SNM coin is one of the most interesting cryptocurrencies in the computing world.It allows computing power to be rented across the blockchain, via a decentralized marketplace.But how does Sonm (SNM) plan to reach mass adoption? And what are the benefits of using their decentralized network?This SNM coin review explains all:I’ll discuss how their blockchain works, their price and predictions for the future.
What Is SNM Coin?
So as an overview:
Sonm is the decentralized marketplace for lending computing power
SNM coin is the actual cryptocurrency used for transactions on the Sonm network
Sonm is a cloud computing network, hosted via the blockchain.
It was officially launched on 1st July 2018.
They’re essentially a peer to peer marketplace, where sellers can lend out their excess computing power.
Sonm is designed for any type of computing – so it’s very versatile.
From creating CGI graphics to computing calculations, Sonm’s decentralized network can be used for almost anything.
1.1. The SNM Coin Mission
As computing becomes more sophisticated, it demands more resources.
Therefore, SNM coin has a clear use case:
Because it’s a shared peer to peer network, you can infinitely expand the number of nodes (and therefore computing power).
So SNM coin’s network is highly scalable:
Allowing mass volumes of people to buy and sell computing power.
Their vision is to create an exchange where you can freely trade computing power.
That means there’s no overarching power and computing becomes a more readily available resource.
And if SNM coin is successful, it could make buying computing power cheaper than it is currently.
The network would run globally.
So it’d be freely available even in developing countries where computing resources are limited.
1.2. Who Would Use SNM Coin?
You’d basically have two main types of users:
Customers: The people who are renting the computing power
Suppliers: The people who are lending their computing power
Customers of the Sonm network could include:
ICOs and cryptocurrencies who need somewhere to store their blockchain data and increase their network’s scalability
CGI reliant companies with intensive computing power demands for rendering rich media
Content Delivery Networks who want to reduce their networks latency and boost usability
Machine Learning and Artificial Intelligence software companies who need to store huge amounts of data and process thousands of calculations
1.3. SNM Coin Price
You can check out their latest price here, along with Sonm’s total market cap.
And you can find a price chart for SNM coin below.
1.4. What Are The Benefits Of SNM Coin For Suppliers?
- SNM coin is potentially cheaper than using a centralized cloud computing network
- It’s more secure, because you get the security benefits of the blockchain
- You can quickly scale up your enterprise with more computing power
- The Sonm network has unlimited potential because it’s peer to peer
- There’s no one single point of failure on the network – as it’s decentralized
- It doesn’t store your computing data in one place
- You can host your own decentralized apps via the network – kind of like Golem (GNT) and RLC
- In the same way that networks like Substratum enhance privacy, SNM coin can also mask your browsing history
1.5. What Are The Benefits Of SNM Coin For Customers?
If you’re a supplier on the network, you can profit from renting out your computing power to customers
You’ll get paid in SNM coin as a reward
It’s decentralized – so no one’s taking a cut of your commission
If you have spare computing power, you can rent it out (so it’s not wasted)
The Sonm network is auction based – so you’re more likely to get a competitive bid for your computing power
It’s fairly easy to set up on your laptop (check out their documentation here)
You don’t have to hunt for customers – they’ll come to you via the Sonm marketplace
Bids are completed via Smart Contracts – so you have less admin to manage for each rental
1.6. How Do You Buy Computing Power With SNM Coin?
First, customers can login to their Sonm account
Then they’ll search for the computing power they’d like to rent
They’d make a bid in SNM coin
If the seller accepts, the transaction is processed
Finally, the computing power is distributed via Smart Contract – it’s self-executed so sellers don’t have to manage the transaction themselves
Renting via the decentralized Sonm marketplace is like a bidding process.
This creates a more competitive market, allowing sellers and buyers to get the best deal for both parties.
It’s designed to create a fairer system for buying computing power.
1.7. SNM Coin Marketplace
Sonm is like the marketplace of computing power:
You can search through the marketplace.
You can rent and lend out computing power.
And importantly, you don’t have any third party in between taking a cut of the profits.
That means it’s decentralized.
So unlike existing cloud computing providers, you don’t have a company that’s profiting from every transaction.
2. How Does The SNM Coin Blockchain Work?
2.1. Smart Contracts
SNM coin was created from the Ethereum blockchain.
Their ERC20 tokens can process smart contracts – which self-execute when certain conditions are met.
Smart Contracts are legally binding and self-enforcing too:
So first, a customer will pay for computing power with SNM coin.
