Buy miners, buy credits, buy CoinList accounts Is it worth it for Swarm?

Read about the pitfalls behind Swarm investments in one article.

Buy miners, buy credits, buy CoinList accounts Is it worth it for Swarm?

Not even 1 month after the fever of Chia mining, another mining project has caught fire.

Swarm, a distributed storage project claimed to be initiated by the Ether Foundation and promoted by Vitalik, the founder of Ether, has caught the eye of many people in recent times.

“The era of big data is here, now it’s the era of massive hot data”, “How many times has FIL gone up? How many times has Chia gone up?” , “Private placement 0.3 DAI, the opening rose to 1600U”.

In WeChat groups, Swarm “believers” can be seen everywhere actively preaching, and even some former Filcoin miners are said to have converted their Filecoinc IDC rooms into Swarm IDC rooms.

However, it should not be overlooked that Swarm is very hot, but there are also a lot of chaos and problems.

In the case that the main network is not yet online and the official recommended configuration is not yet given, there are already countless Swarm miners in the market.

Despite all the concerns about Swarm, it is as hot as the early days of Filecoin and Chia.

In addition to the overwhelming publicity of miners, some people are looking around for channels to obtain KYC accounts on CoinList with the intention of competing for the upcoming public offering of BZZ (Swarm token); others are buying $50 worth of BZZ in bulk from the off-exchange at the drop of a hat; in addition, on some exchanges, the futures price of BZZ is high and has now been speculated to a maximum of $255 ……

What exactly is Swarm? Why is it so hot? What are the pitfalls behind the fire?

What is Swarm? What is Swarm?
Actually, the concept of Swarm was proposed by the three founders of Ether, Vitalik, Gavinn Wood and Jeffrey Wilcke, back in early 2015.

At that time, V-God and his team were trying to create a non-stop, zero-failure and censorship-proof peer-to-peer storage and service solution, and on top of that, they were creating a financially incentivized system to facilitate the exchange of resource value.

This is the prototype of Swarm, which, as you know, is a distributed storage class project.

At the beginning, Swarm was seen as a part of the ethereum ecosystem, after all, it was proposed and developed by the ethereum foundation.

In addition, the Ethernet Foundation allows Swarm pool storage, bandwidth and arithmetic resources to support the overall development of the Ethernet-based network.

For this reason, Swarm has been regarded as one of the three pillars of Web 3.0 components together with Ether and Whisper at the beginning.

Of course, this also gave many Swarm miners a great promotional copy: another divine mining project incubated by the Ether Foundation and developed by V God himself, with the help of Gavin Wood, the founder of Polka.

However, Swarm has since been spun off from the Ether Foundation and a dedicated Swarm association has been established in Switzerland.

Although the market has been confusing Swarm with projects such as Filecoin and Chia, there is actually a big difference between Swarm and the latter two.

Swarm is not a public chain, but a smart contract that exists in the ethereum ecosystem. Although calling Swarm’s contract often means a high Gas fee, it also facilitates access to other applications in the Ethernet ecosystem.

Combing through the Swarm timeline’s can see that since the project’s creation in 2015, there has been little noise, the test network was not announced until February 14 this year, and the main online is not yet live, expected this month, but not yet fixed.

For investors, the biggest concern may be the project’s token.

Swarm’s token name is BZZ, and the current initial offering to the public is 62.5 million pieces.

Of this amount, 50% will be allocated to early fundraisers, 20% will be held by the team, and the remaining 30% will be allocated to foundations, etc. on a varying scale.

Currently, Swarm has received investments from a number of well-known institutions such as ALPHEMY CAPITAL, bitscale capital, DFG, KR1, HASHKEY, NGC Venture, Got Talent Capital, P2P CAPITAL, Waterdrip Capital (Waterdrip Capital), White Paper Capital and YBB Foundation LTD.

