Bin Zhu speaks on Speculate Podcast EP.5 with Stratos & BullRingCrypto & CoinMarketLeague, January 21th, 2024đź”—︎
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It's now 1800 UTC. That means we are about to start our evening AMA X space with Bin Zhu from Stratos Network. I'm really excited about this particular conversation because myself and Pablo from coin market league have been talking about just how significant DePIN is with regards to what's going to be happening in 2024 onwards. We're really thinking that this is going to be a very strong narrative.
But what I like to do Bin, with these conversations on a Sunday night is have them very relaxed and conversational. We let the conversation flow, we talk about different topics within the things rather it being too structured and too formal. And I also like to try and deliver it in a Layman's style. So if you can break everything down into almost like Johnny age five language, so that our listeners at all different levels on their web3 journey can comprehend the language that we're using, the terminology, that sort of thing, and they can actually apply that knowledge potentially.
So I want them to come away from here not just insightful evening, but also an educational evening. So if that's all good. First of all, Bin, before we get into Stratos, before we get into DePIN, can you kind of just give us a little insight into your journey into web3?
How did that kind of begin? What inspired you? What was the trigger for you to come into the space?
Sure, let's begin. Before delving into the realm of crypto, I'd like to share a bit about myself, as it lays the groundwork for why a shift to a decentralized infrastructure like Stratos is significant. Prior to my introduction to the world of cryptocurrency, I had spent numerous years in the traditional technical industry. To date, my focus has been on the technical side for over two decades since my graduation from university in 2000. Fast forward to 2024, during my tenure in the traditional technical business, I specialized in backend operations. When we talk about the backend, it's not just about the user interface (UI); it predominantly involves handling the business logic. This entails coding in languages like Java, C, and C++, working with databases, and orchestrating the architecture of entire systems. I excelled in this domain.
A pivotal moment came when giants like Amazon, Google, and Facebook emerged. At that time, I was in China, where web2 was gaining traction. Web2 marked a shift from the conventional single-server setup, often on large servers like IBM or HP. Instead, the focus shifted to a distributed system. Unlike the centralized approach, this distributed system catered to web2 customers from various locations. Prior to the advent of the web, customers were typically confined to specific regions, providing services to a particular country, city or province.
The landscape changed dramatically post web2. Customers now hail from all corners of the globe. It no longer matters where you are; you can easily watch content on YouTube or make purchases on Amazon. The customer base has become truly global. In response to this shift, IT infrastructure underwent a transformation. Faced with the need to serve people worldwide, individuals like us began pondering how to construct a system with a global reach. The solution was to move away from reliance on massive servers. Instead, we opted to break down the computation and storage components, distributing them across different locations. Some pieces found a home in Europe, others in the US, and yet others in Asia, all seamlessly communicating with one another for optimal efficiency. This laid the foundation for the construction of the web2 infrastructure.
Companies like Google, AWS, and other public cloud services followed suit. They adopted a similar approach, breaking down their colossal data centers into smaller, globally distributed units. This was the essence of web2 - a robust and rapidly expanding distributed infrastructure. The results were evident in various sectors, such as gaming and social media, where businesses could swiftly extend their reach worldwide. A popular game, for instance, could experience rapid growth within a matter of months.
The robust infrastructure of web2 deserves our appreciation. In my journey, it became evident that the solid foundation laid by web2 was crucial. Personally, this understanding shaped my work. Around 2015-2016, and particularly in 2017, my attention turned to cryptocurrencies, starting with Ethereum. I found the concept intriguing. The discussions were evolving beyond mere distribution to focus on decentralization. It struck me that decentralization wasn't just a technical matter; it had profound implications for our lives, offering a means to champion free speech.
The rising concerns about censorship and the need for individuals to safeguard their freedom, perspectives, and digital properties from the control of major corporations became increasingly apparent. Platforms like TikTok, YouTube, and Facebook exhibited a power to ban users, delete content, or remove individuals based on their actions. This realization prompted us to consider leveraging the successful experiences and principles of distributed systems and transitioning towards decentralized systems.
Hence, the idea emerged—why not take the proven successes of distributed systems and adapt them to the decentralized paradigm? This realization became the driving force behind our entry into the world of crypto and, subsequently, our engagement with Stratos, a journey that commenced in 2021.
