Domestic mining industry encounters “9.4”, how can miners save themselves?

On June 1, 2021, TopIPFS co-founder Khan of Mining Circle visited the live broadcast room of Lieyun Finance Online Classroom and brought everyone wonderful and informative sharing.

The following is the sharing record (edited):

Host: Good afternoon, everyone! I am Xiaohai, the host of Lieyun Finance Online Classroom. Lieyun Finance was founded in early 2018. It is a vertical blockchain media under Lieyun Group. It is deeply involved in the blockchain field and focuses on digital mining, DeFi, NFT, etc. It has many popular brand columns, such as "Hi, Boss!", "Friends in the Mining Circle", "Online Classroom", etc. Now, please let the guests briefly introduce themselves.

Khan of the Mining Circle: I am the co-founder of TopIPFS. I have a technical background and a primary school student in the cryptocurrency circle. I hope you can give me some advice.

01

If you want to continue mining, going overseas is the only option

Host: Recently, domestic policies on the mining industry have begun to tighten, and Inner Mongolia has begun to crack down on mining activities. What impact will this have on domestic mining?

Khan of the Mining Circle: There will definitely be an impact, and it will be a huge one.

Judging from the document issued by Inner Mongolia, the requirements this time are basically within the existing legal and regulatory system, and the restrictions on mining have reached the extreme. It even involves mining in Internet cafes and inclusion in the blacklist of dishonest people, which has never appeared before. It can be seen that the intensity is great.

Under such high pressure, it is difficult for domestic mining farms to have a safe and stable environment. It is even possible that the mining farms will be directly blocked or the power will be cut off. The impact of power outages in mining farms like Bitcoin may be relatively limited, but if the power is cut off for a long time like Filecoin mining, the consequences will be disastrous. The miners' assets will be confiscated and the mining farms will face bankruptcy.

Secondly, miners will also be greatly affected by the policy. Once a mine goes bankrupt, the miners will suffer in the end, which may cause the miners to lose all their initial investment and cause disputes between miners and mines.

Therefore, the current domestic policy is a very clear signal to mining farms and miners, that is, domestic mining is no longer feasible. If you want to continue mining, going overseas is the only option.

02

Mining may be hard to recover in the country

Host: What do you predict will be the future domestic mining policy?

Khan of the mining circle: Following Inner Mongolia, Sichuan will also hold a symposium on mining on June 2. It can be seen that the central government's policies have begun to be implemented step by step at the local level. In the future, every province related to mining may introduce policies to ban mining. Moreover, in the long run, this policy will not change.

Because using mining machines to mine runs counter to the energy conservation, environmental protection, and carbon neutrality proposed by our country now.

What is carbon neutrality? Carbon neutrality means that by 2060, the total amount of greenhouse gases directly or indirectly generated in the national economic and social development in 2060, plus the carbon emissions reduced through afforestation, carbon reduction or purchase of carbon credits, will be zero net emissions. Reaching the peak before 2030 means that there will only be reductions after that, and efforts will be made to achieve carbon neutrality before 2060. Carbon neutrality has become one of China's top political tasks.

At the beginning of the month, Beijing was also investigating the energy consumption of major data centers. In Xinjiang, Inner Mongolia and other places, many mining farms use thermal power for mining. Data shows that coal combustion once accounted for 60% of China's carbon emissions. Therefore, in order to achieve the primary task of carbon neutrality, mining in China may have a hard time turning around.

03

Domestic mines must strictly abide by domestic policies

Host: How should domestic mines respond to domestic policies?

Khan of the mining circle: The best practice for domestic mines is to abide by national laws and regulations and take the initiative to stop operating in the country. In fact, before the relevant regulatory information was announced, there were rumors in Xinjiang, Sichuan and other places that some mine owners had already closed their domestic mines and planned to move their mines overseas. The main destinations are currently Russia, the United States, Central Asia, etc.

The policy is very clear this time, and there are not many options for mines. If the mine owner takes chances and goes against the wind, in addition to irreparable financial losses, he may also be subject to legal sanctions. Domestic mines must strictly abide by relevant domestic policies.

Moderator: Compliance is what everyone has been working towards. The best practice for domestic mines is to comply with national laws and regulations. For miners, how can they avoid such policy risks?

Khan of the mining circle: Unlike mining farms, miners do not have clear operating risks. For miners, it is actually much easier to avoid this risk, because many mining companies now provide hosting services, and they do not need to personally place the purchased mining machines overseas. They only need to confirm that the manufacturer's computer room is overseas, so they can avoid domestic policy risks.

For users who have already purchased mining machines from domestic mining companies, it is best to contact the manufacturer for a refund before the policy is fully implemented (of course, it should be negotiated in a friendly manner). The later you contact the manufacturer, the greater the risk. Those who want to continue mining after the refund can choose mining machine manufacturers with overseas computer rooms to avoid policy risks.

04

If the regulator suddenly takes action, domestic Filecoin mining farms will basically go bankrupt

Moderator: As far as I know, our TopIPFS computer room is located in Silicon Valley, USA. What was the consideration for TopIPFS to place the mining computer room in Silicon Valley, USA from the beginning?

