On September 4th, Beijing time, Aleo's mainnet rehearsal was completed as scheduled, and the first genesis block was generated at 3:53 am on September 5th, with puzzle rewards of 126.8 and block rewards of 87.2. If the algorithm remains unchanged, these two rewards will be the initial rewards for the mainnet launch. The famous pigeon king of the privacy track is really going online this time.
At the same time, the computing power of the entire network has also grown by leaps and bounds. As of the day of this article on September 7, the computing power has exceeded the 100 billion mark. Next, I will divide it into three parts: Why did Aleo choose this time to launch the main network? Why is the computing power of the entire network so high? What are the reminders for ordinary investors?
Why did Aleo choose this time point for the mainnet launch?
Let me first say the conclusion. This is the best time in the near future. Many people have criticized Aleo for repeatedly delaying the mainnet launch, saying that it may not catch up with the bull market. Alex, the executive director of the foundation, has also repeatedly emphasized that the mainnet launch will not be affected by the external environment. Everyone thinks that the Aleo team seems to be unyielding, but is this really the case?
This statement is actually a cover-up. The previous delays in the mainnet were indeed due to technical issues such as algorithms, but after the beta testnet ended in mid-July, the mainnet has entered the countdown, which is also the reason why Alex said the mainnet would be launched on August 13. The further delay must also be considered in light of market conditions.
Looking back at the market in August, Bitcoin once fell below $50,000 in early August, and the fear and greed index of the crypto market hit a one-year low. In such an environment where everyone is in danger, who will support the price of the currency after the mainnet is launched? How can a large number of miners be attracted to maintain the network if the price of the currency breaks the issue price immediately after the launch? Therefore, delaying the launch is inevitable.
Why did we choose September 5? At the end of August, as the price of the currency rebounded, market sentiment eased somewhat. The Token 2049 meeting will be held on September 11, and the Federal Reserve’s interest rate decision will be held on September 18. This series of events can boost market confidence. This is the most appropriate time in the near future.
Why is the computing power of the entire network so high?
According to the Aleo123.io website, the total network hashrate had exceeded 10 billion before the mainnet rehearsal on September 4, and the puzzle reward data was also increasing in real time. This caused confusion for many partners. Why would everyone start testing at a loss when the mainnet hasn’t even been launched?
The first is that the mining pool is optimizing the hoe algorithm and conducting tests.
Second, those who have experienced filecoin mining should be able to guess that everyone is looking forward to the plot of test coins becoming real coins, so that they can get their money back directly before going online. This is not recommended for retail investors to gamble, after all, they have to bear the cost of electricity.
The third and most important reason is that the project team has reduced the difficulty of the algorithm. According to the current test network feedback, the algorithm is very different from before. The project team has not only reduced the difficulty of the algorithm, but also reduced the amount of algorithm calculation. This has greatly reduced the threshold for mining. At the same time, more companies will participate and provide optimization solutions. Therefore, not only has the test network computing power increased to 10 billion, but after the genesis block was generated on September 5, the computing power has increased to 90 billion, which is more than 90 times the previous incentive test network.
A reminder for ordinary investors
First, the competition for the first mine is fierce, and the profit expectations need to be lowered. Since the project party has reduced the difficulty of the algorithm, the number of people entering the market to share the cake has increased sharply, and the competition for the first mine will be fierce. In the long run, it is beneficial to the development of the project, because dark horse companies will continue to emerge, providing efficient hoe algorithms, and attracting more miners to join in maintaining network security. However, it is not very friendly to retail participants. If they cannot get a lower mining cost, they can only hope for the rise in the price of the currency. Once the price of the currency is not strong, the profit cannot cover the cost, and it will not last long and will soon exit the market, so the profit expectations must be lowered.
Second, for those who have not yet entered the market, do not be fomo, make a reasonable assessment of the current computing power growth and output income, and then choose the most cost-effective solution. At present, the computing power of the entire network has exceeded 100 billion, but the official has not yet announced the specific height at which the main network block reward will start to be truly effective, so some machines are still in a wait-and-see state. Once announced, it will be easy for the total network computing power to exceed 200 billion. If there is no lower mining cost and efficient mining plan, it is highly likely that you will not be able to make a profit if you rush in now.
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