The hottest topic in the currency circle in 2020 must be mining, but there are still many people who do not understand what mining is. To put it plainly, mining is the process of solving problems. Who is the subject? That's right, it's the Satoshi Nakamoto you think.
In 2008, Satoshi Nakamoto posted a research statement on a secret code review group, which stated his new vision for electronic money, and the concept of Bitcoin came from this.
01How did mining come from?
Satoshi Nakamoto set the number of bitcoins at 21 million. Discovering these tokens is equivalent to setting the answer of bitcoin to 21 million solutions. Anyone who solves this answer can get bitcoin rewards.
Everyone uses the p2p algorithm to crack the block to solve the problem. But as bitcoins are mined in large quantities, the algorithm will become more and more difficult, and the process of mining the remaining bitcoins will become very long, so the concept of mining was born.
The simple understanding of BTC mining is to obtain rewards by purchasing mining machines to perform tedious and complicated hash calculations.
With the continuous development of blockchain technology, mining hardware changes from hard disk to graphics card to memory, etc. Their principles and influencing factors have also changed. ETH and IPFS/Filecoin are often compared.
In fact, the three of them are different in terms of hardware equipment, mining principles, and specific benefits. With the popularity of IPFS/Filecoin, the first two are now becoming less heated in the mining circle.
02Why is IPFS/Filecoin so popular?
The mining principle Bitcoin/Ethereum and most public chains are based on the PoW algorithm to implement their consensus mechanism.
That is, according to the effective work contributed by mining, the distribution of currency is determined. The advantage of PoW is that it is reliable and widely used, and it is a public chain consensus algorithm that has undergone full practice tests.
But its shortcomings are also more obvious: the
first is that it consumes too much extra computing power, that is, a lot of energy, which is not environmentally friendly.
The second is that a large amount of capital is invested in mining machines, which leads to centralization of computing power, and there is a security risk of 51% attacks. Simply put, mining based on the PoW mechanism is mining that consumes a lot of computing power and electricity.
IPFS/Filecoin uses PoSt, the full name is Proof-of-Spacetime, that is, (storage) space time proof.
It can be simply understood that mining based on the PoSt mechanism is a mining that invests a large amount of storage space (hard disk) and bandwidth resources.
The difference between the two can be seen from the principle. In terms of mining, BTC/ETH causes a great waste of resources and does not fundamentally improve the efficiency of use.
In contrast, the proof mechanism of IPFS/Filecoin has truly realized the sharing economy, leading mankind into the blockchain 3.0 era. Even now many people think it will be the next BTC.
03Why choose Filecoin
As the incentive layer on the IPFS distributed storage network, Filecoin attracts people to contribute storage resources, retrieval services, and bandwidth resources to the IPFS network by issuing tokens, FIL, to build a powerful new Internet. From the following aspects, we can clearly see the future value of IPFS/Filecoin:
1. It has created the project with the shortest financing time and the largest amount of global blockchain , and it is favored by capital.
2. Storage is mining, Filecoin is different from BTC's proof of work. The work of BTC consumes huge power resources and is accompanied by heat and noise pollution. Filecoin mining only needs to provide storage space and broadband to meet the hardware requirements of mining.
3. Reserve 70% of the certificates in the distribution mechanism to participate in mining for distribution. In some domestic small projects, only 30% of the shares are used for allocation, and 70% is left on the project side. Filecoin reserves 70% to miners.
4. Filecoin is based on the powerful distributed network of IPFS. With the large number of applications of IPFS, Filecoin as the incentive layer of IPFS is bound to be more and more recognized.
5. Filecoin's unique mortgage mechanism is the biggest difference from BTC, ETH and other mining projects. Filecoin mining will give fair treatment to both the supply and demand parties who use the storage space. As a result, there is a shortage of supply in the mortgage market and the price is bound to rise.
6. Blockchain is an extension and application of cryptography, but the fatal weakness of blockchain is that the capacity that can carry data is too small.
With the advent of the 5G era, market data is growing rapidly, and the existing technology is not enough to support the rapid growth of data. IPFS/Filecoin fills this shortcoming and brings huge vitality and development to the blockchain.
7. Filecoin is the only token with a revolutionary technological breakthrough since ETH.
Throughout the advent of ETH, the goals of many currencies have been faster, safer, and more widely used. No currency can bring revolutionary technological innovation to blockchain technology. Filecoin is based on blockchain data. storage.
The new blockchain, new breakthroughs, will get the best price and guarantee in the world.
8. Filecoin can be said to be the only token with a real application landing in the entire digital currency market, and its status cannot be shaken. The above analysis is sufficient to prove Filecoin's current investment status. According to the official roadmap, Filecoin will be officially launched soon. Before the mainnet launch, the investment threshold for investors is relatively low.
Unlike BTC, Filecoin is suitable for every investor. According to the current situation of the test network stage, competing for the bonus of the top mine has become a hot topic.
The price of FIL is bound to rise with the commercial application. At this stage, Filecoin is a potential new star, and its future development should not be underestimated!