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# Cloud Units
![](img/cloudunits_abstract.jpg)
## What are Cloud Units?
Cloud units are the basis for price calculation for anyone intending to use/deploy on the Threefold Grid.
Cloud units are a unified way to account for virtual hardware resources on the ThreeFold Grid. They represent compute, storage and network equivalents to energy (kW - kilowatt). The are three categories of cloud units:
- Compute Unit (CU): The amount of data processing power in terms of virtual CPU (vCPU) cores (logical [CPUs](https://en.wikipedia.org/wiki/Central_processing_unit)) and Random Access Momory ([RAM](https://en.wikipedia.org/wiki/Random-access_memory)).
- Storage Unit (SU): The amount of storage capacity in terms of Hard Disk Drives (HDDs) and Solid State Drives (SSDs) in Gigabytes (GB).
- Network Unit (NU): The amount of data that travels in and out of storage units or compute units expressed in GB.
> Note: [Resource units](resource_units.md) are used to calculate SU & CU. Resource Units are used to measure compute and storage capacity produced by hardware.
When a solution is deployed on the ThreeFold Grid, the system automatically gathers the required amount of CU, SU, or NU. It is important to note that users are not billed upon reservation but only when utilizing the actualy CU, SU and NU. TF Certified Farmers can define the price of CU, SU, and NU they make available on the ThreeFold Grid.
## How is the price of Cloud Units (v4) calculated?
The following tables display how cloud units (v4) are calculated on the ThreeFold Grid. The 4th version of cloud units are used since Grid 2.2+ in mid 2020.
### Compute Capacity
| CU (Compute Unit) | | | | |
| ------------------------------------- | --- | --- | ---- | --------------- |
| GB Memory | 4 | 8 | 2 | |
| nr vCPU | 2 | 1 | 4 | |
| Passmark Minimum (expected is double) | 500 | 250 | 1000 | CPU performance |
The passmark (CPU benchmark or alternative) is not measured on the grid yet. It is used in simulators to check the mechanisms and ensure enough performance per CU is delivered.
Example of Compute unit:
- 4 GB memory & 2 virtual CPU (and 50GB of SSD disk space)
- Recommended price on TF Grid = 10 USD
- Alternative cloud price = between 40 USD and 180 USD
See how we compare with the market compute prices [here](pricing).
### Storage Capacity
| SU (Storage Unit) | HDD | SSD |
| ------------------- | ---- | --- |
| GB Storage Capacity | 1200 | 200 |
HDD is only usable for Zero Database driven storage (e.g. ThreeFold Quantum Safe Storage). 1.2 TB of HDD is provided following the advised storage policy of 16+4 with 20% overhead. So the net usable storage would be 1TB. In other words, the SU corresponds in that case to 1TB of net usable storage and an extra 200GB for redundancy.
Example of Storage unit:
- 1TB of usable storage as provided by the Zero-DBs (the backend storage systems)
- Recommended price on TF Grid for 1 SU = 10 USD
- Alternative cloud price = between 20 USD and 200 USD
See how we compare with market storage prices [here](pricing).
### Network
| NU (Network Unit = per GB) = NRU per month | GB (NRU) |
| ------------------------------------------ | -------- |
| GB transferred OUT or IN | 1 |
> We use SU-month and CU-month to show SU monthly costs. This can be compared to kilowatts (kW) to see electricity usage per month. Learn more about how this is calculated with [Resource units](resource_units), a way to measure the compute and storage capacity produced by hardware.
!!wiki.def alias:cloudunits

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# Cloud Units Advanced
## How is the price of Cloud Units (v4) calculated?
The following tables display how cloud units (v4) are calculated on the ThreeFold Grid. The 4th version of cloud units are used since Grid 2.2+ in mid 2020.
> Note: [Resource units](resource_units.md) are used to calculate SU & CU. Resource Units are used to measure compute and storage capacity produced by hardware.
### Compute Capacity
| CU (Compute Unit) | | | | |
| ------------------------------------- | --- | --- | ---- | --------------- |
| GB Memory | 4 | 8 | 2 | |
| nr vCPU | 2 | 1 | 4 | |
| Passmark Minimum (expected is double) | 500 | 250 | 1000 | CPU performance |
The passmark (CPU benchmark or alternative) is not measured on the grid yet. It is used in simulators to check the mechanisms and ensure enough performance per CU is delivered.
Example of Compute unit:
- 4 GB memory & 2 virtual CPU (and 50GB of SSD disk space)
- Recommended price on TF Grid = 10 USD
- Alternative cloud price = between 40 USD and 180 USD
See how we compare with the market compute prices [here](pricing).
### Storage Capacity
| SU (Storage Unit) | HDD | SSD |
| ------------------- | ---- | --- |
| GB Storage Capacity | 1200 | 200 |
HDD is only usable for Zero Database driven storage (e.g. ThreeFold Quantum Safe Storage). 1.2 TB of HDD is provided following the advised storage policy of 16+4 with 20% overhead. So the net usable storage would be 1TB. In other words, the SU corresponds in that case to 1TB of net usable storage and an extra 200GB for redundancy.
Example of Storage unit:
- 1TB of usable storage as provided by the Zero-DBs (the backend storage systems)
- Recommended price on TF Grid for 1 SU = 10 USD
- Alternative cloud price = between 20 USD and 200 USD
See how we compare with market storage prices [here](pricing).
### Network
| NU (Network Unit = per GB) = NRU per month | GB (NRU) |
| ------------------------------------------ | -------- |
| GB transferred OUT or IN | 1 |
> We use SU-month and CU-month to show SU monthly costs. This can be compared to kilowatts (kW) to see electricity usage per month. Learn more about how this is calculated with [Resource units](resource_units), a way to measure the compute and storage capacity produced by hardware.

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## Resource Units
Resource units are used to measure and convert capacity on the hardware level into cloud units: CU & SU.
| Unit Type | Description | Code |
| ------------ | ------------------------------------ | ---- |
| Core Unit | 1 Logical Core (Hyperthreaded Core) | CRU |
| Mem Unit | 1 GB mem | MRU |
| HD Unit | 1 GB | HRU |
| SSD Unit | 1 GB | SRU |
| Network Unit | 1 GB of bandwidth transmitted in/out | NRU |
These are raw capacities as measured by the ThreeFold software running on Zero-OS.
To learn how they convert into cloudunits see [here](resourceunits_advanced.md)

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# Resource Units Calculation
## Calculation from resource units to CU/SU for farming purposes
The threefold Zero-OS and TFChain software translates resource units (CRU, MRU, HRU, SRU) into cloud units (CU, SU) for farming reward purposes.
### Compute
For farming, 1 CU equals:
- 2 virtual CPUs with a maximum over subscription of 4 CPUs and minimum required memory of 4GB.
- An over subscription of 4 CPUs remains still gentle as we understand many other providers use more.
- There needs to be at least 50GB SSD per CU, if not there is penalty for nr of CU, reasoning is that otherwise people cannot deploy their VM's or Containers if there would not be minimal SSD.
```python
cu = min((mru - 1) / 4, cru * 4 / 2, sru / 50)
```
- 1 GB of memory is subtracted for the operating system to function.
- please note minimal passmark per CU (with 4GB mem), needs to be 1000 passmark at farming side, this is not being checked today but might be done in future. If your chosen CPU has less than 1000 passmark per CU (of 4 GB mem), it could be your final CU's will be lower once that feature is introduced.
### Storage
For farming, 1 SU equals to:
- 1.2 TB of HD capacity (which can deliver 1 TB of net usable storage)
- 200 GB of SSD capacity with a buffer of 20%
```python
su = hru / 1200 + sru * 0.8 / 200
```
#### Storage cost price verification Dec 2021
- price for 16 TB HDD = 300 USD
- 16000 / 1200 = 13.3 SU
- 1 SU costs = 300 / 13.3 = 22.5 for HDD
- price for 2 TB SSD = 200 USD
- 2000 * 0.8 / 200 = 8 SU
- 1 SU costs 200 / 8 = 25 for SSD
<!-- ## Change Log
- original non final specs from Summer 2021, was mentioned its not final.
- Dec 2021 update for launch v3.x
- there need to be at least 50 GB SSD capacity per CU
- was in the specs of farming reward but formula above did not take it into consideration, in others nonconsistenty between specs & formula.
- sru division to 200, was 300, to be more in line with HDD vs SSD pricing, this check needs to be done +- every 6 months, results in slightly more SU, which is good for farmers.
- Jan 2022 update for launch v3.x
- reverted change done in Dec, sru does not have to be deducted from cpu, results in increase of farming rewards, in other words good for farmers. Also good formula more easy.
- Introduced warning about minimum CPU requirements in relation to passmark.
-->

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## ThreeFold Farming Pool
A Pool of storage & compute hardware which allows provision IT Capacity.
Each Farming Pool consists out of TFNodes which run the TF Operating System and TF Blockchain Software (TF Chain) which allows anyone in the world to use this IT capacity to host their IT workloads (storage apps, archive capacity, web applications, artificial intelligence, iOT, docker containers, etc). To use this IT Capacity, through the TF Grid, people need to own ThreeFold_Tokens (“TFTs”) as they are the only possible mechanism to purchase this capacity on the TF Grid. As such, TFTs represent a true utility.
!!wiki.def alias:threefold_farming_pool name:'TFGrid Farming Pool'

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# Foundational Concepts
## What is autonomous technology?
Autonomous technology is an emerging term for the technological developments that are expected to enable computers to run autonomously without human direction. An autonomous infrastructure would mean that the system would be self-healing and self-driving, without the need of any human intervention.
The ThreeFold Grid is the first autonomous grid in the world. There is no shell, local nor remote attached to the operating system - Zero-OS. It does not allow for inbound network connections from TCP/IP to happen. Also, given its shell-less nature, the people and organizations that run the servers cannot issue any commands nor access its features. All they do is connect the servers to electricity and network.
The smart contract for IT enables users to create the command functions (reservation of capacity, sending messages, store files, build applications, etc.) from their virtual system administrators (3Bots), that then execute these functions directly on the operating system level. Therefore, there is no need for any intermediaries between the user and the servers.
## What does peer-to-peer mean?
Peer-to-peer ("P2P") computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the application. They are said to form a peer-to-peer network of nodes.
Peers make a portion of their resources, such as processing power, disk storage or network bandwidth, directly available to other network participants, without the need for central coordination by servers or stable hosts. Peers are both suppliers and consumers of resources, in contrast to the traditional clientserver model (used by the current Internet) in which the consumption and supply of resources is divided.
Emerging collaborative P2P systems are going beyond the era of peers doing similar things while sharing resources, and are looking for diverse peers that can bring in unique resources and capabilities to a virtual community thereby empowering it to engage in greater tasks beyond those that can be accomplished by individual peers, yet that are beneficial to all the peers.
Given anyone can plug-in servers to the ThreeFold Grid and that there are no intermediaries between the users and the servers, as well as between users and users, ThreeFold created a peer-to-peer Internet.
Learn more about the peer-to-peer network on the ThreeFold Grid [here](znet).

