Introducing 1inch grant recipients: DeNet

The project has collected a 100k 1INCH grant from the 1inch Foundation to build a decentralized storage protocol.

The first grant of 100k 1INCH tokens under the recently introduced 1inch Grant Program went to the DeNet team for the development of a decentralized storage protocol. From this post, you’ll learn more about that project and its plans.

DeNet has been developing solutions for decentralized storage and hosting since 2017, in a bid to offer an alternative to the likes of Amazon, Google, Apple and other major players in this segment.

Since DeNet’s very launch, 1inch Network co-founder Anton Bukov has been a consultant to the project.

“I’ve been closely following and consulting this project since its inception, and I have confidence in its team and prospects,” Anton says. “I believe there is still room for a lightweight smart contract-based decentralized storage protocol to be built on top of any existing blockchain, such as Ethereum or Layer-2, with smart and efficient storage proofs compared to existing ZK solutions that are much more complicated and, in addition, require expensive hardware (GPUs).”

DeNet’s concept is based on utilizing unused disk space on personal computers for storing and hosting dApps. Proof-of-Storage, the first ever smart contract proving data storage facilitates the system’s operation, while users are incentivized to provide their storage space to other users by rewards in DeNet File (DFILE) tokens.

Road to success

Just three months after the July 2017 launch, DeNet released an MVP. The next year, the team took the project to the next level by entering the b2b storage segment.

In less than a year, pilot installations and tests were run in a number of Russian and global companies with a total potential capacity of 15,000 Tb. Among the companies that tested DeNet’s solution were ICL, TAIF, ASG Group and the digitalization and informatization ministry of Tatarstan, while a Memorandum of Incorporation (MOI) was signed with Huawei.

Subsequently, tests were expanded to the p2p and b2p2p segments. In the pre-seed round, capital was raised from business angels and some Asian investors.

“Unlike its competitors, DeNet offers storage solutions in a decentralized network,” says Rafik Singatullin, CEO of DeNet. “Thanks to its advanced tech, coupled with high-level tokenomics, DeNet has the potential to resolve the main issues in the data storage and management space.”

“Meanwhile, we don’t create additional issues, such as an expensive entry threshold, a need to run your own blockchain or depend on your own token and a payment bridge between networks,” he adds. “Everyone should do what they can do best. Therefore, DeNet collaborates with the best projects in their respective areas, creating the best quality for the end user.”

In addition, DeNet pays special attention to the security issue.

“Encryption, including all keys, is on the customer’s side,” explains Denis Shelestov, CTO of DeNet. “Data replication, managed on the customer’s side, is also available. All files are divided into 1 Mb blocks, although the block size could be increased. Finally, each file or segment is encoded with a unique encryption key.”

Proof-of-Storage

Proof-of-Storage, the first ever smart contract for data storage proof in the Ethereum network, features several tech advancements. It enables operation in any EVM network and provides proofs without revealing the contents of files.

Proof-of-Storage enables operations with any tokens and any volume of data, while there are no minimum system requirements.

Looking into the future

Currently, DeNet is building a decentralized storage protocol, which will become part of the 1inch Network’s ecosystem.

In addition, the DeNet team is preparing for the launch of its market dApp, also creating incentives for developers to switch to decentralized storage.

Any app developer, including open-source apps, could monetize their app by just receiving a portion of fees paid for the app’s data storage. This monetization option substantially differs from traditional ways, including sales of services, ads or donations.

If you want to apply for a grant from the 1inch Foundation — please, proceed here!