32 Bit Real Estate

Fly.io is a platform that runs apps close to users by transmuting Docker containers into micro-VMs on their own hardware around the world. One major cost of running such a service is acquiring routable IPv4 addresses, which are required for Anycast applications and can be expensive due to scarcity. The author explains how IPv4 addresses are acquired, transferred, and valued in the market. They also discuss how venture debt can be used to finance IPv4 address purchases. While IPv6 adoption may eventually make IPv4 obsolete, there is currently a demand for IPv4 addresses due to path dependence and switching costs. Fly.io assigns permanent IPv4 allocations to apps people run on their platform, as they believe it's better for users in the long term.