Blockchain is not the outlet but the era, Filecoin helps IPFS gradually grow


The new year 2021 has already begun. 2020 is not easy to "rat", 2021 "bull" will turn the world.

Looking back at 2020, there have been three major hot events in the blockchain: BTC halving, ETH2.0, and the Filecoin mainnet launch. What impact has it had on the blockchain? Three eras called blockchains-BTC, ETH and Filecoin! So is Filecoin blockchain 3.0 really here? Next, I will briefly sort out the differences and connections between BTC, ETH, and Filecoin, the value comparison, and the meaning of blockchain:

  1. Consensus mechanism

The BTC consensus mechanism is PoW, a proof-of-work mechanism. The advantages of PoW are reliability and wide application. It is a public chain consensus algorithm that has been fully tested by practice. But its shortcomings are also more obvious: it consumes extra power, consumes a lot of energy, and is not environmentally friendly.

ETH adopts the consensus mechanism of PoW+PoS and is developing towards pure PoS, but the progress is slow. The consensus of PoS is "Proof Stake", which is a proof-of-stake mechanism, which calculates the probability of a block based on the age of the coin. The advantage of the PoS consensus mechanism is that it does not need to spend a lot of energy to compete in computing power. The disadvantage is that the interest-bearing currency issued in units of currency age is not good for token circulation.

Filecoin is an incentive layer of IPFS. Its innovation lies in the introduction of a hybrid consensus mechanism-Proof of Replication (PoRep) + Expected Consensus (EC) + Proof of Time and Space (PoSt). Filecoin has changed the traditional mining method that consumes resources with electricity and computing power, contributed resources, changed the pain points of traditional industries, and promoted the value "mining" of social progress.

  1. Issuance mechanism

The total number of bitcoins is 21 million, and a bill is generated every 10 minutes, that is, a block. The generation of each block is accompanied by the generation of bitcoin rewards. Reward 50 bitcoins, every 210,000 blocks, The bitcoin rewards generated with the blocks will be halved. The most recent time was on May 12, 2020. Each block rewarded 6.25 bitcoins; all bitcoins will be issued in 2140, that is, every 3.99 years (= 4) Halve once.

Ethereum was established in 2014. At the beginning of its establishment, it used the concept of crowdfunding to raise Ether. Between July and August 2014, it issued approximately 72 million Ether for crowdfunding. These coins are sometimes called "pre-mine". After the crowdfunding phase, the annual amount of Ether produced is limited to 25% of 72 million. The total issuance of ETH continues to rise.

The total amount of FIL is 2 billion, and the storage miner can mine 55%, which is 1.1 billion (15% of the mining reserve, which is 300 million). No additional issuance. Every message in the Filecoin network needs to pay network tax and be directly destroyed . So in other words: the total volume continues to decrease and deflation. The pledge mechanism adopted by Filecoin and the 75% reward is 180 antenna releases, coupled with the baseline release and simple release, the complex economic model has brought great potential for vigorous development of ecological and commercial applications.

Third, the nature of the mining machine

The essence of BTC/ETH mining machine is a data computing device. Regardless of the initial CPU mining, GPU mining, or later FPGA mining, ASIC mining, large-scale cluster mining, the essence is to concentrate on improving the data computing power of mining equipment mining.

The essence of IPFS mining machine is a data storage device. Data storage, value exchange in the true sense.

  1. Project category

ETH belongs to the public chain. Although BTC also belongs to the public chain, ETH created a precedent for smart contracts and is called Blockchain 2.0. The industry generally believes that the big bull market in the digital currency market in 2017 was led by ETH.

Filecoin is the incentive layer of IPFS and belongs to storage projects. IPFS may become the cornerstone of building the next generation of the Internet, and the decentralized storage market built by Filecoin will be an important support. IPFS solves the problems of high storage cost, low storage efficiency, and cross-chain difficulties in blockchain. Due to the combination of innovative consensus mechanism and IPFS, Filecoin is called Blockchain 3.0.

  1. Application market

The technical requirements of Bitcoin in the blockchain market are not obvious, that is, how much benefit Bitcoin can bring to the project is not very clear.

Ethereum provides smart contracts to expand the application areas of blockchain. Smart contracts that provide reliable calculations are the foundation of blockchain development. But ETH2.0 has not yet been completed, and it cannot bring huge benefits to Ethereum itself in any specific business area.

Before Filecoin went live, there were already many blockchain projects waiting for its release. Now Ethereum, Polkadot, Ontology and other blockchain projects have begun to bridge the connection with IPFS and Filecoin. Filecoin's large file storage extends the foundation of blockchain development, especially supporting DApps. Filecoin directly points to the trillion-level storage market, and the demand for cloud storage market size will bring endless benefits to Filecoin. In the future, Filecoin will become the foundation of blockchain and Web3.0.

