On July 19, 2020, the 1475 team was invited to attend the "Top of the New Wave" Digital Financial Mining Shanghai Conference, which was guided by the People's Government of Jiading District, Shanghai, and hosted by Shanghai Blue Sky Economic City and Koala Finance.

The summit focused on the development and application of distributed storage and blockchain technology innovation. As an IPFS ecosystem builder and Filecoin leader, 1475 was invited to attend the conference as the chief strategic partner. Shawn, founder of 1475IPFSFund, and Flora, COO of 1475, attended the event.

During the morning summit, Shawn, founder of 1475IPFSFund, participated in the roundtable discussion on "IPFS or POW".

This roundtable meeting brought together leading institutions in the Filecoin track as well as leaders in the traditional mining field. The collision of ideas and opinions between the two produced profound insights.

Shawn, founder of 1475IPFS Fund, raised questions at this roundtable and gave profound answers:

Filecoin was launched in 2017. Since its development, we have been considering a question: what is its value? What problem does it solve? In fact, it solves the biggest pain point I face when investing in the Internet: data problem.

Filecoin may solve the storage, sharing, and ownership of data, which involves all data issues. If the data problem is not solved, whether it is the generalized oracle of blockchain or the big data of Internet artificial intelligence, the two tracks and two industries cannot really move forward. Therefore, it has a special industry status and strategic position, which is also the reason why its investment enthusiasm has been increasing.

Although there has been a delay in reward testing, there is actually a confirmed time now. As for the issue of forks, the entire industry is actually looking at the official economic model, which is not good for Chinese miners.

First of all, we have to make sure that the voice of forking is not groundless, but the real core problem lies in the economic model, and the interests of all parties must be considered comprehensively. However, if the economic model is not designed well, it would be a pity if such a great consensus and resources from all parties are not done well.

Fortunately, blockchain is decentralized and open source. Chinese miners have invested so much money, manpower and resources in it. This matter cannot be stopped. There is always a way to solve it. There is no need to be so pessimistic.

From the perspective of investors, we must consider the benefits and strategic layout. Based on these two points, it is inevitable to choose Filecoin. In the past two years, I have seen too many blockchain projects, but basically did not invest in them. I chose the Filecoin track because of the data problem. If there is no place for data, many things cannot be carried out. This is why blockchain has not been properly applied in recent years. Without data, data processing is naturally impossible to land, so before the construction of upper-level finance, it is key to ensure basic data storage.

After the roundtable, Flora, COO of 1475, blockchain industry expert, and with more than three years of experience in blockchain project venture capital, delivered a keynote speech titled "Filecoin Soars to the Sky after Three Years of Sharpening the Sword" :

Today, whether it is POW mining or POST mining, everyone is either a participant or an investor preparing to participate. My sharing today can give you some reference value and suggestions when investing, including mining machines. I also hope to share more practical information with you.

Before I start sharing my topic today, let me briefly introduce 1475. 1475 was established in May 2018. In the past two years, we have only done one thing, which is to study how to improve our mining efficiency in the process of Filecoin mining.

But before that, everyone should have a deep understanding of IPFS. Everyone says that IPFS is the infrastructure of Web3.0 and a protocol that subverts HTTP. But what exactly is IPFS? Here is an example. Suppose I have a friend named Xiao Ming. In the HTTP world, if we want to visit him, I must know Xiao Ming's address, China, Shanghai, a certain street, a certain community, and even the house number, so that we can visit him. This is called IP address-based addressing. What if Xiao Ming moves? Then we will encounter the situation that we often encounter when visiting web pages, 404, sorry, the web page has been lost.

What is the situation in the IPFS world? As long as I know Xiao Ming, no matter if he is at home today or not, as long as I know this person, I can find him anywhere in the world and visit him. This is content-based addressing.

So the characteristics of IPFS are:

1. Faster: The existing addressing method is like the arteries and veins of the human body, but the addressing method in the IPFS protocol is the same as the capillary network of the human body.

2. Cheaper: IPFS and Filecoin both utilize some idle resources, such as idle storage space and idle bandwidth. In fact, we are saving resources for the entire society.

3. Safer: Under the IPFS protocol, all files are broken up into file fragments and randomly stored on random nodes. This way, it is more decentralized, reduces centralized attacks, and is therefore safer.

4. More open: As a blockchain project, all codes are completely open and transparent, so it is safer.

So what is the Filecoin project, the incentive layer of IPFS, like? Why is it so popular?

1. Born with a silver spoon in their mouth : Their core development team is composed of top students from Stanford University, and the project was incubated by the world's top YC incubator. Their early investors include Sequoia Capital, Stanford University Foundation, Gemini Brothers Fund, etc. In 2017, they created a miracle in private equity that year, raising 257 million in a few hours.

2. Powerful technology : Filecoin is a completely open source project, and all codes are open source. Its popularity on Github is second only to Bitcoin and Ethereum. It is now cooperating with encryption teams. For example, when they wanted to overcome the VDF algorithm, they found the Ethereum development team. This is the technical status.

3. Application landing : The Filecoin project is naturally equipped with a large number of applications waiting for it to go online. Hundreds of applications have been developed based on the IPFS protocol, including Google Chrome, which has built-in IPFS plug-ins, and the World Wide Web, which also uses IPFS to store data. When the Filecoin project goes online, applications developed based on IPFS will be seamlessly migrated to the Filecoin network. There are naturally a large number of applications waiting for the star Filecoin to go online, so there is no need to worry about application-level issues.