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!!!wiki.include:tfdao
!!!wiki.include:grid_toc

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![](img/threefold_grid_new_.png)
# Introduction
!!!wiki.include:whatis_tfgrid
## Our Values
![](img/values.png ':size=700')
## Why the ThreeFold Grid?
The centralized Internet and cloud infrastructure is limited in scope and cannot scale with emerging data demands. While a centralized model can replicate itself and maintain high availability without compromising transaction rates using distributed system techniques, it is bound to limitations. The ThreeFold Grid demonstrates that the same theoretical limitations apply just as well to blockchains. The solution is to find a way to distribute the Internet infrastructure in such a way that nodes do not rely on one-another. Once nodes can become independent from one another, decentralized and distributed systems become applicable to Internet infrastructure and blockchains.
The main difference between how the ThreeFold Grid operates compared to other systems is that it represents an independent full-stack Internet infrastructure comprising of:
- A **decentralized operating system** that decentralized the Internet infrastructure.
- **New compute primitives** to run virtual machines and containers in a decentralized way.
- **New storage primitives** that allows (almost) any storage tool or protocol to run in a distributed quantum safe way.
- **A secure peer-to-peer overlay network** improves network redundancy, performance and privacy.
![](img/tf_principle_banner.jpg)
The ThreeFold Grid produces a globally decentralized Internet infrastructure that can run and store workloads independent from centralized APIs and networks. By leveraging blockchain technology, it removes all forms of intermediaries such as a centralized cloud service provider from the model and allows for users and developers to directly interact with off-chain compute, storage and network features via smart contracts.
With TFChain, ThreeFold's blockchain on Parity substrate, people can deploy and operate private and sovereign development environments via smart contract and coordinate consensus independently from the network itself. And with the ThreeFold Grid's private overlay network, the infrastructure is able to do a limitless amount of transactions simultaneously, representing a major breakthrough over most blockchain-based cloud projects.
The ThreeFold Grid is powered by ThreeFold's unique operating system, Zero-OS to secure the network and meet the efficiency and privacy requirements of emerging technologies such as the metaverse, blockchain, web 3.0 and alternative clouds. Any application which can run on Linux can run on top of the ThreeFold Grid with many advantages.
## Core Concepts
- [Zero-OS = our own operating system](zos), which allows any computer to generate compute, storage and network capacit for our decentralized cloud
- [TFNode = any computer which runs zos](tf_node), provided by farmers who extend the TFGrid.
- [Our ThreeFold Token = TFT, empowers it all](whatis_tft)
<!-- Learn more about smart contract for IT [here](smartcontract_it). -->
## A Decentralized and Circular Internet Ecosystem
![](img/circular_tft3_.jpg ':size=500')
<!--
Note: This image is stored as a slide in case the text needs to be edited. You can find it here: https://docs.google.com/presentation/d/1SoC_5qdbv31DccCEWnytsH7dUkGaR8UH0Va0cMVUJXY/edit?usp=sharing.
-->
<!--
NOTE: Would remove the below section as it created expectations. Would keep it short.
## Grid Users
![](img/different_users_tfgrid.jpg)
### Developers use the Internet Capacity
Anyone can build applications and services on the ThreeFold Grid as an alternative to doing it on a centralized cloud like Google Cloud or Amazon Web Services.
### A limitless environment for experts
A software development kit (SDK) is available and provides expert developers with great automation tools to scale their applications and services limitlessly.
### A platform for communities to thrive
ThreeFold created a marketplace of peer-to-peer applications that can be hosted by any community around the world to benefit from real privacy and freedom on the Internet.
### End Users
End-users use decentralized applications and consume resources on the ThreeFold Grid for which they pay in ThreeFold Tokens. -->

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## Grid More Info
- [What is it?](grid_concepts)
- [Grid Concepts](grid_concepts)
- [What is Farming](farming_intro) - An introduction to Farming and how anyone can participate in expanding the ThreeFold Grid.
- [What is the ThreeFold Token](token_what) - An introduction to ThreeFold Tokens, the medium of exchange on the new Internet.
- [Why a new P2P cloud](grid_why) - Why the ThreeFold Grid is so important and so relevant to everyone.
- [Grid Valuation](grid_valuation) - A study about the potential value of the ThreeFold Grid considering market dynamics.
- [What can I do with it?](grid_use)
- [Use the Threefold Grid](grid_use) - An introduction to the ThreeFold products and services: The ThreeFold SDK, P2P Cloud, P2P Marketplace, and Digital Twin.
- [Web2 vs Web3 vs ThreeFold Peer2Peer](cloud_compare_home) - How the ThreeFold Grid compares to Blockchain and Cloud infrastructures.
- More Info
- [How is capacity measured](cloudunits) - What is the Internet Capacity offering on the ThreeFold Grid.
- [Grid Architecture](grid_architecture) - An introduction to the main technological components that form the ThreeFold Grid.
- [Pricing](pricing)
<!-- - [Intro](grid_intro) - A quick overview of what is the ThreeFold Grid
- [ThreeFold 2 Pager](https://library.threefold.me/threefold_2pager.pdf) - An overview of ThreeFold.
- [ThreeFold: For Blockchain](https://library.threefold.me/tfgrid_2pager_blockchain.pdf) - An overview of how blockchains can scale efficiently on the ThreeFold Grid.
- [ThreeFold: The Token](https://library.threefold.me/tfgrid_2pager_token.pdf) - An overview of the ThreeFold Token circular economy. -->

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# How is the ThreeFold Grid valuable?
Demand for decentralized Internet capacity is exploding with the increasing data demands and emerging technology trends such as the Metaverse, Web3, Edge Computing, 5G, AI, VR and AR, IoT and more. The current centralized IT stack cannot support the growth of the Internet, and a new decentralized edge infrastructure is needed to support current and future IT workloads.
![](img/missing_layer_.jpg)
## What's the potential of the ThreeFold Grid?
Internet infrastructure represents the foundation for the Internet and Cloud. Without compute capacity, applications wouldn't be possible, without storage data would be lost forever, and without network we wouldn't be able to communicate digitally. Put simply, the Internet infrastructure is like the body that allows the Internet to be alive. It represents the backbone of all of our digital experiences.
The ThreeFold Grid represents the next evolution of Internet infrastructure as it is more efficient, advanced, sustainable and it can scale to the far edges of our world in a decentralized way. Emerging IT workloads such as the Metaverse or blockchain need a new infrastructure paradigm to scale, and market trends show an increasing demand for data privacy and improved bandwidth speeds.
The current global Internet and cloud market it is expected to triple in size by 2025. Considering that the ThreeFold Grid provides the ideal infrastructure for emerging trends and assuming a 10% market share of the USD 800 billion public cloud market by 2025, this would translate into a USD 80 billion worth in data demand to utilize the ThreeFold Grid using TFT as a medium of exchange for Internet capacity.
![](img/token_time_to_get_involved_now_.jpg)
## How is TFT valuable?
A TFT represents a unit of reservation of Internet capacity (compute, storage and network) on the ThreeFold Grid ("Grid"). Internet capacity holds the most valuable commodity on earth - data - also know as digital gold. In that sense, TFT is a way to hold actual Internet capacity that can be used to store data and run workloads. It therefore has an unerlying value.
![](img/token_valuable_.jpg)
Considering the infinite scaleability of the Grid, the limited supply of TFT and the burning mechanims in place, according to simple demand and supply theories, the value of TFT shall grow according to the growth of the ThreeFold Grid. At a higher valuation, a TFT will be able to reserve more Internet capacity.
TFT is minted only when new Internet capacity is connected to the ThreeFold Grid. In a way it can be considered to be backed up by hardware value. According to the Internet capacity they connect to the Grid in the form of compute, storage or network capacity, Farmers earn
According to the market demand, ThreeFold Farmers are incentivized to contribute to the Grid's expansion early.
![](img/token_issuance_economy1.jpg)
> [More info about limited supply](tft_limited_supply) <BR>
## How can the ThreeFold Grid connect billions of people?
While demand for the Internet and cloud is growing globally, the distribution of data centers is still highly concentrated in Northern America and certain parts of Asia. The following sources of information highlight the current or future distribution of data centers of market leaders.
- [Amazon](https://wikileaks.org/amazon-atlas/map/)
- [Oracle](https://blogs.oracle.com/cloud-infrastructure/oracle-launches-four-new-cloud-regions-across-four-continents)
- [Cloudwirx](https://www.cloudwirx.com/datacenters)
- [Microsoft](https://yellowduckguy.wordpress.com/2018/03/15/microsoft-worldwide-data-center-locations/)
The weak distribution of Internet capacity can be explained by the large amount of monetary, infrastructural, electricity, and security resources needed to operate hyper-scale data centers. The current model is not affordable to the developing regions of our world and the cost and complexity involved in producing compute and storage capacity can be covered only by current market leaders. This also means that all the data economy of these countries isn't owned by them, but by the tech giants.
With about 45% of the global population that remains unconnected to the Internet, ThreeFold's scalable and efficient Internet infrastructure can provide and affordable way for emerging countries to expand their own sovereign cloud infrastructure at an affordable price. Instead of building billion dollar data centers at one go, a city can expand it's Internet infrastructure in a decentralized and incremental way
> Note: With Zero-OS being able to run on any Intel or AMD hardware, refurbished hardware can also be used to lower the required investments. With such a model, hosting the digital lives of 1,000 people can be as low as a couple thousands of dollars in Internet ifnrastructure costs.
Also, the ThreeFold Grid's model permits to bring Internet infrastructure to areas of our world that are not serviced by big cloud providers. Thanks to the hardware compatibility, autonomous featurues and decentralized model, a node can be connected at the edge wherever elctricity and network can be found, something that wasn't possible until today. This represents an opportunity to grow the Internet infrastructure to new frontiers while empowering local communities and economies.
A comparison of the compute and storage capacity price of ThreeFold vs market leaders can be found [here](@cloud_pricing_compare)
## Disclaimer
> Disclaimer: Please note that we can't and won't make price predictions on TFT valuation and that all calculations made here are purely hypothetical. Use the simulator to make your own estimations.
!!!alias tft_valuation,token_valuation