Based on the information disclosed by KR1, it is estimated that the private placement price of BZZ is about 0.25U and the tokens allocated in the private placement round are about 23.91 million, accounting for about 38.3% of the initial offering.

What’s the deal with mining?

Although often mentioned together, Swarm differs from Filecoin and Chia in terms of the form of mining.

The Filecoin network has two roles: storage miner and retrieval miner, so both data storage and data query miners are provided with revenue.

In addition, Filecoin requires collateral in order to mine.

Chia, on the other hand, allows users to receive block rewards by Plotting the hard drive and then handing it over to the Chia main network to verify that the verification is successful.

If CPU and package speed are the most important parameters in Filecoin mining, Chia mining places more importance on hard drive size and P-drive efficiency.

While in Swarm mining, network bandwidth and hard disk storage become the most important metrics to measure.

In Swarm, there are two roles of data submitter A (temporarily replaced by 35 post-bee nodes in the test network phase, in which users can only interact with these 35 nodes to obtain valid credentials) and data store B.

User A transmits data to user B and hands it over to user B for storage. When user B finishes storing the data, user B sends a storage feedback to user A.

Based on this feedback, user A determines user B’s network bandwidth and storage performance.

After this, user A sends a credential: qbee to user B. User B, who is responsible for the storage task, can then redeem BZZ with this credential.

In this process, user B is constantly responding to the data transmitted by the applications in all directions. After the B user is responsible for storage, he sends the storage feedback back to each application and receives the corresponding revenue credentials.

This process is the mining behavior of Swarm.

Although compared to Filecoin and Chia mining, Swarm mining seems to have a lower threshold and is simpler. However, it also has a lot of problems that need attention.

The main network is not yet online and the official recommended configuration has not been given, but there are countless Swarm miners on the market and various mining services are emerging.

Amidst all the complicated propaganda, is Swarm mining really that good?

Where is the pit? Where is the pit?
If we compare them, we can see that whether it is Filecoin, Chia or now Swarm, they have many similarities, for example, they are all developed by overseas teams and they all have a good background.

Filecoin has always been known as “the king of storage projects”; Chia is supported by “the new project of Bitorrent creator” and “Coinbase investment”.

V God, Gavin Wood and others have been the biggest aura of Swarm.

But if you invest based on these “haloes” alone, you may step in a lot of holes.

After all, in Filecoin and Chia’s mining machine sales process, there are invariably mining machine scams.

Whether it is Filecoin “hanging sheep’s head to sell dog meat” fraud 2 billion of the Star Snail, or Chia miners in the peddling mining machine, in the P plate process of playing sloppy eyes, these are the majority of users suffered unnecessary losses.

Nowadays, there are various advertisements peddling Swarm miners in the market, will Swarm miners have scams too?

The answer seems self-explanatory.

Besides, do you need a miner for Swarm mining or not? This is still a problem ……

In fact, strictly speaking, users who want to mine can build their own mining nodes at home, and do not need a special Swarm mining machine.

In addition to individuals mining on their own, there are also organizations on the market that specialize in peddling Swarm mining services.

Generally speaking, there are two types of mining methods introduced by mining agencies, one is cloud nodes: cloud servers rented in the cloud to build the configuration of Swarm, such as Ali cloud, Tencent cloud and other servers directly to rent the deployment of Swarm cloud nodes for testing network mining.

The other is the physical node: the current status quo physical node refers to the Swarm mining machine built by buying a “whole server”, which is a Swarm node built by a server that includes a series of computer-related accessories such as CPU, memory, hard disk, etc.

The better the network bandwidth, the more qbee the miner can dig, but that doesn’t mean more BZZ rewards.

As mentioned above, the 35 randomly changing Queen Bee nodes, while eliminating the appearance of malicious vote swiping, also increase the uncertainty of user reward acquisition.

Just like buying a lottery ticket, choosing cloud nodes only increases the probability of users “winning”, but does not guarantee that they will “win”.

