Under the dual influence of the Bitcoin halving cycle and the epidemic, the digital mining market is facing a huge test. In 2020, the digital mining market begins to enter a new round of development cycle, which also faces many new opportunities. Where is the financialization of digital mining heading? How does the BTC mining power move during the low water season? How does the Ethereum mining ecology develop under the DeFi boom? What new mining opportunities will distributed storage bring?
Thanks to the opportunity of the 2020 China Retailers Conference in Xiamen, the focus of China’s blockchain industry in the second half of 2020 will be Xiamen: September 16 to September 18, under the guidance of the Fujian Provincial Blockchain Association, the Entropy Chain School, The “The 3rd China (Xiamen) International Blockchain + Business Future Development Summit”, sponsored by Xiamen Conference & Exhibition Sirford Exhibition Co., Ltd. and co-sponsored by ChainNews and Winkrypto, will be held as a parallel sub-forum of this conference.
This article is the core content record of the “World Mining Conference-Xiamen Station” branch of the “3rd China (Xiamen) International Blockchain + Business Future Development Summit” on September 18.
The full-day event includes 3 keynote speeches and 4 round table dialogues. In today’s agenda, Binyin founder Pan Zhibiao, Shenma Mining Machine Marketing Director Wang Xin, BTC.com COO Hu Jing, WYI Li Peicai, Star Alliance founder Fang Jun, Onchain Distribution Technology Beijing Branch General Manager Zhou Yan, MIX The group chairman Han Weiping and dozens of other guests conducted in-depth discussions and discussions on the current mining digital asset mining related topics.
The following is a collection of today’s exciting content, the content has been edited.
Keynote Speech | The Road to Financialization of Digital Mining
Speaker: Pan Zhibiao, Founder of Biyin
In a speech entitled “The Road to Financialization of Digital Mining”, Binyin founder Pan Zhibiao said that the essence of mining is to buy future bitcoins. Among them, the income comes from digital assets, the income is completely linked to the currency price, and the expenditure includes the one-time cost of the machine and the continuous expenditure of electricity.
Pan Zhibiao also said that the main risks of mining are: 1. The currency price plummets, and more coins are sold for electricity bills; 2. The difficulty of the entire network rises, and the production of coins decreases, but usually the difficulty changes slowly; 3. The rate of profit decline is far Super currency price decline rate. Therefore, locking up profit margins through financial means such as spot and derivative hedging is the number one goal of miners. It further pointed out that in order to solve the profit and demand problems of miners and other participants in the market, Biyin has launched several stock digital currency gain solutions, including Biyin’s bearish shark fin, Biyin’s asset management, Bidai, and DeFi. Current financial management, etc. Among them, currency loans are stable and non-explosive, and there is no need to cover positions. The currency loans with high pledge rate can obtain liquidity with low risk to deal with investment or operating expenses.
Keynote Speech: Before the mainnet after the competition: A key turning point in the Filecoin ecosystem
Speaker: Fang Jun, founder of Star Alliance
In a keynote speech with the theme of “After the competition before the mainnet: a key turning point in Filecoin ecology”, Interstellar Alliance founder Fang Jun said that compared to HTTP, IPFS has the following four advantages: 1. Upload and download fast; 2. Significantly Reduce storage costs; 3. Perpetual survival of human data; 4. Data security, anti-hacking, DDOS.
Fang Jun further stated that Filecoin is a distributed storage project that uses blockchain mining as an entry point. The track has a broad prospect. In five to ten years, companies with hundreds of billions or even trillions of dollars will be generated in this field. Fang Jun also said that Star Alliance is located in Hongqiao, Shanghai. The founding team is composed of technical and business backbones such as Microsoft, Alibaba, Huawei, KPMG, etc. It mainly includes five major businesses: mining machine business, mining pool wallet, AI chip, application and mine IDC. Mining machines, mining pools and supply chain related businesses are relatively mature.
