Five things you must know to get ahead in the Filecoin mining race

By observing the mainstream Filecoin mining machines on the market and conducting in-depth research on the Filecoin mining mechanism, here are five observations about the Filecoin mining machine track:

1) If the Filecoin head mine disappears, the mining ROI (return on investment) before the critical point will become smooth. In the early mining of general blockchain projects, the block rewards are relatively generous and the competition is not sufficient, resulting in an astonishingly high mining RIO. The incentive mechanism of Filecoin is linked to the scale of network computing power, which leads to a relatively smooth ROI before the computing power reaches the critical point. This gives us some inspiration: before the main network is launched, we don’t have to rush to make a layout of the mining farm. After all, whether you join early or late, its ROI is similar.

2) Filecoin has a mortgage mechanism. We usually think that if you want to quit Filecoin, the sunk cost of mining is huge. However, this is not the case. When the storage capacity of your device is full, you can remove some of the equipment, such as the CPU and GPU. This shows that the equipment equivalent to about half of the cost can be replaced and circulated, while the remaining disks need to wait until the end of the service period before they can be circulated.

3) The operation and maintenance difficulty of Filecoin is much greater than that of mining in the POW mode. Filecoin mining relies on disks (while POW mining mostly relies on CPUs), and the failure rate of disks is higher than that of CPUs. Secondly, in order to ensure the stability of the service, Filecoin miners have higher requirements for the stability of the network and electricity than ordinary POW miners. At present, the packaging model of some mining machine manufacturers has advantages (in addition to selling mining machines, they also provide operation and maintenance and computer room construction services), while the hands-off model of some mining machine manufacturers does not have advantages (simply selling mining machines without providing operation and maintenance services). Of course, the sales model of Panquan is not included in the discussion.

4) In terms of supply chain, since all hardware is common accessories in the server industry, there should be no supply chain problems under normal circumstances. So where might the supply chain problems lie? When mining machine manufacturers purchase some adapter parts that are not needed by the server industry in special links, it will test the supply chain capabilities of the manufacturers. For example, AMD7 series 1TB memory is easy to buy, but 2TB memory is difficult to buy.

5) When evaluating the quality of a mining machine, people usually use the price-performance ratio as a reference standard, but this is actually a misunderstanding. Many people think that performance refers to the average hard disk size of the mining machine per 10,000 yuan, which is incorrect. In fact, the size of the mining machine's hard disk is not important. The core performance factor lies in the storage speed, that is, the speed of interacting with the blockchain network and completing the replication proof and time-space proof during the mining process. In addition, after completing the data storage, the block efficiency is also an indicator that needs to be considered. (Distributed Ledger))