Welcome to Kafycrypto, your number one crypto news, and marketing channel. This blog post is a review of Strongblock.
Making money through cryptocurrency has gained popularity in recent times. Both millennials and trend-savvy old-timers frequently search for opportunities in crypto. Airdrops, free NFT minting, and token giveaways are such available opportunities. And many have taken advantage of these consistently. One recent one was by Sweat Economy, who launched their token, SWEAT, on September 13th, 2022. And you can read our prediction for SWEAT here.
In addition to the popular ways, some projects invent something unique once in a while. One such project that happened in the later part of the previous decade is Strongblock. Strongblock is a solution that the blockchain needed but didn’t know it. Thanks to the foresight of the project’s team, now blockchain protocols and users can benefit from node creation. What an initiative by Strongblock!
What is Strongblock?
Strongblock is an innovative blockchain project that runs on the Ethereum blockchain. It is a company that services other blockchain projects. But servicing other blockchain projects is not new. It is the same thing most DEXs and CEXs do.
So what makes Strongblock unique? Why should an investor consider Strongblock? Why should you learn about Strongblock or consider putting your money in it?
Strongblock is a node creation automation service. This means that they make it possible for a blockchain user to create blockchain nodes with ease. That is, a user can create nodes for a blockchain without owning high-grade hardware. And he/she does not need technical sophistication either.
But all this may seem trivial to you if you don’t understand how the blockchain works. Or what nodes do, and why the creation of nodes is important. But we can take a little time to understand the blockchain, can’t we?
So let’s do that.
Blockchain and Nodes | How transaction validation works
A blockchain is a system for storing information. But understand the difference between a blockchain and other information storage systems. A blockchain stores one piece of info in several independent but connected entities. Such that no single entity has complete control over that piece of information.
These entities we speak of are computers and software. And the whole system uses encryption to maintain the integrity of the data. Each new piece of information is stored in a way that corresponds to the last stored information. And can only be accessed through a decryption key.
The encryption key is usually calculated at the hardware level. The entities that do the calculation are miners. While nodes do the storage of the information and its key at the software layer. This is why nodes are essential. The more nodes that hold a piece of info, the more secure that information stays.
Despite its importance, node creation was not an attractive activity before now. This is because, unlike mining, it wasn’t rewarded. However, this is changing now, and it has a lot to do with Strongblock. But before we dive into the Strongblock offer, let’s look at the men behind the project.
Strongblock started with about ten million tokens. The project eventually burned about 90% of them. The current market cap of Strong token is about 1 million.
Who are the Founders of Strongblock?
A good blockchain team should be led by people who have been in tech but have also tried their hands on blockchain. In that sense, Strong has a solid team with documented achievements in tech. Most Strong team members were pioneering members of a successful tech project, Blockone.
The CEO, David Moss, is known to prefer working with dependable people. He likes to build teams with people who have documented results. His current team includes notable names like Brian Abramson and Corey Lederer. These are men who he worked with at his previous project, Blockone.
What is the Strongblock Value Proposition?
Entrepreneurship is innovation. The founders of Strongblock found the answer to a need in the blockchain industry. What was the need?
They noticed that despite the importance of nodes, people weren’t eager to create them. And this was because nodes were difficult to create and maintain in most blockchains.
So they created an economy where people can create nodes and get rewarded. Strong provided an infrastructure that makes it easy to create and maintain nodes. And in that economy, the reward for node creation is their token – Strong.
They named the idea Node as a Service. And this translates into benefits to both blockchain projects and users. The following are some of the benefits of Strongblock’s proposition:
An increase in the number of nodes in a blockchain improves the decentralization of the blockchain.
Getting users more involved in a blockchain through node creation can promote acceptance of the blockchain.
As the demand for nodes increases, the demand for the token also increases. This will lead to financial gains for the node creators.
What is Node as a Service?
Node as a service is the provision of infrastructure for the creation and maintenance of nodes in a blockchain. And this is without the direct involvement of the blockchain itself. Neither is there a need for technical contribution from the node creators.
What is a Node?
A node can be described as a computer that validates information at the software level in a blockchain.
What is the relevance of Node as a Service?
NaaS, node as a service, helps blockchains improve security by acquiring more nodes. The service helps the blockchain acquire nodes without diverting resources to node creation.
How Does Strongblock Work?
