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Cudo Validation Network (CVN), a platform for demanding calculations and for distributed processing, is both a donor and recipient of use cases for blockchain technology. Cudos uses blockchain both as a billing system for CVN users, but most of all, it enables off-loading of heavy processes from external blockchain-based networks (e.g. Algorand or Ethereum) so that these processes can take place on the Cudos network, instead of overloading the home network.

Cudos, apart from blockchain use cases, provides processing capacity for all processes, be it image rendering or artificial intelligence, so it can be said that they are building an alternative to typical Cloud Computing.


Cudos recently received a Grant from the Algorand Foundation, so let's take a look at how Cudos works, to what extent Cudos can help the Algorand platform, and how Algorand helps the Cudos Network.


Data processing, various approaches.

Cloud computing, is this macaw gone? New trends seem to be emerging.

Generally, the issue of grid computing, or Edge computing, Fog computing, is an important element of the architecture of the internet of the future. The current Cloud solutions (AWS, Google Cloud, MS Azure or Baidu Cloud) have an advantage that will be difficult for new players to obtain (costs), but they also have disadvantages (centralization, failure rate, SPOF, susceptibility to censorship), which new players, including they can use the area as their niche.

It seems that networks based on grid computing may be an alternative to the current giants in the area of ​​Cloud computing. In this way, it is certainly possible to build a scalable solution that gives access to fast calculations, and to some extent decentralized. But are we actually going to build successors for cloud computing here?

Let's see how it works - to put it simply:

  • The contracting authority sends a complicated task to be processed to a grid based on grid computing.
  • The task is accepted for calculation by the central control server (management entity)
  • then fragmenting this task and distributing it to many network elements (distributed private devices of different power) for parallel processing,
  • after conversion, the task is "glued", also thanks to the mentioned central unit,
  • and sending the calculated task back to the ordering party.

Grid computing may be an interesting trend when it comes to the architecture for processing large, complex calculations, addressing some of the problems we know from cloud computing, but it does not eliminate the centralization of network processing (see: management entity)

edge computing (processing in micro-data centers, close to the ordering party), or Fog computing (hybrid, halfway between cloud and fog computing) is also an interesting trend that may catch the wind in its sails

while what it builds cudos along with platforms such as Algorand, perhaps it opens the door to completely new possibilities.

Cudos Network, to my eye, the centralizing element from the picture above (management entity) is replaced with the decentralized element from the image below (Cudos Network Layer 2), i.e. hundreds of nodes that perform preliminary calculations, share the received task among themselves, perform simpler calculations and data integration, then send them further to data centers (Cudo Platform Layer 3) for more demanding calculations.

Where to use it?

This approach gives us a way to overcome even very complex and demanding large-scale operations while maintaining decentralization and data privacy in this model.

What can be converted in such architecture? Basically everything that can be dressed in some type of packaging, which symbolizes the repeatability / universality of a given operation.

The first use cases that Cudo targets are:

  • Smart contracts, DeFi and other more demanding calculations that blockchain technology cannot deal with today (this is where cooperation with Algorand, in the first use cases.
  • Rendering, i.e. the processing of graphic, three-dimensional images, usually very computationally demanding,
  • AI/Machine Learning, that is, learning artificial intelligence algorithms that would be embedded in the Cudos ecosystem,
  • Simulations for the needs of the automotive industry or the aviation or space industry,
  • Simulations and medical designincluding DNA modeling.

We currently have around:

  • 2 billion computers connected to the network,
  • almost 3 billion smartphones,
  • over 100 million game consoles,
  • 30 billion other devices that communicate with the global network.

It is estimated that the vast majority of the computing power of our devices is not used today. Here is the field that Cudos wants to develop, i.e. enable any such device, whether it is a private phone, laptop or a more advanced server, to be able to use its power for processing into Cudos (e.g. for calculations for blockchain networks or AI), and for lending computing power to be rewarded by cryptocurrencies (like Algo or Eth) or by fiat money (like PLN, USD or GBP).

Let's take a closer look at the blockchain use case, because it seems to be one of the first to be launched on the Cudos platform soon thanks to Algorand.

Cudos for Algorand 🙂

Algorand itself now offers the ability to create smart contracts on layer-1 of the Algorand network (here's a video of how it works) thanks to the TEAL language, which is incomplete in the sense of Turing (not all operations are possible), but also thanks to this approach it is fast and safe. It is not optimal, however, for very complex calculations, which will usually also require higher processing capacity than the Algorand platform would like to provide on its network.

