Many friends who are not familiar with blockchain will equate blockchain with Bitcoin and think that the two are essentially the same. This view is obviously biased. The role and meaning of blockchain is more like the Internet, a collective term, and Bitcoin is the most successful and important APP among them.

But there is one thing we cannot deny: Bitcoin is where the blockchain began. Bitcoin's consensus mechanism, POW proof-of-work, has also created a new model. Countless POW tokens have used this as a benchmark to achieve computing power and value in the encryption world. So today, we will talk about POW tokens with you.

POW consensus mechanism, what is it worth? What are the core advantages?

The POW consensus mechanism, the full name of which is Proof of Work, is the proof of work established by Satoshi Nakamoto along with Bitcoin. Its emergence is mainly to solve the consensus problem to ensure the validity and reliability of data. POW will ask the node host to solve a complex mathematical calculation and publish the record on the network as evidence. If the solution successfully meets all expectations about the solution, the node can receive some token rewards and can be used by the network. recognized. It is worth mentioning that POW will require the attacker to first split the computing power of the network, because solving mathematical calculations requires a lot of time and computing power, and the computing power of the network becomes larger as the system is used, so such attacks are very difficult. For this reason, the POW model can effectively prevent organized malicious attacks.

For distributed ledgers, POW provides validity guarantee for data and achieves decentralization, which can achieve security in large networks. Typically, blocks in the network are verified based on mathematical calculations, which makes the original data more secure because the data can only be recognized if the calculations meet specific requirements.

The shortcomings are equally obvious! What challenges are POW tokens currently facing?

High security, high data assurance, and the ability to achieve decentralization... these are the advantages of POW that cannot be ignored. However, in order to achieve these core advantages, the POW consensus mechanism also pays a corresponding price.

First of all, POW consumes a lot of energy. As mentioned earlier, POW requires the host node to solve complex mathematical calculations. These difficult algorithms must be supported by a large amount of computing power, otherwise the proof of work cannot be completed. This will also inevitably lead to huge energy consumption. How much impact will this high energy consumption have on the environment? Is it sustainable? These are all questions we need to think about in the future.

Secondly, the POW mechanism has extremely high hardware requirements. If a POW token wants to be mined, it needs to be equipped with specialized hardware equipment, which has a high investment threshold. This high threshold is not very friendly to ordinary investors and users.

What’s more worth mentioning is that although POW wants to build a high-end game where “who has the right to prove it”, there is a hidden problem behind it: once an entity controls more than 51% of the computing power, it may Network attacks will be a huge hidden danger.

Hit the point! What are the dazzling POW projects currently on the market?

POW is becoming more and more mainstream, and POW tokens are springing up on the market like mushrooms after a spring rain. Next, let’s take stock of the POW projects that have attracted much attention in the market this year.

When

Kaspa is a POW public chain built on the GHOSTDAG protocol. Compared with Bitcoin, Kapa has an obvious feature, which is that it changes the structural model of the blockchain. Bitcoin uses a single chain structure, while GHOSTDAG uses a directed acyclic graph (DAG) structure: one block can point to multiple blocks.

Kaspa's KAS coin was launched in November 2021, with a total supply of 28.7 billion, a circulation of 19.8 billion, a circulation ratio of 69%, a market value of US$750 million, and an FDV (full circulation market value) of US$1.08 billion. Since its launch, KAS coins have increased hundreds of times. Such achievements are inseparable from the fact that Kaspa itself has a strong development team and a solid foundation. The current market value of KAS currency is relatively high (US$750 million), ranking around 60th in the world.

However, investors also need to note that although the prospects of KAS currency are good, the potential selling pressure is relatively high. Early miners held a large number of low-price chips and produced new chips every day. If these chips are sold off, it will have a huge impact on prices.

DNX

DNX coin is a virtual currency created by DNX Capital, which builds a decentralized financial ecosystem. The goal of DNX coin is to create a powerful service platform for managing smart contracts and decentralized finance.

The technical features of DNX coin include smart contracts, on-chain governance and anonymous transactions. Among them, smart contracts are the core of DNX currency, which provides developers with a fast and efficient way to build blockchain-based applications. In addition, DNX Coin also provides a decentralized financial platform that provides users with financial services such as reinsurance, micro-insurance, and P2P lending.

DNX currency has performed well recently and has become a hot new star. In particular, it has the advantage of being “resistant to mining by ASIC mining machines” that other currencies do not have. But we still want to remind everyone here that the future business scope of DNX will involve micro-insurance, P2P, etc., which is somewhat suspected of being a "gray product". Everyone still needs to do more research, research, and calculations before investing.

Where will the future development of POW go?

From the moment Bitcoin appeared, POW has entered everyone's field of vision, and it has been 14 years since then.

Because it has existed in the industry for so long, it has become the air and water in the industry, and it is an existence that everyone is very familiar with. Perhaps because POW's starting point is too high, subsequent performances rarely impress people, and there is a sense of "debut is the peak".

However, regarding POW, there has always been a consensus in the industry that "the bear market looks at POW." This means that under bear market conditions, when various problems arise in the industry and various methods fail to work, POW will once again enter the mainstream.