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![](img/why_grid_.jpg)
# Why the world needs the ThreeFold Grid.
In this section, we discuss the limitations and issues of the current Internet infrastructure on a high level perspective, and how the ThreeFold Grid provides a universal solution to power the next digital era.
## The Internet needs an urgent update.
While technology is evolving faster than ever before and industries are digitally transforming themselves, today's global Internet infrastructure is struggling to keep the pace with these emerging trends.
The Internet infrastructure represents the backbone of our digital lives. It consists of hardware and software infrastructures that form the **inter**connected**net**work of compute, storage and network capacity that allows us to build software, create applications, send messages or store our digital assets. Put simply, without Internet infrastructure there would be no Internet.
Since the beginning of the millenium, spectacular Internet and cloud infrastructure advancemenets were made with hyper-scale data centers. However, the current Internet infrastructure model has many flaws.
- **It is centralized:** The GAFAM (Google, Amazon, Facebook, Apple and Microsoft) own 80% of the global compute, storage and network infrastructures. Also the global infrastructure is concentrated in the U.S in large majority, as well as Europe and China.
- **It is inefficient:** Most of the data centers are located in the U.S, forcing the rest of the world to connect via internet sea cables and having their data flowing outside of their borders and back.
- **It is not scalable:** Emerging technologies require the global Internet infrastructure to triple in size in the next 4 years. It took 20+ years to build the current Internet infrastructure. So we need to build 3X more in 5X less time.
- **It is not affordable:** It costs billions of dollars and enormous amounts of energy and time to build, manage and productize hyper-scale data centers. Only the richest countries in the world build data centers and the rest of the world become their clients. To meet the projected growth of the Internet in 2022, $5 trillion would have to be invested with this model
- **It is not private:** Anyone can access Google Chrome or Facebook for free. But as outlined by movies such as the *Social Dilemma* or *The Great Hack*, if it is free, you are the product. The web's Ad model is threatening our privacy and the net neutrality of the global internet.
- **It is not secure:** The current IT stack depends on human error and it has been considered as the major cause of cybersecurity breaches with more than 95% of the cases. Human errors allow attackers to access encrypted channels and sensitive information
- **It is not sustainable** Data centers are extremely power hungry, consuming over 2 trillion gigabytes of storage and consume around 205 TWh - More than the State of New York. According to statistics, the Internet consumes between 10-20% of global energy resources.
- **Cannot support future demand** To meet projected demand for 2022, more than 4,000 new data centers, costing an estimated $5 trillion, will be needed to build and consume an additional 400 GW/h. This is roughly equivalent to Japans energy consumption and would place an impossible strain on the global electricity grid. The rising demand for Internet storage is already causing hardware shortages and price hikes.
<!-- ## The Internet the world needs.
![](img/values.png)
In order to create the Internet infrastructure that will support emerging market requirements and breakthrough the limitations of the current model, ThreeFold had to start from scratch and build a new operating system as well as compute, storage and network primitives. The result is:
- Fully decentralized:
- Ultra-efficient:
- Limitlessly scalable:
- Extremely affordable:
- Absolute privacy:
- Quantum security:
- Earth regenerative:
- Built for the future: -->
<!-- # Our Solution - ThreeFold
We decided to turn around the current digital miasma and create from scratch a new internet infrastructure that is decentralized, fully peer-to-peer, secured, and more sustainable - ThreeFold Grid. ThreeFold developed this new infrastructure formed by people and organizations that connect Internet Capacity (Compute, Storage, and Network Capacity) anywhere where electricity and network can be found. As such, this solution is providing the possibility for any country to have their own internet and be sovereign. This will, therefore, be the gateway towards providing the internet to the global population which will allow fair access to education, information, and knowledge - Knowledge is the key driver of prosperity, happiness, and the advancement of human civilization. -->

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!!!wiki.include:roadmap_grid

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## ThreeFold Farm
A TF Farm is a location where a TF Farmer installes and maintains a group of TFNodes.
A TF Farm can be used by a TFGrid User for deploying IT capacity workloads like hosting soltions, websites, content delivery, storage solutions, ...

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## ThreeFold Farmer
TF Farmers farm TFT by connecting hardware to the ThreeFold_Grid.
As a result of farming, Internet capacity is generated and made available on the ThreeFold_Grid.
A farmer earns tokens by means of farming: as a result of connecting server/storage hardware to the ThreeFold_Grid
There are two types of capacity farmers:
- Certified Farmers: A certified hardware using farmer that has entered into, and is compliant with, the present Terms of the TFTech Service Level Agreement.
- DIY Farmers: Use their own choice of hardware (uncertified hardware).

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## What is a TFNode?
The ThreeFold Grid consists of many TFNodes distributed around the world by independent people and organizations called Farmers ("Farmers"). An example of a Farmer is [Green Edge Cloud](https://www.greenedgecloud.com/).
A TFNode is a computer or server that runs Zero-OS connects compute, storage and network capacity to the ThreeFold Grid. TFNodes work together to create an independent peer-to-peer Internet infrastructure that can be used by anyone to run applications or store data. A TFNode can be utilized by anyone who wants to use a private Internet infrastructure with an immutable record of events in time. TFNodes provide the following benefits:
- **Compatible**: Any Intel or AMD chip server hardware can be used to create a TFNode.
- **Efficient**: By distributing the Internet infrastructure across different locations, TFNodes require less bandwidth and less maintenance than the data center model.
- **Scaleable**: TFNodes can be deployed anywhere electricity and connectivity is present, including remote areas.
- **Secure**: Once booted by Zero-OS, TFNodes are locked by the system preventing data access on a hardware level.
- **Sustainable**: TFNodes require less energy to run than data center racks as they do not require cooling power.
Anyone can use TFNodes to build software and IT infrastructures, as well as store anything from pictures to archives on the ThreeFold Grid using TF Chain and Zero-OS. TFNodes. All TFNodes connected to the ThreeFold Grid are registered in a database called the ThreeFold Directory (“TF Directory”), which registers the internet capacity available on the ThreeFold Grid Explorer. This process is called Proof-of-Capacity.
- Learn more about [TFNode](tfnode).
- Learn more about [Farming](farming_intro).

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## What is a TFT?
![](img/tft.png)
A TFT is the name of ThreeFold's utility token, which represents a unit of compute, storage and network capacity on the ThreeFold Grid. It can be used by anyone to reserve decentralized Internet capacity on the ThreeFold Grid.

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## What is the ThreeFold Grid?
The Threefold Grid is an open-source Internet infrastructure that leverages autonomous cloud and high-performance, permissionless blockchain technology. It represents the first full-stack, decentralized, peer-to-peer Internet infrastructure in the world that connects compute (in the form of highly-optimized containers), storage and network (to run network services) capacity all-in-one.
!!!wiki.include:tfgrid_is_large

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## What is Zero-OS?
Zero-OS is a lightweight and efficient operating system. There is no shell, local nor remote (unless when run in debug mode).
It supports a small number of _primitives_; the low-level functions it could perform natively in the operating system. ZeroOS (ZOS) is the operating system which allows the TFNodes to be used to provide IT capacity required by the solutions running on the TFGrid.
zos has been developed by ThreeFold from scratch, starting from the Linux kernel with as purpose to improve on efficiency, energy usage, performance, scale, cost of management and security.
### Why
- Most centrally managed operating systems rely on human management and intervention, which leads to downtime and security issues.
- Since the creation of the Internet, the development of operating systems mostly arised through the addition of further layers of code to improve capabilities and functionalities of software, this leads to too much complexity, performance loss and energy usage issues.
- To build a truly scalable, private and efficient Internet infrastructure, we had to start from scratch to ensure a minimal hacking surface, improve efficiency, and ensure that anyone who connects hardware to the ThreeFold Grid wouldn't be able to access the private user data thanks to our qsss.
The result is game-changing as zos is able to provide the follwoing benefits:
- **Stateless**: Without shell, local or remote, it does not allow for inbound network connections to happen nor can data be fetched by node operators.
- **Lightweight**: Zero-OS can save up-to 10X energy on storage workloads.
- **Autonomous**: It runs by itself and doesn't require humans to maintain it, removing human error and considerably reducing the hacking surface.
- **Decentralized**: Deploy IT workloads and infrastructures in a private and neutral environment.
- **Secure**: Store workloads in a quantum safe (future proof) way.
- **Private**: Communicate end-to-end without centralized servers or APIs in the middle.
- **Compatible**: Run anything that can run on Linux but in a decentralized environment.

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# ThreeFold Grid Capacity Explorer
![](img/grid_stats_.png)
Thousands of TFNodes are connected to the ThreeFold Grid across the world.
### TF GRID EXPLORER Total Capacity
Find the live stats across Grid versions on https://explorer.threefold.io/all.
The explorer allows you to find:
- Available TFNodes and web gateways
- Live statistics about the ThreeFold Grid
- Live capacity map
It shows you the total stats for all active Grid versions.
The filter options allow you to choose between: 
* The different Grid versions: Grid 2 & 3, Grid 3, Grid 2
* The different networks: all, devent, testnet, mainnet
### TF GRID EXPLORER 3.0
> Is a subset of the total net and will grow as people upgrade their [TFNodes](https://library.threefold.me/info/threefold#/tfgrid/3node).
This new explorer receives its information via GraphQL straight from the [ThreeFold Blockchain](https://library.threefold.me/info/threefold/#/tfchain). It allows you to explore all farms and TFNodes using multiple filtering options. Choose between the different networks:
* Devnet Explorer: https://explorer.dev.grid.tf/
* Testnet Explorer: https://explorer.test.grid.tf/
* Mainnet Explorer: https://explorerv3.grid.tf/
**Features:**
- Using the `Capacity finder` panel, you can filter out the nodes based on their farm and resource units.
- By clicking on a node or a gateway, you get access to a full information view, as shared below.
- The information view lets you inspect a specific node or gateway in more details. Next to basic information (like farm, location, uptime), you can also find the primitives currently provisioned on the node and how much resource is available on the node or gateway.
<!-- ![capacity explorer](img/capacity_explorer_node_detail.jpg) -->

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# Planet Positive Farming
The ThreeFold Grid (“Grid”) has the aim to become a carbon_negative grid by the end of 2022. ThreeFold Farmers (“Farmers”) will be offsetting their carbon emissions three times and through their Farming process, will be directly involved in initiatives with the goal of regenerating the earth and enhancing the life of local communities. ThreeFold will therefore partner with an organization specialized in climate education and involving students and teachers in their quest to fight against climate change. Users of the ThreeFold Grid will therefore purchase carbon-negative internet capacity with ThreeFold Tokens ("TFT").
Part of the ThreeFold Token from the farming reward will be allocated for energy compensation and sent onto a pool dedicated for the above project.
The amount will depend on:
- The types of TFNode run by the Farmer as each type of server varies in terms of power utilization
- The location of the TFNode as each country has a different electricity production structure.
More variables will be taken into account to ensure the reliability of this voluntary carbon offset.
> More information will be communicated to the community soon. Stay tune.

