more real world contracts, reducing the need for middle-men and increasing speed, which will ultimately reduce friction and cost. ### Identity Probably the biggest downfall of the current internet is the exploitation of end-users' information whether it’s being bought and sold without consent (or even awareness), or actively used against them. Back to canonical data storage, end-users should be sovereign over their private data with the ability to store it in a secure enclave and backed up in locations of their discretion. Metadata associated with end-user private data (behavior, interest, location) should be shared only at the users discretion and when used for monetization, the end-user should be the benefactor of that value. ### Resource There is a tremendous opportunity for both businesses and individuals to leverage latent computer assets to support the functional demands of the New Internet. The benefit of doing so will reduce cost and friction by minimizing dormant assets, and moving many operations to “the edge” increasing efficiency. This strategy is also the most effective strategy to reduce the impact of computer based technology on the environment: it reduces over production and requires less redundant hardware, which ultimately lowers power consumption, resource extraction, and waste. d:T259a,### Overview Unlike a centralized data store, event store data is to be distributed such that owners of data can choose which nodes contain it. Conduit Network establishes an overlay of mesh networks on top of traditional internet (and potentially other networking protocols) that facilitates communication between nodes. This will work on a global scale, with back-end services responsible for locating data, eliminating the need for client apps to understand where the data is stored. ### Data Sovereignty Participants in the Conduit Network will be able to choose and control the nodes where they wish to manage their data. Backups will exist in other nodes (chosen by participants), which in the case of a node or network failure will be able to be used to restore their data. As participants change their physical location, they may optionally move their master nodes to their new location (this may not be an issue if the participant physically controls their master node). ### Locating Data At one level, any piece of data (any data object, such as configuration, ledgers, parties, etc.) can have its master on any node. In practice, there are natural divisions/groupings of data that will be used to indicate where the master copy of any piece of data is located. A “party” (Member, Legal Entity, etc.) is the most logical choice. Each participant in the Economy, whether an actual person (User, Member), or legal person (type of Legal Entity) owns data such as their profile information, ledgers, documents, etc. The master copy of all data owned by a Party is assigned to a node.
As a result, any service running in the economy must be able to locate the master copy of any piece of data. For this, something akin to a DNS (domain name system), which is essentially a distributed phone book, will be used. Each Party (and other root distributed concepts) will be registered with this system. The master object registry will know which node is currently the master for any registered object (typically Party), with cached copies of this registry distributed throughout the network. Back-end services architectural components will use this to locate data, while clients (websites, apps, etc.) will be able to talk to their preferred (configured or local) service without concern as to where the data actually resides. ### Architecture Back-end services (micro services) are responsible for locating current copies of data, especially when performing updates. Various methods contribute to how this occurs: #### Database Driver Back-end services themselves are not required to know where the master copy of any piece of data exists. Rather, all reads and writes are performed through a database driver. This driver has existing implementations for relational databases and document based databases, with expectations for additional implementations as makes sense. Having both a relational and NoSQL implementation was done to ensure the back-end does not rely on any single database technology or vendor (which helps future-proof the application development above this level). A third driver exists which can wrap any other driver to provide metrics.
This architecture can be leveraged to move knowledge of where data exists, whether the master, or copies into the driver level. Today, the driver has knowledge of whether the type of data it is handling is “Slowly Changing” (configuration, profile, etc.) or “Fact Ledger” (used by all Economy ledgers). It does not have any business understanding of the data. With the addition of a bit of context, such as the party a request is associated with, a driver could either directly service the request, or forward the request to a service running on the node which owns that data.
Other than providing a context with a driver call, the existing services would not require modification to work with distributed data. Database connections to other nodes would not be allowed. Rather the driver service on other nodes would handle database-level interaction, allowing for each node to use whatever underlying storage technology that made sense. #### Node-aware APIs While the database driver could handle all inter-nodal communication, and will be a necessary starting point, certain API types will benefit by having knowledge of which nodes the data is stored on. The most common types of APIs that will benefit are Transactions and Reports. ##### Transactions The Event Store’s Transaction already uses a 2-phase commit architecture (rather than relying on traditional database transactions). In fact, the only traditional database transactions used are at the database driver level and are extremely short in duration (exactly one stored procedure call on exactly one logical object).