Strong created an economy that allows blockchain participants to benefit from node creation. As a result, Strongblock can partner with several different blockchains. At the moment, they are in partnership with Ethereum, Fantom, Polygon, and Bitcoin.
The following list outlines the Strongblock process:
A user gets on the Strongblock platform.
The user buys 10 Strong tokens and contributes them to the economy in exchange for a node.
The economy uses the token as it deems fit.
The user gets rewarded with Strong tokens daily for each node that is running.
However, the user pays monthly chargers for the maintenance of each block.
Strong is a Ponzi Scheme – Says Who?
The tweets pictured above are a representation of an argument on Twitter some months ago. The argument was about the authenticity of Strongblock.
Some claim that the project is a Ponzi scheme, while others disagree. But to answer the question correctly, we need to know the elements of a Ponzi scheme. And then compare those elements with the features of the Strongblock project.
A Ponzi scheme is a fake investment plan that offers investors huge profits with no risk. The reason a Ponzi scheme is fake is that there’s no actual investment, and this fact is hidden from the investor. What they do is take the money from newer investors is used to pay returns to the older investors. And then the testimonies of older investors attract fresh investors. The fresh investment then services the returns of the previous investors. Awesome!
In many ways, the Strongblock protocol doesn’t fit the description given above. First of all, Strong is not an investment plan or opportunity. And Strongblock doesn’t need someone else’s investment to pay you. Because you begin receiving rewards the moment you create a node. There are many more ways Strong defers from a Ponzi scheme.
For example, a Ponzi usually tries to hide where they invest the money. In some cases, a Ponzi scheme claims the investment procedure is too complicated. That a layman won’t understand it. But Strong explains how the protocol uses your tokens. They show that rewards are from the rewards pool. And the rewards pool grows by the contribution of all token holders.
Next, investors find it difficult to remove their money from Ponzi schemes. This is not the case with Strongblock. You can easily withdraw your rewards at any time. The challenge that may arise with withdrawal is Ethereum gas fees. And this is a common challenge on the Ethereum blockchain.
Another point is that Ponzi promises certain high returns with no risk. But we know that cryptocurrency is not risk-free. And returns are not consistently high on Strongblock because they are dependent on the market price of the token.
It is, therefore, clear that Strongblock is not a Ponzi scheme. So the claims found in certain quarters of the blockchain community are inaccurate.
Is Strongblock Profitable
The profitability of many crypto tokens is dependent on the market price at the time of entry. The volume of investment contributes to the profit when there’s positive price movement. For $Strong, profitability is tied to the price of the token for the following reasons:
There is a monthly node fee of $15 that will be charged as long as the node is running.
The daily reward for each node is 0.095 STRONG. Amounting to around 2 STRONG a month.
The reward does not cover the gas fee and node fee.
The current price of the STRONG token is $7. At this rate, 2 STRONG a month is $14. An amount that isn’t enough to cover the gas fees alone.
The fixed reward fee plus the Ethereum gas fee makes it necessary for STRONG to be at a good market price to be profitable. Holders of the token made reasonable profits a few months ago when the price of STRONG soared to $1000. That hasn’t been the case since it plummeted. The current parameters seem to suggest that one should not be buying Strong nodes at this time. But if the volume is not your problem, you can take the risk of entering at the current price and expect a bull run.
Strongblock | Drawbacks, and Brightsides
Some of the challenges with the Strongblock project include:
The tokens used to acquire a node are not retained by the investor.
Monthly node fees
While the interesting things about Strongblock are the following:
NFTs: users can increase their daily rewards by buying and staking NFTs. The project has four levels of NFT that provide different levels of improvement to the daily rewards.
Metaverse: Many users look forward to the Strong metaverse.
Some say Strongblock is the king of node projects and few can argue with that. Strongblock will be sustainable if blockchain users continue creating nodes through their service. A little adjustment to the entry criteria may help sustain the project.
You may want to know what my opinion is about creating nodes with Strongblock. I would say that the project has potential. Since it has lasted more than a year, it’s worth keeping tabs on. Keep an eye on the price of the token and the protocols added to the project.
Also, watch out to see if there’ll be any adjustments to the node fees and monthly rewards. Then you can make a decision when the parameters are favorable to your plans.
In order words, I am saying, “Do your research.”
NOTE: The guidelines shown in this article are strictly for educational purposes. They are not intended to provide any form of financial, investment, or legal advice.