As Miners Leave Bitcoin in Droves, Space Allocation Dedicated to Filecoin and Chia Surges – 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. SHA256 hashrate for Bitcoin (BTC) Network has slumped in the past few weeks and the drop in hashrate has resulted in the network’s mining difficulty dropping almost 28% over the past weekend. Interestingly, this was the greatest decline in mining difficulty of the era BTC has never experienced it and in two weeks it can get even bigger.
Loud at the time of going to press coinwarz.com‘s hashrate graph set for a month-long interval, BTCThe hash rate of 87,660,572,446,369,430,000 hashes per second, or 87 exahashes per second (EH / s). The decrease in mining difficulty has made mining easier and more profitable BTC but alternative crypto assets using 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 achieve around $ 42 per day with 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 loud filfox.info was 600 pebibytes (PiB) of effective memory. 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. he network exceeded a milestone 1 EiB on November 24, 2020. The network exceeded 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.
The Chia crypto asset network has also seen the space allotted to the Chia network grow exponentially, and it skyrocketed after the crackdown in Sichuan significantly higher than usual. The Chia network stats show 30,505 PiB of allocated space for the chain on July 5th. It was just 26,718 PiB on June 22nd, showing that it’s up 14.17% since the start of the year Mining raid in Sichuan 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,
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