I am considering the development of a business/web application to be built utilizing the SAFE network and have a few questions.The idea I am looking into is not something new or different per se but instead will focus on what I perceive will be cost savings due to efficiencies in security and data storage costs on the SAFE network relative to conventional options.
I need a better understanding of some details before I am willing to invest a significant amount of resources into such a project which leads me to my questions:
It is my understanding that the cost of data storage will be less than current options but will fluctuate to some degree based on demand. I will need to have a relatively stable price for data storage costs in order to price my product. I cannot go to my customers and say my product will cost $500 this month but it may be $300 next month or $200 or $8500. Are there mechanisms in place to stabilize price fluctuations in safecoin/data storage costs?
Are there reasonable estimates on cost savings for data storage on the SAFE network relative to current options or is it pretty much wild guesses at the moment?
Security is an ever increasing cost with traditional online platforms that deal with data and finances due to the processing of credit card numbers and the handling of customer information. Would an online business processing financial transactions and customer data but built on the SAFE network obviate or at lease alleviate security costs?
I am very intrigued by what I have read so far and would like to support a project like the SAFE network by building on it but I need better numbers better numbers to work with.
Thank you in advance for any insight on the above.
I’ve said many times that this will be a problem. This topic is one of better topics that illustrate the debate (in case you haven’t already read it).
Some say the cost of capacity on SAFE will be stable because the internal knobs will adjust the workings of the network according to the price of the token (as in: if the network isn’t used enough, the coin will become cheaper and it will be used more, etc.), but just like my own speculations, those aren’t reliable.
Wild guesses.
Also it depends on your application. If you are looking to store backups online, SAFE may be very competitive for that. For other things, like social networking, maybe not (since the likes of FB don’t change anything to store your data).
If you keep using CC, you’ll have to use certified processors. If you switch to crypto-payments - if you and your customers can switch to crypto payments - then you’ll be able to avoid some or all regulation. If you do something that’s regulated now, there may be not much you can do even though technically the network would be a good choice (e.g a dentist can’t put his backups of patient data on SAFE).
For your #1 question nobody as the answer for that but I truly believe it will cost less to store data than everything that currently exist because the storage capacity your going to use is from people who dont actually need it . I believe it will do the same thing as Emissions trading that actually occure in many country… it allows a cost reduction where cost efficiency is the easiest to reach first !
So as long as the network isn’t launch nobody can’t predict a price but the common make me think that I’m right when I am telling you it will be less than what actually exist !
You have a good idea a good project just go forward with it ! If I can tell you something everything that can be decentralize will eventually be
And about your security questioning there is nothing safer than the safe network so just go on with your project !
Yes it will fluctuate. That is actually designed in. The purpose is to influence people to not upload when available free storage drops by rising the price and dramatically raise the price if the available free storage drops very low. The price will drop to near zero when there is plenty of space.
So unfortunately it does not give you a stable price.
Some have formulated that on average it will be cheaper than any other internet based storage (medium term ?6 months) but provide permanent storage.
But as you can tell from the above that it is uncertain and until the network has been live for a while we don’t have data to back that up at all.
None, apart from people will be less likely to pay for storage if the price costs more than elsewhere. It is expected though that farmers will increase their supplied storage when the upload price is high, because conversely the farming rate means that farmers are getting a premium for their farming.
So, there is reasonable expectation that as the price rises the farmers will add storage which will bring down the upload cost.
Low available space
affects the price of uploading and farming
upload costs rise
Farmers get more for farming
farmers will add more space
price will drop again.
Assuming that the business accepts the security of the network, then they will gain secure storage automatically as that is the only storage on SAFE for private data (Public data is decrypted for whoever asks )
Thus if the storage costs on average is lower than other options then the additional savings for security might allow your APP to charge more than the upload costs to cover those times when the upload costs rise temporary.
TL;DR
We simply can not be sure of actual costs and how often & long they will rise to a point where it is unprofitable for your business model
These are sensible questions based on thinking from the status quo, but consider that moving away from this is part of the amazing opportunity that SAFEnetwork offers, and your business can offer.
But but, it can’t work… business needs predictability, so it can budget, they won’t buy this…
Erm, what about the most important fuel in the global economy: oil? That fluctuates wildly, and dealing with that has become a business in itself.
Consider this. Instead of thinking that your business would need to compete on the same terms (price and predictable costs for example) in order to enter this market, consider the advantages that your business has, and would be able to offer to even the relatively small proportion of this market that will be ready to adopt a new paradigm.
This is an enormous and growing market, within an enormous and growing market. You don’t need to compete with Dropbox to build a massive profitable business in this situation. You only need a tiny percentage to do very well indeed, and from there… who knows.
Hewlett-Packard - two engineers in a garage.
Apple - two geeks in a garage.
Google - two students with a PhD project.
SAFEnetwork - one man with a vision
…
Along with the same concept of oil and the price of fuel for transportation businesses: perhaps consider a base fee for the service/product as well as a surcharge for the data-storage based on the current storage cost. I could see this becoming a pretty normal practice and expectation of those buying services that run on the network.
Great idea and good for you for taking the first step in what will be literally 100’s of thousand. There is no possible way for you to formulate any kind of comprehensive business plan based an any theory or forecasts laid out in this forum. The smart “plan” would be to imagine the best possible scenario for your storage ideas on the SAFE Network - stable storage costs, reliable storage inventory, increasing demand & awareness, failures in legacy products - and follow carefully the new breed of blockchain based storage entrants like SIA and Storj to see the challenges they encounter. IMO it will be 6-12 months after launch before you will see the dust settle on SAFE Network and before any stats can be trusted. But that gives you lots of time to prepare and OBSERVE.
Security is all about vulnerabilities and attack vectors and, while SAFE changes the game in so many ways, it does not remove all. GL
An important factor to keep in mind is that data storage on the SAFE Network is a one time fee. Once that fee is paid that data is stored on the network forever.
so just go on with your project !
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