Why is Filecoin mining complicated? Three reasons are indispensable

Filecoin Proof System

For any blockchain system, the consensus mechanism is its core, because the consensus mechanism is the key to maintaining the continuous operation of the entire system.

Without a reasonable consensus mechanism, it is impossible to attract miners to participate in system maintenance. Without attracting miners to participate in system maintenance, the system cannot operate in a long-term and healthy manner.

The same is true for Filecoin. Filecoin's consensus mechanism is more complex than that of general public blockchains because its consensus mechanism involves more proof systems and more complex calculations.

The core concept of Filecoin consensus and storage algorithm is "expected consensus + proof of replication + proof of space and time". Unlike Bitcoin, which competes for block generation through hash power, the core resource of the Filecoin network is storage capacity.

Among them, Filecoin's expected consensus (EC) determines how and who the network chooses to obtain block rewards. The more data a Filecoin miner effectively stores, the greater the possibility of being elected as a block node.

Proof of Replication and Proof of Spacetime are the core algorithms of Filecoin, which are now basically mature and stable. Proof of Replication is used to confirm that miners have successfully copied the data and encapsulated it in their own devices; Proof of Spacetime is used to verify that miners continue to store data safely as promised.
Filecoin Penalty Mechanism

1. Consensus Attack Penalty

When a node publishes two or more blocks in a block generation cycle and meets the penalty conditions defined by the expected consensus. (Strictly speaking, a node that is qualified to generate blocks can only generate one block)

When this happens, any other node can report it, and after the network verifies it, it will confiscate all the stakes of the node suspected of attacking the network and deduct all existing computing power, because the attack on the network is considered unacceptable. This is basically the most severe punishment.

2. Penalty for Errors in Proof of Spacetime

Late submission of space-time proof: Each node needs to submit proof within each proving period, otherwise it will be fined. The late submission here does not mean no submission, but submission time exceeds a proving period, but still submitted within a generation attack threshold (generation attack threshold, exceeding this time, it may not be possible to identify generation attacks).

In this case, the node should know that it has not submitted the proof within the specified time. At this time, it can still submit the proof of time and space (PoSt) as usual, but it must actively attach the late submission penalty. The calculation of the penalty is related to the length of the delay, and the node can calculate it by itself.

3. Failure to submit proof of space-time

If a node not only fails to submit a proof within a proof cycle, but its delay even exceeds the generation attack threshold, it is considered as not submitting a time-space proof.

In this case, any other node can report this situation, and the network will take severe punishment measures after checking that it is true. The current plan is to confiscate all pledged assets and clear the computing power.

This is very disadvantageous for some users whose network interruption time may be longer. A possible improvement is that the software may provide a certain tolerance in the future, allowing users to remedy within the scope of a VDF (Verifiable Delay Function) attack. But even so, those users who may be disconnected from the network for a long time will be powerless.

4. Penalty for breach of contract

If a node fails to store user data within the specified time according to the contract, for example, the user requires storage for half a year, but the node deletes the data after storing it for 3 months.

In this case, the user can immediately report to the network, attaching the contract signed at the beginning, and after the network confirms the truth (that is, the node no longer includes the sector where the data is located in its proof), the node will be punished. The penalty comes from the node's pledge commitment, and the user's unpaid fees will be refunded, and the node's corresponding storage pledge will be naturally confiscated.
Filecoin Cryptoeconomic Structure

Five major players build the entire economic ecosystem:

Clients store and retrieve data through applications. Storage and retrieval fees are paid using FIL.

Developers, who develop applications on top of the protocol, may receive FIL incentives.

Retrieval and storage services can deliver files to clients on demand or store inquiries for clients. The main usage scenarios of FIL.

Storage miners, who store files and help maintain and update the Filecoin blockchain. Potential holders of 70% of FIL.

Token holders build a Filecoin circulation pool by using Filecoin as a store of value and medium of exchange.

Judging from the official Filecoin economic model, it should be a structured economic model. Specific parameters will be added in the future to form a complete and executable economic model solution.

Among them, effective data storage is the key. Effective storage means providing miners with data storage credentials through replication proof, while also requiring time-space proof to ensure that the search party can have stable access within the agreed time. In short, this is a two-way control process.

Summarize

Filecoin's mining model design is the biggest innovation in the current consensus mechanism field. Different from the current POW, POS and DPOS, the penalty mechanism is unique. It uses the perfection of the system to ensure the security and stability of the data storage ecosystem.

In the encrypted world, Filecoin is a distributed network designed to store the most important information in human society. It has overcome numerous difficulties and has now reached a critical juncture before the launch of the mainnet. I believe that all current problems are being solved in the process of continuous progress until this vision is realized.

This means that Filecoin is a complex system both in terms of its underlying design and final participation. Considering the complexity of Filecoin’s design and the high expectations it carries, Filecoin officials’ caution is still necessary.

Source: Global BiMaWeng Blockchain Research Institute