Roundtable Discussion | How to migrate BTC mining power when wet water turns to dry water
Moderator: Colin Wu, the author of Blockchain Wu said
Guests:
Shenma Mining Machine Marketing Director Wang Xin, Co-founder of Bit Express Co-founder Zhang Ying Dia Yi Li Peicai Chief Strategy Officer of Yuner Technology Liang Chenchen, Wuhan Quan Yaocheng Founder of Wuhan Quan Yaocheng Hua Shao
BTC.com COO Hu Jing
Colin Wu: Distinguished guests, first analyze what are the characteristics of this year’s flood season, and what are the differences from previous years? The dry season is approaching. What are the forecasts for this year’s dry season, and what advices for investors and miners?
Wang Xin: The concept of high water periods is a well-known concept in China and even in the field of Chinese miners. What is the difference this year? You may have discovered that this year’s flood water is superimposed and halved, and the halving of rich water and superimposition means that the logic of mining has changed a lot. The original high water period is the best bullish period, and a lot of allocations will be made. . The return of costs can be achieved during the wet period, and the profit cycle can be entered after the rapid return of costs. This year, as the entire logic of mining changes, many opportunities can no longer be considered from the original perspective. At present, overseas resources and global resources have become a trend. In the future, the global layout will set sail from the wet season and develop from the dry season, bringing greater vitality to the development of the entire industry. He further stated that based on the current development, Shenma can help everyone from the current domestic resources to the world and overseas.
Zhang Ying: The current situation of Fengshui this year is superimposed on the halving of currency production capacity and the excess resources of Fengshui power supply manufacturers, which has led to a price war, the most obvious of which is the price war of Fengshui minerals. In the context of price wars, everyone’s expectation for mining was to recover the cost of abundant water, or no matter where the mining is located, it can be recovered for a few months, but this year it is not possible. In addition to compliance with regulations, the dry season is about the continuity of historical power supply and whether the future power supply capacity can truly be guaranteed to 365 times 24 hours of uninterrupted power. The uninterrupted power supply actually allows everyone to get the benefits. It is the benefits that are actually put in the pocket, not the cheap 1 cent to cut off the electricity for 5 days.
Li Peicai: One of the major changes in this year’s high water season is the new high water consumption in Sichuan. After the emergence of this project, the entire Fengshui site was completely divided into two categories, one is the electricity consumption of Fengshui, and the other is direct power supply. Judging from the current situation, direct power supply is very unstable this year. On the one hand, floods are more serious, and on the other hand, the policy of direct power supply is relatively more unstable. Li Peicai also said that there are several trends in the dry season this year: first, machines with more than 60 watts can only be turned off during the dry season; second, the production capacity of new machines this year is not high, and the cost of new machines remains high; third, in general terms New foreign miners are changing. Europe and the United States have a large share of new machines. At the same time, many large mines have been repaired. The mining industry has become a trend.
Liang Chenchen: When choosing your own suitable mining plant, you have to consider not only the electricity price, but also the compliance and guarantee of the data center. In the event of machine damage caused by natural disasters, force majeure or machine migration, whether the partner is reliable determines the customer’s financial protection. Liang Chenchen also said that the development of mining has passed the barbaric era, and we need to look at long-term value investment in this skeletal view. Blockchain technology and the mining industry can empower traditional data centers and help them to do a good job in data center operations. In the future, policies from the government supervision level will be tightened. As companies, they must consider whether they really conform to the general direction of the policy. At present, Yuner Technology has also established its own fund and strategically cooperates with Ouke Yunlian Group, with a target scale of 500 million.
