As miners leave Bitcoin in droves, the allocation of filecoin and chia space increases – Bitcoin News
While a large amount of hashrate has stopped dedicating resources to the Bitcoin network, a large number of alternative mining ecosystems are growing with new participants. China’s ASIC exodus has sparked a significant surge in demand for access to storage performance in both Filecoin and Chia’s proof-of-storage networks. Both networks have seen significant increases in space allocation since the Bitcoin mining crackdown in China.
Alternative consensus algorithms benefit from the SHA256 hashrate drop
A lot has happened in the cryptocurrency mining space lately as the industry has seen massive changes since the Bitcoin mining crackdown began in various Chinese provinces. The SHA256 hashrate dedicated to the Bitcoin (BTC) network has plummeted in the past few weeks, and the drop in hashrate has caused the network’s mining difficulties to drop by almost 28% over the past weekend. Interestingly, this was the biggest drop in mining difficulties in the era BTC has ever seen, and it could be even bigger in two weeks.
At the time of going to press, BTC’s hashrate is 87,660,572,446,369,430,000 hashes per second, or 87 exahash per second (EH / s), according to coinwarz.com’s hashrate chart for a month-long interval. The decrease in mining difficulty made it easier and more profitable to mine BTC, but alternative crypto assets that use different consensus algorithms were far more profitable. The currently most profitable consensus algorithm is Blake256R14, which can mine the decred (DCR) of crypto assets.
A machine with more than 52 terahash per second (TH / s) – and with a power consumption of 0.12 US dollars per kilowatt hour (kWh) draws 2,200 watts from the wall – can generate profits of up to 116 US dollars with DCR exchange. Dollars per day prices achieve on July 5th. A machine that can mine the Ethash algorithm and coins like ETH, ETC, CLO, PIRL, and UBQ can make around $ 42 per day at today’s crypto exchange rates, the same power consumption at 750 megahash per second (MH / s) and 1,350 watts of power.
Chia and Filecoin networks benefit from the ASIC exodus
These specific consensus algorithms have increased since the SHA256 exodus, but compared to pre-China crackdown, these networks lost a significant amount of hash even during the move. However, two notable crypto networks saw the opposite effect, as the space allocations for the Chia network and the Filecoin network have grown exponentially. In mid-October, Bitcoin.com News reported on the Filecoin miners’ strike, which resulted in a stalemate between members of the Filecoin mining community.
At that time, Filecoin’s “Network Storage Power” was, according to filfox.info, 600 pebibytes (PiB) of effective storage. When the first warnings of miners crackdown in China came from Inner Mongolia and went viral in March, the effective storage rate of Filecoin soared. The effective storage rate climbed higher and higher from week to week, as it is 7,087 exbibytes (EiB) today. The network passed a milestone of 1 EiB on November 24, 2020. The network passed a milestone of 1 EiB on November 24, 2020, then a large part of the effective storage structure came from the 2nd quarter of 2021.
In the case of the Chia crypto asset network, too, the space allocated to the Chia network has grown exponentially and, after the crackdown in Sichuan, is considerably higher than usual. The Chia network stats show 30,505 PiB of memory allocated to the chain on July 5th. It was just 26,718 PiB on June 22, showing it has increased 14.17% since the Sichuan mining raid began this week. The Chinese journalist Colin ‘Wu’ blockchain tweeted on the demand that Chia and Filecoin mining saw on June 20th, and since then the space allocated to the two networks has grown significantly.
“The computing power of Chia and Filecoin in China was not affected,” the regional reporter stated on that day. “[The] The Chinese government mainly controls the electricity sector to combat bitcoin mining, but they use less electricity. Their computing power continues to increase and some bitcoin miners may switch to them, ”he added.
What do you think of the other consensus algorithms besides Bitcoins SHA256 that are seeing more demand these days? What do you think of the exponential increase in the space allocated to the networks of Chia and Filecoin? Let us know what you think in the comments section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons, filfox.info/de, chiaexplorer.com/charts/netspace,
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
source https://bidsfor.me/as-miners-leave-bitcoin-in-droves-the-allocation-of-filecoin-and-chia-space-increases-bitcoin-news/
Comments
Post a Comment