Yeah, that's fantastic. It's really insightful, actually, that you've been in the space, the web2 space, for just so many years, 20 plus years now on that journey. And with the technical back end and also the way that you were speaking there about the big social media platforms and being those gatekeepers. It's one of the things that I don't have a technical background. I'm more on the soft skills side. But for me it's how do we get that right in web3, we can see that there's considerable challenges around this banning and the social media platforms having their own political beliefs, et cetera.
And if you're kind of standing and posting content, then you may get those not necessarily getting the same kind of engagement because they have algorithms that can control that. So whether it's things like pornography and weaponry and that how do we in the web3 environment be adequate gatekeepers so that we're not contradicting ourselves in this free speech and this kind of freedom and this better life? Like you said, that's outside the technical side. Do you have any kind of philosophy on how we do that well, how we govern things well so that we don't fall into the same traps as these kind of web2 tech giants?
They have straightforward dimensions that can be put to the test quite simply. To gauge our current standing, consider the hypothetical scenario of shutting down AWS, Google Cloud, or even Azure Cloud. The consequences would be far-reaching. Web3, encompassing social media, decentralized platforms, GameFi, SocialFi, Ethereum, and even wallet services like MetaMask, would cease to exist. It might seem improbable, but it emphasizes that we are not yet firmly entrenched in the web3 world. Presently, web3 relies heavily on the underlying infrastructure of web2. This duality poses both challenges and opportunities.
The downside is apparent: the majority of blockchain validators operate on web2 infrastructure. While you may have tokens securely on the blockchain, the validators themselves rely on centralized systems such as AWS or Google. This vulnerability means that if there were any disruption or stringent regulations, the validators could be shut down, introducing risks even to token holders.
On the positive side, this realization signifies that we are still in the early stages of the transition. The fact that most web3 is built on web2 infrastructure underscores the opportunity for individuals like you and me to actively contribute to the creation of a decentralized web3. The question then becomes: who will host the servers for web3 infrastructures? The answer is everyone. Individuals in the space, including you and me, have the capability to run servers. In this envisioned decentralized future, components of digital infrastructure—whether it's GameFi, SocialFi, or any other digital asset—could reside on servers in your bedroom or basement. This distributed approach ensures redundancy and resilience; even if one of your nodes goes offline, there's a backup in your neighbor's house.
In this decentralized vision, even if public clouds like AWS were to experience downtime, the dApps, blockchains, and socialFi or GameFi platforms would persist. Wallet services would remain accessible. This, in essence, represents the pure decentralized vision of web3. Presently, we may find ourselves in an interim phase, perhaps web2.5, as these applications still leverage tokens, token interactions, and private key management. Yet, the ongoing evolution suggests a trajectory towards a fully decentralized web3 landscape.
But unfortunately they're still on web2 infrastructure. So for me, we're not there yet, but we'll try our best to get there eventually.
Yeah, that's amazing. And the way that I'm kind of picturing it in my mind is that we have a very shiny skyscraper. We have this steel and the glass and everything. That's like the kind of, this is our web3 vision that everyone can see. But the foundations are actually firmly rooted in web2, aren't they? That's kind of what's happening in my mind as I'm visualizing what you're saying. We need to actually move the whole building so that the foundations of the infrastructure is actually in the web3 environment and distributed as well.
And like you were saying there, when you have kind of individual challenges on your own node, then you have these kind of. I don't know whether I'm using the right language, but maybe like a micro grid that are all interconnected. I mean, I touched on these kind of topics back in 2018 when the narrative was around IoT and I was trying to pitch or piece together in my mind all of these interconnected devices that we were going to have.
The fridge being able to speak to the car for a shopping list, for example, what's missing out of the fridge, and the heating that you were going to be able to switch on from the car, and all of these kind of things that we're seeing manifesting now.
I was trying to understand that and how that whole network could work, but then also all of those devices contributing to the network itself and being validating the network so it's more secure. Because I think I saw on your documentation about the more powerful the network, you're going to need traffic. So you're going to need a lot of messaging between each of these devices to really get that going. Am I on the right track there or am I kind of off skew?
