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With Sentinel's dVPN protocol layer completed with the most recent upgrade, the focus is now completely on revenue.
Sentinel is attempting to do something that no protocol has done till date, which is to create a real working P2P bandwidth economy which is extremely challenging as compared to the storage and compute sectors.
Sentinel has THE most decentralized DePin architecture with its on-chain DHT and has one of the most widely used DePin networks. Now it is time for Sentinel to become one of the highest revenue generating DePin networks.
How do you fairly determine the price that a dVPN node should be paid?
What is the bandwidth that the dVPN node offers? What is its RAM and CPU? How many concurrent users can the node handle at max without compromising on quality?
There are many different variables that come into play when determining the fair price that a dVPN node should be paid.
Sentinel perfectly emulates the real world economic structure of centralized VPNs on-chain with its subscription contract structure, where dVPN app owners can pre-pay dVPN nodes and upsell them to their end-user.
This on-chain structure reflects the way that business in the dVPN space is done in the real world. However, at this point in time - the fundamental issues with the network preventing it from scaling exponentially are:
1) dVPN nodes are paid the same amount regardless of their specs
2) White-labels are unable to plan out their economics because they don't know the nodes specs
These issues stem from the fundamental problem of understanding the capability of a node. It is not possible to fully trust information reported by the node on its own specs as this can be manipulated (e.g a node can say 1 GBPS bandwidth when its actually has only 100 MBPS). The solution to this is the combination of a botnet architecture (WIP) as well as a local specs checking software which has already been developed.
Once a dVPN node's specs are understood (Bandwidth/CPU/RAM) - then the value of the node can be determined in terms of the number of concurrent user sessions it can handle at a minimum of 15 MBPS.
Why 15 MBPS? Because 15 MBPS is seen as the benchmark standard which allows a user to stream 4k videos.
Currently, Sentinel contributors are arriving towards a base price for a 15 MBPS session so dVPN nodes can clearly price their services to dVPN white-label builders in a fair manner. There are many idiosyncrasies such as the location of the system to verify a node's bandwidth capabilities and these will be addressed over-time.
An example of a clear economic structure:
-The standardized pricing for a 15 MBPS session is $.5/month
- A dVPN app owner is targeting a userbase of 10k users, so must have working capacity of at least 30% of userbase at any point of time
- The dVPN app owner must purchase at least 3000 15 MBPS sessions per month
- The dVPN app owner's cost is then determined to be a minimum of $1500/month
Future publications will include a much thorough report on Sentinel's approach to dVPN economics, as well as Sentinel Scout economics.
Sentinel Scout is in the process of becoming monetized with a payment gateway being integrated and a pricing structure is being determined based on market analysis $/1000 API calls.
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