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# Certified Farming
!!!wiki.include:farming_certification_benefits
!!wiki.def alias:certified_farming

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![](img/farming_solutions.jpg)
## Certified Node
A Certified Node is a node which comes BIOS locked and does not allow the owner change how the node boots.
This makes it impossible for the node owner to make changes to the operating system and secure that the node will run the right certified version of Zero-OS.
The Titan V2.1 node is a certified node. Certified nodes are eligible for more [farming rewards](farming_reward).
### Requirements
- Node delivered by a certified hardware vendor or through the ThreeFold website.
- The farmer who owns a certified node will have to sign specifically created terms and conditions
- not done yet, will be part of tfgrid 3.0 launch, see [here](farming_certification_terms_conditions).
- For 2.0 Farmers who started in 2020 or before: agreement about vesting see [vesting_overview](vesting_overview).
### More Info
- [Certified Farming](certified_farming)
### More Technical Details
- The BIOS gets locked.
- The BIOS gets configured to use TPM2
- more info about tpm2 [here](https://www.usenix.org/system/files/conference/usenixsecurity16/sec16_paper_raj.pdf).
- TPM2 is a security implementation on the motherboard which allows Zero-OS to securely store private keys, this mechanism is used to identify Zero-OS nodes and make sure they are registered as certified node.
- If a user would reset the BIOS then the TPM private keys are gone as well.
- Starting with our TFGrid 3.0 we will use this TPM feature to verify and validate some checks done from tfchain.
- A certified farmer is required to use certified_nodes.
!!wiki.def alias:certified_node

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## Certified Farming Benefits
This certification program has many benefits for the TFGrid user, for the world and the farmer itself.
| For The Planet | For The Cloud User | For The Farmer |
| ------------------------------------------------------ | ---------------------------------------------------- | ------------------------------------------------------ |
| More Green | More Secure | Faster Adoption (easier to get to 30% treshold) |
| **certified carbon neutral** | More Defined Legal Framework | More Farming Rewards (income) |
| Better Global Distribution | More Uptime (SLA) | Lower Operational Cost |
| Sovereignity (legal framework) | Better Performance | Higher Credibility |
| More protection for user | Possiblity For Support | Custom Pricing CU/SU/NU is possible (*) |
| **[more info](farming_certification_benefits_planet)** | **[more info](farming_certification_benefits_user)** | **[more info](farming_certification_benefits_farmer)** |
(*) in collaboration with TFTech, and planned for earliest H1 2022.
- [farming certification requirements](farming_certified_requirements)
- [certified nodes](certified_node)

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![](img/grid_banner.jpg)
## For The Farmer
### Higher Cloud Unit Reward reward = more income
A certified farmer gets more farming_rewards because a certified farmer need to adhere to higher service level agreements and buy certified farming solutions or certifiy their existing 3nodes.
### TF Tech Support
Direct defect and certified build support for Zero-OS from the software creators for the tfgrid_primitives on TFGrid.
### Lower Operational Cost
Certified farms can use the TFTech power management solution which makes sure that TFNodes are only powered on when there is a need for it. This can save huge amounts of electricity.
### Easier to get to minimal required 30% utilization
The tokens farmed for a TFNode are locked up in a staking pool untill the TFNode gets to 30% utilization.
This is to make sure that people cannot put hardware to the grid which cannot be used and as such get farming rewards.
ThreeFold needs to make sure that there is no abuse and also that TFNodes are not brought life for just farming which would burn energy for no reason.
ThreeFold & ThreeFold Tech will do a lot of promotion and find channel_partners to get the TFGrid to grow as fast as possible and get capacity used.
Its up to ThreeFold to make sure that certified capacity gets deployed where it is needed first.
All of this leads to much faster utilization of the TF_Farm IT capacity which results in the TF_Farmer getting access to their farmed tokens faster.
### Higher Credibility Because Of Certification
Security advantage as farm, location and nodes have been thoroughly checked and documented (secure boot process guarantees the most stable (best) Zero OS version). This information gets checked by ThreeFold which means the TFGrid user will more likey chose a certified farmer.
### Custom Network (\*):
Ability to implement custom networking based on VxLAN or many other networking technologies.
This is needed for deployments in hybrid or even full private mode where customers have very specific requirements around networking.
### Farmer Bot (\*)
A farmer bot will be made available which makes it easier for a certified farmer to manage their farm in relation to
- power management
- management farmed tokens
- network management tools
- lockout bad actors (e.g. deny access for hackers or other bad actors)
- ...
### Monitoring Integration (\*)
Possibility to integrate custom monitoring solutions.
### Reputation System (\*)
Farmers and TFGrid users are rated by a reputation system.
These reputation scores will be visible on the TF_Chain
This allows a farmer to see that the TFGrid users on the TF_Farm can be trusted.
> (\*): planned easliest Q4 2021

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![](img/grid_banner.jpg)
## For The Planet
### Green
Certified farming capacity will become carbon neutral by end 2021.
This happens because if using less energy and offsetting remainder of energy usage with buying carbon credits from a climate change action program called TAG = Take Action Global.
### Inclusive
Everyone gets access to this network of capacity everywhere.
Thanks to certification its easier to make sure that the TF_Farmer complies with all requirements.
### Sovereignity
Its important to deliver sovereign solutions to the user and to countries.
Certification allows ThreeFold to guarantee more requirements and have more visibility in the sovereignty requirements.

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![](img/grid_banner.jpg)
## For The ThreeFold Grid User.
Users of the ThreeFold Grid have an advantage to use a farmer who is certified.
### More information about the farm
Whoever wants to use capacity from the grid gets more information about
- connection capabilities to the internet
- quality of hardware used
- service level agreements
- location of the TF_Farm (country,...)
- protection mechanisms around fire, water, ...
This information is important for the TFGrid user to make selection where to host their IT workloads.
TFTech will validate this information.
### More uptime
Being certified means that the farmer likely will have more uptime compared to a non certified farmer.
### More security
As part of the certification process, TFTech will make sure that the TFNode has secure boot procedures to allow for more security. The Farmer needs to sign an agreement with ThreeFold Foundation where they commit to a set of standards and security requirements.
### More legal protection
Each certified farmer has to adhere to a set of terms & conditions which protect the TFGrid User.
The terms & conditions describe
- privacy & security protections
- compliance to legal requirements
- protection against abuse
### Continuation protection.
The TF_Farmer has to promise to keep the farm operational till the end as specified on farming certificate which gets registered on the TFChain.
- [more info about requirements see here](farming_certified_requirements)
### TFGrid User Can Have Support
All support inquiries will be handled through blocks of 15 minutes which are paid for in ThreeFold Support Tokens(TFTS).
Any TFGrid user can ask for support but only for certified farms.
<!-- [Learn more about the TFTS which is the dedicated token to be used to deliver support](tftech:tfts). -->

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- sign terms and conditions document with threefold_dubai
- we are in the process of formalizing this, this will be done at least before the end 2022.
- farmer agrees and acknowledges following info:
- TFGrid operates as a DAO with the help of human councils. This means that no organization manages the operations of the TFGrid.
- TFTech as subcontractor for threefold_dubai delivers software support for the tfgrid_primitives (only defect support and certified builds).
- All information required to be a farmer can be found on our knowledgebase: https://library.threefold.me/
- TFT rewards (farming) is the result of the blockchain as operated by consensus3 concept. If SLA is not achieved TFT will NOT be rewarded that month.
- TFT rewards are done in line with [farming reward document](farming_reward).
- Measurement of SLA (see below) done by consensus3 engine.

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![](img/grid_banner.jpg)
## Certified Farming Requirements
### Individual Certified Farmer
- Certified Farms are made up of certified_nodes
- up to 4 certified nodes
- home or office location
#### Uptime and Network Requirements
- 97% uptime is accepted in home farming situations
- 1 IP feed (consumer provider)
- 1 public IP address and NAT allowed
- enough bandwidth to allow the utilization of the storage/archive (see below)
- good enough latency (low latency = performance of network)
### Professional Certified Farmer
- Certified Farms are made up of certified_nodes
- more than 4 certified nodes
- datacenter location
#### Uptime and Network Requirements
- 99.5% uptime
- minimal bandwidth as required for the workloads as hosted on the farm
- maximum network latency
- more than 1 internet connection (multiple IP feeds)
- enough IPv4 addresses
- at least 1 class C ipv4 addr for network farmers.
- enough bandwidth to allow the utilization of the storage/archive (see below)
- good enough latency (low latency = performance of network)
- [install your network in line with Threefold Requirements](tfgrid_networking)
(*) = in case of datacenter or commercial deployment
#### Redundancy Requirements
- protection for fire & water damage
- enough access to power
- redundant power systems
#### Terms and Conditions need to be signed
!!!wiki.include:farming_certification_terms_conditions
### Bandwidth Requirement for archive/storage usecase example.
A storage usecase needs a lot of bandwidth to allow the storage nodes to be filled and also to allow its customers to download the information.
Its the obligation of the farmer to make sure that enough bandwidth is available. We will measure this by doing random upload & download tests to the storage systems.
It should always be possible to have at least 1 mbit/sec per Zero_DB (which is a storage container running on 1 harddisk or ssd).
### Reputation & Monitoring Engine
The TFGrid has a reputation engine and a monitoring engine to measure uptime & other SLA requirements, see consensus3.
Factors the TFGrid Reputation_engine will look at (Q4 2021, latest Q1 2022)
- Available Bandwidth
- Latency
- Utilization
- Uptime (nodes & network)
The monitoring engine could require farmers to execute on certain actions.

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![](img/farming_solutions.jpg)
# Farming Types
## DIY (Do It Yourself) Farming
- Self made or bought bare metal server (compute/storage) capacity (and AMD or Intel system)
- No license on the software with TF Tech (Company responsible for the ThreeFold Software components).
- No Support possibility from ThreeFold / TF Tech.
### Certified
- Certified Secured server hardware
- Comes plug and play
- Highest Uptime Requirements
- Certification report given by TFTech or partners to describe farming situation (H2 2021).
- see [farming certified requirements](farming_certified_requirements)
!!!wiki.include:farming_certification_benefits

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# Do-it-Yourself Farming Guide
Any standard computer can become a TFNode on the ThreeFold Grid. This section covers the compatible systems and setup optimization for anyone who wants to purchase or build their own nodes.
## What kind of hardware is supported?
Any 64-bit hardware with an Intel or AMD processor chip can run Zero-OS and become a TFNode. The following configurations provide guidelines on compatible and recommended setups:
- Servers, desktops and mini computers type hardware are compatible.
- A minimum of 500 GB of SSD and a bare minimum of 2 GB of RAM is required.
- A ratio of 1:4 between vCPU and RAM (e.g. 8vCPU and 32 GB of RAM) is recommended.
- The recommended upper limit is 8 GB of RAM per vCPU as farming rewards do not increase beyond that ratio.
- A minimum of 500 GB of SSD and a bare minimum of 2 GB of RAM is required.
- A wired ethernet connection is highly recommended to maximize reliability and the ability to farm TFT.
> Note: The team successfully tested ARM based devices, but they are not yet supported.
The follwoing configurations are not advised or not supported:
- Laptops are not advised and USB based external drives are not supported due to reliability concerns.
- No graphics or display is required, although it may be helpful during the boot configuration or troubleshooting if necessary.
- GPU is not yet supported.
## How much power does a node consume?
Power efficiency is important for farmers to spend less on electricity and therefore increase earnings. A small form factor server may be much more power efficient than a gaming PC with similar specs (GPUs are not supported yet).
> Note: Knowing exactly how much power a system will draw can be complicated, but some manufacturers provide more detailed estimates than the watt rating of a power supply.
## What kind of internet connection is needed?
- A wired network connection should be considered essential to maximize a node's reliability. Any domestic high speed internet plan is adequate for a basic node.
- If the node connects more than a few terrabytes of storage, a gigabit or faster connection may be necessary to support the traffic.
- The Grid is designed with IPv6 in mind, but IPv4 is sufficient for now.
> A node only needs bandwidth when it is being utilized. That means you could scale up your connectivity as utilization of your node grows.
## How to boot a node with Zero-OS?
Zero OS can be booted either from a USB stick (the boot image is tiny, so any size drive will do) or over a network via PXE. In either case, the latest software will be downloaded and cryptographically verified before boot. After the first boot, Zero OS will update itself automatically and requires virtually no maintenance.
When youre ready to start farming, follow [these instructions](https://library.threefold.me/info/manual/#/manual__farming) to bring your TFNode online.
> Note: Occasionally, updates to the boot medium may be required.