Yes, that's correct. When it comes to Ethereum, or the earlier versions before ETH 2.0, and Bitcoin, the consensus is that more computational power equates to heightened security, minimizing the risk of third-party attacks. Similarly, for Stratos and its proof of traffic mechanism, we favor a scenario where there's a higher volume of traffic circulating in the network. This, in turn, reduces the overall risk to the network. The logic behind this lies in the fact that increased traffic corresponds to more data on the network. As users continually generate, consume, upload, and download content, Stratos gains strength. The heightened activity attracts more participants, leading to increased rewards and higher traffic fees paid by consumers. From a miner's perspective, this is twofold. Firstly, they find it profitable to join Stratos as miners, ensuring they make money and avoid losses. Secondly, recognizing the potential for increased earnings, miners may choose to invest further in the network by adding more nodes, strengthening Stratos even more.
They invest in their hardware—be it their bandwidth, CPUs, or disks—to fortify and enhance their ability to provide superior services. In the context of proof of traffic, having hardware alone isn't sufficient; stability is key to reaping substantial rewards. Nodes must be robust, responding promptly to user requests and data demands to ensure a stable and reliable network. Miners, recognizing the importance of this, actively work on strengthening their own servers, contributing to the overall robustness of the Stratos network.
Drawing an analogy, it's akin to a nation where all families are strong and healthy, leading to an improved quality of life. Strong families inspire harder work, contributing to the overall strength of the nation. Likewise, in Stratos, as individual nodes become more resilient and efficient, the entire network benefits. It's a symbiotic relationship.
Regarding a question I came across in this space, there was an inquiry about the significance of proof of traffic and how it stands against Filecoin's proof of storage. The essence of proof of traffic lies in its algorithm, fostering collaboration between miners and consumers. It differs from Filecoin's proof of storage, as Stratos' approach focuses on the active participation and cooperation between miners and users within the network.
The consumers using the Stratos network are the ones who pay for the traffic. Their payments, in turn, are directed to the miners. However, which miner receives these payments depends on the strength and stability of their server. This competition among miners is beneficial, fostering a dynamic where stronger vendors emerge, and weaker ones are compelled to enhance their capabilities. This competition is a vital mechanism driving the growth and strength of the Stratos network.
In contrast, Filecoin operates differently. Miners in the Filecoin network can pay for their own services without necessarily involving consumers. Up to this point, the Filecoin network primarily consists of miners paying each other. Miners in Filecoin can independently generate files by running Linux commands to create empty files on their own servers. By storing these files and proving to the network the existence of a significant amount of data, they receive rewards. This approach, however, results in a network where miners are primarily serving themselves and their own needs, without necessarily considering external consumers.
In Stratos, miners must provide services that attract external consumers. It's akin to running a restaurant; the food must be delicious to attract customers. If no one orders the food, the restaurant owner doesn't make money. This dynamic ensures that the Stratos proof of traffic model is more robust, healthier, and secure compared to a model focused solely on storage.
Thank you very much indeed. Yeah, and I love the way that you're using analogies there. So that we can understand quite a technical subject. So thank you very much for that Bin. And yeah, thank you for cryptonia two on Twitter that actually put that question to bin. You're one of the winners tonight. So I won't repeat that question at the end of tonight's session because it has been brought up already. So well done to you for bringing up something that's on the forefront of Bin's mind there.
Bin, please, can we move into DePIN now? I feel that this is a super strong narrative, because I think, from what I've kind of researched in the past, a lot of web3 is speculation. Speculation. We think that these crypto tokens or coins, they may do something if the narrative picks up, et cetera. And I think there's a lot of that. But also there is an underpinning of this infrastructure you're talking about now, what we need to make changes.
And like you said, whether we're at 2.2 or 2.5 or 2.8 on the journey to web3, we could debate that all evening. But I think that what we've got to say to ourselves is that this DePIN narrative, along with probably AI, is going to be, for me, one of the strongest narratives in 2024 25 if we'd see a bull run.
I think a lot of the projects are doing and are going to do exceptionally well. Can you first of all, kind of just begin to explain to our listeners DePIN, and some of the different, not necessarily projects, but some of the different areas that will be covered, not just what you're covering yourself at Stratos, please elaborate on that, obviously, but all of the different areas that you can foresee being extremely strong as we move throughout this year.
