Technical novice, the correct logic of choosing a project

1. Confusion encountered by investors when doing research

I have written a series of introductions to IPFS/Filecoin in previous articles. As the testnet launch date of this project approaches, more and more readers begin to pay attention to this project and plan to invest in this project.

Recently, more and more readers have consulted, and most of them don't know much about technology.

However, these rational and prudent investors will investigate the situation of each mining machine manufacturer in detail. During the investigation, investors found that each company believed that they had an advantage in terms of technology, and at the same time, they all gave a bunch of technical explanations, and also exhibited news reports and highlights related to themselves.

At this point, investors are in trouble. It seems that the more information, the bigger the head. It is difficult to make a decision because of less information before the investigation, but it is more difficult to make a decision after the investigation because of more information.

This is not only a problem that investors of the IPFS/Filecoin project will encounter when making investment decisions, but also a problem that investors will encounter when investing in other technical hard-core projects in the blockchain field.

2. How should technology novice investors grasp technology

So what should technical novice investors do in this case?

First of all, my advice to everyone is not to be intimidated by technology and so-called proper nouns. Don't go too deep into the technical details, but grasp the technical logic.

In fact, it is not only difficult for novice investors to understand technology, but even so-called experts may not have a deep understanding of new technologies under the rapid development of modern technology.

The development of modern science and technology has become more and more complicated, and the division of labor has become more and more refined. Even within the same field, the technical differences between different subfields are very large. Even an expert in a certain field only knows more about a specific time period and a specific field. It is impossible for him to understand the entire industry and all fields.

Although we cannot thoroughly and quickly understand a field that we are not familiar with, there is one thing that all disciplines have in common: that is the logic of technology. Understanding technical logic is something we can all do.

Among the early well-known investors of Bitcoin, Li Xiaolai, Bao Erye and others were not born in computer technology. It is impossible for them to understand the C++ source code of Bitcoin, and it is even more impossible for them to delve into why the elliptic curve can ensure that the private key cannot be deduced from the public key, which is the core encryption technology of Bitcoin.

But this does not affect their understanding of Bitcoin, why? Because they have grasped the core logic of Bitcoin technology, know what Bitcoin technology does, and what logic it uses to achieve it. After understanding these, they understand the true meaning of Bitcoin. This is where logic matters.

In the same way, for novice investors, when judging IPFS/Filecoin project investment, what we need to grasp is what has changed in this project, where is the scene, and the internal logic and core points that it can change these scenes .

Thinking along this direction, we can easily judge that this project must be a technically hard-core project. Therefore, it is difficult for the project team to gain a foothold if it is not technically uncompetitive. With this kind of logic, when we judge reliable companies and manufacturers, we must be more vigilant against those companies in the market that do not pay attention to technology, and even make a high-profile claim of "multiple digging with one machine".

Going a step further, since this project is related to storage, the first thing we can think of is hardware, more precisely, hard disk.

But when we have a little understanding of this project, we will find that the technical core of its mining is the calculation of "proof of replication" and "proof of time and space". Although the calculation of these two indicators is related to the hard disk, it is not related to it, but to the calculation process. Then the calculation process is not only related to a single hardware, but more importantly, it is related to the configuration and design of the software.

From this point, we can roughly infer that for this project to win, hardware is only a necessary condition but not a decisive one. The decisive conditions of the project are factors such as software technology and operation and maintenance environment.

With this logic, we must pay attention to their research focus and publicity focus when choosing. Be vigilant against companies that blindly claim that high hardware configurations can mine mines.

3. The team is the core

After we have a general understanding of the technical logic and key points of the project, the next step to investigate is the most critical point in all project investments: team strength.

Ma Yun said that he is willing to invest in third-rate technology and first-rate teams, but not first-rate technology and third-rate teams. I totally agree with that.

A good technology is difficult to achieve without a solid and hardworking team. An average technology to a solid team may be able to achieve the best in the market. Therefore, the strength of the team is the key to the success of the whole project.