The Taoist POC is the pursuit of creating investment opportunities and the old profit model.

Editor’s note: This article comes from the strategic cooperation blockchain media “Odaily Planet Daily” (Public ID: o-daily, < a href="https://download.odaily.com/">APP Download)

文 | Hao Fangzhou Editor | Lu Xiaoming

Odaily Planet Daily produced

The consensus mechanism is a topic that cannot be avoided by the public chain. It allows nodes to trust each other without a central organization. The broader consensus, which embodies the beliefs of money-holders and eco-builders, is carried forward in the spiral of price and value.

The mainstream consensus mechanism includes POW for Bitcoin, POS for Ethereum transition, DPOS for EOS, and the combination of the above three and BFT/pBFT. The Odaily Planet Daily has been detailed in the article “Reviewing the evolution of the consensus layer, POS+ may be the way out for the later development of the public chain” Comparing different consensus mechanisms, and updating the latest POS-related topics under the topic “POS Consensus Mechanism Awakens, Staking Economy Prevails” progress.

Recently, a POC consensus meeting in Shenzhen caught my attention. The conference brought together three “POC Evangelists”, Alex, Fat, and a POC project – BHD and its “ecology”. In the curiosity of the “new consensus,” we studied the ins and outs of the POC. This paper will focus on the innovation, limitations and trend prediction of the POC consensus mechanism, as well as the value analysis of key projects.

Pros and Cons of POC Consensus Mechanism

Acowable to Investopedia, POC (Proof of Capacity) is a Allows mining equipment to take advantage of idle hard disk space (rather than computing resources or pledge tokens) to participate in mining consensus algorithms.

The POW miners collided with random numbers and calculated hashes. The miners who first “fighted the correct answer” broadcasted to the entire network and obtained the accounting rights through verification by other miners. And POCBefore the excavation, the miners put all the “solving methods” on the hard disk through “plotting” (commonly known as P disk). The harder the hard disk is, the more chance there is to “search for positive solutions” before the deadline. (mining, commonly known as sweeping), and get a block reward.

POC is a simple transformation based on POW. It replaces the repeated hash calculation with the storage reusable “solving method” + local search, and replaces the video card or POW mine machine with a harder power-consuming hard disk. Part of the cost of electricity is passed on to the investment in storage hardware.

The first project to apply POC was Burstcoin, which was launched in 2014. Later, the community took over the code update as the sponsor left. According to its official website, Burstcoin’s current consensus mechanism is POC3. Compared with the original POC, POC3 is closer to the Proof of Storage or Proof of Spacetime used by distributed storage projects such as Filecoin and Storj from the application point of view, which is more meaningful than random numbers (such as storing movies or geographic information data). ) Provide a decentralized storage solution.

After Burstcoin, SINOC, Mchain and other projects have chosen the POC consensus mechanism, but because of its “ self-built non-open source blockchain network Tokens, and then through the sale of computing models, to attract users to buy computing power mortgage tokens, these mortgaged coins become the key to support the market value of their tokens“, and “pull the head, set the threshold “The pyramid scheme is operated as a fund.

The existing POC representative project BHD also has problems with open source and mortgage mining, which makes it impossible for developers to build It also makes the value of money fall in the mining process. This may be one of the reasons why its community has not grown.

In the Hpool page, which claims to be the world’s largest hard drive pool, the combined capacity of BHD and Burstcoin is close to 1780PB, the current generation. The sum of the market value of the currency (CMC data) is about 270 million yuan. For comparison, it is also considered the POS of the next stop of POW, The total market capitalization of the project is 2.14 trillion yuan, and the total market value of Staking is 117.2 billion yuan, not to mention that bitcoin accounts for 70% of the market value of the currency. POW.

In addition to the project does not open source, from the perspective of consensus mechanism design, POC does not solve the two major pain points of POW: centralized computing and energy waste.

In terms of fairness, POC is now fairer than POW, but because it has not developed, it is in the POW 2010 stage. If the future capacity (power) and market value (coin price) rise, it will still appear. New oligopoly and waste of resources raise the risk of individual participation thresholds and attacks.

In terms of energy waste, POC may be more economical, but it still inherits the defects of POW energy consumption, and POS shows the absolute advantage of almost no waste of resources. However, the currency circle does not need to have another POW. If you want to reduce the waste of resources and talk about the vision of business applications, turning to POST like Burstcoin may be the path of POC.

As the sacred fish said: “PoC is very simple and rude, it fills the hard disk with the encrypted rainbow table and then lets you Going to search is a waste of computing power. The main point is to save more than POW. This does not solve what you are askingtitle.”