Then the computing power is automatically supplied once the Smart Contract’s conditions have been met.
2.2. Fog Computing
So Fog computing is Sonm’s answer to existing cloud solution providers.
Usually with giant cloud computing services, you have to deal with one centralized source.
That means the price is fixed:
Because there’s a limited amount of computing resources available and the seller holds all the computing power.
So the provider’s total computing power is limited:
And as more customers buy power, the cloud service provider’s price will increase.
But with SNM coin and their Fog computing network, you’re not limited to sourcing your computing from just one place.
In fact, you could have thousands of individuals lending out their computing power.
The network is therefore infinitely scalable.
This is also means as a customer, you don’t have to compromise on computing power.
You’d have a lot more resources to tap into.
2.3. Why Is SNM Coin A Blockchain Project?
SNM coin is the token exchanged between customers and suppliers.
But why is SNM coin run on the blockchain?
And why not use an existing cloud network solution?
Here’s a few reasons why the SNM coin network could be beneficial:
The prices you pay are going to be lower because there’s no commission involved
You don’t have giant corporations who can control the market
It allows the exchange of computing power to flow more freely
Your personal data is more secure
Lenders of computing power have more control over transactions
The market will naturally become more competitive and more affordable
As a customer, you’d simply:
Look for a seller
Choose the amount of time you want to rent out the computing power
Enter the resources you need (some computing transactions require more resources than others)
E.g. creating CGI graphics usually requires more computing than opening up an Excel spreadsheet
3. What’s The Use Case For SNM Coin?
Computing power is versatile.
That means there’s a lot of different ways you can use the Sonm network.
Let’s run through each.
3.1. Hosting Your Cryptocurrency
If you think there’s too many cryptocurrencies now, think again.
There’s going to be thousands of decentralized applications in the future.
And all of them need somewhere to host their projects.
Because of the intense computing power cryptography requires.
Almost every decentralized app needs to process:
Payments between users
And that’s going to be expensive if you take the traditional route of a using a cloud service provider.
So hosting a blockchain project on the Sonm network could be ideal:
It’s potentially faster, cheaper and more efficient too.
3.2. Machine Learning
Machine learning is highly dependant on computing power:
Their networks have to train the program to become smarter and more efficient.
But this demands thousands of processes and calculations:
It doesn’t just require a powerful computer, you also need a lot of storage too.
Machine learning software often requires terabytes of data to be stored somewhere.
Renting computing power with SNM coin is potentially:
Cheaper than existing solutions
More efficient – because you can speed up your machine learning processes
Plus you’d be able to tap into a huge network of computing power
And that means you can quickly scale up your machine learning operations
3.3. Computer Generated Imagery (CGI) Rendering
Rendering graphics demands huge amounts of computing power.
Currently there are a lot of cloud based ‘render farms’.
Even Google have created a cloud based rendering solution.
SNM coin could be a more affordable and efficient alternative:
Allowing more CGI intensive startups to enter the industry.
3.4. Content Delivery Network
If you’re running a Content Delivery Network (CDN), you can host it on Sonm.
But why would you choose Sonm vs cloud computing?
Well the faster your CDN, the more satisfied your customers are going to be.
And if you can reduce your network’s latency, buffering speeds will improve:
So therefore you could boost your CDN’s overall usability.
Plus the internet is becoming full of rich media:
Just look at the success of Instagram and YouTube, which hosts millions of videos and pictures.
So as the demand for CDNs increases, using SNM coin to rent computing power could become a more affordable and efficient option.
4. Recent News About SNM Coin
So what have their team achieved so far?
And are Sonm delivering on their promises?
Well, in terms of the latest news, I’ve listed some of the main updates from the Sonm team so far.
The Sonm network went live in July 2018
Their Livenet has been released
So far the platform has been launched successfully
They recently hosted a computing challenge to increase user engagement
Exhibited at the Rise Conference in Hong Kong
ChangeNOW cryptocurrency exchange has listed SNM coin
5. Sonm Vs Competitors
5.1. Sonm vs Golem (GNT)
Golem is SNM coin’s main competitor.
So Golem are also creating a marketplace for idle computer power.
But how do they compare?
Golem has a much higher total market cap than Sonm
That means it’s received more investment and has a higher net worth
Golem is mainly a marketplace for CPU computing power
SNM mainly advertises renting out GPU power
Golem has a much bigger team working on the project than Sonm
5.2. Sonm vs IExec (RLC)
From what I’ve seen, IExec are very similar to Sonm.