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Farming is the process of adding Internet capacity (compute, storage and network) to the ThreeFold Grid.
ThreeFold uses a proof-of-blockstake consensus mechanism. By running Zero-OS on their hardware, Farmers dedicate the computation power and storage capacity of their node to the network, enabling anyone to host data and run IT workloads on a decentralized Internet infrastructure.
![](img/circular_tft3_.jpg ':size=500')
> TODO: we have better one (note: image? could not find)
In decentralized systems like ThreeFold, we need to ensure that everyone is able to provide Internet capacity to the world. Farmers help this happen by connecting hardware that run Zero-OS. Once booted, the hardware is locked to generate Internet capacity for the network. The capacity is registered on TFChain, securing access to a decentralized Internet for users and rewarding farmers with TFT.
<!--
Farmers make this happen by recording the Internet capacity they make available to the network
Farmers connect hardware called TFNodes to provide Internet Capacity and are consequently rewarded with ThreeFold Token (“TFT”). The TFNode can be installed at home or any location where existing internet connectivity is available. Every month that the TFNode is up and running and connected to the internet, Farmers receive TFT.
Everyone in the world can now use this Compute, Storage, and Network Capacity to deploy apps onto these TFNodes instead of using centralized datacenters. -->

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# ThreeFold Farming
![](img/farming_intro0.jpeg)
ThreeFold Farming ("Farming") is the process of connecting Internet capacity to the ThreeFold Grid. This process is undertaken by independent people or organization called ThreeFold Farmers ("Farmers").
## What is Farming?
{{#include farming_circular.md}}
## Who can become a farmer on ThreeFold?
![](img/farming_.png)
Technically, anyone can farm on the ThreeFold Grid using any server-type hardware. By using [Proof-of-Capacity](proof_of_capacity), farming was designed to reward all nodes equally according to the Internt capacity they provide to the ThreeFold Grid.
## Cost of farming
Anyone can become a Farmer, and there is no technical knowledge required. ThreeFold's autonomous system does all the heavy lifting, making it easy for anyone to join.
- Potential costs of the hardware necessary to provide Internet capacity and maintain a farming setup.
- Electrical costs to power the farm.
- Potential cost of equipment to support larger farming setups such as data centers (ventilation, monitoring, electrical wiring, etc).
To further explore farming rewards, click [here](@farming_reward).
## How ThreeFold Internet capacity is farmed?
1. A farmer provides Internet capacity by booting compatible hardware with Zero-OS.
2. Once installed, Zero-OS locks the hardware and registers the Internet capacity in TFChain.
3. Once verified by the [Proof-of-Capacity](proof_of_capacity) algorythm, the Internet capacity is made available to the network via the explorer.
> Note: All the compute and storage data remains off-chain in order to protect the privacy of users. Once Zero-OS is booted, the device is locked in such a way that it no longer has any state or remote access, preventing farmers to access user data on a hardware level as well.
## What kind of hardware can become a TFNode?
Any Intel or AMD server type hardware that contains compute and/ or storage can be connected to the ThreeFold Grid. Farmers need to download Zero-OS and boot their hardware.
Learn more [here](@farming_hardware_overview)
Once booted by Zero OS, the hardware becomes a TFNode, and its total capacity will automatically be detected and registered on the blockchain database. We call this Proof-of-Capacity.
Learn more about Proof-of-Capacity [here](@proof_of_capacity)
<!-- ## Why becoming a Farmer?
### Internet and Its Global Demand
The Internet represents the largest economy in the world and is growing at a rapid pace.
![](img/token_time_to_get_involved_now_.jpg)
The ThreeFold Grid offers the most scaleable, secure and sustainable infrastructure to supply the increasing Internet demand.
Learn more about the ThreeFold Grid [here](grid_home).
### Sovereign and Recurrent Wealth
By participating in the expansion of the ThreeFold Grid, Farmers earn TFT on a monthly basis. ThreeFold Token has value - it represents a unit of reservation of Internet Capacity on the ThreeFold Grid. With the infinite expansion of the ThreeFold Grid and the scarcity of mechanism of the TFT, there will be a constant increase in demand while a decrease in supply, thus providing value of its holders/Farmers.
Learn more about Farming Rewards [here](@farming_reward). -->
!!!alias become_a_farmer

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# Farming Reward 3.0
![](img/farming_rewards_.png ':size=350x')
The amount of ThreeFold_Token earned by farmers is relative to the amount of compute, storage or network capacity they provide to the ThreeFold Grid as recorded by the proof-of-capacity algorythm. This section covers some farming and token reward basics.
## How do farmer earn TFT?
ThreeFold Blockchain (TFChain) rewards farmers for providing Internet capacity and expanding the ThreeFold Grid. They earn ThreeFold_Token. When successfully verified by proof-of-capacity, farmers earn TFT according to the amount of Internet capacity registered in TFChain.
## Proof-of-Capacity
The Proof-of-Capacity records Internet resources from the TFNode:
The ThreeFold Blockchain (TFChain) uses work algorythm called "Proof-of-Capacity" to verify the Internet capacity provided by TFNodes. Put simply, PoC verifies, on an ongoing basis, that farms are honestly representing the Internet capacity they provide to the network.
**See Proof-of-Capacity in action** by visiting the [ThreeFold Grid Capacity Explorer](http://explorer.grid.tf/) which represents the best resource to view POC-related data.
## What is proof-of-capacity?
POC allows ThreeFold Farmers to earn reward according to their contribution. Farming is the "work" itself, the act of providing Internet capacity to the network and making it accessible via our TFDAO and TFChain.
The PoC algorythm records four different types of Internet capacity:
- Compute Capacity (CPU)
- Memory Capacity (RAM)
- Storage Capacity (SSD/HDD)
- Network Capacity (Bandwidth, IP Addresses)
## Why proof-of-capacity?
PoC comes with a number of benefits, including:
- Energy efficiency: earning reward in form of TFT does not waste energy, farming TFT is a carbon_negative operation.
- Lower barriers to entry with reduced hardware requirements: no need for elite hardware to stand a chance for earning rewards.
- Decentralized: allows anyone to connect a 3node to the network. TFGrid runs as a DAO.
The main advantage of PoC to farmers it makes it really easy to run a TFNode. It doesn't require huge investments in hardware or energy and everyone earns a fair reward for their contribution. It is more decentralized, allowing for increased participation, and more TFNodes doesn't mean increased returns, like in mining.
## How does Proof-of-Capacity work?
1. A farmer boots hardware with Zero-OS (multiple boot methods available)
2. Zero-OS is a low level OS, with no shell, farmers cannot access Zero-OS
3. Zero-OS reports used IT capacity towards TFChain
4. TFChain and TFDAO will calculate rewards as required for the farmer (TFGrid 3.1.x)
5. TFChain will mint the required TFT and send them to account on TFChain of TFFarmer.
6. Everyone can use the [ThreeFold Explorer](https://explorer.threefold.io/) to see where capacity is available. This info comes from the TFChain.
## TFT Rewards for TFGrid Mainnet
| Percentage | Description | Remark |
| -------------------------------------------------- | -------------- | -------------------------------- |
| 100% of specified [farming reward](farming_reward) | goes to Farmer | Allows for a pure Utility Token. |
- Additional TFT are farmed to compensate for Carbon and deliver the yield for the Layer 2 Staking pools
{{#include farming_reward_disclaimer.md}}

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## Farming Reward Calculation
Each TFNode has certain amount of compute, storage and network resources:
- Compute Capacity (CPU)
- Memory Capacity (RAM)
- Storage Capacity (SSD/HDD)
- Network Capacity (Bandwidth, IP Addresses)
For making this Internet Capacity available, Farmers are rewarded with TFT.
The amount of resources availabe in a TFNode are translated into compute units (CU), storage units (SU), Network units (NU) and IP addresses (IPAddr) to calculate farming rewards. See also [Cloud Units Calculation For Farming](resource_units_calc_cloudunits).
> **Unless explicitly specified otherwise, calculations of "gigabytes" use base
> 1024. That is, 1 GB is equal to 1073741824 bytes.**
The formula to calculate farming rewards is the following:
```python
TFT earned per month =
CU farmed * CU farming rewards
+ SU farmed * SU farming rewards
+ NU used * NU farming rewards
+ IPAddr used * IPAddr farming rewards
```
The below table expands on CU, SU, NU and IPAddr and their farming rewards:
| Unit | description | v3 farming rewards in TFT |
| ------------------- | ----------------------------------------------------------------- | ------------------------- |
| Compute Unit (CU) | typically 2 vcpu, 4 GB mem, 50 GB storage | $REWARD_CU_TFT TFT/month |
| Storage Unit (SU) | typically 1 TB of netto usable storage | $REWARD_SU_TFT TFT/month |
| Network Unit (NU) | 1 GB of data transfered as used by TFGrid user for Public IP Addr | $REWARD_NU_TFT TFT/GB |
| Public IPv4 Address | Public IP Address as used by a TFGrid user | $REWARD_IP_TFT TFT/hour |
The reward for above items are linked (pegged) to the USD
| Unit | USD | Unit |
| ------------------- | ----- | ------------------------------------- |
| Compute Unit (CU) | 2.4 | per month |
| Storage Unit (SU) | 1 | per month |
| Network Unit (NU) | 0.03 | per GB transfer (as customers use it) |
| Public IPv4 Address | 0.005 | per IP address, calculated per hour |
> [IMPORTANT: MORE INFO ABOUT DAO RULES IN RELATION TO PROOF OF CAPACITY, SEE HERE](poc_dao_rules)
> **The rewards above are calculated according to the current TFT to USD price in TFChain of $TFTFARMING** ($NOW). TFDAO is responsible to change this price in accordance to current marketsituation and liquidity.
See [POCDAO RULES](poc_dao_rules) for more info about USD price which will be used to calculate your farming reward as well as any other specifics in relation to farming calculations.
The above farming rewards apply for TFNodes registered in TFChain for ThreeFold Grid v3. Anyone can calculate their potential rewards using the [Farming Reward Calculator](farming_calculator). The same CU, SU, NU and IPAddr principles apply to the sales of Internet capacity in the form [cloud units](cloudunits).
{{#include poc_dao_rules.md}}

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> DISCLAIMER: ThreeFold Foundation organizes this process. This process is the result of the execution of code written by open source developers (zero-os and minting code) and a group of people - who checks this process voluntarily. No claims can be made or damages asked for to any person or group related to ThreeFold Foundation like but not limited to the different councils. This process changes for TFGrid 3.X once the TFDAO is fully active.
> The farming rewards for 3.0 are staked per TFNode and unlocked once utilization is +30% or after 24 months.<BR>
> Important note: The ThreeFold Token (TFT) is not an investment instrument.
> TFTs are used to buy and sell IT capacity on the ThreeFold_Grid.
> More info: see [Proof of Capacity DAO rules](poc_dao_rules)

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# Cost of Utilization of Capacity for a Famer their own farm.
We would like to make sure that a farmer can use their provided capacity super cost effective.
The ThreeFold Dao will take care of this situation.
The idea is that the farmer will pay only for the burning & validator nodes.
> see [Proof of Capacity DAO rules](poc_dao_rules).

