The new generation is not to be feared – Swarm is not the next Filecoin

If one has been paying attention to the whole crypto market, it should not be hard to find that the primary market has actually calmed down for some time, after all, even the secondary market is now starting to calm down.

The new generation is not to be feared - Swarm is not the next Filecoin

If you pay attention to the whole crypto market, it should not be hard to find that the primary market has been calm for some time, after all, even the secondary market is starting to calm down now.

And just a few months ago, the phenomenon of asking around for a line of credit was common.

On June 15, Swarm opened a very hot public offering on CoinList and had previously attracted a large number of miners to actively deploy Swarm test network nodes and miners.

This scene has some of the hot atmosphere of the bull market. Many people are optimistic about Swarm because Swarm is an official project incubated by Ether, and the pioneer is even the leader of Ether, V God, and Gavin Wood, who is now the leader of Polka, and Swarm is also doing storage like Filecoin.

In short, Ether, Polka and Filecoin have all created a miracle in the crypto world, so there is no reason for Swarm not to take off as all these haloes are stacked up to form a huge halo.

However, if we analyze it calmly, Swarm will certainly take off, but it may not fly as high as the outside world expects.

Ether’s ‘sister’

Although many people are hoping that swarm will become the next Filecoin, the positioning of Swarm and Filecoin is not quite the same.

Filecoin doesn’t need much introduction, after all, the whole market’s understanding of distributed storage is the market education conducted by Filecoin.

Swarm looks very close to Filecoin in that it is a decentralized storage system, an underlying infrastructure that exists to disrupt the existing centralized Internet and to incentivize the operation of the entire ecosystem with tokens.

However, the biggest difference with Filecoin is that Swarm is a decentralized storage system cum content distribution system, so it seems to be closer to Web 3.0 than Filecoin.

When Gavin Wood, who was the CTO of Ether at that time, came up with the idea, he planned that Ether would take up the computing function, while Whisper and Swarm would provide the storage and communication functions respectively.

Now Swarm is a blend of Whisper’s functions and then adapted to Ether to provide storage and bandwidth services for DApps in the Ether ecosystem (of course, the main service is storage).

Of course, the highlights of Swarm really can’t be ignored.

In addition to being a storage platform, Swarm is also a license-free information distribution platform – enabling untraceable and anonymous information delivery.

A miner who participated in the deployment of Swarm’s test network nodes told Chain Teahouse that he could see various advertisements such as the name of the mining pool and QQ contact numbers when he opened the virtual container.

And with Swarm relies so much on bandwidth that his router of tens of thousands of dollars ran full instantly, a situation that is impossible when mining with Filecoin.

So don’t ever try to use Filecoin’s logic to value Swarm, they are two subspecies and there are big differences.

Swarm’s ceiling

The reason why outsiders are bullish on Swarm is based on the prospect of the ethereum ecosystem and storage track, and this is exactly where Swarm’s ceiling is –

There is no big storage demand for Ether in the short to medium term, and Filecoin is perfectly capable of meeting it.

It is worth mentioning that Filecoin is far better than Swarm now in terms of storage network complexity.

We can only say that Swarm’s luxurious background determines that its lower limit will not be low (there are too many projects involving mining that even have no lower limit at all ……), but it seems untimely to have too high expectations for Swarm now.

And regardless of the fact that in recent times some miners have been able to double their earnings by packing two official mirrors, while others are still testing the 0.5 version (which is not officially recognized) – it means that the amount of money received through the official taps is not enough.

This means that the Swarm tokens BZZ received through the official tap will be more concentrated and therefore more risky to sell off.

And in the medium to long term, Swarm is also cheaper to mine, if the threshold to build a Filecoin mine is $5 million, Swarm is almost $2 million (and Filecoin has a much longer unlocking cycle) –

This means that Swarm is more likely to peak sooner, and certainly not as crazy as Chia, which was hard drive mining a few months ago.

We don’t see a ceiling breakthrough in Swarm in the short to medium term, and it’s even a bit overheated right now – a concentrated rush caused by a market too short of large investment targets.

What’s more, with global capital market liquidity almost destined to hit an inflection point in the next few months, the crypto world’s winter will come soon, if nothing else.

When the time comes, it may be more objective to look back at Swarm and its token BZZ.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/the-new-generation-is-not-to-be-feared-swarm-is-not-the-next-filecoin/
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.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-18 00:09
Next 2021-06-18 00:13

Related articles