The teacher said that the blockchain｜1.9 end, the era of mining has passed

Many people think that buying a mining machine for direct mining is investing in the "zero" market, which is cheaper than buying bitcoin in the secondary market on the market, and has a large appreciation space. Good in theory, but if you read our previous article "Mining, How Bitcoins Are Mined", you should already understand that the era of Bitcoin mining is drawing to a close.

Bitcoin mining itself is a very risky investment, because the income is not only closely related to the rise and fall of the currency price, but also related to the scale of other miners. The number of bitcoins produced per hour is constant, currently 75 per hour, so the more mining machines involved in mining, the more intense the competition, and the lower the rate of return for miners.

To be precise: it's not that you can't dig, but that we recruits can't dig. Mining is just an arena for big mine owners.

Because recruits often do not have strong resources, such as: very low electricity bills, continuous innovation of mining machines with the best performance, etc. Venezuela and other countries have resorted to the power of the state to mine Bitcoin at the expense of electricity bills.

The performance of new mining machines has been greatly improved, and the silent cost of buying mining machines is far less than the speed of market technology iteration. For example, when you have just spent a huge amount of money on the deployment of high-speed trains, the supplier has launched a high-speed rail; when some people are delighted that you have bought a high-speed rail, the supplier has started to push maglev again...

For major mining farms, it is no longer a time of sitting on the ground and counting money, but a new stage of fighting technology (mining machine performance iteration), fighting management and comparing costs. There will be no huge profits in the future, only reasonable profits.

Tips:

Mining - Participate in Bitcoin minting and bookkeeping, and use a computer to calculate a very complicated function problem to compete for the right to coin and bookkeeping.

Mining machine - The computer involved in bookkeeping and minting is called a mining machine.

Miners - The owners of computers (investors) are called miners.

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2. Bitcoin-style mining algorithms are unethical and harmful to environmental protection. If other blockchain projects need to mint coins, they should choose zero-energy-consuming algorithms

In the previous section, we introduced that the annual power consumption of Bitcoin mining exceeds 30 billion kilowatt-hours, which is a great waste of resources.

The power consumption alone has violated the bottom line of many people.

If all blockchain projects are so crazy about mining, more and more mining machines, it is better to use computing power for more valuable artificial intelligence deep learning, big data cloud computing, used in precision medicine, biological research, It is more meaningful in places such as pharmaceuticals and engineering simulation.

After complaining that Bitcoin is not environmentally friendly, it is necessary for us to review the logic behind the accounting and minting process of Bitcoin.

The reason why Bitcoin adopts this method of power consumption for everyone to calculate function problems is not to "mint coins", but to see who is willing to spend effort and energy to calculate problems to assess who is a reliable bookkeeper.

That is: how to show loyalty, how to choose loyal ministers!

Bitcoin or other encrypted digital currencies are all a series of numbers, which are executed by the computer according to the program command. How long, in what way, and how much to release are all stipulated by the program, and there is no need to "dig"!

The core of the blockchain is to select trusted bookkeepers to maintain the accuracy of the ledger.Whether there are tokens is not the key factor, as long as there is a reasonable incentive system. For example: it is not impossible for bookkeepers involved in bookkeeping in some application projects to reward corresponding organic vegetables.

With the continuous exposure of the defects of the Bitcoin POW consensus algorithm, more and more consensus mechanisms adopt zero-energy algorithms, that is, they do not need to spend electricity to calculate problems to show their loyalty.

For example: the POS (Casper) mechanism that Ethereum plans to adopt in the future and the DPOS mechanism of EOS (Grapefruit) both useWho has the money to buy tokens to test loyalty, the principle is that if you buy so many coins, doing evil is self-harm, and if you dare to do evil, your tokens will be deducted by the system.

For example: the POR reputation consensus algorithm adopted by Beckchain,Use the credit score to select bookkeepers. Bitconch uses a three-dimensional reputation score to evaluate everyone's loyalty, which is somewhat similar to the Sesame Credit score, which is three-dimensionally outlined by computing power contribution, number of tokens held, and activity with other users. The high reputation that has been accumulated with great difficulty, if you do not do evil, you can get rich rewards. Once you do evil, the reputation will return to zero.

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3. In any market, with the same business model and game rules, only the first, second and third are recognized. If there is no innovation and subversive trump card, it will be a flash in the pan

The first means to eat most of the dishes on the plate, and the remaining leftovers are reserved for the remaining second, third, fourth...

Each market has only one structure: a fat winner followed by a group of emaciated losers.

According to the information released by the computing power forum suanli.io, there are currently more than 110 projects using this kind of "calculation table faithfully selecting bookkeepers" (POW consensus algorithm) similar to Bitcoin...

Come On！

The teacher asks you to focus on:

1. If someone tells you to buy a mining machine and mine bitcoins, please first weigh whether you are strong enough. If you are a rich man at the level of "Papa Horse", you can do whatever you want, and you can be willful anytime you have money!

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4. Projects that only use "encrypted digital currency" payment function as the main application scenario will have a very bleak prospect. The next round of digital currency payment will be a stable currency endorsed by a sovereign state or a powerful institution

With the explosion of bitcoins springing up like mushrooms after a spring rain, who would not be tempted to invent a string of numbers that can be exchanged for money and wealth?

As a result, a large number of blockchain projects use the pure "encrypted digital currency" payment function as the main application scenario, and various upgraded versions of Bitcoin have emerged as the times require.

Looking at the market value rankings of blockchain projects in the past 6 years, we may be able to better grasp the pulse of the development of the blockchain era.

It can be seen that in just five or six years, the pattern has changed dramatically.

The following picture allows us to understand the types of the current top 20 projects:

As can be seen,The current blockchain pattern is a new pattern in which a hundred flowers bloom and a hundred schools of thought contend.Different underlying algorithms are working hard to promote the upgrading and iteration of blockchain technology through technological innovation, and improve some technical bottlenecks of the blockchain, such as: speed, storage, privacy protection, and fund entry with legal currency.

The current blockchain functions are no longer limited to pure "encrypted digital currency", and more and more projects are beginning to deploy different application scenarios such as DAPP platforms, stable coins, and international financial settlement systems. in:

• Copy Bitcoin, 1 - Litecoin, known as the second Bitcoin

• Hard fork coins, 3 - fork coins are the result of the operation of large miners under specific historical conditions

• Tokens That Improve Bitcoin's Anonymity, 3

• Alliance chain for international bank clearing business, 2

• DAPP platform, 6

• IoT, 1

• Stablecoins, 2

• Platform currency, 1

It can be almost foreseen from the trend that in the next few years, more and more blockchain projects with specific application scenarios and DAPP platforms will stand out.

What is certain is that the next competitive track is no longer purely "encrypted digital currency", but a broad blockchain application scenario. The detailed introduction will be launched in Chapter 2.8 "Opportunity, Hundreds of Races to Increase Speed".

Let’s take a look at the top ten blockchain projects by market capitalization in 2014. Except for Ripple, which is an alliance chain with specific application scenarios, all other projects are payment currencies with the attribute of “encrypted digital currency”.

Six years later, it can be seen how the fate happened.