DePIN stands out as a significant narrative in the crypto space. Prior to DePIN, discussions centered around tokens, Defi, GameFi, and SocialFi. However, DePIN introduces a tangible aspect – physical devices that people can see, touch, and actively participate in by incorporating these devices into their homes, offices, or personal spaces. The range of devices can vary widely, from rooftop 5G setups to solar panels or small plugins for computers.
Currently, the DePIN narrative is global, with diverse DePINs emerging daily. These devices serve various purposes, from powering electric cars to enhancing electricity distribution and improving Internet connections. One of the key aspects of DePIN, as highlighted by Helium, is that it's a people network. Unlike the centralized networks created by major cable companies and carriers, DePIN encourages individuals, everyone from you and me to participants worldwide, to contribute to the network. Initially, users may be like leaves on the edge of a big, centralized network branch, but the vision is for the people network to evolve and eventually replace these centralized structures. The aim is for all distributed devices to be contributed by individuals, fostering a fully decentralized network where devices connect to each other.
In the context of web2 infrastructure mentioned in previous questions, the focus was on centralized hardware. With DePIN, the idea is to have the hardware of people networks connect to form a robust network. This, in turn, could serve as the foundation for web3 infrastructure, bringing another layer of decentralization. Even traditional connections like cables, fiber optics, and electricity-powered connections could become decentralized. Stratos infrastructure could then be built on top of this decentralized framework. While achieving this grand goal may take time – perhaps more than a year or a couple of years – it represents the dream of DePIN projects and the broader community. It's a visionary goal that requires step-by-step progress, with various projects sharing the vision of a decentralized future, making DePIN a significant part of the crypto landscape.
Thank you Bin touching there on this model of all sorts of different devices from something plugging into USB to something wearable, a device in your pocket, a solar panel, our lives, no matter where we are across the earth are all becoming more and more digitalized. So I'm anticipating we're going to see much more of like a circular kind of economy.
What I mean by that is we've been farmed for so many years by our governments to be consumers and having the yardstick of GDP as kind of the success of the nations. And we're moving into a kind of a new era, I believe. And that new era is more kind of greener, less consumption. Instead of being farm to consume now we're looking at different areas of our lives and thinking how can we reduce that consumption? So when we reduce the consumption and let's just say we're using one of our devices, I've seen the terminology prosumer.
So you are a producer and a consumer yourself. The way I see it in my mind is that that's circular. So I'm producing and consuming, I'm reducing my footprint because I'm contributing on some aspects and then I'm utilizing multiple different platforms to then consume on another side.
So I'm producing and then consuming in like I say, this circular system. Do you think that this has then the power? Because I think what we're touching on then of course is social, which we've talked about already, but also kind of this is economics now. And then we also must kind of go into the political side because it's going to have a profound effect on governance and kind of rules, isn't it? The whole set up.
So do you also see that it's not just kind of a dream? Because I think most of this, we can conceptualize it so I think we can do it. There's a lot of friction points, I agree. But do you see this as revolutionary in so much as the kind of topics that I've just mentioned in how us humans in the next 20 years are going to be living our lives?
Certainly, I understand the sensitivity of the topic. When we delve into the realm of cables, internet connections, and resources controlled by carriers, telecoms, or electricity companies, it becomes a highly sensitive and powerful area managed by governments. The value of DePIN is still relatively new, and regulatory bodies, such as the US SEC, are starting to address tokens and attempt to exert control over aspects they may find challenging. There's a potential for conflict where countries or government entities may attempt to control or influence the development of DePIN, similar to what has been witnessed in the DeFi space.
As DePIN grows in size and attracts more participants and powerful entities, such challenges could indeed emerge. For instance, issues related to electricity or internet connections might become contentious points that certain countries or government bodies may seek to control. However, it's important to note that this is speculative and depends on various factors, including how DePIN evolves and the responses it garners from regulatory bodies.
Drawing a parallel with data regulation, like GDPR in Europe, there's an acknowledgment of the complexities when dealing with personal data. In the crypto world, identifying where users are located becomes challenging, and complying with geographical data storage regulations could pose significant hurdles for DePIN.