And compared to cloud nodes, there are probably more potholes in physical nodes.

Since the only factors that Swarm mining refers to are network bandwidth and storage configuration, the so-called physical mining machine is more like a server.

The current physical mining machine on the market is easily priced at around 20,000 RMB. In the current electronic market, the price of a brand new server is only a few thousand dollars, and even the price of a second-hand server on idle fish is only a few hundred dollars.

In addition, the main Swarm network is not yet online, and there is not yet a clear definition of the criteria for Swarm mining. In addition, unlike traditional mining, the characteristics of Swarm based on the ethereum ecology may make it necessary to pledge a certain amount of ETH to be used as contract call fees and expensive Gas fees in the mining process thereafter.

What’s more, a Swarm miner seller told Deep Chain Finance that after the Swarm mainnet is online, users still need to pledge if they want to participate in mining, even though the pledge is not locked, but if users don’t pledge, then the mining efficiency will drop just like Chia and Filecoin.

So, Swarm mining may not be as good as it seems.

In fact, in addition to the pitfalls of mining, there are risks associated with buying BZZ credits.

For now, the price of BZZ early private placement is only $0.25, but currently it has been speculated to about $50 over-the-counter. Compared to before and after, early private placement participants have long profited 200 times.

Laying out the long term? Or take the high side? This may require players to think carefully.

After all, Swarm’s public offering price is only $1.92, which is very affordable compared to the current “sky-high” off-exchange price.

The reason for this is that in recent times, there has been a lot of information about buying CoinList accounts from friends and Weibo.

Even if you get an account, there are some risks: will the account be officially banned by CoinList? Do you have to pay for the account to get it?

Why the rush to Swarm?
Although the main Swarm network is not yet online, there are still a lot of people rushing to it: buying miners, buying credits, buying CoinList accounts …… What are the reasons?

First of all, Vitalik Buterin and Gavin Wood are two names that ring a bell enough to attract a large number of followers in the industry.

Second, and more importantly, is the potential wealth effect behind Swarm.

On March 19 this year, the main Chia website went online, and at that time, the OTC price of XCH was around $25.

But when XCH went live on Firecoin on May 14, its coin price soared to a maximum of $2,149, a difference of nearly 86 times.

It is no coincidence that in July last year, the market forecast for FIL futures price rose to more than $20, but in April this year, FIL rose to a record high of $237, a difference of nearly 12 times before and after the price.

It is worth noting that early Filecoin’s public and private placement prices were as low as $0.75. If we take this price, then FIL’s highest return is around 316 times.

With Filecoin and Chia’s “pearls of wisdom” in front of them, the market has the same expectations for Swarm.

BZZ’s early private placement price was only $0.25, and some predict that BZZ’s price will be around $100, based on Filecoin’s trend. What’s more, Swarm’s founding team is more polished than Filecoin and Chia, and the price of BZZ will only go higher, not lower.

In addition, in recent times, the world is emphasizing low-carbon environmental protection, the once flourishing bitcoin and ethereum mining suffered a blow because of electricity consumption, traditional miners face the dilemma of retreat.

Chia and Swarm, which are relatively energy-saving and environmentally friendly, have become one of the options for some miners to transform at this time.

In addition, some miners who have tasted the sweetness of Filecoin and Chia mining machines have chosen to switch to Swarm, while the participants who missed Filecoin and Chia mining before are also eager to seize the opportunity of Swarm.

For example, miners such as 1475, which previously focused on Filecoin mining, have launched corresponding Swarm mining hosting services.

In addition, compared to Filecoin easily tens of thousands, hundreds of thousands of mining machine prices and Chia mining in the complex P disk process.

Swarm mining is much more affordable, both in terms of cost and difficulty, which has attracted the active participation of many users inside and outside the circle.

However, as mentioned above, Swarm mining has both its advantages and problems.

The first thing you need to do to get involved is to keep your eyes open and think carefully.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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