There is a concept in economics called the "Hangtang effect". The general idea is to assume that there is a lotus leaf in the pond on the first day, two pieces on the second day, and four pieces on the third day… to a certain point, the lotus leaf Will cover half of the pond. And just one more day, the entire pond will be covered with lotus leaves. It means that things grow slowly, and then burst out in an instant.
In 2008, Bitcoin was born. In the past ten years, BTC.COM and Yuchi have become bitcoin mining pool giants. In 2018, EOS was launched. In 2019, Ethereum took the first step toward POS. On March 14th, the cross-chain star project Cosmos went online, and NEO, IRIS, and other public chains based on consensus such as DBFT, POS/DPOS or VBFT gradually developed. Open community governance, Staking economy officially stepped onto the stage. So, when will the mining pool where the nodes mine will burst like a lotus leaf?
We interviewed Babbitt Partners, MatPool Mine Pool COO Li Zongcheng, and NEO project side, what is the trend of node mining? Who will become the industry leader? Where is the ceiling of the node mining? You may have an answer after reading it.
MatPool operation node, NEO test network has five major players
NEO was founded in 2014 by the early evangelist Da Hongfei of the blockchain. It is the first public chain born in China. It uses a consensus mechanism called DBFT. NEO founder Da Hongfei said in an interview with Babbitt in August 2018 that the team's influence will continue to weaken as the team gradually distributes the tickets in the next few years.
Recently, the MatPool mine pool has been voted by the community and will begin to operate the NEO test node after completing the technical docking. After a stable operation for half a year, it will be excessively a consensus node. As a result, the NEO test network's consensus node operations will be maintained by NEO Foundation, NGD, CityOfZion, KPN and Swisscom respectively.
Babbitt's MatPool mine was born in September 2018. Former Facebook engineer Jin Lei was the project leader and CTO, and Babbitt partner Li Zongcheng became the chief operating officer (COO). According to Li Zongcheng, MatPool's mission is to “combine computing, integrate consensus, and integrate value” to establish a “parameterized blockchain computing and super-node service platform” to serve participants in various backbone consensus mechanisms. It provides a stable, secure and open platform environment.
The reason why he campaigned for the NEO node, Li Zongcheng believes that the first is that NEO is a Chinese old-fashioned public chain project with strong technical and user accumulation. Participating in the node campaign also means recognition of the project direction and technology. The second is to be optimistic about the NEO ecology and willing to join in building the ecology.
Who will be the leader in "node mining"? These three factors are very important
From the development history of the head pool in the POW field, the reasons for its stand out can be summarized as several points. First, start early and establish brand advantages such as F2Pool (fish pond), which ranks second in bitcoin computing power with about 12% of computing power. Second, the advantages of mining equipment, such as BTC.COM under Bitcoin, the mine can get a very competitive mining machine in the first time.
What qualities does the mining pool in the mining area need? Li Zongcheng summed up three qualities.
The first is the capital advantage, the mineral pool with capital advantages, the early investment in high-quality projects, the opportunity to get low-cost token chips, and the opportunity to participate in node mining in the early stage of the project. Generally, the earlier the mining, the higher the excess return. .
The second is the resource advantage. The node mining is a “flow business”. The closer to the holder, the more convenient it is to attract the money pool that the holders vote, the faster the exchange, the wallet and the media are closest to the holder.
The third is technical advantages, such as node mining, DDoS attacks, intrusion attacks, hardware and software downtime, key leakage and other challenges, technical strength can ensure the security and stability of nodes and public chains.
"Exactly, MatPool has the above three advantages." Li Zongcheng analysis, relying on Babbitt to provide comprehensive brand promotion services for the main chain, to assist the main chain for ongoing community maintenance. The time-stamp capital senior crypto asset investment team can gather capital power to discover, mine and enhance the value of the main chain. The mature public chain and wallet technology development team can provide continuous technical services for the main chain, monitor and timely adjust the node operating environment.
At present, the MatPool pool supports BTM, SIPC, QKC, ZEN and other POW consensus computing power mining, and also operates the consensus nodes of NEO, Ontology, Gongxinbao, IRIS and other public chains.
Where is the industry ceiling for node mining? Depending on the market value of such cryptocurrencies
After the birth of Bitcoin, POW mining experienced CPU, GPU, FPGA, ASCD and other modes, and miners competed for accounting rights through calculation. And the "tragedy of the commons" and the waste of resources have become the focus of doubt. The 2011 POS Equity Proof Consensus mechanism was born, which virtualized the entire mining process and replaced the miners with verifiers. Since then, POS has spawned more variants, such as DPOS, DBFT, and so on.
Beginning in 2016, POS gradually moved from concept to landing. In 2018-2019, a large number of POS projects entered the main online line stage, and the corresponding node services became just needed. According to incomplete statistics, nearly 80% of new public-chain projects in the past two years have adopted the POS and DPOS-like consensus mechanisms.
“POW mining is already in the Red Sea, POS is blue ocean, we need to gradually polish our team and business model.” Li Zongcheng said. Some other teams have begun to enter this field.
According to QKL123 data, the market value of POS-type cryptocurrency is less than 10% after removing large currencies such as BTC, ETH, and BCH.
Will the mining market be small? According to Li Zongcheng's analysis, the ceiling of the node mining depends on the market value of the POS class public chain token. Although the current share is low, he believes that Bitcoin records account asset data, Ethereum records contracts, and public chains such as EOS can record more complex contracts. “The more complex the contract, the higher the content richness of the relative bearers. I think that the blockchain world will move toward rich contracts in the future.” The new generation of public chains adopts the POS mechanism.
At present, the safe operation of Bitcoin in the past ten years has proved the value of the POW consensus mechanism. With the gradual landing of the public chain such as Cosmos, NEO, ONT, the public chain of POS consensus has begun to practice the irreversibility of the contents of the book and the complexity of the contract content. degree. "From logic to practice, it means that the car is just on the road, the car can carry something, this is everyone exploring." Li Zongcheng said.
In January 2019, the founder Luo Zhenyu put forward the concept of "small trend" in the "Friends of Time" lecture: the trend is like a shuttle bus. The bad news is that each bus stops at a short time. The good news is that there is no last bus. The car is a little bit a while, getting denser.
Is node mining a small trend in the blockchain world? Is it still the first new leaf in the pond? These are only time to bring the answer.