(MENAFN- Hmedium.com) Following the shortage and surging price of chips and GPUs resulted from overheated mining of Bitcoin and Ethereum, hard drives have also been sold out of stock recently. Mechanical hard drives and solid-state drives were looted on all e-commerce platforms, and large investors even started hoarding up in large amount. Its popularity is not second to that of Filecoin at its peak.
The gale starts with a breeze from the top of a layer of green grass –big trends originated from the imperceptible place. Marketsand Markets predicts that the POC market will break $100 billion by 2024. It's now still in the fermenting stage, just as it was before the outbreak of DeFi in 2019, awaiting to greet its real highlight. This is a perfect timing to dig in and lay out the emerging POC project besides Filecoin.
POC is the “key track” of 2021
POC（Proof of Capacity）is a consensus mechanism that allows for mining devices to mine using spare hard drive space. Compared with POW, the traditional mining mechanism of cryptocurrency wastes less energy, and has a higher degree of decentralization and safety. Thus it is called “green mining”.
While Bitcoin and Ethereum consume a large amount of electricity and need special equipment (ASIC or GPU) to mine, POC only needs sufficient hard drive space on spare devices to mine and make profits.
In the rise of storage mining in the POC track, Pick Network, a professional provider focusing on decentralized cloud service, deserves our particular attention not only because it caters to the surging demand of distributed storage of Web 3.0, but also because it uses unique mining consensus and economic model innovation.
Pick Network：a brand-new distributed cloud ecology besides Filecoin
Little known is that IPFS≠Filecoin. IPFS is, in essence, an open-source decentralized network protocol that could be employed by any project. While Pick Network is a brand-new decentralized distributed storage system launched by a Canadian technical team dedicated in POC algorithm for many years.
With a consensus mechanism and tokenomics model completely different from that of Filecoin, Pick Network aims to stimulate miners to maintain stable network development in the long run, and enable more users to participate in the world of blockchain with easy method and low cost, providing cloud storage space and thus making money from it.
In Pick Network, the resource for mining is not the computing power but the disk space, for which purpose Pick employs “Proof of Space” instead of “Proof of Work” used in Bitcoin network.
Rather than consuming large amount of electricity and single-purpose ASIC hardware to verify transactions, Proof of Space uses spare disk space that already exists in the world. Therefore, disk space will be the main resource and proof of time to reach decentralized consensus and verify transactions.
Such mechanism of “Proof of Space” guarantees minimum energy consumption. As long as the equipment has storage space, anyone could mine using computer, cellphone, or enterprise-grade network without mining rigs or specially deployed GPU. Unlike ASIC’s specialized computing and GPU’s high energy consumption, Pick Network has no requirement on mining venue with a little limit on the environment. It is a “perfect combination of blockchain and products”.
Meanwhile, Pick could stimulate users to actively contribute bandwidth to the internet without facing the cheating problems that AISC, the POW mining specific chip, has to face. So all users could engage in internet maintenance, mine and earn money at home.
It means that, users (miners) could engage into the next internet revolution with minimum computing resource –an ultra low power of 25W (less than one percent of ASIC/GPU mining rigs. The power consumption of one POC hard drive mining rig is about 25W, and that of 100 rigs is just over 2KW).
In a word, Pick Network aims to build a distributed cloud ecosystem, lower the threshold of user engagement and improve the internet ecology with “proof of space”. As Pick is still at its early stage with a lot of potential, holding Pick Network and engaging in mining is undoubtedly one of the investments with the highest risk-return ratio. Well then, with the implementation of distributed storage application of Pick Network, is there any opportunity bonus at the early stage?
Unique dynamic output model and burning deflation mechanism
The classic model of periodical asset halving for traditional mining coins (for instance, Bitcoin’s asset halving period is four years, and that of Chia is three years) is not able to provide a real-time reflection on the supply and demand relationship of the market. If it keeps a fixed output at reduced coin price/hashrate, there might be a negative spiral effect that the price will tumble and the whole internet ecosystem will collapse.
The first dynamic output model in the industry
To address this problem, Pick Network initiates the first dynamic output model in the industry. When the hashrate of Pick Network reduces, the mining output will also drop exponentially. In other words, the storage mining output of Pick could make flexible adjustment according to real situations, just like a “cushion”.
When the internet storage hashrate reduces in extreme situations, the corresponding real-time output (accurate to the seconds of the block) will also drop exponentially automatically. That is, when the hashrate reduces, the Pick output will drop more significantly, as a way to relieve the pressure of the secondary market, and guarantee a strong underpin for the miners’ interest when the hashrate reduces.
The mining output will have a hard cap (the full production capacity of one block is 100 coins) when the internet storage keeps increasing. As a result, Pick will become scarcer with the establishment of the internet.
To sum up, the mining earnings will be “underpinned at the bottom and unlimited at the top”—each coin produced in the future will only be more expensive, rather than cheaper, than its current cost. Mining will enter into market economy from planned economy, and a real deflation model will be achieved.
“Dual earnings” possibilities under the staking mechanism
At the same time, each mining account that wants to engage into mining must first of all stake a number of coins corresponding to the hashrate. You have to stake 50 coins for 1T hashrate in order to start mining on the internet, and these staked coins will be burned when you exit mining. The current mining releasing policy of Pick Network is:
A new block generation cycle: 4 min;
Full capacity of 1 block: 100 coins
Full capacity per day: 36,000 coins
Full capacity per year: 13,140,000 coins
Full capacity every 10 years: 131,400,000 coins
Initial offering: 38,250,000 coins
It means that, as long as the daily storage space of Pick Network increases by more than 720T, the daily actual output will be less than the daily consumption, thus entering the deflation stage!
The increase of the scale of Pick Network’s ecological storage will stimulate the demands of Pick in the secondary market, reinforcing the factors caused the price rise of Pick and forming a synergistic “positive cycle”. Pick’s mining requires sufficient amount of staked coins, which will considerably boost demands of Pick in the secondary market, an equivalent of lockup.
In short, holding Pick and engaging in staked mining is an optimal choice of obtaining a “dual earnings” of boosting coin price (from demands) and earnings from staking. Such coin distribution and mining mechanism facilitates Pick holders to capture the ecological value, enabling them to directly share the bonus of the platform’s development.
Just like Filecoin that was initially launched last year, the POC track is still at its early stage, which undoubtedly a range of dividend opportunities are hidden to be explored.
With its unique dynamic output model and burning deflation mechanism, Pick Network has made innovations on its consensus and mechanism design for the benefit of the miners and the ecology, and links PICK closely with the development bonus of the distributed storage ecology, which is an eye opener and worthy of great attention.
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