Khan of the mining circle: We have considered the impact of domestic policies from the beginning, so we placed the TopIPFS data center in Silicon Valley, USA, completely avoiding policy risks. There are actually precedents for this, such as the closure of all domestic exchanges on September 4; the year before last, large exchanges like OKEx suddenly stopped withdrawing coins for more than 40 days due to regulatory reasons, which brought panic to the entire currency circle.

If regulators suddenly take action against Filecoin mining, the computer rooms in China are likely to be forced to cut off power and network. After the mining machine is disconnected from the network for 24 hours, the penalty mechanism of the Filecoin network will start to be activated, punishing a portion of the pledged coins every day, and all the pledged coins will be cleared by the system after 14 days. Even if the machine can be restarted after 14 days, the computing power needs to be packaged from 0 and re-invested in pledged coins. According to domestic policies, once the network and power are disconnected, it is impossible to recover within 14 days. This means that the mining farm is basically bankrupt.

Another major reason why TopIPFS chose to place its data center in Silicon Valley is that in the long run, Silicon Valley's demand for data retrieval and storage is far greater than any other region in the world, and it has great potential in the future. In addition, the 5A-level IDC data center, 99.99% SLA, and dual-circuit uninterruptible power system also guarantee the stability of the TopIPFS data center to the greatest extent.

The higher the star rating of an IDC (Internet Data Center) computer room, the higher the stability of its corresponding network, security, fire protection and other environmental factors. 5A is the highest standard. SLA is also called service availability, which means the time during which the system can operate normally within a year. 99.99% means that there will be almost no failures.

Host: Simply put, TopIPFS places its data center in Silicon Valley, USA, which is very advantageous both in terms of policy and the stability of the data center.

05

TopIPFS super block series mining machines have achieved intelligent packaging

Host: In addition to the advantages of overseas data centers, what other advantages does TopIPFS have that other mining farms do not have?

Khan of the mining circle: I won’t talk about the high configuration of the mining machine, I will use the actual performance of TopIPFS to illustrate the huge advantages of TopIPFS. The block explosion rate of the super block series mining machine we currently launched is quite amazing, and the 30-day luck value has been maintained at more than 110% for a long time. Compared with the luck value of about 98% of other manufacturers, it is equivalent to earning more than 10% more income for users.

The concept of luck value in Filecoin mining, in addition to the element of luck, also partially reflects the strength of the miner's software and hardware. Nodes that want to improve the efficiency of block production need a low-latency network, a responsive storage system, and a zero-knowledge proof computing system that can quickly calculate Wining PoSt.

Secondly, the TopIPFS super block series miners have realized intelligent packaging, using 64G packaging to reduce packaging costs by 50%! At the same time, the TopIPFS super block series miners can also intelligently switch between 64G sector packaging and 32G sector packaging according to packaging cost and speed to ensure the maximum benefits for miners.

Host: Faced with the uncertainty of domestic policies, more and more miners will choose overseas mines in the future. What preparations will TopIPFS make for this trend?

Khan of the Mining Circle: We welcome miners to choose our TopIPFS mining machines. In addition to the advantage of no policy risks in overseas data centers, we are highly competitive in terms of mining efficiency and service fees.

In addition, in order to meet the mining needs of the majority of miners, we are constantly developing new mining projects, such as the Chia miner, Swarm miner, PHA miner and ICP miner that we are about to launch. These are currently popular projects, especially the Swarm miner, PHA miner and ICP miner can catch up with the bonus period of the first mine, and the income will be very considerable.

In order to allow miners to lock in the first mine in advance and obtain more benefits, we have specially launched a special discount promotion. That is to say, you can enjoy exclusive discounts by booking our Chia miner, Swarm miner, PHA miner or ICP miner now, and you can apply for a refund of the advance payment at any time before the delivery of the miner.

06

TopIPFS helps miners go overseas

Host: What kind of help can TopIPFS provide to miners or mining farms that want to go overseas?

Khan of the Mining Circle: For miners, as I said just now, they can directly purchase or pre-order our mining machines, which is equivalent to helping miners achieve their goal of going overseas.

For mining farms, we can provide resources related to going overseas, including machine procurement, computer room docking and other services. We also recommend that domestic institutions holding coins take action as soon as possible. The best way out is to deploy overseas. Now all major mining farms are waiting for the shoe to land, but the policy is already very clear, and there is actually no chance to wait and see.

Host: What plans will there be for TopIPFS mining in the future?

Khan of the Mining Circle: On the one hand, we will continue to optimize Filecoin mining software and hardware equipment, improve mining efficiency, and provide Filecoin mining services to more miners; on the other hand, we will develop more popular mining projects and provide mining equipment as soon as possible so that users can enjoy the first mining benefits of popular projects in a timely manner.

In addition, we will also build a mining platform that connects computing power and miners, lowering the threshold for miners to participate in mining and allowing everyone to truly participate in mining.

Host: Thank you for the wonderful sharing!