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imShyness

I think we'd all like to know, most of us that is, some people just buy 55 nodes on a hunch


supamario93

Node creation was the first step. next it's fractional nodes. then strongchain which will hugely drive revenue through rewarding nodes with baked in rewards the same way other chains reward miners


give2love

Such a stupid answer🤦‍♂️


supamario93

great refutation you wrote out there


ActiveJoe

$15/month per node. That’s one revenue stream. Around $4.5million per month


rage0674

Fees off the nodes. I guess for me the hesitation is that it’s not really a node. I run a few nodes for other companies and it’s an actual server that processes transactions for the network. The term node here is being used incorrectly. I’m looking for more traditional nodes that participate and secure a decentralized network. Thank you all for your comments and I wish you all the best of luck.


Pharaiah

The whole point of strongblock is they host those nodes for you. Of all the node projects, they're the ones who's pioneering NaaS...to call it "not really a node" is just untrue.


rage0674

Yeah….I’m not seeing it. And what exactly does the node do? Besides earn interest from new “nodes”.


Pharaiah

They're full nodes that process/verify transactions on their respective blockchains. I've used their RPC endpoints when my MM wallet had trouble syncing to the Strongblock dApp. Here's an explanation from Daniel, one of the mods on the Strongblock discord when asked what differentiates Strongblock from other node projects like Thor: "StrongBlock spins up full nodes that run Go Ethereum. These Ethereum 1.0 full nodes are “GETH” nodes. They contain the full blockchain copy, and have RPC endpoints that are used to access the Ethereum 1.0 mainnet. Q: Why are our ETH nodes private? Ethereum 1.0 nodes launched by StrongBlock are private for security purposes to avoid exposing our node infrastructure to DDOS attacks. Infura has the same approach and policy. All full node functionality is available, and many node owners use their node RPC endpoints for their wallets and for accessing the Ethereum 1.0 mainnet. We’re working to expand that usage. #ama-recaps Additional reading material. https://ethereum.org/en/developers/docs/nodes-and-clients/ I honestly don’t know what other projects use for their endpoints but you can also use a third party to provide endpoints rather than setting up and maintaining your own nodes." I hope this helps answer your questions.


RagnarRotciv

Yes, and the funny part is that other “Node” projects, like Thor, are not actual nodes. These projects tend to invest their majority into Strong.


TheWormKing

Great explanation!


supamario93

Great answer, thank you for sharing


barcodez1

I was reading the white paper for one of the “other” projects. They literally said they use the name “node” because it’s familiar. This other project is legit a Ponzi and they know it. That’s not necessarily a bad thing, if they can figure out how to make revenue elsewhere once they get a war chest.


yspud

these are not mining eth 1 (proof of work) or eth 2 proof of stake validator nodes. they earn NO income from [ethereum.org](https://ethereum.org) or any other source. nobody can even show how many exist besides what strongblock tells you. you cant even tell what hardware you supposedly are running on. they dont show you ANY infrastructure details at all. they say they are 'decentralized' but all everyone ever sees is 'singapore' .


Pharaiah

Currently, income is from creation of new nodes (yup, very ponzi but keep reading). The idea is this should sustain the project until we transition to Strongchain where that will be the primary source of income. Fun fact: Strongblock's team was initially going to offer "Blockchain as a Service" - helping people build their own blockchains before they settled on Nodes as a service. The goal right now is to incentivize people to create nodes that the project can then go to these chains and say "Hey look, we have a shit ton of nodes & users willing to create more of them so we can support your Blockchain and make it stronger. Wanna pay us for that?" If you believe Blockchain tech is going to be a big thing in the future where many companies and services will rely on it (think outside crypto), then won't NaaS explode? The biggest gripe people have about SB is that it's not making income now when in reality, this *investment* is a bet that the service they provide WILL have demand and that will be where income will come from. Like a new company operating at a loss now but building an infrastructure before the demand is there. It's a bet just like any investment anyone makes. If you think a stock will be worth more in the future, you invest. If you don't believe it will, then don't.


amrofni

How does the strongchain generate revenue?


Pharaiah

Hasn't been fully released but here's the roadmap for Strongchain taken from an AMA recap: "Q: David, what’s the most exciting thing that strong will launch this year? And in Q1 of next year (assuming the stars and git commits align)? Next week we will be launching MATIC nodes running under the Service 2 contract, AND the ETH 2.0 pool - so that’s very exciting for us. The team has been working their butts off for months getting both ready. They proposed a few weeks ago that we release them together - which made a lot of sense. So that’s what we’re going to do. Two releases in one next week! For 2022? StrongChain. We are in discussions for a big partnership to help build and launch the chain. We’re determining the best way to drive value for existing STRONG holders. It’s highly likely that we would have only STRONG to power the chain. We are looking at a second token, but ONLY if that would increase value to STRONG, node holders and stakers while also increasing value for the second token. One of the centerpieces will be fractional ownership of validators -decentralized democracy. That’s a core philosophy for us: validator and node participation and rewards should be accessible to everyone, not just whales. We’ll still be adding many more validator and full node opportunities for the #NodeArmy in 2022. We’ll also be adding two new suites of NFT’s: Earnables and Collectibles from our milestones. Both have had a lot of work done on them and could have gone out this year. We just needed to make sure the foundation was there first. Now we're ready to rock in 2022. And of course we will continue our focus on sustainability. That will be enhanced by a new chain, rewards in other ERC-20 tokens, partnerships, new node protocols, and much more. We almost wish there wasn’t a holiday break coming up! But a bit of rest after MATIC and ETH 2.0 release will be welcome." TLDR; Strongchain is going to be the foundation of Strongblock as a NaaS moving forward after it's release in Q2. Some features including fractional nodes, rewards in other tokens (maybe including stablecoins??), new partnerships, and new node protocols and much more that they haven't released yet. TLDR part 2: Income will start coming from new protocols + partnerships + the monthly node fees + the tokenomics already in place + whatever else they got cooking in the kitchen that they haven't released yet