Hu Jing: From the perspective of mining pools, the low water period will face a major migration of computing power. Mining pool customers will gradually relocate mining machines from places with abundant water such as Sichuan and Yunnan, and old machines like S9 will be permanently eliminated. . It is certain that the low water period will usher in part of the decline in computing power. The production capacity of mining machines is insufficient this year, and regions such as Xinjiang and Inner Mongolia will also carry out a series of compliance operations. If investors want to join the mining industry during the dry season, they must find suitable and reliable resources. Hu Jing further stated that if you want to quickly enter the mining circle, the mining pool, as a central link, can quickly connect upstream and downstream, which is a more appropriate choice.
Roundtable Discussion | This Year of Mining Finance: Reflection, Practice, Growth
Moderator: Crypto Tonight Producer & Moderator Yama
Guests:
FBG One consultant Zhao Qianjie coin printing wallet COO Xiong Qian
Blofin Co-CEO Jack
Kris, co-founder of Asymmetric Technology
Amber partner Tony
Yama: DeFi is different from traditional mining and liquid mining. Please Zhao Qianjie explain to us what is the difference between traditional mining and liquid mining?
Zhao Qianjie: Traditional mining first had a CPU, then evolved to a GPU, and then to AK. It is to have hardware equipment first, and use the hardware equipment to get the income inside. This model has lasted for a long time. A Bitcoin mining machine has no other purpose except power consumption calculations, so it has been criticized and wasted. But at the DeFi level, it is completely different. DeFi mining is a pure software behavior. Users do not need to consider equipment conditions, electricity prices, and only maintenance. Some recent projects have indeed benefited a lot, and they have indeed made money for miners, but the experience of participating in DeFi is not so smooth.
Yama: Biyin Wallet has launched the DeFi financial management function. I would like to ask Mr. Xiong Qian to tell us how miners participate in DeFi mining?
Xiong Qian: In a word, you can use Biyin Wallet to participate in DeFi mining. We provide a product that is very well understood. Through its own team of scientists and mathematicians, all expected benefits plus controllable costs have been calculated clearly, and then a simple and easy-to-understand current DeFi product is launched to the market. Now everyone is still unfamiliar with a lot of DeFi information, including computational mathematics. We provide you with a professional perspective. You can use our platform or other products.
Yama: The yield rate of DeFi products is very high. Now the annualized rate is more than 100%. High yields will have corresponding risks. I would like to ask a few guests how to prevent the risks faced by DeFi mining and prevent stepping on pits.
Jack: The first of DeFi is the risk of contract security; the second is the risk of liquidity, because the entire trading market is small, but the short-term price fluctuations are very large and the speculation is very high, so we pay great attention to liquidity risks. At present, these currencies still lack corresponding financial derivatives to correspond, which requires the attention of miners.
Kris: The risks mainly come from three levels. The first level is the code level. The code level is divided into two levels. One is the front-end code, mainly whether there are loopholes in the web page and the front-end. If there are loopholes, it may make it impossible to log in to the mining product page, even sometimes Will put our principal at risk. The second code level risk is the smart contract risk. There are many latitudes to consider. One of the more important latitudes is the authority of the owner of the smart contract. For example, the two previous projects that were relatively popular are due to smart The owner of the contract has too much authority, and it is possible to issue excessive tokens, which will expose the investor’s principal to risks. Therefore, we will dig some projects that have been audited by the community or even by authoritative audit institutions, and we must ensure that this The owner of the smart contract has limited permissions such as adding a time lock. The other is the risk of business logic and financial logic. At this level, you can refer to the more famous smart contract arbitrage attack recently. It is because there are loopholes in the business logic, and the arbitrage of the arbitrage caused huge losses. The third aspect suggests that friends participate in some mining with relatively low risk, that is, there is no principal and a single currency is mortgaged. If you want to participate in high risk, such as 50% token mining, you must calculate the free loss of the token, taking into account the relationship between the potential gain and the free loss of the principal caused by the large fluctuation of the currency price.
Tony: For those who are not particularly familiar with this field, it is recommended to participate in larger projects. These benefits are often not particularly high, but it is not high, it may be 30 or 40%. Generally speaking, we would think that if a DeFi project deposits more than 500 million US dollars, it is a relatively safe project, otherwise, it will not have so much funds to deposit in it.
