Flux Proof of Useful Work - A Blockchain Milestone

Proof of Useful Work (PoUW) solves many of the problems inherent to our current Web2 cloud infrastructure, making it a pivotal development for Flux and Web3. Read on to discover why Flux’s Proof of Useful Work will enable a more efficient and sustainable approach to building cloud and AI infrastructure in the future.

In the upcoming months, Flux will launch the first public components of Proof of Useful Work (PoUW) GPU mining. This groundbreaking endeavor is expected to substantially boost the computational power of the decentralized Flux network, potentially adding the equivalent of more than 35,000 Nvidia RTX 3070 GPUs (based on the current Flux hash rate).

Additionally, this initiative will unlock new use cases for the Flux ecosystem, such as supporting AI and other computationally intensive tasks, thereby generating new revenue streams for the Flux foundation and community while stimulating the overall growth of the ecosystem.

To celebrate the forthcoming launch of PoUW, this article aims to elucidate the profound implications of this technology and its significance as a milestone for Flux and the entire blockchain industry.

What is ‘Proof of Useful Work’?

‘Proof of Useful Work’ encompasses various elements best understood by exploring the problems it solves.

Over the past two decades, rapid technological advancements in computing, such as the Internet, Smartphones, artificial intelligence, and other key technologies, have massively changed our lives.

It has also generated the need for massive amounts of computers, servers, and other infrastructure to support the numerous applications and services we now rely on. As a result, we have become highly dependent on having a scalable, performant, and secure cloud infrastructure to support our growing reliance on technology.

However, the organization and construction of our Web2 cloud infrastructure have left us with three major problems.

Problem #1 — Computing infrastructure is inherently wasteful

Numerous CPUs and GPUS are produced yearly to meet the ever-growing demands for more computational power. Unfortunately, these components risk becoming technically obsolete within about five years due to rapid technological development and increasing consumer requirements. Once obsolete, CPUs and GPUs become e-waste, contributing to one of the fastest-growing waste streams in the World.

Regrettably, the utilization of this hardware is highly inefficient, with an estimated 30% of the hardware in data centers sitting idle. It is safe to assume that a similar scenario exists for computers in homes and businesses.

Our current Web2 computing infrastructure is wasteful and inefficient, resulting in overproduction and underutilization of hardware. As hardware sits idle, a significant part of its lifespan is spent unproductive.

Imagine a scenario where hardware production is optimized to meet actual needs and utilized to its fullest potential. The increased efficiency would not reduce costs but also conserve precious resources, and the reduced amount of e-waste would greatly benefit our environment.

Problem #2 — The scalability paradox

Despite the abundance of idle hardware, one might assume that we possess more than enough hardware to support our needs for cloud and AI infrastructure needs.

However, this represents a scalability paradox. Although the required hardware exists globally, it is only sometimes available or capable of scaling as required in specific locations and periods. Different bottlenecks are leading to hardware shortages of certain types in certain areas and certain periods. A recent example is the perceived lack of AI infrastructure.

So, even though we objectively have more than enough hardware available, we still experience shortages. That is a paradox.

This is worrisome, as it stifles the ability of our technology to grow, slows innovation, and creates an environment where competition can overheat and lead to price-gouging, monopolization, and other practices that hurt the consumer.

Problem #3 — Who owns the cloud?

Most of the current cloud infrastructure is owned by a few large corporations, such as Amazon, Google, and Microsoft. These corporations centralize infrastructure in large data centers under their stewardship. Once data is hosted in these data centers, it has to abide by their rules and risks becoming subject to de-platforming, demonetization, or other hostile practices.

Ownership is also a matter of concern. When utilizing centralized cloud services, individuals and businesses must trust the corporation that hosts their data and applications.

Overly centralized infrastructure exacerbates issues of wastefulness and scalability. Amassing infrastructure in the hands of a few competing actors divides the combined pool of hardware and makes scalability challenging globally.

The purpose of centralization is only to strengthen the agency, profits, and power of the entity that does the centralization. Thus, centralization mostly benefits corporations as they reap the benefits while passing on the risks to the consumers.

Proof of Useful Work is the rational solution.

Scholars have studied these challenges to find a better approach to building cloud infrastructure and creating a more sustainable way forward for computing technology. One of the most compelling solutions scholars examine in many academic papers is ‘proof of useful work.’

‘Proof of Useful Work’ aims to decentralize the global resources of existing CPUs and GPUs, utilizing them efficiently and sustainably.

By leveraging blockchain technology, it establishes a decentralized network that incentivizes participation from anyone. It opens the door to an infinitely scalable computational network and valorizes the IT resources you already own.

By providing the ability to have everyone share their resources in a decentralized peer-to-peer system, it solves the current problems plaguing cloud infrastructure:

• Having one large resource pool available to all makes it easier to track and optimize the efficiency and utilization of the infrastructure.
• Anyone can add hardware to the network, providing massive scalability. An incentivization model enables efficient scaling by balancing rewards with supply and demand.
• It taps into a vast pool of privately owned hardware scattered across the Globe.
• It is decentralized and creates a trustless environment that is stewarded by the participants rather than centralized actors.

Flux has been diligently building the technology to support the World’s largest decentralized computational network. So far, it has composed more than 10,000 computational nodes (providing CPUs, RAM, and storage); the network will soon incorporate heavy computation when GPUs join the network in the next iteration of Flux PoUW.

By putting scholars' valuable findings and theories into practice, Flux will test the limits of what decentralization can achieve in enabling more efficient and sustainable use of our computational resources. It will also provide people with a trustless alternative to big tech, bringing a new dimension to the cloud, the birth of the true Web3.

Want to know more?

Please visit the official Flux website hosted on the Flux decentralized network. Learn about the ecosystem and see what Flux has to offer.

You can also stay updated by following the official Flux Twitter @RunOnFlux for news and announcements.

Finally, you can meet the Flux community on the Flux discord. You can also meet the Flux team on Discord and discuss all things Flux. We always seek new community members, developers, or potential partners.