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![](img/farming_rewards_.png)
# ThreeFold DAO rules for Proof of Capacity
- The CU/SU reward gets expressed in TFT and registered in TFChain at TFNode registration time.
- For certified Nodes, the CU/SU reward was specified at sales/promotion time, this process is managed by threefold_tech.
- The rewards per CU/SU are fixed over time for 5 years (\*).
- CU/SU rewards are calculated from Resource Units, [IMPORTANT see this doc](farming_reward_calculation)
- Certified Node gets 25% more farming rewards.
- TFT pricing is pegged to USD (pricing changes in line with TFT/USD rate)
- Rewards for NU and IP Addresses are dynamic
- The TFChain tracks capacity utilization and as such the reward can be calculated for the Farmer.
- All CU/SU rewards are staked (locked to farmer account) until 30% (measured over 3 months) is used or 24 months since registration.
- All Internet capacity farmed is rewarded on a monthly basis according to minimum service level agreements.
- Minimum SLA = Service Level Agreement (see special section about SLA) needs to be achieved before TFT can be rewarded.
- Automatic Farming Reward Staking, see below.
## Technical Farming Requirements
- Make sure you have 50GB SSD capacity min available per logical core (physical core times number of threads it can run), if not your calculated CU will be lower.
- Make sure your network connection is good enough, in future it will be measured and part of the Service Level Agreement.
!!!wiki.include:tfgrid_min_sla
## Automatic staking of farming rewards
- Farmed TFT are automatically staked (locked) per TFNode and are released to the farmer once the TFNode achieves 30% utilization over a period of 3 months or if it remainded connected for 24 months.
- Certified farmers can be exempted of the staking pool for achieving specific tasks such as bringing Internet capacity to new regions or upgrading from grid 2.0 to 3.0.
- If you delete your TFNode, the staked tokens will remain on your name and come available after 24 months since start.
- If a TFNode achieves 30% for 3 months but month after is again lower, then staking will happen again.
**Important Information around TFT USD Price Used at Registration**
This is for mainnet TFGrid 3.0:
- The TFT USD price used at TFNode registration at launch of mainnet is hardcoded in TFChain 3.0 at 0.08 USD per TFT (TFChain 3.0 as used in Jan 2022).
- Once the DAO is life, a new price will be approved by the DAO voters. Idea is to have this price re-visited +- once a month, if needed faster.
- The TFT USD price used at TFNode registration is defined by the TFDAO at least once a month by means of GEP.
## Remarks
- Majority of TFNodes are still registered on the [ThreeFold Grid v2 farming reward](farming_reward2). The transition to ThreeFold Grid v3 farming rewards is expected for Q1 2022. More information about the upgrade can be found [here](farming_upgrade_2_3).
- The above described Farming Rewards are for ThreeFold Grid version 3.0.x on mainnet and will only apply for TFNodes as registered in TF Chain for mainnet 3.0.x. Before this all farming is done using 2.x farming rules even on 3.x Testnet and 3.0 mainnet.
- Above specifications will only be final once DAO is active and first vote has happened (expected Feb/March 2022).
- More information about the upgrade see: [Upgrade from farming 2 to farming 3](farming_upgrade_2_3)
## Suggested: improvements to proof-of-capacity
Suggestions will be made to improve PoC, the DAO will have to come to consensus before changes can be made.
- How to deal with a situation where a 3node adds or removes compute or storage capacity.
- ThreeFold is developing a way of how to detect possible fraud on PoC using TPM chip and dynamic generated code to execute random PoC checks, more details will be provided in Q1 2022.
- If PoC finds fraud e.g. trying to fake Internet capacity provided, the TFNode will be disabled automatically by Zero-OS and flagged as fraudulant. The Farmer will then have to re-register with a lower reputation for transparancy to the ecosystem. If TFTs are staked at that time, they will be locked permanently.
- How to improve the calculation of CU rewards to mitigate the difference in power provided between new and old hardware.
## TFGrid is a DAO
- All of above information is public and can be see by everone of the community as per TFNode and Farmer (part of TFChain).
- Farming rewards methodology can and probably will get revised if the community wants this, DAO consensus needs to be achieved before changes can happen, this happens by means of a GEP.
## Grid Enhancement Proposal (\*)
- Changes to above described mechanism or any other change request for the TFGrid is managed by gep.
- Because we are a DAO, everything is open for change as long as consensus of community in accordance of TFDAO has been achieved.
!!!wiki.include:farming_toc
!!!wiki.include:wisdom_council_approval_jan22
<!--
## Link to Utilization of TFGrid
- Farmers can also use their own Internet capacity at minimal cost. Learn more on [Personal Farm Utilization](- Farmers can also use their own Internet capacity at minimal cost. Learn more on [Personal Farm Utilization](farmer_personal_utilization).
).
-->

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# Proof-of-Utilization
![](img/utilization_process.png)
ThreeFold Token ("TFT") is an Utility token and gets generated by ThreeFold Farmers, see Proof Of Capacity.
Each ThreeFold Grid user can now use this capacity. The ThreeFold Chain ("TFChain") - ThreeFold Blockchain will track the utilization of this capacity. This process is called Proof-of-Utilization. Each hour the utilization is being tracked on the blockchain and charged to the capacity's user.
## What is Proof-of-Utilization?
Proof-of-utilization is the underlying mechanisms that verifies the utilization of Internet capacity on the ThreeFold Grid.
Every hour, the utilization is recorded in TFChain and the user is charged for the Internet capacity used on the ThreeFold Grid. Discount calculated in line with the amount of TFT users have in their accounts on TFChain. Learn ,more about the discount [here](staking_discount_levels).
## How does Proof-of-Utilization work?
1. A user reserves Internet capacity on a given set of TFNodes.
2. Zero-OS records the reserved and used CU, SU, NU and IPAddresses in correlation with TFChain records.
3. The TFChain DAO will charge the costs to the user in line with [discount mechanism](staking_discount_levels).
4. TFT from the user account are burned/distributed in line to table below.
| Percentage | Description | Remark |
| ---------- | -------------------------------------- | ------------------------------------------------------------------------ |
| 35% | TFT burning | A mechanism used to maintain scarcity in the TFT economy. |
| 10% | ThreeFold Foundation | Funds allocated to promote and grow the ThreeFold Grid. |
| 5% | Validator Staking Pool | Rewards farmers that run TFChain 3.0 validator nodes. |
| 50% | Solution providers & sales channel | managed by [ThreeFold DAO](tfdao). |
## ThreeFold DAO rules in Relation To Proof-of-Utilization
### TFGrid Capacity Utilization
- Each solution provider and sales channel gets registered in TFChain and as such the distribution can be defined and calculated at billing time.
- For billing purposes, ThreeFold DAO will check if it is from a known sales channel or solution provider. If yes, then the billing smart contract code will know how to distribute the TFTs. If the channel of solution provider is not known, then the 50% will go to a DAO owned Community Grant Wallet.
- For Certified Farming, [ThreeFold Tech](threefold_tech0) can define the solution & sales channel parameters, these are channels as provided by ThreeFold Tech.
- Burning can be lowered to 25% if too many tokens would be burned, ThreeFold DAO consensus needs to be achieved.
!!!wiki.include:wisdom_council_approval_jan22
### Other Ways TFT are required
- Anyone building solutions on top of the TFGrid can use TFT as a currency to charge for the added value they provide, this gives an extra huge requirement for TFT.
- People also need TFT for staking (locking into) their Validators, validators secure the blockchain and give a good reward for the people who run the validators, this can be upto 50% of the TFT supply.
- Some will use TFT as a store or exchange of value. Like money, because TFT is a valuable commodity, it could be a more reliable alternative to other digital currencies like BTC. The hoarding of TFT means that TFT are not available to be used on the TF Grid.

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## Minimum requirement Service Level Agreement (SLA)
Minimal SLA's need to be achieved before the farming reward can be earned (uptime, bandwidth, latency, ...)
Today a subset is active:
- Uptime 99% (which is upto 7.2h downtime per month.)
More service levels agreements will be required, the DAO will decide on those changes.
Requests can be made by everyone by means of GEP.
Some Ideas
- minimal bandwidth requirement.
- minimal network latency requirement.
- minimal distance between Certified Nodes for the super node concept.
- different uptime requirement for Certified vs DIY nodes
If SLA (Service Level Agreement) was not achieved for 3 consecutive months, then the TFNode will have to re-register which means the CU/SU reward will be recalculated at that time and re-registered in TFChain for that node, just like a new one.

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| Utility Token model | |
| -------------------------------------------- | ------------------------------------------ |
| [Proof Of Capacity](proof_of_capacity) | Farming (creation) of TFT |
| [Proof Of Utilization](proof_of_utilization) | Utilization (burning, distribution) of TFT |

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## Why becoming a Farmer?
### Internet and Its Global Demand
The Internet represents the largest economy in the world and is growing at a rapid pace.
![](img/token_time_to_get_involved_now_.jpg)
The ThreeFold Grid offers the most scaleable, secure and sustainable infrastructure to supply the increasing Internet demand.
Learn more about the ThreeFold Grid [here](grid_intro).
### Sovereign and Recurrent Wealth
By participating in the expansion of the ThreeFold Grid, Farmers earn [TFT](threefold_token) on a monthly basis. ThreeFold Token has value - it represents a unit of reservation of Internet Capacity on the ThreeFold Grid. With the infinite expansion of the ThreeFold Grid and the scarcity of mechanism of the [TFT](threefold_token), there will be a constant increase in demand while a decrease in supply, thus providing value of its holders/Farmers.
Learn more about Farming Rewards [here](farming_reward).

1
_archive/tfgrid/grid.md Normal file
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# Grid

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# How It Works
<iframe src="https://player.vimeo.com/video/438190961" width="960" height="540" frameborder="0" allow="autoplay; fullscreen" allowfullscreen></iframe>
- see [Vimeo](https://vimeo.com/438190961)
<!--
| | |
| ---------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ |
| [Easy Introduction](https://library.threefold.me/info/threefold#/tfgrid/threefold__howitworks_3): A quick intro of what ThreeFold is all about and how you can join & participate in the ThreeFold Community. | ![](img/tf_world.jpg ":size=300x160") |
> TODO: need more links | TODO | -->

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![](img/threefold_intro.jpeg)
{{#include ../../mission/mission_.md}}

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## Together we build our own future with the Internet of Internets.
ThreeFold is a movement. All of us together, we are creating the Internet of Internets a system of local internets for us to connect and exchange information and value without limitations or intermediaries.
To learn more about ThreeFold read our litepaper on [http://litepaper.threefold.me](http://litepaper.threefold.me).
Each local Internet is owned by all of us ("people"), together an equality and abundance-based paradigm to benefit and provide fair value exchange for the collective and each of us individually. A planet-first, people-first philosophy that shapes the future we want to live in. Without our planet, we have nothing. And we believe people need a better system. One they can depend on. One that allows everyone to provide economic flow. One that gives them the opportunity to thrive.
This document describes how liquidity will be the result of real utilization which means:
* Deployment of validators on the main chain (L2 validators = staking).
* Deployment of validators for each regional internet
* Funding of the liquidity pools in each regional internet (CHI vs TFT).
* Paying for utilization of the TFGrid + staking to get more discount on TFGrid.
* Reserve currency for all regional internets (CHI is only valid in 1 regional Internet, TFT allows bridging)
Because we dont do fake market making and we didn't accept funding from investors to fund our token raise (some call this pump and dump), we will have to be patient and wait till more utilization is required till we get to enough liquidity.
Our future is 100% decentralization where our token doesnt need centralized market makers nor centralized exchanges. Every participant to the network can be a liquidity provider and our token is stored on multiple money blockchains (today we use Stellar, we are considering adding Algorand).
The ThreeFold token TFT is a token with real utility value and as ThreeFold we are only at the start of our journey.

