Semi Centralized Storage - Whats the golden ratio?

Hey guys, I have a question related to making mini-storage centers. Thank you so much in advance!

I am in the process of deciding whether I should set up small data centers holding !!!600 TB!!! each, in locations scattered all over the country (UK). I’m doing this as a start-up idea and part of my final university course so its very important :smiley:

My first question is, how much would a server farm of that size impact the profitability of each node registered to that IP/Location? ( I was told that large storage centers get penalized) I need some numbers here if thats possible (600 1Tb Harddrives)

  1. What would be the absolute maximum size before decent penalties start building up? I’m asking for a golden ratio here :smiley:

  2. On the profitability section I was only able to use 50% of the network size, can I boost this to 100%?

  3. Say I detect a hard drive is about to fail… Is it possible to transfer the data to a new hard drive to maintain the reputation and save the data?

  4. Last question, would there be sufficient demand for this kind of supply?

Thank you so much guys, I look forward to hearing replies!

Hello @Sazem,
Welcome to the forum!

Each minidatacenter will get the same amount of data as the only one node, because of IP filtering.
We want to be decentralized as much as possible and don’t put customers’ data under the risk of losing it.
Just imagine, how you you would feel yourself to losing all 600TB in once?

There is no upper limit for the size.
The profitability is unpredictable, because space is used by real people, there is no constantly flowing traffic.
You can transfer the data, if it is still doesn’t not corrupted:
If the data is corrupted - your node will be disqualified, your pending payout and withheld amount would be used to recover the lost data. And you will forced to start from scratch.
The supply and demand will be regulated by market. If we have high demand, there will be a lot of supply.

It happens from the first byte. The size is not important. I could run a single 600TB node at home while you might run 600 1TB nodes. We will get the same amount of data. -> I wouldn’t call it a penalty.

In this scenario we would both need a long time to fill that.

Hu? You are running at 50% already and you are not even close to 300TB? Well in that case you will not be able to get to 600TB. Critical in the networks are downloads. If you are getting to slow for any downloads you will get disqualified. If your network is running at 100% you should better reduce the allocated space to 0 and take all the high payed download traffic.

Only important for downloads (egress traffic on your end).

You would have 2 options. You can gracefull exit that one node to get the hold back amount. You wouldn’t need a new hard drive for that.
Or you transfer the node to a new hard drive. If the downtime is too long you might get disqualified.

Even if you get disqualified the hold back amount for a 1TB node should be small. -> Installing a RAID would be more expensive.

As far as we know yes.

I think you should stop right there. It will never be profitable if you have to buy hardware, pay a data center to host it and then use these servers only as storagenodes. You will only see a profit if you already have the hardware and everything is already paid for, but have unused storage in there. That’s the reason why Storj can undercut the prices of other cloud providers.

Hey guys thank you for your quick responce, I really appriciate the help.

The thing is that these places where i was going to set up the data centers have ample supplies of second hand hardrives costing around 45 dollars a peice… (Average size 1tb)

But with this I really dont think it will work out…

Anyways thanks again.