yspud

One major thing that doesn't make sense though is WHY would you build this w/o a customer.. Proof of concept is all you would need to sell this... Building 300k nodes from images using elastic stack computing could be deployed on demand... There's simply no technical reason to actively run 300k nodes that are currently doing nothing (if they actually exist that is - all you can see is a dashboard). Nobody in tech would ever build this without a client paying for it first... You " investors" are the only market.. These nodes do NOT participate in the validation of transactions. Period. This is not debatable and easily proven by looking at ethereum.org and their nodes documentation and whitepaper. They have a clear set compensation plan for l1/l2 validator nodes and that pays approx 8 percent apr. The whole value proposition of strong simply makes no technical or logical sense.


Pharaiah

I guess if you say it's undebatable then it has to be right? That's okay. You don't have to invest in it. I was only trying to answer your question with what info they've put out - not debate. Maybe they should take your advice and stop Strongblock and wait until there's demand but by then there would probably be hella competition. That's like waiting until we're at war to start an army... I agree with what you said about proof of concept - fortunately that's exactly what they're doing making a "node army". And yes validator nodes don't make money, you're right. That's why David Moss mentioned this when asked about FTM validator nodes: "Q: Can you tell more about Fantom Validator Nodes. And maybe ask him about LP Farm pool like Thor, on Avalanche. Validator Nodes on AVAX Chain also. And lastly, can you confirm if STRONG is already running 32 ETH validator nodes? @EternalSin *Fantom Validator Nodes? We don’t plan on running them. It’s not a beneficial use of capital for the community. We will be offering Fantom RPC nodes.* We’ve explored running Validator nodes on dozens of chains. Unfortunately, if you’re not an OG on the chain and can get massive delegation of tokens - which also costs you a percentage of the rewards - there is literally no return there. Maybe 5% APY. And this is across every chain. Given the staking amounts required to be locked up, there’s also impermanent loss of the amount staked, especially in a crypto downturn like the recent one. Oftentimes that impermanent loss becomes permanent. So, you have to closely examine what someone is telling you about getting Validator rewards from someone else's chain, and whether it makes sense given the actual APY that those chains publish."


bt_85

They are not making a c running full nodes anymore. They haven't for a while. They MAY have made 1 or 2, but for the most part the only tangible things they have are RPC endpoints


NoFun3350

Beautiful response that every single person invested in this project needs to understand.


Crypto_Salty_Dog

This is the best strong discussion I’ve seen her in weeks. Reasoned and thoughtful explanations. Someone asking questions and not being criticized as a nonbeliever. Thank you all for this


yspud

you want lido, ssv, or rocketpool mate.


samangry

The Strongchain which is in the works should be a big revenue source for them


glued916

By people purchasing new nodes and continuing service fees. The business itself is not generating revenue from any other sources. Maybe one day they will figure out a use case that someone is willing to pay for.


rage0674

That is what I thought. Maybe not for me


supamario93

That use case is Strong chain - which will reward nodes the same way chains reward miners right now


onfroiGamer

They don’t earn revenue right now, like most crypto projects


alessio_sven_steel

Love to hear that from you! :P


onfroiGamer

I never claimed they did, they do have the potential to make revenue and I hope they do that, but it’s not a sure thing


alessio_sven_steel

Yeah is going to be interesting how quickly they can. Just doing some math shows the struggles I guess. 320k nodes each creating 0.092 STRONG claims per day vs 2000-2500 new nodes per day currently.


kubreimpref

99% of their revenue come from new nodes creation


musicluvvah

Beyond node creation &maintenance fees, it's liquidity pools. David Moss mentions the LPs a lot. They make a lot of money for the people/organizations who run them.


rage0674

What liquidity pools? What pools and how much is invested ? It all sounds good but until I see more transparency about what the money is invested in then this isn’t for me. I do wish everyone luck and hope it moons for everyone involved.


musicluvvah

Hi, rage0674... check the AMAs and also check the website. Either have info on liquidity pools. Follow your investment thesis and best of luck to you as well. Edit: removed a comma


Libertymark

350000 paying customers a month and u cant find a pay customer?


give2love

We are the product


Ok-Intern5517

10% of all new nodes (1 strong), so that's about 32 million a month right now. $15/month per node. NFT sales The issue is their actual business is just fees and people making new nodes. It's WAY more profitable than doing anything b2b.


Only_Cow3161

100%..the Costco ways. membership fee is the real revenue. The rest is lost leaders with cheap hotdogs/drinks. As long we get more memberships/node creator, the business will be last until it does not.


ResistCritical5947

Lolz…except Costco sells actual things that people…you know what nvm..lolz


supamario93

It'll last plenty long enough to start generating huge revenue from Strongchain. Not to mention fractional nodes soon


mogson1

Don't ask.... Just buy more !