Representing the value of the project BHD?

Of course, whether a consensus mechanism can eventually expand the consensus circle, and most of the time rely on the thrust of the star project. At the POC conference, the project that voiced on behalf of POC was mainly BHD.

My first impression of BHD is that there is a bit of magical official website, and a white paper tied with the project is a “51ASIC original.” “Watermark, unfinished mine pool white paper.

Do POC become the next POW?

Where is the fourth part? So redemption?

The two white papers are more about teaching people to mine. After all, POC comes from the “fork” of POW, not to talk about technological innovation, not to talk about currency attributes and ecological applications, and to focus on the production of money. Here, I draw two key points:

  • The total supply of 85% of the money is sent to miners – BHD is like a digital currency to miners.

  • Three BHDs are required for each T–based on the full network capacity of the 1422.69PB in the July 30 morning report and the price of 110 yuan on the BitMart exchange, the miners mortgaged 470 million for mining. Yuan, the same day BHD’s CMC circulation market value is 187 million yuan, the miner’s mortgage is supporting the value of the project.

There is no real demand for the hard disk capacity occupied by BHD (unlike the IPFS system), so BHD does not have Own hematopoietic capacity, both supply and demand are self-circulating within the “mineral circle”.

I am trying to discover the appeal of BHD over BTC and other small minerals from the perspective of this cycle. It is further found that the static return period is difficult to calculate, because the official will dynamically adjust the rules (such as the block size from the initial 8M to 2M, the block time from 5 minutes to 3 minutes), the disguised control of the computational difficulty and each block Reward to support relatively fragile prices.

Do POC become the next POW?

BHD/USDT on BitmartPrice trend

Let’s look at the participation threshold and fairness that retail investors are more concerned about. The white paper suggests, “At present, the difficulty of the entire network is 850PB… don’t try solo mining without more than 5000T.” Let’s calculate the pure hardware input of 5000T capacity, with 51ASIC H32 mining machine (from 5999 yuan + 399 yuan power supply), 32 positions are plugged into Western Digital 10T hard disk (Tmall promotional price 2399 yuan) as a group, need 16 The group has a total of 486,000 yuan. The top ten of the Hpool capacity list are the “big” of storage space at the PB level. This is not the same as the dream of getting rich in my previous “formatting an idle 2T hard drive, zero cost mining”. Further verification of the BHD community, I really got a reply, “I can’t dig it out, the capacity is too small, even if it is dug out, it is not enough electricity.”

It seems that individual investors want to participate in the mining process, the threshold is not low. The number of hard drives and the price at hand have created mining barriers and a new “centralized” pattern. For those who don’t want to mine, but buy BHD directly, borrow a block of rhythm, “If you are optimistic about the POC project You should buy the stock of Seagate hard drive directly.

“Invisible Platform” and “Vertical Ecology”

Speaking of this, I am full of curiosity about BHD members, holders and big miners.

According to the white paper, 10% of BHD is left to the open team in the form of pre-drilling. Unfortunately, there have been no team presentations on the official website and throughout the community. The project public number belongs to the individual, and WeChat’s “customer service representative” is hung under the community. The representative of the project at the POC conference is Gary, the initiator of the BHD community & POC community, whose other identity is hpool.com COO. Netizen “French” once succumbed to the inexpressible relationship between BHD and 51ASIC, as well as the team’s micro-business background and cuts. 韭 means, but since there is no verification, do not comment here.

Although no one is on the front platform, there are three seniors in the currency circle who are “milk” BHD as POC evangelists. They are “bug brother” Fang Xuchu, Alex Yang Jiaxue, “fat boy” Hegalun:

The three evangelists’ businesses formed a “POC vertical ecology” around BHD.

Bug brother gave an opening speech at the POC conference, POC capacity certification is a new consensus mechanism that gives us the opportunity to return to “2012”.

2012 It is reminiscent of the Bitcoin circle, the infrastructure is in vain, the miners can solo mining, and the first ASIC mining machine is about to come out. Later, with the two rounds of large-scale defoaming, the rise of Ethereum, Bitland, and the currency has pushed many entrepreneurs to the edge of the public chain, mining machine manufacturers and exchange markets. The era of making money for everyone is gone. .

Rewinding back to the last era, repeating the history of POW will not promote the business future, but it can help some people enjoy the early dividends. If the three-dollar old man bets on the bet and propels the POC to become the next POW, then 51ASIC is the bit continent, and Hpool is btc.com. Unfortunately, POC still lacks star projects, and BHD is difficult to pick.