In 2023, a phenomenon-level dark horse, Kaspa, emerged on the PoW track, causing a sensation in the cryptocurrency field. Since the launch of the Kaspa mainnet, its token KAS has risen by over 100 times, leading to the market’s pursuit of many small and medium market value coins. On April 4th this year, BCH completed its halving, and the price of BCH has risen by 147.85% in the past three months, peaking at over $700. Similarly, with the approaching halving of Bitcoin, the price of BTC has surged by 55.28% in the past three months, skyrocketing from $40,000 to $67,000.
Furthermore, more and more mining coins are choosing to utilize GPUs in more meaningful ways, including integration with AI, computing power rental, and Train-to-Earn, etc. The PoW ecosystem is experiencing a rejuvenation, demonstrating renewed vitality and development.
Contents:
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Prospects of PoW Ecosystem Development
PoW + AI Trend
PoW + IoT Trend
Challenges Facing the PoW Ecosystem
Difficulty in Meeting Transaction Demand
Regulatory Pressure on Privacy PoW Coins
Security
Preferred Platform for Mining Coin Trading: The Unique Charm of CoinEx
Curated Quality Assets
Abundant Choices in Cryptocurrency Assets, Seizing Opportunities Ahead
Rich and Comprehensive Support for Cryptocurrency Assets
Prospects of PoW Ecosystem Development
In 2024, the PoW ecosystem is in a period of great potential, despite facing some challenges. With the upcoming Bitcoin halving event, it is expected to usher in a new wave of PoW ecosystem boom.
Firstly, as the cryptocurrency market continues to mature and develop, the PoW algorithm, as one of the earliest consensus mechanisms applied to cryptocurrencies like Bitcoin, will continue to play an important role. Despite the emergence of new consensus mechanisms such as PoS (Proof of Stake), PoW is widely regarded as a secure and reliable consensus algorithm due to its high degree of decentralization and resistance to attacks.
Secondly, with the continuous progress and innovation of blockchain technology, the PoW track has witnessed more innovations. By combining PoW with AI, IoT, and other efficient technologies, a series of new projects have emerged, allowing mining coins to have more practical applications.
Due to its parallel computing capabilities, GPUs are well-suited for running AI models such as deep learning. Miners can accelerate the training and inference process of AI models through GPUs. With the popularity of AI, the narrative of PoW+AI is more likely to attract attention from the cryptocurrency market, such as the Bittensor (TAO) and Clore.AI (CLORE) projects.
Bittensor (TAO) is a peer-to-peer intelligence marketplace that combines PoW and AI to create a decentralized marketplace for large-scale AI algorithm models, aiming to promote innovation and sharing of AI technology. Miners in the Bittensor network need to provide computing power to run AI models.
Clore.AI (CLORE) is an AI computing power leasing platform that has deployed nearly 6,000 Nvidia high-end GPUs for mining, rendering, AI training, etc. In its business model, individuals with Nvidia GPU computers can connect their GPUs to the network and receive CLORE token incentives.
PoW can provide decentralized, secure, and trustworthy infrastructure support for the Internet of Things (IoT) while achieving decentralized and fair incentive distribution, such as the Neurai project.
Neurai (XNA) is a PoW chain focusing on AI and IoT, aiming to leverage the power of artificial intelligence algorithms for efficient data analysis, predictive modeling, and decision-making. It also solves the limitations and lack of transparency in distribution through PoW. It can connect blockchain assets with IoT devices, enabling more extensive application scenarios.
Whether it is the combination of PoW with AI or IoT, they both play an important role in improving the speed and efficiency of decentralized networks. By introducing new algorithms or technologies, PoW allows PoW mining coins to have longer and more sustainable development potential, opening up new possibilities for the development of the PoW track.
Challenges Facing the PoW Ecosystem
The proof-of-work (PoW) consensus mechanism of Bitcoin has created a new model, and countless PoW tokens have achieved a balance between computing power and value in the crypto world.
However, the PoW ecosystem still faces many challenges:
Compared to token projects, PoW projects face challenges in meeting user transaction demands. Due to the higher development threshold and technical complexity of PoW projects, as well as the incomplete ecosystem (such as the lack of mature decentralized exchanges (DEX) and insufficient support from centralized exchanges (CEX)), the liquidity of PoW coins is currently poor, making it difficult to meet user transaction demands. Transactions are extremely inconvenient, and OTC transactions carry higher risks.
Last year, some incidents in the industry further highlighted these problems. For example, the closure of the small mining exchange Txbit and the exposure of issues such as SafeTrade’s alleged rug pull have caused considerable troubles for mining coin investors. These events have shown that PoW projects have weaknesses in the field of transactions and require further improvement and development. Users can consider choosing CoinEx, a well-established professional mining coin exchange, to improve their trading experience.
In recent years, with the strengthening of regulatory supervision in the cryptocurrency field by governments around the world, privacy-oriented PoW coins such as Monero (XMR) are facing increasing regulatory pressure. These cryptocurrencies support anonymous transactions, making it difficult for regulatory agencies to track the transactions and posing risks of money laundering and illegal financing. As a result, some countries and regions have adopted high-pressure regulatory measures against privacy coins, prohibiting exchanges from trading them. Some exchanges have also delisted privacy-oriented PoW coins to comply with regulatory requirements. Overall, privacy PoW coins are facing increasing regulatory pressure, and their future prospects still need to be observed.
Currently, small mining projects on the market have relatively low total computing power and are more vulnerable to 51% attacks and other attack behaviors. The existing computing power rental market allows attackers to temporarily rent enough computing power to launch attacks. Attackers only need to control more than 51% of the computing power to execute a 51% attack, including double-spending and blocking transaction confirmations. The specific costs can be referred to the 51% Attack Cost website.
Preferred Platform for Mining Coin Trading: The Unique Charm of CoinEx
Currently, CoinEx is one of the most comprehensive mining coin exchanges in the market.
As a secure, professional, and reliable cryptocurrency trading platform, CoinEx is committed to supporting promising and high-quality cryptocurrencies, offering a wide range of PoW coin trading pairs and currency market information to meet diverse user needs and contribute to the development of the PoW ecosystem.
The reason why CoinEx has become a platform with a more comprehensive range of mining coins in the market lies in its unique listing strategy. CoinEx’s listing team has outlined their strategy: “CoinEx does not have a special preference for projects that support specific ecosystems when screening projects, but is more inclined to mine high-potential projects at a faster speed to provide CoinEx users with comprehensive asset support.” Their unique “good, fast, and comprehensive” listing strategy includes the following three aspects:
Before listing, CoinEx conducts professional and comprehensive evaluations of cryptocurrency projects from multiple dimensions, including technology, community, token economy, etc., in order to explore cryptocurrencies with high potential.
CoinEx was one of the earlier platforms to support KAS trading. It launched KAS in November 2022. Similar cases include the listing of FLUX in May 2021 and XNA in August 2023. Since its establishment, CoinEx has always maintained a keen observation of the PoW ecosystem, continuously and rapidly mining potential projects, and providing comprehensive technical development support based on its excellent technical capabilities to timely support new PoW projects.
Global cryptocurrency trading platform CoinEx has supported over 900 high-quality assets and strongly supports the development of the PoW ecosystem. The platform has listed hundreds of PoW coins, including PoW projects with various consensus mechanisms. It tracks market trends and price changes in real-time, providing users with comprehensive currency market information to facilitate their grasp of the market.
Therefore, CoinEx exchange is renowned for its excellent listing strategy, including the rapid launch of promising projects and comprehensive asset support for users, making it highly praised. For more PoW coin trading, please visit CoinEx.
