Master Node Economy

Skychain blockchain architecture in a nutshell

Skychain is based on the Proof-of-Stake principle and is going to run on multiple master nodes. This approach has the following consequences:

1.The total number of Skychain coins (SGC) will be equal to the number of Skychain tokens (SKCH) sold during the ICO. No more Skychain coins will be issued after the ICO. Each SKCH token will be converted into one SGC.

2. Each master node must have a deposit of 100,000 SGC (the amount is fixed and cannot be changed in the future) and meet the following minimum technical requirements.

Technical requirements for a Skychain master node

A Skychain master node consists of one or more servers, each of which must meet the following minimum technical requirements:

4 x NVidia Titan V
(4 * $3,000 = $12,000)
244 GB of RAM 32 vCPUs

A server like that typically costs about $20,000. Let’s call it a “Skychain Node Server.”

Revenue generated by a Skychain master node

Let’s consider a use case of many consumers actively using Skychain. Say, you operate a Skychain master node consisting of 5 Skychain Node Servers, each of which costs $20,000. The investments into a master node like that will be as follows:

100,000 SGC + (5 * $20,000) = 100,000 SGC + $100,000

Now let’s calculate the revenue generated by each Skychain Node Server in your master node. As a comparison, take a look at p3.8xlarge, an AWS server of similar performance:

https://aws.amazon.com/ru/ec2/instancetypes/p3/ ($12.24 per hour).

It usually takes about a week of machine time to train a diagnostic neural network on a small data set. Neural network training will be the most resource-intensive task in Skychain. Skychain master node owners will be able to set their own per-hour prices for machine time. But if AI developers train their neural networks using Skychain master nodes, they will be provided with both computational resources and, most importantly, healthcare data sets as a service for AI training. That’s why Skychain master node owners will be able to charge higher prices than Amazon Web Services does. Say, the master node owner has set the price of $20 per hour.

The revenue generated by the master node will be a sum of the following components:

1. Revenues from AI training: 5 servers * $20/hour * 24 hours * 20 days * 0.8 (uptime) = $38,400 per month
2. Revenues from enabling Skychain transactions: $100–200 per month
3. Revenues from providing computational resources for AI diagnostics: $500–1000 per month (30–60 machine hours per month)

     
AI Training
$38,400/month
Skychain transactions
$100-200/month
AI diagnostics
$500-1000/month

As you can see, a master node consisting of 5 Skychain Node Servers can earn about $40,000 per month for its owner.

~$40000/month

Such revenues can stimulate operators to add more master nodes. It can also drive the growth of SGC, so we recommend buying as many SKCH tokens at crypto exchanges.

Demand for Skychain master nodes

It is important to keep in mind that the national laws and regulations of many countries do not allow any medical records to leave the country.

So in the most likely Skychain development scenario, each large country will have at least one Skychain master node, or maybe even two or three master nodes to avoid monopoly.

It means that in several years, there may be about 50 Skychain master nodes in the world, which may drive the price of Skychain Global Coin up. That’s why we encourage interested parties to buy as many Skychain coins (tokens) at the crypto exchanges.

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