The cost of web hosting is one of the biggest barriers to entry for both the old internet and the new distributed web.

Amazon Web Services attempted to address this problem by investing in a traditional centralized server bank service. While they were able to lower the cost of servers, the outcome of Amazon’s efforts is only a small lowering of a still-high barrier to web presence.

The Classic Hosting Model

Websites today are hosted on centralized server banks. These servers run continually and respond to queries by site visitors.

Site administrators rent servers (either completely dedicated machines or shared with other websites) and pay for a certain amount of serving power. In order to provide a satisfactory browsing experience for site visitors, administrators must “overbuy” computing power. This ensures that site visitors do not experience delays or server timeouts.

The result of this traditional model is a lot of wasted computing power. Servers almost never run at full capacity, and site administrators need to pay for computing power that they are not using.

Substratum’s Distributed Web Hosting Model: Pay for Visitors Served, Not Servers

As a pioneer in distributed web services, Substratum’s primary goal is to see widespread adoption of a decentralized server network. To encourage adoption, they’ve redesigned the billing structure for web hosting.

Rather than paying for dedicated server space, web content and service tasks are distributed among the machines in the blockchain network. Whenever the network serves a query for web content, the system processes a microtransaction with the site administrator.

This means that administrators pay for their web services on the basis of web traffic. High traffic sites pay more and low traffic sites pay less. Billing is based purely on activity, specifically the number of requests served by the network.

This billing structure has a number of advantages and certainly reduces the overall cost of running a website. It also makes building a profitable website easier. With a simple analysis of the value of each site visitor, knowing the cost of hosting each visitor makes profitability much simpler to achieve.

To learn more about how Substratum is working to build a decentralized, accountable new internet, read the whitepaper!