While these potential challenges may be on the horizon, the resilience and adaptability of the crypto community often lead to finding innovative solutions. People within the space tend to devise ways to work with governments, organizations, or navigate regulatory landscapes effectively. Overcoming such challenges becomes part of the growth process for DePIN, analogous to the broader evolution seen in the cryptocurrency and decentralized technology space. The path to resolving regulatory concerns and building a stronger foundation may not be straightforward, but the community's ability to address issues and adapt is a key aspect of the continued growth of decentralized projects like DePIN. How to fight against something like regulation, probably out of the topic of today. So I don't want to go deeper about that part.
Yeah, absolutely. Sorry. I was probably borderline there with my sort of questions and probably was quite deep. But what I was trying to do to the listeners is I was trying to show the magnitude of what could potentially unfold in the future. Because I think when we're looking at projects, when we're looking at a narrative, I think it's very good to look at just the sheer magnitude of what we are dealing with. And we haven't even gone deep.
I mean, we've just touching on the edge. And we're already dealing with a very deep and sensitive topic that can be completely disruptive to many different areas. And that's kind of what I was trying to allude to in the question.
So I'll bring the conversation back because this is about Stratos now. Stratos network went live in September. Talk to me about the network. Talk to me about the interoperability. Give us, the listeners some idea. We're talking about decentralized storage, aren't we? And we're talking about many different use cases, which I'll come on to in a moment, but talk to me about that transition into the mainnet, how that went and how things are actually looking at the moment.
Yeah, great, thank you. The Stratos Mainnet was launched in September 2023, and the decentralized storage followed suit 28 days later. Currently, we have over 500 nodes online—precisely 519 nodes, to be exact. These are storage nodes, collectively providing over four petabytes of storage for users to transfer or upload their data onto the storage network.
Efficiency is of utmost importance for Stratos. When users engage in file uploads or downloads, they prioritize efficiency, seeking swift processes without unnecessary delays. In our comparisons and benchmark tests with Google Drive, a widely used centralized system, Stratos has demonstrated impressive performance, often matching or even surpassing Google Drive's speed. This is noteworthy because, as you're aware, Google Drive operates within a centralized system where the location of nodes is known, and their code is simpler compared to the intricacies of Stratos.
Stratos navigates challenges posed by a decentralized environment where nodes may be offline, fake, or unstable. Leveraging algorithms, we strive to ensure optimal performance, even from decentralized nodes. This focus on efficiency extends to our collaborations with various projects, especially those in the AI space, like Bittensor and AGC. We stress the importance of efficiency, particularly in utilizing GPUs effectively. Waiting for data for 30 minutes would mean wasting the GPU's potential for that duration.
The efficiency Stratos offers is particularly beneficial for GPU users. For instance, a user in France uploading files to train an AI model uploads the file in France. Stratos automatically creates four additional copies and distributes them to different global locations. This distribution ensures that GPU users, regardless of their location, can access a copy of the data locally, reducing latency.
We term this approach as 'edge storage,' a concept we leverage when working with GPU calculations at the edge. This global distribution of copies helps reduce latency, making Stratos an excellent fit for GPU-related tasks. This capability is attractive to AI projects, showcasing one of the practical use cases of Stratos.
Another use case involves a decentralized Dropbox, where a third-party team is currently working on the backend to allow users to upload and download files securely. The advantage is that users don't need to worry about censorship or undergo KYC processes.
The third focus is on a CDN layer, allowing users not only to upload images but also videos and audios. Users can directly share videos stored on Stratos without the need for downloading. Currently, our team is concentrating on these three use cases, aiming to deliver some of them by the end of Q1.
To summarize, Stratos emphasizes native functionality, including efficiency, full decentralization, security, and no censorship. Users can freely use Stratos without concerns about revealing personal information. Whether it's CDN, Dropbox, or AI data, Stratos is the foundation ensuring security, no censorship, and full ownership of content. These features are embedded at the infrastructure level, not just at the application level.
Thank you, Bin. And I think that actually touches on Skywalker's question, which was also picked as a winner that talks about ensuring the security and privacy of data on the platform. So, Skywalker, well done. You've been picked as well as one of tonight's questions. I am mindful of our time. So we're now approaching the end, which has just flown by.