Lighting Talk| Looking back at history, how many dividends will BTC mining have in the next cycle?
Speaker: Weminer Mining Partner Octopus
In a speech entitled “Looking back in history, how many dividends are there in the next cycle of BTC mining”, Weminer mining partner Octopus stated that Weminer’s research institute conducted a simulation of the entire mining dynamics based on all parameters and data, and the general model calculated The timing of mining is good now. It said that it invested 1 million yuan to buy S17 pro (spot), and under the premise of the whole network’s computing power of 120E, Fengshui Power estimated at 0.23 yuan/KWH, the output ratio of the five months after the currency price reached 20,000 US dollars was 88 %, the annual electricity is estimated at 0.32 yuan/KWH, and the output-to-input ratio in 17 months is 185%. The mining index skyrocketed in November 2013, and mining machines were hard to find. At that time, it was not recommended to enter the market. From the perspective of model regression, the current entry index is 16.28, indicating that the mining bubble is not very large. At this time, the investment in the next two years is a good time to enter the market.
The model’s return to the currency price side verifies the rationality of the model. When the currency price is high, the model is at a very low level, but when it reaches the bottom, the model returns to show a very high entry recommendation index. The city partners launched by the micro mining farm can get the best mining machine channel price and electricity fee (the annual electricity is 0.34), and it is easy to start mining.
Lighting Talk| Paiwang grid trading, do trading like “mining”
Speaker: Chen Yong, Founder & CEO of BitUniverse
In a speech titled “Painet Grid Trading, Trade Like “Mining””, Chen Yong, founder and CEO of BitUniverse, stated that Paiwang Grid Trading hopes to create an “anti-human” trading strategy. In the field of trading, blind obedience is the biggest natural enemy, but for individuals, blind obedience is the biggest characteristic of people. Good traders must have received a long time of training, even stepping on pits. Pai.com hopes to provide everyone with an inhumane trading environment through a good environment. Pai.com grid trading has three characteristics. The first is that it allows everyone to change from a one-time stud to passive and differentiated position management; the second is to reduce everyone’s dependence on timing; the third is It is the use of volatility to make profits.
Pai.com is not an exchange. Instead, it provides a series of trading tools to help everyone improve their trading skills. In this way, everyone can make continuous and stable money like mining when trading.
Round table discussion | Ethereum mining ecology under the DeFi boom
Moderator: BigONE COO Cheng Jun Guests:
Xiaodong Qiu, Business Leader of Spark Mine, CEO of Jinchan Mining Machine, New York Uncle Panda Mining Machine & Niubite COO Yang Xiao
MYKEY CEO George
Yin Xilong, FlintOS Commercial Manager
Qiu Xiaodong: Miners are of course very happy to see the current high gas fees, but after an overall analysis, this is actually not a very healthy situation. If ETH wants to develop well, it must be fully ecological, so the expansion of Ethereum is imminent. Ethereum is the security of the real network, the amount of funds, and the status of application development on the chain is very good. 2.0 is worth looking forward to.
Yang Xiao: There are two core ways to enter Ethereum mining. One is to buy a machine and find a trustee. Panda also launched a cost-effective machine this year, which can mine various small currencies. The second is that new players should look for a reliable platform, start with small funds and really feel the charm of mining, then increase funds for better actual investment.