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# Long Story Short
![](../../img/threefold_intro.jpeg)
The truth is that ThreeFold is a big project. Here we will try to make things a little simpler for you.
## So, ThreeFold is building a new Internet. Why?
What it boils down to is that currently the Internet is only available to about 1/2 of the world (meaning billions are being left behind), it is centralized (a handful of large corporations profit off of our data), and it uses up to 10% of the world's energy consumption. So, we're building a new Internet that empowers equality (access), digital sovereignty (data ownership, for example), and sustainability (reduces energy consumption).
## How does it work?
Everything on the Internet websites, apps, photos, videos, etc uses up capacity and is stored in huge data centers owned by big companies, mainly in North America, Europe, and some in Asia. In our solution, centralized data centers are replaced with a grid of "nodes" distributed around the world.
These nodes are owned by [ThreeFold Farmers](farming_intro) but only the physical hardware the data inside of the nodes belongs to the people or organizations who put it there. So, "farmers" plug in hardware and start to create capacity that can be used by people.
Farmers come in all shapes and sizes. Some farmers run small data centers while others simply run a node out of their living room.
When farmers connect active hardware (add capacity) to the ThreeFold_Grid, ThreeFold_Tokens are created. Farmers can then sell those tokens to people who want to use capacity (e.g. a developer that wants to build or host a website, or a person who wants to store some photos). More on tokens down below.
## Seems quite lofty. How will you build it?
It's true that rebuilding the Internet is not so simple. But a lot of infrastructure has already been built and the technology is quite advanced. Over the last 2+ years, independent [ThreeFold Farmers](farming_intro) have already plugged in more than 80,000,000 GigaBytes worth of storage and 14,000 CPU Cores across 20+ countries. That might not mean a lot to non-technical folks but it is quite a significant amount.
## 20+ countries? What happened to equality?
As far along as we are, we still have work to do. One of our biggest goals in the near future is to expand the grid to Africa, South America, and parts of Asia where currently the Internet is too expensive or not available. Farming is incentivized around these key geographies.
## So how can I access / use your Internet today? What can I do on it?
For the everyday person looking to benefit from a new, neutral Internet, some of [the first experiences are coming alive](https://mydigitaltwin.io/info/twin#/) Q1 2021. This includes communication tools, file storage, a wallet, & more all with the advantages of being more sustainable for our planet and with full control of your own data. And over time, more and more experiences will come to this Internet. We'll be updating here and on our communication platforms as they come. But don't worry, as a user it doesn't change much no coding required. :)
That said, if you're an IT professional or a developer, you can take advantage of [the ThreeFold Peer-to-Peer Cloud](cloud_home)!
## Will [enter website or app here] be available on your Internet?
There are some tremendous reasons for a website or app to use our Internet, but that will really be up to the website or the app. In the end, we are providing a responsible solution for responsible people and organizations. We would love to host anybody who believes in what we are doing!
## How are you making sure it's safe?
Hacking has become a part of life and is almost impossible to avoid in the current systems they are too complex and require too many people to operate. This results in less security which results in lots of security breaches. First of all, we are collectively building new infrastructure [(The ThreeFold Grid)](grid_why) which is totally peer-to-peer, meaning no third parties or intermediaries to store your data. Also, we took a look at the existing Internet and simplified it. By simplifying the architecture and instead creating technology that is self-driving & self-healing, we removed the human requirement and therefore vastly minimized the possibility for hacking or human error. Then, we also developed a storage algorithm which makes it such that if some of the information gets lost or stolen (somehow) or if some hardware goes down, it is all retrievable. Long story short, we flipped the existing system on its head.
## What about the data ownership part?
That has a bit to do with the security as well. Since you own your data, you decide who gets access. Which means your data isn't just out "there" for the taking. Basically, we put _you_ at the center of your digital life, where the applications and experiences you use serve you, not the other way around.
## And how is it better for the planet?
There are a few reasons for us being more sustainable. Data centers are super unsustainable, so the simple (but incomplete) answer is "no more huge data centers." But if you want more detail:
- We use up to 3x less hardware for the same output, and using hardware at least 2x longer while maintaining good performance
- Having capacity everywhere, local to where users are this reduces network requirements (and can even improve security)
- Using new algorithms (e.g. the one mentioned above for storage) which create a dramatic improvement in efficiency
- Re-using hardware where possible lets not throw away
## How much will it cost?
In the end we want to provide sustainable access to the Internet and all of its solutions for less than a dollar per month per person but for now the cost will depend on what you choose to do. Certain experiences will cost money. Storing photos or videos, for example. But all at a fair price.
## Speaking of money so what's up with the ThreeFold_Token?
As we mentioned above, tokens are generated when ThreeFold Farmers adds capacity to the ThreeFold_Grid.
Essentially, the ThreeFold_Token is the medium of exchange on the new Internet. So, if a developer wants to build something (e.g. a website or an app) or a user wants to store something (e.g. photos), he/she/they use(s) ThreeFold_Tokens.
## Need more answers?
We hope that helps explain things. Obviously there is a whole wiki here to dive in to. If you don't find what you're looking for, please reach out us on [our forum](https://forum.threefold.io).

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# Why Do We Need A New Internet
![](img/humanityplanet.jpg)
## Internet Access is a Human Right
In 2016, [the United Nations officially declared Internet access to be a human right](https://www2.ohchr.org/english/bodies/hrcouncil/docs/17session/A.HRC.17.27_en.pdf). The right to Internet access aims to protect peoples freedom of expression and opinion, as well as other fundamentals such as access to knowledge and information.
Yet as of 2019, [about 43% of humanity remains unconnected to the Internet](https://wearesocial.com/blog/2019/01/digital-2019-global-internet-use-accelerates), creating huge inequalities in the access to information and knowledge. It is important that the right steps are taken to improve the relationship between governments and citizens and to uphold all human rights.
To make the new Internet accessible and equal to all, ThreeFold built an infrastructure that is widely affordable and collectively-owned by the network peers. To ensure a fair and equal distribution of the Internet to everyone, the expansion and reach to regions that need Internet capacity the most will be incentivized and/or sponsored by the Foundation.
## Everyone Should Be Autonomous
The Internet evolved to become the world's largest database of information and knowledge, opening up exponential growth on personal, organizational and economic levels. Yet it is owned by large international companies that exploit users' data.
The current approach of many governments and countries is to cut the Internet into pieces by limiting its accessibility and enforcing regulations. We need an Internet that protects our digital freedom and provides fair access to global information for everyone, everywhere.
ThreeFold's Internet is a peer-to-peer Internet and owned by the users. All the technology of this new Internet is open-source and the whole experience is built around the fundamentals of a peer-to-peer network. On this new Internet, everyone owns their data and experiences - digital freedom.
## Our Planet Needs a Sustainable Internet
The current Internet [consumes about 10% of global energy production](https://www.researchgate.net/publication/255923829_Emerging_Trends_in_Electricity_Consumption_for_Consumer_ICT). With the imminent boom of emerging technologies such as Blockchain, Internet of Things, Virtual Reality, and Artificial Intelligence, the Internets energy consumption is [expected to increase exponentially](https://www.gartner.com/en/newsroom/press-releases/2017-02-07-gartner-says-8-billion-connected-things-will-be-in-use-in-2017-up-31-percent-from-2016).
The current industry's solutions focus on increasing the use of renewable energies to power data centers. However this is not a viable solution as data centers consume enormous amounts of energy. Therefore, a new solution that can drastically reduce the global Internets energy consumption is needed.
ThreeFold today brings the largest peer-to-peer Internet grid on the planet. It uses pioneering technologies that remove the need for centralized and power-hungry data centers, consumes up to 90% less energy, and uses up to 90% less international fiber network capacity. (To learn about ThreeFold power savings, read [here](https://farming.threefold.io/blog/post/for_our_planet/).)

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## Price comparison Cloudorado
![](img/cloudorado.jpg)
### Compute
A ThreeFold Compute Unit is (CU)
- 4 GB memory
- 2 virtual CPU cores
A good site to compare is Cloudorado: https://www.cloudorado.com/
![](img/cloudorado_compute_choices.jpg ':size=600x240')
| Compute | Compute |
| --------------------------------- | --------------------------------- |
| ![](img/cloudorado_compute_1.jpg) | ![](img/cloudorado_compute_2.jpg) |
#### Compute Conclusion
> Our price can easily be < 10 USD for 1 compute unit (CU) <BR>
> In market, this is between 36 and 202 USD
### Storage
A ThreeFold Storage Unit is (SU)
- 1 TB of storage
Again, a good site to compare is Cloudorado: https://www.cloudorado.com/
![](img/cloudorado_storage_choices.jpg ':size=600x270')
![](img/cloudorado_storage_1.jpg ':size=500x610')
#### Storage Conclusion
> Our price can easily be < 8 USD for 1 storage unit (CU) <BR>
> In market, this is between 19 and 154 USD

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![](img/tfgrid_pricing.jpg)
## Cloud Unit Pricing
| Cloud Units | description | mUSD | mTFT |
| ----------------- | ------------------------------------------------ | ------------------ | ------------------ |
| Compute Unit (CU) | typically 2 vcpu, 4 GB mem, 50 GB storage | $CU_MUSD_HOUR/hour | $CU_MTFT_HOUR/hour |
| Storage Unit (SU) | typically 1 TB of netto usable storage (*) | $SU_MUSD_HOUR/hour | $SU_MTFT_HOUR/hour |
| Network Unit (NU) | 1 GB transfer, bandwidth as used by TFGrid users | $NU_MUSD_GB/GB | $NU_MTFT_GB/GB |
| Network Addressing | description | mUSD | mTFT |
| ------------------ | ------------------------------------------ | --------------------- | --------------------- |
| IPv4 Address | Public Ip Address as used by a TFGrid user | $IP_MUSD_HOUR/hour | $IP_MTFT_HOUR/hour |
| Unique Name | Usable as name on webgateways | $NAME_MUSD_HOUR/hour | $NAME_MTFT_HOUR/hour |
| Unique Domain Name | Usable as dns name on webgateways | $DNAME_MUSD_HOUR/hour | $DNAME_MTFT_HOUR/hour |
- mUSD = 1/1000 of USD, mTFT = 1/1000 of TFT
- TFT pricing pegged to USD (pricing changes in line with TFT/USD rate)
- **current TFT to USD price is $TFTUSD** , calculated on $NOW
- pricing is calculated per hour for the TFGrid 3.0
<!-- - pricing of capacity of certified farmers is 25% more (x 1.25) (future development) -->
### Pricing Expressed Per Month
| Cloud Units | description | USD NO DISCOUNT | USD 60% DISCOUNT |
| ----------------- | ------------------------------------------------ | ------------------- | ---------------------------- |
| Compute Unit (CU) | typically 2 vcpu, 4 GB mem, 50 GB storage | $CU_USD_MONTH/month | $CU_USD_MONTH_DISCOUNT/month |
| Storage Unit (SU) | typically 1 TB of netto usable storage (*) | $SU_USD_MONTH/month | $SU_USD_MONTH_DISCOUNT/month |
| Network Unit (NU) | 1 GB transfer, bandwidth as used by TFGrid users | $NU_USD_GB/GB | $NU_USD_MONTH_DISCOUNT/GB |
| IPv4 Address | Public Ip Address as used by a TFGrid user | $IP_USD_MONTH/month | $IP_USD_MONTH_DISCOUNT/month |
> Please check pricing calculator on http://pricing.threefold.me
### Dedicated Servers
Starting April 2022, the TFGrid 3.0/a5 has support for dedicated servers. You can reserve a full server and the server is only usable for you, a minimum of 70% discount is given for this usecase.
- Dedicated Node, 192 GB mem, 24 cores, 1000 GB SSD = 75 USD per month (max discount, 3Y staking)
- Dedicated Node, 32 GB mem, 8 cores, 1000 GB SSD = 31 USD per month (max discount, 3Y staking)
Above example was with generous 5TB of bandwidth used per node per month, which is huge.
These nodes are ideal to deploy blockchain nodes, or other high demanding workloads. Dedicated nodes leads to amazing pricing.
To use a dedicated node, you will have to reserve a 3node for yourself in your admin portal of TFGrid, only you can then deploy on this node and there is no additional cost.
> Please check pricing calculator on http://pricing.threefold.me
### How to buy and use capacity
- More info about [how to use the grid see here](grid_use)
- See our manual how to get started.
- [TFT's can be bought on multiple locations](how_to_buy).
### More Info
- See [here for more info about planet positive certification](certified_farming)
- Pricing is done based on cloud units, see [cloudunits](cloudunits)
!!!wiki.include:staking_discount_levels
!!wiki.def alias:tfpricing,cloudunit_pricing,threefold_pricing
!!!tfpriceinfo