Business transactions, especially in a distributed world, are much more complex, and will have latency. Thus, the distributed 2-phase commit. Importantly, business transactions are between Parties, which means that all activity for that Party is on a given node. Instead of relying on the database driver to properly route each and every read and write, having transactions be node-aware allows activities to be run on each node to be grouped together and dispatched to the proper node to carry out the operations necessary to perform their portion of a transaction. This is much more efficient than relying on the database driver level to do each and every read or write. When the Event Store’s transaction architecture was first developed, it was developed with this eventuality in mind. ##### Reports and Aggregation Beyond traditional queries, which only read at most a few records, reports and aggregations may be more expensive and require reading large numbers of records. As with transactions, it makes sense to allow them to be node-aware, forwarding higher-level requests to other nodes rather than doing it on a record by record basis that the node-aware database driver would do. ##### Conditional Writes The Event Store is heavily dependent on a concept known as “Conditional Writes”. A conditional write is a write to a data store that only succeeds if some condition is met. This is how the event store handles concurrency management. Every object’s events are numbered sequentially. Prior to any update, an object is read (read before write) and its current sequence number is retrieved. Any business logic decisions are based on that copy of the data. Upon write (recording an update event), the write will only succeed if the current sequence number is exactly one less than the new sequence number to be recorded. This is a native operation to NoSQL databases, and for relational databases occurs within a short-lived database transaction within a call to a stored procedure.
A conditional write failure indicates a concurrency issue, triggering the Event Store architecture to invalidate any API-level cache and replay the entire API call now based on potentially different persisted state (since everything is re-read). As an aside, this architectural mechanism of handling concurrency issues eliminates the need for back-end developers to have code for dead-lock handling.
In a distributed system, this sequence number concept may need to be extended to also include the existing hash. With this conditional writes should be able to be used to catch potential updates to non-master copies of the data. Invalidating the local cache and replaying the API logic should then result in correct results. ### Distributed Identity Services Each node may choose to run its own Identity Service instance. Typically the node will be the master instance of user configuration (LoginIdentity, Actor, Party), but the master location of these records will work identically to that of all other Event Store back-end services. Clients (apps) will then authenticate with their configured Identity Service, which likely will be the one on the node containing their data.
As with Party being the root of a set of objects whose master copy is on one node, Actor is the root of login related information. The master for a given Actor, LoginIdentity, Party and relationships between these will typically be on the same node. That node can be a remote node operated by a party, or a higher-level node (syndicate, for instance) that a Party may elect to handle their Identity Services.
When a party logs in, they are issued an access token, which among other things includes the DNS of the issuing node and a session id. That token is then used for authentication and authorization when calling any back-end service. In order to validate the token, that service (securely) identifies itself to the IdentityService on the node which issued the token to verify its validity and optionally request additional information about the user identified by the token. Only the IdentityService node which issued the token may verify it. Operating in this manner is based on how OAuth2 works.
Of course this means that the IdentityService on the node must continue to be available for the token to remain viable and will be frequently called by various back-end services.
The result of a successful login is the issuance of a Session. Session is a persistent record of what login mechanism was used, which actor it resolved to, and what Party the actor is acting as. The node which performs the login becomes the owner of the new Session. As with other types, sessions will be replicated. The Event Store records the sessionId associated with the token used to initiate each API, allowing for forensics and analytics. e:T211a,#### Think blockchain is fully decentralized? Think again.
Blockchain technology emerged as a revolutionary innovation promising to democratize the internet, eliminate middlemen, and empower individuals with decentralized, transparent, and secure systems. The vision was to create a world where control and power were distributed among many rather than concentrated in the hands of a few. However, the reality of today's blockchain and cloud ecosystems starkly contrasts this ideal. Despite the rhetoric of decentralization, many blockchain networks and cloud services are plagued by significant centralization issues that undermine their foundational principles.
This centralization manifests in various ways, from the dominance of large mining pools and the reliance on a few key internet service providers to the control exerted by major software clients and centralized cloud platforms. These issues not only pose substantial security risks but also threaten the very essence of what blockchain technology was meant to achieve.
The reliance on centralized cloud services further exacerbates these problems. Companies like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure control vast portions of the internet’s infrastructure. Their ability to deplatform services, monetize user data, and comply with government demands for data access introduces vulnerabilities that compromise user privacy and autonomy. This centralized control turns users into mere products, with their data being the new oil fueling the profits of these tech giants.
