Zee Prime Capital: Distributed Storage and Business Models in Web3

Distributed Storage Network (DSN) can coordinate and utilize underutilized storage space, transforming it into productive assets, and has the potential to introduce the first truly commercial vertical field to the Web3 ecosystem. Luffistotle, an investor at Zee Prime Capital, analyzed the market pattern and business market of the distributed storage network. The Chinese version is authorized by the Filecoin Network for compilation and reprinting.

The market pattern of distributed storage networks is very interesting, with a gap between the scale of the head (Filecoin) and emerging storage networks. In the general public’s impression, the storage field is dominated by two giants, Filecoin and Arweave, but in terms of usage, Arweave ranks fourth after Storj and Sia. Although we can doubt the authenticity of the data on Filecoin, even with a 90% discount, Filecoin’s usage is still about 400 times that of Arweave.

Any protocol that issues tokens needs to support some form of economic activity for the tokens to avoid being shorted. When the cryptographic economic model is combined with specific commodities, the effect is particularly significant. As far as distributed storage networks are concerned, the commodity is clearly storage space. Data storage and its derivatives, finance, and securitization can immediately fill the gap in economic activity. However, distributed storage also needs to provide effective solutions for traditional enterprises, especially those that need to comply with data storage regulations. This requires consideration of audit standards, geographical restrictions, and optimized user experience.

Zee Prime is optimistic about the prospects of building a content distribution network (CDN) on DSN. CDN is a tool that caches content near users and reduces latency when retrieving content, and is the next key to the popularity of DSN. Glitter in our investment portfolio is a representative of this field, focusing on DSN indexing, which is a critical infrastructure that can improve retrieval market efficiency and bring richer use cases. This type of product has already shown a high product-market fit and there is a lot of demand in Web2, but many products still face some friction, and the permissionless nature of Web3 may be its gospel.

Reference: https://mp.weixin.qq.com/s/N1zYtBpI8TMEi6fjtum7zQ

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