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# Cloud Pricing (IT Capacity)
Cloud units are the basis for buying & selling capacity on the ThreeFold_Grid (for more info see [here](cloudunits).
- 1 CU = 1 compute unit
- 1 SU = 1 storage unit
- 1 NU = 1 network unit
Below you can see how the market prices these cloud units.
!!!wiki.include:cloudunits_pricing
<br>
> [Compare with other cloud providers](cloud_pricing_compare)

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## Discount Levels
!!!wiki.include page:staking_discount_levels0

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| type | pricing level | nr months of TFT linked to account |
| ---------- | ------------- | ---------------------------------- |
| no staking | - 0% | 0 |
| default | - 20% | 3 months |
| bronze | - 30% | 6 months |
| silver | - 40% | 12 months |
| gold | - 60% | 36 months |
TFChain charges the user for proof_of_utilization every hour. TFChain will calculate the discount based on amount of TFT available in the account of the user on TFChain (not on Stellar or any of the other blockchains we also support). This is an automatic form of staking, the user does not have to do anything to have this benefit. For network related services its max 40% discount.
### Example for 40% discount
- I've used 10 TFT worth of Internet Capacity on tf_grid for the last hour.
- 10TFT * 24 * 30 * 12 = I would need 86,400 TFT for one year
- 10TFT * 24 * 30 * 36 = I would need 259,200 TFT for 3 year
- I have 120,000 TFT in my account on TF_Chain, this means that I will get 40% discount.
- I don't have enough tokens to get to 60% discount.

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# What does Internet Farming have to do with Solar Panels?
A TFNode is just like a solar panel, only instead of providing electricity, it provides Internet Capacity for local usage. Each TFNode is an Internet Capacity generator. And the ThreeFold Grid is the network of these TFNodes.
## What is Internet Capacity?
Internet Capacity can be described as the fundamental resources necessary for anything "digital," and really it all comes down to data.
- **Storage** is the physical disk space where data resides
- **Compute** is what happens with data once it reaches its destination
- **Networking** is how data gets around
Together, these are the raw elements required to drive our digital lives.
In an enterprise, it's called Information Technology (IT) systems. Examples of IT workloads which can run on the ThreeFold_Grid are:
- The Metaverse
- IoT
- Web2 and Web 3
- Blockchain
- Web Applications
- Archiving of data
- Generic Storage (e.g. using the S3 storage interface)
- Container Workloads (e.g. Docker images)
- Artificial Intelligence workloads
- Big Data workloads (processing of data)
- Gaming Servers
- Content Delivery
- Test workloads for developers
- DApps (Decentralized Applications)
> TODO: link to the internet pages (at end)
The production of Internet Capacity on the Threefold Grid is called Farming, and people who add these servers to the grid are called Farmers.
![](img/like_electricity.jpeg)
It would not make sense for someone living in Florida (USA), as an example, to get their electricity from Europe. That is quite a long distance and generates considerable waste. Much like electricity, Internet Capacity should be generated and distributed locally to nearby people and businesses. Local capacity means reduced costs, greater reliability, less latency, and an overall better experience for end users.
## TFT is the Utility Token of generating Internet Capacity
![](img/generate_tft.jpeg)
Just like Kilowatt-Hour (kW) is used as a measurement of capacity for solar panels, we have cloud units to measure capacity for the Internet. Cloud units are the basis for buying & selling capacity on the ThreeFold Grid.
- 1 SU = 1 storage unit
- 1 CU = 1 compute unit
- 1 NU = 1 network unit
When a solution is deployed on the ThreeFold Grid, the system automatically gathers the required amount of SU, CU, or NU.
## Nodes Get Deployed Everywhere
![](img/generate_tft_table.jpeg)
>TODO: link to the internet pages (at end)
For more info about how the internet works see [here](theinternet/theinternet.md)
>TODO: complete

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## The Internet Needs To Be Local
![](img/internet_bandwidth.jpg)
The Internet today is constructed in a centralized way. The hyperscale data centers that form the backbone of the Internet's infrastructure play a massive role in our digital lives, and they are often located far from users, particularly those living in developing countries or regions. Each time we take an online action such as posting a photo or sending a message, the data is transmitted from our device to that centralized data center, and to the person or persons on the other end. So, you can begin to see how proximity to these servers plays a role in the end user experience.
Internet bandwidth refers to the amount of information or data that can be sent over a connection in a measured amount of time. Bandwidth is often mistaken for speed, but they are not the same. Whereas bandwidth is how much information you receive in a given time, speed is how fast that information is received.
Let's take the example of filling a swimming pool with water. If the hose has a wide circumference, more water can flow than if the hose were narrow. In this instance, water is the bandwidth and the rate at which the water flows is the speed.
There are many factors that go into both bandwidth and speed. An end-to-end network path usually consists of multiple connections, each with different bandwidth capacity. And the link with the lowest bandwidth can limit the overall capacity of all connections in the path. When data travels shorter distances, this is less of a factor. Network congestion (usage) is also a major factor. And it's pretty clear to see how by traveling long distances, this would become a bigger problem.
> TODO: Kristof please review, this should be moved to 11.1.3 Bandwidth Problem section
For more info about how the Internet works see [here](theinternet.md).

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# The Internet Data Centers
Today the Internet is mainly delivered out of data centers, which are huge facilities containing up to millions of servers. They centralize shared IT operations and equipment for the purposes of storing, processing, and disseminating data and applications. Data centers have become a foundational necessity of today's Internet, but there are several significant issues with them:
## Centralization
The GAFAM (Google, Amazon, Facebook, Apple and Microsoft) own 80% of the global compute and storage (and network) infrastructures. Also, this global infrastructure is concentrated in the U.S in large majority, as well as Europe and China. This means that most of today's Internet is out of reach of billions of people in developing nations particularly in South America, Africa, and parts of Asia.
## Cost
It costs billions of dollars and enormous amounts of energy and time to build, manage and productize hyperscale data centers. Only the richest countries in the world build data centers and the rest of the world become their clients. To meet the projected growth of the Internet in 2022, $5 trillion would have to be invested with this model.
## Energy Consumption
Data centers are extremely power hungry, consuming over 2 trillion gigabytes of storage an around 205 TWh of energy - more than the State of New York. According to statistics, the Internet consumes between 10-20% of global energy resources.
## Security
The current IT stack depends on human infallibility and as such, human error has been considered the primary cause of 95% of cybersecurity breaches. Human errors allow attackers to access encrypted channels and sensitive information.
## Cannot Support Future Demand
To meet projected demand for 2022, more than 4,000 new data centers, costing an estimated $5 trillion, will need to be built and will consume an additional 400 GW/h. This is roughly equivalent to Japans energy consumption and would place an impossible strain on the global electricity grid. The rising demand for Internet storage is already causing hardware shortages and price hikes.
>TODO: Kristof please review

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# The Internet Map
![](img/the_internet.jpg)
Reference: [infrapedia.com/app](https://www.infrapedia.com/app)
More than 500 undersea cables and thousands more terrestrial networks connect us all together digitally. These cables carry our data between server and recipient. While satellites also play a role in connectivity, without cables it's safe to say the global Internet would not be what it is today.
>TODO: complete how the internet works (added a bit of text here but it is pretty self-explanatory)
For more info about how the internet works see [here](theinternet.md)

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# What is the Internet?
![](img/theinternet.jpg)
The Internet is the global system of interconnected [computer networks](https://en.wikipedia.org/wiki/Computer_network) that uses the [Internet protocol suite](https://en.wikipedia.org/wiki/Internet_protocol_suite) (TCP/IP) to communicate between networks and devices. It is a network of networks that consists of private, public, academic, business, and government networks of local to global scope, linked by a broad array of electronic, wireless, and optical networking technologies.
The communications infrastructure of the Internet consists of its hardware components and a system of software layers that control various aspects of the architecture. As with any computer network, the Internet physically consists of routers, cabling or radio links, repeaters, modems etc. An Internet Protocol address (IP address), a numerical label assigned to each device connected to a computer network, enables us to the Internet Protocol for communication and store/run data on the infrastructure.
The Internet carries many applications and services, most prominently the World Wide Web, including social media, e-mail, mobile applications, multiplayer online games, Internet telephony (calls), file sharing, and streaming media services.
Most servers that provide these services are today hosted in centralized data centers owned by a few large corporations. This centralized model is inefficient, as through it's centralized model, if the main servers go down, the whole system experiences downtime. Hundreds of downtime events have been recorded throughout the last few years. Also, given these companies own the data centers, they also own the data that is contained in them and use it for profit reasons.
## The Internet Map
{{#include internet_map.md}}
>TODO: need to explain how cable go around the world and cary our information (done in internet_map, please review) (vic)
## The Role Of Data Centers
{{#include internet_datacenters.md}}
>TODO: need to show and explain datacenters (done in internet_datacenters, please review) (vic)
## Bandwidth Is Not Local
{{#include internet_bandwidth.md}}
>TODO: need to show how bandwidth is not staying local (there is slide already) (done in internet_bandwidth, please review) (vic)

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# ThreeFold Cloud Unique Benefits
![](img/cloud_benefits_.jpg)
| Benefit | Description |
| ---------------------------------- | --------------------------------------------------------------------- |
| [Security](usp_secure) | The ThreeFold_Grid was built with good security concepts in mind. |
| [Decentralized](usp_decentralized) | Have your personal or corporate cloud where you want, at any scale. |
| [Autonomous](usp_autonomous) | A self-driving and self-healing architecture. |
| [Compatible](usp_compatible) | Compatible with industry standards like Kubernetes, Docker, Helm, ... |
<!-- | [Sovereign](usp_sovereign) | A sovereign solution for people, organizations and countries. | -->

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