A large number of miners are leaving Bitcoin while the allocation of dedicated storage space for Filecoin and Chia increases

While large amounts of hashrate no longer dedicate resources to the Bitcoin network, alternative mining ecosystems are flourishing with an influx of new participants. The Chinese ASIC exodus resulted in a massive increase in the demand for access to storage performance in Chia and Filecoin Proof-of-Storage networks. Both networks have seen increases in space allocation since the Bitcoin mining crackdown in China.

The alternative consensus algorithm has the advantage of being reduced hashrate SHA256

A lot has happened in the crypto mining space lately as the industry has seen major changes since the Bitcoin mining crackdown began in many Chinese provinces. The Bitcoin network-specific SHA256 hashrate has plummeted in the past few weeks, and the drop in hashrate has resulted in the network’s mining difficulties dropping nearly 28% over the weekend. Interestingly, this is the biggest drop in mining difficulties BTC has ever made, and it could drop even further in two weeks, Bitcoin Magazine reported.

At the time of writing, BTC’s hashrate is 91.98 exahash per second (EH / s) according to coinwarz.com’s hashrate graph, which was built over a period of a month. The downward adjusted mining difficulty makes BTC mining easier and more profitable, but altcoins that use different consensus algorithms are much more profitable. The most profitable consensus algorithm today is Blake256R14, which is used for mining Decred (DCR).

The most profitable mining coins today use consensus algorithms like Ethash and Blake256R14.

A mining rig running at more than 52 terahashes per second (TH / s) with an output of 2,200 watts and a power consumption of $ 0.12 per kilowatt hour (kWh) can generate profits of up to $ 116 per day 5 / 7. A device that mines the Ethash algorithm and coins like ETH, ETC, CLO, PIRL, UBQ will get around $ 42 per day with the current tariff, the same power consumption of 750 megahash per second (MH / s) and 1,350 Watts of power.

Chia Network and Filecoin benefit from the ASIC migration

These specific consensus algorithms have increased since the SHA256 exodus, but compared to pre-Chinese times, these networks also lost significant hashes during the transition. On the other hand, the two notable crypto networks mentioned above have seen the opposite effect as the allocation of dedicated storage space for them increases exponentially. In mid-October, Filecoin miners went on strike due to disagreements among many members of the Filecoin mining community.

Source: filfox.info

At that time the “network storage capacity” of Filecoin was according to filfox.info 600 pebibytes (PiB) of effective storage. When the first warnings of mining shutdowns in China from Inner Mongolia surfaced and went viral in March, the effective storage rate of Filecoin soared. The effective storage ratio has increased over time and is now 7,116 Exbibytes (EiB). On November 24th, 2020 the network passed the 1-EIB mark, most of the storage efficiency gains will then come from the 2nd quarter of 2021.

The storage space allocated to Chia is 30,770 PiB on 06/07/2021 | Source: Chia explorer

Chia Network has also seen the space allotted to the network grow exponentially, increasing well above normal after cracking down on the Sichuan crackdown. According to the Chia network statistics, on 6.7. 30,770 PiB memory exclusively allocated to the chain. Meanwhile, it was just 26,718 PiB on June 22, an increase of more than 14% since the Sichuan mining began this week. The Chinese journalist Wu Blockchain has tweets on the demand for chia and filecoin mining on June 20th and since then the space allocated to the two networks has increased tremendously.

“The computing power of Chia and Filecoin in China is not affected. The Chinese government mainly controls the energy industry to prevent Bitcoin mining, but Chia and Filecoin use less electricity. Their computing power continues to increase and some Bitcoin miners may migrate to these two networks. “

Storage capacity trend and 30-day baseline | Source: Wu Blockchain

Minh Anh

According to News Bitcoin

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