So what I want to do now, Bin, is I just want to pick the final two questions for you to elaborate on a little bit more, rather than my own questioning, because I think what we can do, hopefully, as long as it's okay with Pablo, is to get you on in a few weeks time again, to elaborate on some of the many questions that I've got for you. So we could have like maybe a part two, but let me not digress and come back to the questions here.
The Sam crypto, crypto rigger, as you'll handle on Twitter, has asked a question. Stratos needs three node types, meta node, blockchain node and resource node. Can you briefly explain these nodes in sort of a five minute high level overview, please?
Yeah, this is a great question, actually. When we talk about decentralization and crypto, people always attempt to navigate the impossible triangle. Right? Because people want efficiency, security, and decentralization simultaneously. It's very challenging. That's why we devised three different nodes with three distinct consensuses to address the impossible triangle one by one.
We have three kinds of nodes, first type, we refer to as meta nodes, forming the meta layer for us. These nodes provide the fastest processing, ensuring the majority of traffic actions can be rapidly responded to and managed. Regardless of the number of people or requests, they strive to efficiently handle them. This consensus is conducted at the second level, with meta nodes acting as the primary interface to process swiftly and coordinate effectively. This is the fastest node, aiming to solve the efficiency problem.
The second one in the middle is the blockchain node. This node is dedicated to handling Stratos token transactions and data verification. When files are uploaded, each file and its slices hash codes are recorded in our blockchain. So, besides handling token transactions, blockchain nodes play a crucial role in data verification for users uploading and downloading via Stratos. In terms of the impossible triangle, the blockchain node addresses the security concern.
The third one, which everyone talks about, is the SDS (Storage and Data Services) node. We actually refer to this as a resource node or resource layer. This layer or node is fully decentralized. Currently, we have 519 nodes online, and all these nodes span the global map, with IPs traced back to more than 20 countries. It operates on a fully decentralized consensus drawn every ten minutes – a lower frequency due to its fully decentralized nature. While currently focused on providing storage, this layer is flexible, allowing a million resource nodes to participate together. As we progress, users can join as storage nodes or contribute as computing nodes, and later, even as database nodes.
This layer is fundamental for us because eventually, all data, computing resources (GPU, CPU), and databases, along with user information, reside in this layer. It may be slower, but it must be fully decentralized. Hence, we have meta nodes, blockchain nodes, and resource nodes. The resource node specifically tackles the decentralization aspect.
Our approach involves using three different types of nodes, each corresponding to three different layers and employing three different consensuses to address the triangle of efficiency, security, and decentralization. While it may sound a bit complex, solving this was the first challenge we undertook before building Stratos, recognizing the need for compromise in the absence of a perfect solution. This compromise solution is our best approach to addressing the current challenges of the impossible triangle.
Thank you, Bin. As with the rest of the questions, very insightful and a great question as well. Yeah, I think that understanding those three nodes and understanding how they work in unison is central to understanding Stratos. So thanks.
And finally, there's one more question before we wrap up tonight, and that is the question from crypto zero. And this is how does the proof of traffic consensus in the Stratos network contribute to evaluating the valuation of Internet products and ensuring a healthy economic model for decentralized storage networks? So thank you for that, zero. We appreciate the question.
Yeah, this is also a great question because right now, most of the time when we talk about technology, we don't discuss economics, but economics is very important when people try to use a product. Because they want to create value with this product, either by making money or saving money. That's economics, a simple way to look at it. So for Stratos, economics is also very important. While everyone understands storage, the crucial part is how storage can generate income. How can we evaluate the value of the data everyone creates? It's a challenging task because the value has many different dimensions. For instance, you create a beautiful picture for your family, sharing a memory that holds immense value for you. However, for strangers who don't know you, the same picture may not hold much value. Thus, estimating the value of data becomes difficult, and that's where economics comes into play. We use traffic.