For these kinds of use cases, Algorand is working on an approach to programming smart contracts that are more computationally demanding (see: the Clarity language Algorand and Blockstack are developing together). This kind of computation, if it has its typical and frequent use, can be prepared (pre-wrapped) to take place on an external network such as Cudos, keeping on-chain only the data and computations that they absolutely need. integrity ensured by the Algorand blockchain. So this is how it goes:

  • a blockchain developer working on a smart contract that requires intensive network calculations (e.g. data collection and aggregation) may commission such a task for conversion within the Cudos network.
  • If this is a typical task,
    • this task will certainly have its own template (program pattern) through which the developer will commission this task to the Cudos network,
    • however, if the template for such a calculation task does not exist, the developer must create such a pattern
  • Using the aforementioned template, the developer commissions a task for calculations on the Cudos distributed network.
  • The job goes to Cudos, thanks to Oracle's Cudos, and goes to layer-2 in the network, which is the link between the on-chain and off-chain world.
  • On this layer, we have hundreds of Cudos Validation Nodes, i.e. validation nodes that will pre-process the task, and possibly combine the data required by this operation with other data, via API (access to other DeFi sources, external off-chain data, or some data reference).
  • The pre-processed and pre-processed job is then packaged and sent to layer-3, i.e. Cudos Data Centers.
  • Here we are dealing with machines that offer the processing capacity for strong and demanding calculations. CUDO platform layer 3 performs the necessary operations and then sends the job back to layer-2 of the Cudos network.
  • Warsawa-2 Cudo Validation Nodes (CVN) integrates the calculations and using Cudos Oracle, the processed data is returned to the smart contract for Algorand, which originally commissioned the calculations.


Thanks to the grant that Cudos has recently received from the Algorand Foundation, this type of infrastructure is just under construction and, for sure, Algorand will be the first blockchain that will be able to "transfer" its operations to the Cudos Network. Additionally, Algo token will be integrated into the CUDO platform as a settlement measure.


the native currency of the digital world.

The founder of Cudo (Matt Hawkins) believes that Algo will have a dominant position in the cryptocurrency market over the next few years, also as a means of settlement, so the ALGO token as a means of payment within the platform is the next step that completes the Cudos and Blockchain integration picture.

Both computing power providers will be able to receive remuneration in ALGOs for providing capacity to the network, and ordering / commissioning calculations (e.g. blockchain devs, rendering studios, etc.) will also be able to pay a token in Algo for the work they commission.

An interesting approach that makes Cudo a donor and recipient when it comes to tech blockchain use cases.

Among the benefits of this type of approach, I would like to highlight three that, in my opinion, give Cudos a unique advantage over other similar platforms:

  • Network management model. Including the community in the development of the platform, giving the aspect of decentralization of the management of the platform itself, in the form of a semi-DAO, which should result in perhaps interesting future use cases that the community will want to develop within Cudos.
  • Connecting Blockchains. This support for Algorand is the first step. We know that Cudos is thinking about including other networks such as Ethereum or Polkadot, which will also create the possibility for a network such as Polkadot, Ethereum and Algorand to overlap their demanding calculations, beyond their main chains (apart from on-chain), de facto creating another possibility interoperability for these blockchains.
  • Crypto. While the approaches such as Fog computing or Grid computing also have a bright future, the lack of integration with the native means of exchange of value for the Internet, which are cryptocurrencies, such as BTC, Algo or Eth, in the long run can make innovators such How Cudos will miraculously become the future amazons or azuras of this digital world?

Sony, Kaspersky, AMD, Algorand = Cudos

Of course, this is a very bold and long-term vision. It is impossible to cover everything here. It is worth mentioning, however, that Cudo is not alone in this vision. In addition to the aforementioned cooperation with Algorand, which undoubtedly has a strong connection in the university environment (MIT, Princeton) among global partners for Cudos, we also see AMD (provider of encrypted computing units under Cudos Oracles), or Chris Deering (father of Sony Playstation, former CEO @ Sony) as well as the boss of the Kaspersky Labs team.

Antiviruses? Yes, cyber security is one of the key issues that the digital world will have to deal with in the next few years.

In conclusion ..

The world is clearly moving towards the Internet of Things (IoT), which generates a gigantic amount of data and web traffic. Computing needs will increase, if only because of virtualization, VR / AR, or autonomous vehicles, which will come into our lives more and more. The hunger for data processing, on a total of TBs of data from various sources, or for learning AI algorithms, will certainly be bigger and bigger.

If we address this hunger with a centralized approach such as Cloud computing, via AWS, Google Could or MS Azure, it may turn out one day that in fact - it's cheap - but only if we do not include a valid cost, the cost of lost privacythat will be abused and abused by even more of these giants.

So there is a middle ground somewhere, perhaps thanks to the decentralization of platforms like Cudos, which will take advantage of the global computing power enabled by the IOT while providing privacy thanks to encrypted devices from AMD and blockchain platforms from Algorand?

Just like today, every device that we connect to the network has anti-virus software installed, perhaps in 2030. each device will have software installed, which not only is an "antivirus", but also allows dynamic sharing of the computing power of that device to the global computing network, while checking whether our hardware in all of this is actually a trusted node and not a bad actor trying to harm the network ?

Of course, it is impossible to decide today what will happen in a decade, but Kaspersky / ESET in the picture above could suggest such a combination of dots.

I discuss the whole issue in the film, so feel free to ask if this topic interests you.

We will see how it develops. Please watch the movie.



4.9 / 5 - (7 votes)
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