Rent Your Spare Compute Power - Massive

The Rise of Distributed Computing: Introducing Massive

Startups frequently begin with a fundamental inquiry: What if we approached things differently than the established norm?

Massive exemplifies this spirit, posing the question: Could users contribute to the cost of applications or services not through traditional currency or attention, but by leveraging their unused computing resources?

The concept of harnessing distributed compute power from individual users isn't entirely novel. Those acquainted with the SETI screensaver project will recognize a similar approach. However, Massive’s undertaking aims to modernize this idea, potentially offering a viable alternative to conventional revenue models like user charges or intrusive advertising.

Recent Funding and Market Interest

Massive recently announced the successful completion of an $11 million funding round. This round was spearheaded by Point72 Ventures, with additional participation from entities focused on cryptocurrency, namely CoinShares Ventures and Coinbase Ventures. A number of angel investors also contributed to this funding event.

The company’s innovative model and the secured funding demonstrate a degree of market validation. To gain deeper insights, we spoke directly with the company’s leadership.

A New Paradigm for Resource Sharing

Jason Grad, co-founder and CEO of Massive, described the startup’s service as analogous to Airbnb or Turo, but for computer resources. This comparison highlights the sharing economy aspect of their platform, drawing parallels to well-known consumer-sharing services.

Currently, approximately 50,000 desktop computer users – referred to as “nodes” by the company – have voluntarily joined the service. It is crucial to emphasize that participation is entirely opt-in. Given that Massive requires access to computing power, maintaining user trust and carefully vetting potential partners is paramount; users understandably wouldn’t want their resources utilized for illicit activities.

The company is proactively addressing these concerns, implementing a strict requirement for explicit user consent before any participation begins.

Initial Focus and Future Expansion

Initially, Massive is collaborating with companies in the cryptocurrency sector. These businesses have a clear demand for compute power, and the tasks they perform – such as blockchain calculations – generate revenue through block rewards and associated fees, making them ideal early partners. The presence of several crypto-focused venture capital firms among Massive’s investors underscores this strategic alignment.

However, the startup’s ambitions extend beyond cryptocurrency. Grad explained that their ultimate goal is to establish a two-sided marketplace for compute power. This vision encompasses a larger user base, potential integration with mobile devices, and a more diverse range of partners.

Challenging Existing Internet Business Models

Grad expressed a critical view of current internet business models, stating they are fundamentally flawed. He directly stated, “Shit,” to emphasize his point.

His assessment is valid. The modern internet operates on a combination of free, limited access and paid, restricted access. The widespread adoption of paywalls wasn’t part of the original internet vision. However, advertising revenue proved insufficient to sustain many sites, particularly as a significant portion of online ad spending was captured by a few dominant platforms, leaving limited resources for others. This led to the rise of paywalls.

Could Massive contribute to a return to a more open web? Many users, including myself, would gladly exchange some computing time for increased access to content and services, provided there is a high level of trust in the intermediary company and its partners.

Creating New Revenue Streams

The company doesn’t intend to simply replace existing revenue models. Grad clarified to TechCrunch that Massive aims to generate new revenue opportunities where none previously existed, rather than disrupting established income streams. Therefore, applications will likely continue to be paid for in many cases, but in markets where collecting payment is challenging, a compute-for-access exchange could benefit both users and companies.

A Question of Scale and Viability

As previously noted, successful startups are fundamentally questions. Massive is currently asking the market whether a sufficiently large distributed computing base can be assembled to provide enough aggregated power to attract companies to utilize the service.

The answer remains to be seen!