  1. Policy environment

When Bitcoin and Ethereum went online, basically no country expressed support for blockchain, and support for Bitcoin and Ethereum did not significantly promote their development. When Filecoin was launched, all countries proposed the blockchain charter, and the blockchain was also included in the scope of the new infrastructure, which was a big confirmation of the blockchain. And countries have also proposed central bank digital currencies, and the entire digital currency market will be more standardized, which is an overall positive.

Domestic and foreign technology giants such as Google, Microsoft, and Huawei Cloud are all developing and applying IPFS, and domestic and foreign media such as People's Venture Capital, National Radio and Television, and CNN are also rushing to report. The promotion of Filecoin cannot be ignored.

to sum up

Today, no one can deny the development of blockchain. The blockchain is not the outlet, but the era.

Today's network continues to develop, and to such a splendid appearance today, "blockchain+" is also constantly showing its charm. Although the success of BTC is unquestionable, its too single application and ecology, as well as financial sensitivity, have more or less restricted its development; ETH created smart contracts and led the blockchain 2.0 era, but ETH2. The completion of 0 will take time.

Blockchain needs IPFS/Filecoin, and traditional industries also need IPFS/Filecoin. IPFS/Filecoin is a long-term vision, and the future development is enough to match the current network ecosystem. IPFS/Filecoin solves the problems of data right confirmation, privacy protection, and rights protection, and will play an important role in welcoming the arrival of the comprehensive digital era. IPFS/Filecoin is not only an innovation of Web3.0, it also represents the era of blockchain 3.0, and it is a blockchain project with real applications.

On the evening of January 2, 2021, Bitcoin successfully exceeded $30,000. This is also the reason why traditional institutions have invested a lot of money. Will the future Filecoin have more advantages in this regard? Since FIL has practical value and can be used for data storage services, Filecoin will only grow stronger in terms of consensus.

Currently, the Filecoin market is impacted by factors such as gas fees, but we should understand that Filecoin is a long-term ecosystem. With the continuous improvement of IPFS/Filecoin and the gradual expansion of the application market, the development prospects of FIL are worth looking forward to. We are very proud to be able to participate in such a great blockchain technology project!

So how can we participate? What are the mining companies you know about?

  1. For the miners you know, how long can the miners be fully packed?

No matter which mining company you participate in the deployment of mining machines, at the same time, the layout of the same storage amount of mining machines, the earlier the fully packed mining machine, the more coins will be mined, and the corresponding single T cents will be higher . According to the Filecoin economic model, as the effective computing power of the entire network increases, the output of the effective computing power of a single T will become lower and lower. Therefore, the sooner our mining machines are filled up, the higher the effective computing power of a single T will be. The more coins you dig.

Therefore, when understanding the mining company, we need to understand the packaging time of the corresponding company's mining machine. Only in this way can you know which mining machine mines more coins for the same storage amount of mining machine, purchase and on the shelf at the same time. But also pay attention: Filecoin mining is storage mining, and storing real and effective data is the vision. Therefore, while focusing on the packaging cycle, it is also necessary to understand whether it is storing real and effective data. Even if the packaging cycle of some miners is very short, if it is all garbage data, the computing power will be lost in the later period, and there will be fines and forfeitures. In the end, the miners will still have to bear it.

  1. To understand the price of the mining machine of the miner company

The second method is to compare the prices of mining machines. If two companies fill the same reserves of mining machines at the same time, the cheaper the single T price, the faster the payback cycle. Here, we need to note that the packaging speed of company A’s mining machine is not much faster than company B (even when the price of company A is double or more than that of company B). In this case, of course choose Company B is certainly more cost-effective. Because although the packaging speed of company A is a little faster, the income of the coins that company A can dig in this fast time period cannot deduct the higher cost of the mining machine; so choose the mining machine packaging speed is slower and cheaper Company B's mining machine is more cost-effective. Therefore, we should not only look at the packaging speed of the mining machine, but also look at the price of the mining machine.

  1. Does the miner company you know have its own technical team?

Currently, there are not many mining companies that can independently develop the Filecoin mining system. There are many mining companies in the market that do not have their own technical team at all. So they are looking for a company with technology to help them provide technical support. Of course, the mining machines of such companies can also mine coins, but in the long run it is It is not conducive to long-term development. Once a related node problem occurs, the speed of solving the problem may be very slow, after all, it is not the technology of the company. Filecoin mining is a long-term business. It is doubtful whether a company that lacks its own technology can profit from it or whether it wants to operate for a long time. And the price of the mining machines of these companies is often more expensive than the mining machines of companies with their own technology, because after all, how to make money with other people's technology and the price is not expensive.

Therefore, no matter how advantageous the price of the mining machine you know about the company, and how fast the filling speed of the promotion, the most important thing is to see whether the miner company has its own technical team, only with its own technical team, later development can If you go for a longer time, then you have a greater chance of choosing this type of technology company to make money by mining.

The above are the three core factors for choosing a miner company: 1. The time when the mining machine is fully packaged, 2. The price of the mining machine, and 3. Whether it has its own technical team. If you have a certain understanding of these points, it is not difficult to choose a good miner.

Comments 0