Technology markets are growing steadily. But according to the Forbes Technology Council, solving latency challenges has never been more critical.
As network availability and performance is essential to customer satisfaction in these growing industries, latency ruins their potential. This is especially true in markets where high latency causes transactions to fail or lead to service downtime.
Gartner estimates network downtime costs the average enterprise $5,600 per minute, which is over $330k per hour.
over 1,000 outages happening every month, it’s quite a costly problem.
That’s part of the reason why solving these network issues could unlock unprecedented growth in industries, such as:
- Software (24.3% CAGR and estimated to become a $733 billion market by 2028
- Gaming (The Global Gaming industry value now exceeds $300 Billion
- Metaverse (A potential $8 trillion to $13 trillion opportunity by 2030
- Telecommunications (The IT sector spends 1.33 Trillion USD on telecommunication services
However, these industries must solve technologically complex problems to reduce latency and network unavailability.
This article explains how each of the four industries is affected.
Large applications and software span many markets. But they each have one thing in common: when network performance is interrupted, user experience and satisfaction drops. Niches that get hit the hardest by latency limitations include trading, sports betting, and streaming.
In this highly competitive industry, customer loyalty and UX is the driving factor for growth. Users will not tolerate an unreliable service, especially when their money is on the line. Surveys show that 88% of online consumers are less likely to return to a site after a bad experience
As a rule of thumb, the more people use steady, real-time applications, the bigger the headaches, network congestion issues, latency, and service outages.
That’s why large applications that handle vast amounts of customer data and transactions have it the hardest.
For example, our case study with Entain shows the sports betting giant handles over 71,000 trading events per minute. A 30-minute network outage caused by congestion could lead to millions of lost revenue. Besides, behind every lost transaction, there is a valuable customer who may not return to their service.
Applications that rely on providing comforts and a pleasant experience to their subscribers are also in danger of latency. Not many people would want to pay top dollar to companies like Netflix, only to watch a stream that keeps getting interrupted by the notorious loading screen. With the increasing competition for subscribers, they can’t afford not to invest in a reliable network.
Gaming & Metaverse
Gaming has become a more popular industry than movies and music combined. Over 2.7 billion people now regularly play video games. Their biggest headache? Lag, also known as latency.
Plus, as the Metaverse is gaining popularity, concerns rise for its viability on the current Internet infrastructure.
Gamers don’t need to be introduced to the problems of high latency. Lag takes the #1 spot on most gamers’ blame list when losing online games. But there are real issues with latency that becoming a better player won’t solve.
As the industry expands and more gamers than ever share the same infrastructure, past annoyances turn into market-crashing issues.
For example, a recent 73-hour service outage caused by network congestion cost the company Roblox $25 million in lost transactions.
Google’s Stadia, which promised an affordable and seamless cloud gaming experience, is falling short of expectations. Some reports even claim that Google is trying to ditch the original plan and turn its focus from video games toward online demos and “playable experiences.”
Then there’s Meta…
Mark Zuckerberg warned everyone that the Metaverse won’t even be possible with the high latency infrastructure of today.
Because Metaverse applications require way more bandwidth than current games, researchers estimate the Metaverse will need 2 to 5 Gbps Internet bandwidth to work well. That’s about 100X of the current 50 Mbps standards of today.
Latency can also be significantly reduced if gamers and gaming companies providing the service both use Syntropy to optimize their networks.
With Syntropy’s fully-decentralized routing protocol, , we can automatically find the fastest and most reliable paths for data to travel, maximizing the performance of any Internet connection.
This brings gamers new levels of reliability and speed and allows content companies to reduce their network costs drastically.
Telecommunications
Since bandwidth needs have more than doubled thanks to the latest consumer technology trends, latency and service outages have also become the #1 problem for telecommunication enterprises.
Telecommunications is also the industry that supports all other industries mentioned in this article.
Routinely ranking 45th of 45 industries surveyed on customer satisfaction, telecommunication companies need innovation to keep up with their growth rate.
Service providers can’t keep up with the demand for data during Internet rush hours. At the same time, much of their existing infrastructure goes unused.
This is where Syntropy comes in.
By leveraging blockchain technology, we can turn spare bandwidth into a tokenized commodity that can be dynamically traded in real-time, on-demand, using $NOIA, Syntropy’s native ERC-20 token, as the medium of exchange.
So when telecommunications companies join our network, along with content providers in the above industries, they will instantly reap the benefits of our intelligent Web3-friendly ecosystem by opening up vast Internet performance potential and gaining a way to access and monetize previously underutilized resources.
This lays the foundation for building the world’s first Open Bandwidth Exchange (OBX) that enables bandwidth trading between all entities owning Internet links. With Syntropy, we believe that the Internet could easily power a tenfold increase in bandwidth if needed.
