China’s mining industry “619 Incident” is a foregone conclusion. What is the future of distributed storage projects?

Since China’s Bitcoin mining “619 Incident”, many large and medium-sized miners have targeted their future overseas. Small miners have sold equipment at a low price to reduce losses. All participants have accepted it and continue in an orderly manner. This may be a historic moment in China’s Bitcoin mining industry. It is understood that the Sichuan Bitcoin mining machine, which has a shutdown load of about 8 million kilowatts and accounts for 10% of the entire network, has been shut down. At this point, the average computing power of the entire Bitcoin network has dropped by about 43% from the high point of 181EH/s to 104EH/s. China’s computing power has ruled the global Bitcoin mining industry for nearly ten years, and this has come to an end.

Cloudrush, a large American technology company, and Cyxtera, the second largest data center in the United States, successfully assisted Bitcoin miners to complete the site construction, equipment transfer, custody, and maintenance, to solve the problem of going oversea in an all-round way, and to maintain the development of the Bitcoin network. Please contact V for more details.

Bitcoin, as a peer-to-peer token system, is used to replace traditional fiat currency to complete the payment. However, due to the lack of anchoring specific value and the difficulty of controlling the entire network, it was denied and attacked by many countries during the early stage.

In the end, under the high pressure of policy, the era of Bitcoin mining in China has come to an end.

The mining model that relies on hydropower will be eliminated. However, we can see from Filecoin, Chia, and Swarm, the energy requirements of subsequent blockchain projects are getting smaller, and they will gradually deviate from the energy requirements. It is an inevitable trend to move from independent mines to IDC or even data centers.

As the foundation of future storage, the distributed storage is in line with the national strategic development goals. The National Radio and Television Administration has written the leading IPFS of distributed storage into the white paper of blockchain technology application. Besides, many institutions have also established research groups. This shows that the country has a high degree of recognition to this technology.

IPFS is a revolutionary and practical technology targeting the traditional HTTP protocol. As a decentralized network, peers are connected through various methods such as BitTorrent, and shared files are formed. Compared to traditional Web, IPFS files provide services based on the content of the files, while the traditional Web provides services based on the location of the files.

For example, Google will host the privacy policy at the address:

On the Google server “https://policies.google.com/privacy", the policy content does not matter, so it is based on domain name addressing, which we call it as location-addressing (domain addressing) .

However, IPFS uses the hash value to identify the file by its content. For example, if you want to read: “XKCD#327 — ExploitsofaMom”. Then, its IPFS address is https://ipfs.io/ipfs/QmZVjV5jFV7Jo4Hfj6WPyRnHCxf8kbadkqtQBco2gef64x/. Anyone who cares about XKCD can host it. This makes broken links unlikely. As long as one node stores data, the IPFS network is unlikely to have a “404” error. We call this content-addressing.

Filecoin is the incentive layer of IPFS. Miners store useful files and receive Fil rewards. It is an asset used in the Filecoin network. Thus, Filecoin is very important to IPFS.

Recently, China proposed the biggest engineering strategy named “counting in the east and calculating in the west”, which will establish 8 hub nodes nationwide as the backbone connection point of the country’s computing power network, develop data center clusters, and network cloud computing big data. As the strategic fulcrum, it will promote the orderly transfer of computing resources to the west and promote the solution of the imbalance between the supply and demand of computing power between the east and the west.

With that, both Filecoin and Swarm can build a data center for the local area. This is a new infrastructure to support the development of this national project. Looking from the basic perspective of blockchain, distributed storage will become a new direction this year.

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