Roundtable Discussion | New mining opportunities brought by distributed storage
Moderator: Blocklike CEO Xiaowan Guest:
Onchain Distribution Technology Beijing Branch General Manager Zhou Yan Interstellar Alliance Partner Steve
1475 Co-founder Andy
Encrypted Matrix CMO Fan Yifan, Chairman of Space-Time Cloud Technology Lai Chuhang
Steve, Head of Marketing, Crust
Zhou Yan: Blockchain and distributed storage have a lot of innate integration. Onchain also appreciates the vision and concept proposed by IPFS. We have always chosen this track to move forward. In the process, we also discovered that IPFS and Filecoin itself have internal Several questions. So later, in 2018, we decided to make a low-level distributed storage protocol by ourselves, and then began to invest in the development of the entire company. From the distributed storage track, it is a very good track, but our choice may not only Only IPFS. Onchain’s launch of the distributed file system PDFS will fully break through the technical difficulties that IPFS has failed to overcome, and create a distributed storage platform for 5G, IoT, AI, edge computing, and DCDN under the next-generation Internet. It further pointed out that the idea of jointly building communities and discussing business models and economic models advocated by PDFS is to ensure that the entire community can start from the same starting line, build the final community ecology in a completely fair environment, and conduct community governance together.
Steve: Star Alliance is an integrated service provider based on IPFS and a leading company in the industry. Our business scope includes mining machine production and sales, mining pool access, and software and hardware acceleration services, IDC mine operation and maintenance at home and abroad, and in-depth research in the chip field from FPGA to ASIC. Partners in the storage application field include Large cloud computing service providers such as Kingsoft Cloud, Qiniu, and Alibaba Cloud. In the previous Filecoin space race, the Star Alliance mainly operated four nodes, but only two were announced to the public. The total token rewards are quite high among several nodes, including the failure rate and the growth rate of computing power. The operation and maintenance capabilities are also relatively advantageous.
Keynote Speech | The Ideal of IPFS and the Reality of Filecoin
Speaker: Han Weiping, Chairman of MIX Group
In a speech entitled “The Ideal of IPFS and the Reality of Filecoin”, Han Weiping, chairman of MIX Group, said that the ideal of IPFS is to build a Web3.0 infrastructure, where users have content control rights, more durable files, and privacy protection. IPFS hopes to use idle storage capacity to provide public storage services to reduce costs. At present, the development of Filecoin is facing seven major problems: 1. File hash value calculation is not friendly to Intel storage instruction set; 2. The sealing process is complicated and consumes too much computing resources; 3. The low TPS limits the development of the number of network nodes; 4. The pre-mortgage is too high, which is good for investors and not good for miners; 5. The official data set restricts the use of the storage network, and the data security is not high; 6. Frequent major technical changes; 7. The blockchain economic model is unreasonable.
Han Weiping announced that in order to solve the Filecoin problem, Filecoin will be forked and FileCoinCash will be launched, which will be faithful to the ideals of IPFS and adopt a different solution from Filecoin. FileCoinCash will improve the Filecoin economic model, jointly develop and govern with the community, to fully democratically fight against dictatorship, increase Layer2, improve TPS, upgrade the SHA256 algorithm to SHA512, reduce the 11-layer through sealing calculation to 5 layers, and realize dynamic pre-collateralization Wait for all-round upgrades. At present, FileCoinCash has conducted extensive communication with the head participants of the community and formed a consensus. The testnet reward will be launched on September 19, 2020, and the whole community will be invited to initiate and govern together.
Inauguration Ceremony
In order to implement the World Mining Council’s vision of reshaping the beauty of computing power and creating the future of mining together, Winkrypto teamed up with leading mining companies and initiated the establishment of the World Mining Exchange. Members are voluntarily composed of executives from China and global mining leading companies, and are committed to jointly promoting digital mining And the development of the computing power industry. The purpose of World Mining Exchange is to promote the healthy development of digital mining, promote member exchanges and cooperation, resource sharing, and brand enhancement.
For this reason, the core organization of the World Mining Association was formally established to gather top mining resources, which is the meaning of the name of the World Mining Association.
After the continuous holding of the World Mining Conference Chengdu Station, the next deceased mining conference will open a nationwide Meetup to visit small and medium-sized mining cities across the country, which will not only bring BTC mining, but also new opportunities and new opportunities for ETH and other valuable mining coins. mode.
