SONM is a decentralized, open source structure where users can buy and sell computing power while building a market profitable to both. SONM uses fog computing, which unlike existing cloud-based computational systems (Amazon, Microsoft, Google, and others) which use a centralized system where they utilize their own servers and computational power to achieve the same result.
Fog computing is defined in Wikipedia as:
An architecture that uses one or more collaborative multitude of end-user clients or near-user edge devices to carry out a substantial amount of storage (rather than stored primarily in cloud data centers), communication (rather than routed over the internet backbone), control, configuration, measurement and management (rather than controlled primarily by network gateways such as those in the LTE core network).
The internet backbone can be defined as the use of strategically interconnected computer networks and core routers on the Internet. While the bigger cloud-based computing companies use their own interconnected networks, SONM uses a different approach.
The SONM Solution
SONM has prepared a comprehensive Business Overview and Whitepaper, and we will try and bring the main points to you here. The links to these resources will be below in the Resource section and we suggest reading them if you want more information before you decide to participate in the ICO, or if you want a deeper look into SONM.
SONM, through its fog computing, allows for the interaction between buyers, who need computational power and the and the workers, who have excess computing power. With the fog computing, there is no need to pre-pay for computational power, but buyers can pay on a need basis.
In the Business Overview, SONM explains how there is a big need for their computing solution as follows:
“Almost every online service needs computational power for their product, including websites, online shops, MMORPGs, companies using large databases, and apps. Everyone in the world who uses the internet for business will have an option to use SONM tokens to solve their computing power issues. Also, all internet users will be able to use SONM to receive passive income by providing their computational resources for rent.”
The company points out, that as mining has become hydrated, the cost of mining continues to rise on the blockchain and there are those that no longer can mine profitably. Therefore the fog computing platform is a great opportunity for these miners to use their excess capacity and sell this capacity to buyers.
SONM (SNM) Token
The SNM token is issued on the Ethereum blockchain and its design follows the adopted token implementation standards. This allows token holders to use existing solutions to hold their tokens like the Ethereum Wallet. The tokens will be created during the ICO and limited to the amount distributed during this period, with no additional tokens created after that.
The SNM token is a core component of the SONM project as it is the “currency” that is used for transactions between buyers and sellers of the computational power. Buyers will be able to acquire the SONM tokens in various ways as the Business Overview states:
“Computing power buyers will be able to pay for the SONM resources they rent using cryptocurrencies, fiat currencies and traditional centralized electronic payment systems (PayPal, Skrill, etc). The team will implement payment methods similar to those used by cryptocurrency exchanges, with Shapeshift-like services for instant cryptocurrencies exchange and payment gateways for fiat deposits. Buyers’ deposits will be instantly converted to SNM tokens at the current market rate, and after that buyers will be able to use the tokens to pay hubs/miners for performing computing tasks.”
SNM Tokens ICO Information
Pre-Sale: SONM started their funding campaign with a presale on April 15, 2017 and quickly hit its target of 10,000 ETH in less than 12 hours.
The ICO for SNM tokens will begin on June 15, 2017 and the details are as follows:
SONM provides a detailed structure for the allocation of the pre-sale tokens as well as the ICO tokens and where they will be used. The biggest expense that they see growing over time is payroll as they aim at bringing highly skilled developers and other essential employees on to their team through the initial years of their project.
SONM Business Overview
The Business Overview provides comprehensive details about the project, their team, and different growth scenarios. There is a section on The Market and Financial Model. We will not go through the details here and suggest that you review these details if you find the SONM technology and project interesting.
SONM Roadmap of Marketing
The company provides a detailed roadmap for the marketing approach and development of the project as well. This roadmap starts from the current version and runs from the summer of 2017 through 2020. Perhaps the greatest concern is that this project will take several years at a minimum to deliver the full solution it envisions.