They both use the same buzzwords, they’re both based off Ethereum tokens and they’re both creating decentralized marketplaces for computing power.
What’s the difference between them?
IExec’s team has more of an academic background
IExec’s team have been working in this industry for a few years now
IExec have more experience
IExec is targeting individual developers, whereas Sonm’s network is marketed towards larger enterprises
Sonm’s network seems more developed
Sonm still has a bigger community
5.3. Sonm vs DADI
There’s a bit of controversy between these 2 blockchain rivals.
Well there are accusations that DADI stole bits of SNM coin’s white paper.
So here’s the general consensus:
They’re both decentralized cloud networks for renting computing power
DADI received negative press due to rumours of plagiarism from Sonm’s white paper
DADI has less credibility and trust
It’s a relatively newer project with a smaller community
Strangely enough, the branding of both projects is very similar
5.4. Sonm vs Elastic (XEL)
XEL is another blockchain project designed for users to rent and lend computational resources.
Here’s what we know so far:
Elastic is a bit of an outsider – their community isn’t as big as Sonm’s or Golem’s
There’s very little information released about the XEL project
If you check out their website (https://www.elastic.pw/), you’ll see that even their homepage is empty
So either XEL has been abandoned, or it’s right in the early stages of development
Golem and Sonm are Ethereum tokens, so you have to program their Smart Contracts with Solidity
Whereas Elastic has it’s own programming language ElasticPL
From what I’ve seen of XEL, they have a much stronger focus on anonymity
6. Prediction: What Could Increase The Price Of SNM Coin?
Here’s a few of the advantages of SNM coin vs other cryptocurrency investments on the market:
6.1. Supply Vs Demand
So one of the biggest benefits of Sonms decentralized marketplace for computing power is the ecosystem.
You’ll always pay a fair market rate:
Because prices are balanced via supply vs demand.
To break it down very simply:
If the computing power supply exceeds demand, prices drop
If the demand exceeds the supply, the price increases
Either way, you’ll only pay as much as the going market rate for computing power.
And therefore you’re not forced to pay extortionate prices.
If you look at a lot of web hosting and cloud based service providers, they typically charge more once you’re locked in.
That’s a problem.
Because if you’re heavily reliant on a cloud service provider then:
They can dramatically increase their price
It’d be too time consuming and risky to switch
And therefore, you’re kind of stuck between a rock and a hard place
You don’t really have any backup options or cheaper alternatives
With SNM coin, the market price is more liberalized:
And therefore it naturally flows with the economics of supply vs demand.
6.2. Community (Reddit & Twitter)
You’ll discover from some of my coin reviews that quite often, a cryptocurrency’s team doesn’t engage with their community.
But SNM coin are pretty responsive on their Reddit.
They’re constantly replying to questions and making the effort to answer their community’s concerns.
That’s a great sign.
It also shows their transparency:
They’ll happily share information about the project and they’re open about it’s pros vs cons.
6.3. The Computing Industry
Computing is becoming more and more resource intensive.
And that’s only going to grow.
But most companies can’t afford the expenses required to maintain a powerful computing setup offline.
With so many tech startups launching (include research), companies are always looking for more computing power.
So Somn could be the answer.
Plus it also means:
If you’re a tech startup in the Western world, you’ll save money on electricity
You can gain a competitive advantage on overheads
You can quickly scale up your project with more computing power
7. Prediction: What Could Hurt The Price Of SNM Coin?
Here’s a few of the disadvantages of SNM coin vs other cryptocurrency investments on the market:
7.1. Privacy Concerns
As a business, you have to be extremely careful where you store your data.
In 2018, we’ve already seen scandals like the Facebook data case and the introduction of new GDPR regulations.
So the way you store your data matters:
Privacy is a major issue.
If you’re not compliant, you’re exposed to serious legal penalties.
And if you’re storing terabytes of data via Sonm, you don’t truly know if your data is secure.
Just look at the number of blockchain hacks and scandals that have dominated cryptocurrency industry headlines.
Realistically, this is an untested technology.
Sure, the SNM coin ecosystem has a lot of potential.
But if you’re an enterprise using the Sonm network, you’re taking a big gamble.
If the network goes down or one of your suppliers can’t deliver what they promised, your business is at risk.
So this platform is going to take time to refine and make it more reliable.
And if you’re a new startup, you probably won’t want to take any more risks than necessary.