Blockchain needs a flywheel, just like AWS!

[dabao1234]

“Flywheel effect” means that a product has a feature that attracts some users to use it. As more people use it, the user experience of the product will be better, which will attract more users to use, thus forming a positive business cycle logic to accelerate business growth.


Let's take a look at AWS's "flywheel effect", as follows, this is the flywheel described by AWS's official website. AWS started at a lower price; because of the lower price, it brought in more customers, thus bringing more AWS usage. More usage, in turn, led to greater scale. Because of economies of scale, AWS easily negotiated prices with partners (including IDCs, service manufacturers, hard drive manufacturers, and even electricity bills) resulting in lower costs. In this way, the price of AWS became cheaper, thus starting the flywheel.


AWS's flywheel


What is the engine of the AWS Commercial Flywheel? It is the scale effect. When the scale is larger, the price is lower.

Similarly, the blockchain project PPIO also has such a flywheel. Let me explain it below.



The number of users increases, which brings more revenue to the platform; when the platform revenue increases, the storage node's revenue also increases. When the storage node revenue increases, more storage nodes are attracted to join, thus the number of storage nodes increases, which also makes competition more intense. Furthermore, high-quality storage nodes with lower quotations will survive. The surviving quality storage nodes will also enable the platform to have lower prices and better services. Because prices and services are better, more users are attracted to the platform, and with more users, more revenue is brought to the platform, thus starting the flywheel.

What is the engine of the PPIO commercial flywheel? It is participation and competition. That is, the more participants, the more intense the competition, the lower the price.


If you compare the flywheel engines of the two systems. PPIO's flywheel engine is more advanced than the AWS flywheel engine. Adam Smith said in "The Wealth of Nations": The market is like an invisible hand, automatically adjusting the price. PPIO is the same, and in different industries, there have been commercial cases in which competition finally cuts prices. In PPIO, the price is determined by the market; in AWS, the price is determined by the company. I believe that PPIO is more in line with the development of human civilization, and PPIO prices will be much lower than cloud services.

This is why PPIO can achieve a lower price than cloud services. Do you think there are other reasons? If you have better ideas and suggestions, we welcome you to join our official PPIO community to discuss them with us.


Find us on our official Discord