If you check Web2 companies, none of them boast about being the biggest company globally. Instead, most companies focus on metrics like the number of users or active users and the impressions their websites generate — millions or even billions per day. They care about active users, impressions, and the number of videos watched because these metrics translate into traffic, which can be converted into revenue. They show ads and generate cash flow for the company. In traditional businesses, no one cares about how many debtors you have; they care about traffic. Traffic can generate cash. In Web3, how can we achieve this? Let's revisit Filecoin. Why can Filecoin operate independently? Because miners know that no one cares about the value of what they store. That's why they create garbage data within their own nodes, and no one cares. Still, they earn Filecoin tokens, which they can sell on the market.
However, for Stratos, we don't want to encounter the same problem repeatedly. That's why we use traffic. When people pay for storage to store data and want to earn more money, they need to provide valuable information. A great song, a funny short video, or something everyone wants. When they pay for traffic and share their information on Stratos, they know this information must be valuable. Consequently, when it's valuable, others will follow to watch the video, listen to the music, or download the generated file. If nobody is interested in that data, the creator generated traffic but won't pay for that storage fee anymore, and after a few months, say six months, that data will be deleted. The person loses their money, spent it for six months, and earned nothing. That's economics. In this case, we encourage everyone to pay but provide good data.
On the internet, we call it hot data. You create high-quality content on Stratos and share it with people. When you create excellent content, others may watch it thousands or even hundreds of thousands of times. Many people may want to download the content or game you've created to play locally. That's fine. When others download and pay for it, you get a portion of that traffic. In this scenario, traffic becomes the real metric to estimate the value of the content. That's economics. When we designed it, Proof of Traffic wasn't just the best way to secure the network; we also saw it as a suitable economic method to increase the value of the Stratos network. It allows everyone, not just the content creators but also the network participants, to find it profitable. If they can make money, they want to stay on it. When they feel they can make money, more content creators will join because, once again, they don't worry about losing ownership of their content to larger platforms. They don't worry about getting their content banned or deleted if someone dislikes it. Again, that's economics. We put a lot of thought into this before creating Stratos, making sure that the cash flow aligns with network security. Yeah.
Thank you, Bin. Yeah, Ciro, that was a great question. I think that gives us a good insight into the economics. I know I touched on earlier on in the X space that it's important for me to try and understand also how sustainable the The economic side is as much as when we talk about green networks and that thing. Like I said, there's a whole heap of content and questions that I've put together that I haven't got round to asking you yet. I would say that it would be wonderful if we could do something again in maybe a month or two's time with Pablo to really look at some other things because we've not looked at the different methods of generating or utilizing the STOS token that you have, some of the use cases and examples of those. Some of you've touched on there a couple, but maybe we can go into depth a little bit more on some of the others. Some more general talk about how things are proceeding for you. We have got run over the hour that we attribute to this. I thank everyone for listening in and investing your time into us.
I hope it has been an insightful evening, and I hope that you have gleaned a lot from Bin's very thoughtful, well-put-together answers to the questions that we've given. Well done to the four winners for your questions. Those have been picked by Bin, not myself or CoinMarketLeague. He's actually identified those great questions and picked out the winners. Well done for that. We are at an end. I just want to say thank you to Pablo for hosting these amazing Speculate X podcast on a Sunday evening with some amazing guests that we've had now.
Also a huge thank you to Bin for everything that you've delivered for us this evening. Like I said, I think we've only scratch the surface, really, on Stratos because there's that much that I've got here on the website in front of me and in my notepad that we haven't touched on. If you got any final words for our listeners tonight, Bin, before we knock it on the head?
Yeah, it's my honor. Thank you, everyone. I apologize for being unwell in the past week, and I'm still dealing with a cough. That's why you may hear me coughing. Anyway, thank you, everyone. A big thanks to the Stratos communities. Without your support, Stratos wouldn't have been voted as the top storage solution. I truly appreciate it. Perhaps in the future, we can organize more spaces to discuss in-depth topics, Stratos updates, and new use cases, maintaining transparency in the Stratos team and processes. Yeah, thank you.
Thank you very much, Bin. Thank you, all listeners. It's been another wonderful evening. I've really enjoyed it. It can catch it on record. If you're listening on record, thank you also for tuning in. Until next Sunday, next Sunday evening, we're going to be having another exciting guest, which we'll publish sometime in the week. Take care, everyone. Have a great week, and I look forward to speaking to you then. Cheers, bye-bye.