Introduction to IPFS mining strategy

How to mine Filecoin

After Filecoin Protocol Labs announced that the project will be launched in Q2/Q3 2019, many IPFS followers began to leave me messages, wanting to know how to mine Filecoin.

As an IPFS enthusiast, I am willing to share IPFS with everyone, so I had to write an article about mining in advance. It has not been officially launched yet, so this article will not involve specific technical details and will try to introduce it in the simplest way possible.

First, let me briefly talk about IPFS and Filecoin again.

IPFS is a peer-to-peer distributed file system that aims to supplement or even replace the Hypertext Transfer Protocol (HTTP) that currently dominates the Internet. It connects all computing devices with the same file system.

The IPFS technology was launched three years ago. The introduction of Filecoin Token as its incentive layer is to better promote the development of this technology. Therefore, Filecoin is the mining system of IPFS. Both the IPFS protocol and the Filecoin project are developed and maintained by Protocol Labs.

FIL futures are now available for trading on gate.io. As of the time of writing, the FIL futures price is $5.6, which is approximately RMB 38. Compared with its private placement price of $0.75/FIL and public offering price of $1-5/FIL, both prices have doubled to varying degrees. (Private placement: $52 million; public offering: $205 million)

Key Points: How to mine?

Many friends are very concerned about this content. I will try to describe it briefly without involving too many technical details. For students who want to know the technical details in the future, I will slowly explain them in other articles. Today I just want to give you a general understanding.

The Filecoin system creates two mining markets

Filecoin Storage Market

Hard disk - yes, it is the size of the hard disk. In the data storage market, all you need to contribute is the hard disk storage space. The more hard disk space you have, the higher your mining ability will be. The proof of work used in the storage market is PoS (Power of Storage), which allocates FIL to everyone in proportion to the size of the data you store.

So everyone knows what to do: those who want to make their first fortune, reserve more disks for your mining machines.

Filecoin's Retrieval Market

Provide network bandwidth. If you have bandwidth resources, you can consider mining in this market. FIL will be allocated according to your bandwidth. The larger the network bandwidth, the better.

Of course, you can also participate in both markets at the same time. It all depends on you. After the Filecoin system is released, students who want to mine should act quickly and strive to mine the first pot of gold of FIL. Just like BTC, the earlier you get involved, the higher the profit.

Project development progress

According to the latest R&D roadmap released by Protocol Labs in August this year, no unsolvable problems (show stoppers) have been encountered so far. Development work is proceeding normally.

I am not an IPFS technician, and I don’t have the professional words to describe the beauty of IPFS, but I will follow IPFS with everlasting enthusiasm, because I am a blockchain enthusiast, and I will use my attitude to learn IPFS.

Note: This article only shares and reveals IPFS-related knowledge and does not constitute investment advice. Any investment gains or losses based on this article have nothing to do with the author.