#### The Centralization of Blockchain Systems
The promise of blockchain technology lies in its potential to offer decentralized, transparent, and secure solutions. However, in practice, many blockchain systems suffer from significant centralization issues that undermine their foundational principles.
One of the most pressing issues is authoritative centrality, where a small number of entities hold disproportionate power over the network. For instance, Bitcoin’s Nakamoto coefficient is four, meaning just four entities control over 50% of the network’s hashrate. This concentrated control makes the system vulnerable to coordinated attacks and manipulation
Further compounding this problem is consensus centrality. In proof-of-work (PoW) blockchains like Bitcoin and Ethereum, large mining pools dominate the consensus process. This dominance poses risks such as 51% attacks, where a single entity can manipulate the blockchain. Although recent improvements have encrypted and authenticated mining protocols, the fundamental issue of centralization within mining pools remains a concern.
Network centrality is another critical issue. A significant portion of blockchain traffic is routed through a few major internet service providers (ISPs) and the Tor network, making it susceptible to attacks and manipulation. For instance, 60% of Bitcoin traffic is routed through just three ISPs, while Tor, which is prone to malicious activity, handles about 50% of Bitcoin nodes.
Software centrality also poses significant risks. Blockchain systems often depend on a limited number of software clients. Vulnerabilities or bugs in these clients can lead to significant disruptions, such as forks in the blockchain. As observed, 21% of Bitcoin nodes run outdated and vulnerable software versions, posing substantial risks to the network’s stability.
Geographic centralization further undermines the decentralized nature of blockchain networks. A significant portion of blockchain nodes are geographically concentrated, particularly in the US and Germany. This concentration makes the network vulnerable to regional disruptions and regulatory actions.
#### The Centralization in Cloud Services
The reliance on centralized cloud services for hosting blockchain nodes and applications introduces additional risks. Deplatforming is a significant concern. Centralized cloud providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure can unilaterally deplatform services based on their terms of service. This risk was highlighted during the COVID-19 pandemic, where arbitrary deplatforming disrupted operations for many users.
Data monetization without equitable profit sharing is another critical issue. These cloud services collect and monetize vast amounts of user data. As AI technologies advance, the value extracted from user data will continue to grow, further enriching these centralized entities while users see no direct benefits.
Security risks are also heightened in centralized data centers. These centers are prime targets for hackers and government surveillance. The concentration of valuable data in these centers creates a high return on investment for malicious actors, leading to frequent breaches and unauthorized access.
Government backdoors pose another significant risk. Governments increasingly require cloud service providers to grant access to user data through backdoors or direct data feeds. This lack of privacy protection, especially when using third-party services, compromises user data security and sovereignty.
The Path Forward: Reclaiming Decentralization with Conduit Network To address these centralization issues and reclaim the spirit of decentralization, innovative solutions are essential. Conduit Network is a new, promising approach, which involves creating a hardware-based, Layer 0 decentralized cloud computing network, providing a resilient, secure, and user-owned infrastructure.
As a decentralized cloud infrastructure, Conduit Network operates as a mesh network of nodes distributed across various geographical locations, eliminating single points of failure. This network can comprise data center-scale nodes, mid-sized nodes, and millions of small nodes, each contributing to a robust and resilient infrastructure.
The Conduit Network architecture ensures that data and applications are stored and processed without centralized access control. This significantly reduces the risk of data breaches and unauthorized access, as data is distributed across numerous nodes with no central core.
Empowering individuals and communities to own and operate their nodes democratizes the internet. The Conduit Network model allows users to monetize their assets and intellectual property while maintaining control over their data, creating a community-driven and economically incentivized ecosystem.
Enhanced security and privacy are fundamental to Conduit Network. Hardware nodes featuring military-grade encryption and secure operating systems ensure the highest levels of data protection. Operating in "ghost mode" provides anonymous and private data transactions, further enhancing security against government and hacker intrusion.
The integration of artificial intelligence to manage and maintain a vast number of decentralized nodes is also critical. AI-driven DevOps services can monitor the network for issues, automate updates, and ensure seamless operation of the Conduit Network without revealing the precise location or ownership of the nodes.
Finally, a sophisticated economic model that rewards users for participation is essential. The Conduit Network can issue various types of rewards, such as a network currency mined through Proof of Economic Activity, ownership assets mined via Proof of Economic Growth, and loyalty points that reduce costs for users as they grow the network.
