$STRONG Node as a Service (NAAS) Guide and Calculations
This $STRONG Node as a Service (NAAS) Guide and Calculator is made to give you an idea about what $Strong NAAS are about, how to get one and what the potential is.
What is Strongblock ($STRONG) about in 1 sentence?
StrongBlock rewards blockchain nodes — even when their own blockchains don’t!
At the time of writing this article Strongblock has about 2,000 Ethereum ($ETH) 1.0 Nodes running. That translates to almost 20% of all Ethereum 1.0 Nodes around the globe.
Why does Strongblock provide so many Nodes? Who pays for it and why?
The Strongblock Community is setting up Nodes primarily through the Strongblock NAAS System. A User has to provide 10 $Strong for the setup itself plus a monthly maintenance fee of 14,95 USD in Ethereum. Including the Gas Fees this comes down to about 20 USD in Ethereum initial costs to start a Node.
All Nodes in the Strongblock infrastructure gets rewarded with a daily income of about 0.2 $STRONG. With the price currently hovering around 24 USD that means initial costs of 240 USD for the $STRONG needed + the initial Fee (incl. GAS) of 20 USD = 260 USD to start a NAAS Node.
The reward on the other side is about 4.80 USD worth of $STRONG per day. So to get an idea about the incentive behind running an NAAS here is an overview about the cash flow and some Key Performance Indicators around it. In this example I calculate with 10 NASS Nodes:
You see that you will recoup your initial investment within the first 2 months when the price is stable. With an initial investment of 2550 USD for the required $STRONG and the maintenance Fees you would end up breaking even after 2 months and a profit of about 28,560 USD after a 24 months period.
While you might be right when you say that this would be far too good to be true you can also calculate a depreciation of the Token itself to calculate for a more worst case/rewal case scenario. Let´s assume the price of the Token drops by 5 % a month (based on the price of the prior month):
You would still make your money back (if you sell the token every time you claim your rewards) after about 2 months and end up with about 14,390 USD in profits after the calculated 24 months term.
10 % a month scenario:
= 7,241 USD after 24 months
you see where this is going. Still looks nice.
I will not share a scenario with rising prices even though I see this as a possibility.
Also keep in mind: This is not financial advise. I am just sharing my thoughts and my reasoning behind it. So don´t just blindly do what I do and manage your risk + do your own research.
What does the future have up its sleeve?
I can see the NAAS infrastructure grow at an exponential rate when the model proves to be right. And I can see the number of projects out there supported by the Strongblock community rise. Today there is “only” Ethereum 1.0 supported. But what if we also get support for big initiatives like Bitcoin or the Binance Smart Chain which is growing at a breath taking rate? With that being said I can see the demand for $Strong and the Strongblock infrastructure rise over time.
Besides all that there are developments towards monetizing the Strongblock Node infrastructure towards models like those of Infura (https://infura.io/) where the income also pours back as a passive income source for the Node holders.
I am in this industry for about 5 years now and I have to admit that I have rarely seen a project in the crypto space with such potential as it solves something that no one else is thinking of at the moment: How to incentivice people for the infrastructure they provide for blockchain projects besides the Miners and Stakers.
Hooked?
Start here: https://app.strongblock.com/
Discuss here: https://t.me/strongblock_io
