Ever since Bitcoin witnessed a meteoric surge in its value, the number of projects in the cryptocurrency space has grown at an exponential rate. Some of these projects are looking to leverage blockchain technology to give this world something more than just a digital currency while others are treading on the path to become the next Bitcoin. SONM is one of the projects that is looking to change the way we perceive fog computing.
What is SONM?
SONM, popularly known as Supercomputer Organised by Network Mining, is a decentralised fog computing platform. The idea behind SONM is for it to become a worldwide supercomputer of cloud-like nature that people can use to perform any task ranging from general applications to video rendering, web hosting, scientific calculations, hosting game servers, et cetera. Needless to mention, these services come at a cost.
The SONM architecture comprises Ethereum smart contracts which ensures transparency and security for all the participants in the system. To understand SONM better, think of it as a worldwide marketplace for computing power with fog computing back-end.
This marketplace consists of two parties - suppliers and buyers. Suppliers are individuals and companies with computational power and resources to spare. These suppliers can make revenue by renting their computational resources over the SONM marketplace like GPU, CPU, RAM, et cetera. Additionally, they can also increase their current income from these activities. Suppliers simply need to select the most profitable task and rent the resources. Basically, if a supplier has a computing resource that is idle, he/she can rent it to earn money.
As for the buyers/customers, they are individuals and companies who are in need of computational resources. They state the specifications, rental time, and resources they need, along with the price they are willing to pay for the computing power. Using these criteria, customers can always find the desired product they are looking for, and can be used for any of the applications mentioned above. The terms between a customer and a supplier are enforced with the help of Ethereum smart contracts and automated mechanisms.
Therefore, SONM takes the advantages of the traditional fog computing system like decentralisation and scalability, and enhances them further with the help of blockchain.
The native currency of the SONM platform is SNM. The function of this token is to serve as a method of payment for computing power. It is also important to remember that this currency has been designed as a utility and not a security. Therefore, all the users of SONM platform must transact in this ERC20 token. Users can either hold on to their SNM token for further transactions on the platform or encash it at any of the cryptocurrency exchanges.
The total supply of these SNM tokens is capped at 444 million of which, a little over 350 million are in circulation.
Where to buy SNM tokens?
SNM token is considered to be an altcoin and as a result, you cannot buy it with fiat currencies. You will have to trade it for either Ether or Bitcoin on any of these cryptocurrency exchanges - Binance, Tidex, Liqui, Kucoin, et cetera.
Official SNM wallets can be downloaded from the official website. However, being an ERC20 token, it is possible to store SNM tokens in any wallet that supports Ethereum. Some of these wallets are:
- Hardware wallets like Nano Ledger S and Trezor
SNM Cryptocurrency Mining
It is not possible to mine SNM tokens directly. You can mine Bitcoin or Ethereum and then trade the same for SNM on any of the exchanges. Alternately, you can also rent your computing power on the SONM platform to earn SNM tokens.
SNM Token Price Trends
At the time of writing this article, 1 SNM token is worth approximately 0.21 USD. The token commenced its first bull run early December 2017, at around $0.12. By the end of the month, the altcoin’s value had increased by twice as much. The token continued to make gains in the month of January as well and this time, its value increased by more than 600%. Towards the end of the first week, the token was being traded at around $0.7.
However, soon thereafter, the coin took a nosedive and shed its recently made gains. By February 2018, the coin was back in the $0.2 territory.
Risks associated with investing in SNM
As mentioned earlier, SNM tokens are not meant to be perceived as a security, but rather as a function of payment for computing power over the SONM platform. Therefore, buying them from an investment point of view is not a feasible idea. Furthermore, being a cryptocurrency, it is subject to high volatility and regulatory roadblocks.
If you are looking to invest your money, then it is advisable to invest in traditional, safer instruments like mutual funds.
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