#### Conclusion
The centralization of blockchain systems and cloud services poses significant risks to security, privacy, and the foundational principles of decentralization. By adopting innovative solutions and creating a decentralized cloud infrastructure, we can address these inherent flaws and pave the way for a more democratic and secure digital future.
As business leaders and technology enthusiasts, it is crucial to explore and support these advancements. One such promising solution is the Conduit Network, which offers a truly decentralized infrastructure that is secure, resilient, and user-owned. By participating in and advocating for decentralized networks, we can reclaim the spirit of decentralization and create a more equitable and robust digital ecosystem. Explore the Conduit Network to be part of this transformative movement and help shape the future of the internet. f:T136a,#### Definitions - **Conduit**: A decentralized network infrastructure where every participant can own, operate, and earn from contributing computational resources or intellectual property - **Miners**: In the Conduit ecosystem, miners are participants who contribute to the network's value and operations by maintaining nodes that provide various infrastructure services - **IP Contributors**: Individuals or entities that contribute intellectual property to the Conduit network, using its distributed infrastructure to secure, manage, and monetize their digital assets - **Consumer / IP Customer**: End-users who utilize and pay for the services and intellectual property offered through the Conduit network, generating revenue that is shared among contributors and node operators - **Node**: physical or virtual network entity that provides resources like computation, storage, or connectivity, forming the backbone of the network's infrastructure, which is distinct from a miner who is an active participant maintaining and operating these nodes Imagine an internet that isn’t housed in giant data centers owned by a handful of powerful corporations, but one that exists in our own homes, businesses, and community spaces. This is the vision of Conduit – a transformative network that reimagines the internet as a democratic, participant-owned ecosystem. #### Empowerment through Participation With Conduit, every user becomes an integral part of the network, not just through usage, but through ownership and contribution. It's as if you could own a piece of the internet's backbone and shape its future. You can host a server, secure your data, or even contribute your own creations, all while maintaining privacy and security at the highest level. #### The Conduit Network: A Collective Venture At its core, Conduit is about turning participation into power. The more you contribute – whether by offering computational resources or intellectual property – the more you’re rewarded. This isn't just an incentive; it's a way of ensuring that the value generated by the network directly benefits those who make it thrive. #### From Nodes to Networks: Building Blocks of a New Internet Conduit’s infrastructure is built on nodes – these are the building blocks, akin to mini-internet hubs, that you can own and operate. These nodes come together to form a vast, resilient web of connectivity that’s both local and global. From handling emails to streaming videos, these nodes ensure your digital life runs smoothly and securely. #### Your Assets, Your Rewards Just like renting out a spare room on Airbnb, Conduit lets you monetize underutilized digital assets. By providing a platform to meter and manage intellectual property, creators can earn from their work in a fair and transparent way. #### 3 Key Parties involved in Conduit 1. **Node Operators**: These are individuals or entities that run the hardware making up the network. They can range from small-scale, individual setups to larger nodes like business or mini data center nodes. Their role is to maintain the infrastructure that powers the Conduit network, facilitating services like storage, computation, and connectivity 2. **IP Contributors**: These can be businesses or individuals who contribute their intellectual property (IP) to the network. They use the nodes to distribute, protect, or monetize their IP. This might include secure-proof algorithms, software, technological inventions, or any digital content. The contributors can specify how their IP is to be utilized across the network and leverage the infrastructure provided by the node operators to reach their audience or customers 3. **Consumers**: This group consists of end-users who utilize the services offered via Conduit. They might access content provided by IP contributors or utilize various applications and services powered by the nodes. Consumers contribute to the revenue of the network through their purchases or usage fees, and their demand for services helps to determine the value of the network These three groups interact within the Conduit ecosystem in a symbiotic manner: - Node Operators provide the computational resources and services, maintaining the network's robustness and functionality - IP Contributors bring valuable content and services into the ecosystem, enhancing the network's attractiveness and utility - Consumers drive the economic activity of the network, generating revenue that can then be distributed among the Node Operators and IP Contributors, according to the network's economic model and the phase of reward distribution they are in In an era where data privacy concerns, corporate oversight, and the future of the internet are under scrutiny, Conduit emerges as a beacon of empowerment. 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