Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

Often, where there is profit, scams tend to breed.

The recent cryptocurrency market is not too much to describe as “bloody”, right?

The majority of coins, led by Bitcoin, fell below their 30-week averages on May 19, and the cryptocurrency world has since taken on a new anniversary: 519.

Before this cryptocurrency earthquake was over, it seems that the mining circle was also hit by an earthquake.

On May 21, the Financial Stability Development Committee of the State Council held its 51st meeting, which mentioned “strengthening the supervision of financial activities of platform enterprises, cracking down on bitcoin mining and trading, and resolutely preventing the transmission of individual risks to the social sector”.

This means that all domestic virtual currency mines may face shutdown or relocation overseas in the future.

However, in this environment, one mining project is bucking the trend, and that project is Chia Network.

From Chia’s block browser, as of today, the total capacity of the entire network has reached 10.79 EB.

Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

What is the concept of this data?

If all this storage space is used to store small movies of 2G size, then about 5.8 billion movies can be stored.

And as you can see from the growth curve, there is still no sign of slowing down.

Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

Just yesterday, Bloomberg news disclosed that the founding company of the Chia project also completed a $61 million Series D round of funding, with the list of leading investors including the famous investment institution A16z, which in turn gave miners a shot in the arm.

Chia because the initial mining threshold is relatively low, mining operations related to the Chinese tutorial is very detailed, the operation is not complicated, only need to prepare the hardware equipment needed for mining, with the official wallet provided to do a little simple configuration can be directly mining, so a lot of people who originally just speculate in coins also began to dig Chia, and even a large number of outsiders also came in to participate in mining, once led to the hard disk off the market.

Most of these people came in to make quick money, lacking both in-depth knowledge of the mining community and patience, which made them “fresh leeks” in the eyes of scammers.

Where there is profit, scams tend to breed.

Why Chia is so hot

Before analyzing the specific scam, Uncle Kan would like to briefly talk about the same mining project, why Chia is particularly out of the loop and particularly hot.

The reason behind this is actually intricate and complex, and not which single factor leads to.

The more important ones are mainly 3 points.

1, pre-mining threshold is relatively low.

  1. the founder is very famous.

3, compared to bitcoin, Chia’s mining consumes less energy and is more environmentally friendly.

The phrase “leave a picture without seeds, chrysanthemum ten thousand tong” must have been heard by everyone, right?

The “seed” here refers to the seed file of a BT download, and the technology behind it is the BT protocol, so it’s easy to see how this technology is sought after.

The founder of Chia, Bram Cohen, is the inventor of this BT technology.

This gives Chia a naturally high profile, and with the backing of well-known investors like A16z, Chia is highly sought after.

In addition, Chia eschews the power-hungry mining algorithm of Bitcoin. Instead of using a lot of power to compete for arithmetic power, miners use free hard drive space to compete for arithmetic power, which makes Chia more energy-efficient than Bitcoin, and that makes Chia attractive.

But these are not enough, mining machine manufacturers, hard drive manufacturers to take advantage of the hype marketing also played a key role in pushing the wave.

With the combined effect of these factors, Chia was able to stand out in this bull market.

And in this frenzy Chia mining boom, gave birth to a business called “generation P plate”, and behind this business, countless “sickle” eyeing.

Next, Uncle Kan gives you an in-depth exposure of the hidden scams in the “generation P plate” business.

Chia mining core technology principle demolition

Before analyzing the specific scam, Uncle Kan first gave you a brief overview of the basic principles of Chia mining, because only after reading this principle, you can more deeply understand the nature behind the scam.

In fact, after putting aside some of the complex mathematical principles behind mining, the entire Chia mining process is relatively simple, in a word.

The mining program generates a file with a plot suffix (a process commonly known as P-disk) through a certain algorithm, stores it on the hard drive, waits for the block to explode and gets the XCH token reward.

In the whole mining process, the P-disk process is the most resource-intensive and time-consuming, and is a very critical step.

So what exactly is the P-Disk doing?

This part involves some technical points, and Uncle Kan describes it in as easy-to-understand way as possible, but of course, you can also focus on the bolded text content.

Uncle Kan looked up Chia’s source code and found that, in fact, when P disk, the program will generate random numbers through the algorithm, and combined with farmer public key and pool public key to generate some random data, this process requires a lot of read and write hard disk, and finally will generate a PLOT file of about 101G size according to a certain algorithm.

Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

In this PLOT file, important metadata is stored, including the number that uniquely identifies the file (also called plot id), and the parameter information (parameter name memo) generated by the calculation of the farmer public key and the pool public key.

Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

Plot id is a very important and critical parameter in the subsequent mining process, and the process of generating this Plot id is ultimately calculated by the farmer public key and the pool public key.

Chia Mining: A Guide to Fraud Prevention on behalf of P-Disc

Well, the analysis here, Uncle Kan briefly summarize the key information involved in the P disk: the

1, a large number of hard disk read and write, time-consuming.

2, many important parameters are calculated through farmer public key and pool public key to get, and does not directly involve the private key (this is very important, later will be mentioned).

It is because of this first point, increasing the threshold of the practical operation of ordinary people, because the hard disk write time is too long, it is necessary to optimize the hardware equipment, such as the choice of write performance better enterprise solid state drives (SSD), so as to reduce the time as much as possible, but also through technical means to run multiple P disk tasks at the same time, to make full use of the SSD space and so on.

The generation of P-drive industry has emerged
The so-called generation P disk, as the name suggests, is to help you complete the P disk process, and then save the generated plot file to the hard drive and deliver it to you.

Here there are generally two scenarios, one is that you have your own hard disk, then you only need to pay them for the service of generation P disk, one is that you do not have your own hard disk, then you need to pay both the cost of the hard disk and the service fee of generation P disk.

And they are through the professional P disk equipment, with the optimized P disk technical solutions, significantly improve the efficiency of the P disk, help you get the plot file faster, and start mining, after all, time is money, the sooner you start digging, the easier to get the block of tokens reward, it is wonderful.

In such a context, the scam also arose, more typical of two kinds.

▌The first kind, the civet cat for a prince.

A few days ago, there were fans to consult Uncle Jian’s.

I helped him after in-depth analysis, to confirm that he was cheated.

This situation, generally you give their hard disk to the person on behalf of P disk, the other party in helping you P good disk, will re-send the hard disk back to you.

But the hard drive you receive at this time is no longer the original hard drive, but was swapped by them, often your large capacity hard drive, was replaced with a very small capacity hard drive. They earned your P drive service fee and also gleaned your high-capacity hard drive.

You may say, the capacity has changed can’t I find it?

Yes, it is indeed difficult for the average person to find out because there are many sophisticated technologies on the market that can tamper with the file system and underlying data of the hard drive, thus allowing the computer to identify it as a high-capacity hard drive, and the hard drive is filled with plot files that are false.

You may also say, then I record the serial number of the hard drive, not to confront?

The high road is one foot high, the devil is one foot high, the scammers can even change the serial number of the hard drive after the magic serial number to your original serial number, even the serial number sticker on the back of the hard drive can be replaced after the entire sticker is torn off by heating with a heat gun and other methods.

Eventually, you either in the appearance, or with the computer system identification, can not easily find the hard disk was swapped, and then also wait every day to be able to dig out the block rewards, ten days and a half months did not explode the block, you still foolishly thought it was their bad luck, did not dig the reward.

▌ The second kind, empty glove.

Generation P disk will need to provide private keys on the grounds that P disk, cheat your wallet private keys, and then normal for you to do P disk task, P after the disk, they will have been in the chain to observe your mining earnings, once the earnings are more substantial, they will steal the coins in your wallet directly.

The coins will be stolen from your wallet as soon as the proceeds are significant.

In fact, if it’s just an ordinary bitcoin or ethereum wallet, anyone with a little bit of common sense in the cryptocurrency world knows that your own helper and private key can’t be provided to anyone, because it’s equivalent to your bank card password.

But when it comes to the Chia mining scenario, many people don’t understand the technical nature behind it, and the rhetoric of scammers can easily make you forget this common sense.

Remember what Uncle Kan analyzed earlier?

In fact, the P disk only needs the farmer public key and the pool public key, there is no need to provide your private key at all, and these two public keys, which can be obtained directly through the tools provided by Chia official.

Therefore, it can be said that all need to provide your private key in order to provide the service on behalf of P disk, basically are liars.

Summary of Uncle Jian

Chia mining although more convenient than Filecoin, Bitcoin, Ether and so on mining, but with the increase in the number of mining, the network-wide arithmetic power in the explosive growth, mining threshold is actually increasing, as long as the mining market heat does not diminish, scams will only be endless, stranglehold.

Uncle Jian has no way to expose all the scams, but behind all the scams can not be separated from the essence of technology, I hope that I, as a technical person, can help you see the essence through the phenomenon, so as to maintain a clear brain, more calmly face the scam.

Mining is risky, enter the market with caution!

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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