4. Consensus of Filecoin : More than 90% of the projects related to digital currency have very few commercial applications that can be used by everyone on a large scale. The value of the project comes from everyone's consensus. According to the head media survey, there are more than 200 companies in the world engaged in the sale of Filecoin mining machines or computing power. The total sales in a year and a half exceeded 10 billion yuan, covering a population of about 5 million people, either miners or participating in private placements. In the entire digital currency industry, apart from Bitcoin and Ethereum, only Filecoin can reach this level.

Why is the Filecoin project suitable for mining?

1. It is a miner-friendly project, and 70% of the tokens must be mined by miners.

2. The current Filecoin 6-month futures price on a certain head exchange is around RMB 130 because the overall market is in a relatively volatile market. This price can be used as a reference for the real-time currency price of the Filecoin project after it goes online. It takes the main network project as the starting point and the price to be paid in six months.

So back to 1475. We have only done one thing in two and a half years, which is to study how to improve our mining efficiency under the current situation where hardware equipment is similar. In other words, we optimize the algorithm and improve mining efficiency, so we have made two optimizations:

The first level of optimization: reducing the overall workload, which means that if I want to achieve a result of 5, under the official open source algorithm, I may need 1+1+1+1+1 to get it, and after 1475 optimization it will be 1×5.

The second optimization: increasing the speed, refers to the improvement of efficiency after optimizing the algorithm. For example, if our goal is to go from Shanghai to Beijing, we can optimize the way from walking to taking a plane.

The key to achieving these two optimizations is the result of our algorithm and technical colleagues working 996 and 007 day and night to optimize. And the 1475 servers are responsible for these two optimizations!

Friends who are familiar with the distributed storage track should know that we are the only company in the entire vertical industry that uses numbers as our brand name. In fact, this originated from December 11, 2019, when we were in the first phase of the test network. Our miner number at that time was T01475. We became famous in this battle, and we continued to use the number 1475.

When the second phase of the test network was launched on May 15 this year, we still used the 1475 brand. At that time, our node number was T01102. During this test, we basically achieved a high input-output ratio, and the total amount of blocks and the block production rate in the entire network were also stable in the first position.

In addition to powerful technology, we have proposed a core parameter for investors: "effective computing power per 10,000 yuan per hour." This concept is also the first concept proposed by 1475 in the industry, and it emphasizes the input-output ratio.

For end investors, the most important thing is how much effective computing power I can get per hour for every 10,000 yuan I invest. This is the core indicator that everyone cares about. In the end, it was proposed by us and then written into the official, the sixth of the six major principles of Juan’s team.

The reason for proposing this core parameter is due to two misunderstandings in the market.

1. The cheaper the price of a single T, the more cost-effective it is. Here is an example: For example, I bought two buildings, one in the inner ring riverside, and one outside the intersection ring. The price in the intersection ring is cheaper, but it is useless, because my income is to rent out these 100 rooms one by one. We think that the house around the riverside can rent out ten rooms a day, but the intersection ring can only rent out one room a day. The mining machine of this riverside may be 500,000, and the mining machine of the intersection ring may be 250,000. It seems that the price is twice as high, but in fact its income is more than twice as high. From the perspective of investors, your input-output is better than the more expensive one. This is a misunderstanding. It is not that the cheaper the price of a single T, the more cost-effective you are.

2. The larger the capacity, the more cost-effective. Now, no matter whether the mining machine we buy is 100T or 200T, what we actually buy is the basin below, but there is no water in the basin. We regard the 100T mining machine as a small basin, and the 200T mining machine as a large basin. What is really related to your income is the flow rate of the water. What can really bring effective computing power is actually the water flowing into the basin, not the basin itself. This is the second misunderstanding. The larger the hard disk capacity, the higher the computing power.

The core advantage of 1475 lies in a set of software algorithms for mining. Only with leading technology can the input-output ratio reach the leading level in the industry.

Here I would like to introduce our Qiandao Lake computer room. Our computer room is located in Qiandao Lake, Hangzhou. It is in the same computer room as Alibaba's cloud data center and is a T4-level computer room. The core advantage of the computer room is that it uses Qiandao Lake groundwater to circulate water cooling for the machines. Our cabinets are 58U4-A high-density cabinets, and normal cabinets are 47U20-A.

Each server of 1475 will have four major codes: machine number, contract number, machine model , and IP address . What we are doing now is the first in the entire industry. Each of our machines will be delivered on site to all customers who purchase mining machines, with clear and transparent property rights, and no overselling, overselling, or false selling.

In addition to mining products, the second product we use to empower the ecosystem is our 1475 mining pool. Filecoin does not actually support distributed mining pools, but we have optimized the underlying code of Filecoin to achieve distributed mining pools. No matter whether your mining machine is located in the Middle East, Inner Mongolia, or Sichuan, as long as you connect to the mining pool, everyone can mine together. In addition to the 1475 self-mining mining machines, there are more than 5,000 mining machines in service, and now there are more than 5,000 AMD mining machines that can mine efficiently.

The key to the technical empowerment of the mining pool is that if your mining machine does not have a GPU, by connecting to the 1475 mining pool, we can achieve efficient mining from being unable to mine. The second is to improve mining efficiency, and the third is zero-knowledge proof outsourcing services.

Thank you for inviting 1475 to participate in this conference, and discuss the innovative development and application of distributed storage and blockchain technology with the top experts in the Filecoin industry.

Filecoin's reward test is coming soon. Distributed storage will surely empower the real economy and promote industrial development, and the second half driven by digital technology is about to begin.