In 2023, the PoW world gave birth to Kaspa, a phenomenon that created a sensation in the cryptocurrency space. Since the launch of the Kaspa style, its token KAS has increased more than a hundredfold, making many small and mid-cap coins sought after in the market. On April 4 this year, the BCH Halving was completed and the BCH price increased by 147.85% in approximately 3 months, exceeding $700 at one point.
Similarly, as the Bitcoin Halving approached, the price of BTC jumped from $40,000 to $67,000, increasing by 55.28% in about 3 months. Moreover, more and more coins are choosing to use GPUs in more meaningful ways, including integration with AI, hashing power rental, and Train-to-Earn initiatives, revitalizing the PoW ecosystem and exhibiting renewed vigor and growth.
Prospects for the Development of the PoW Ecosystem
In 2024, the PoW ecosystem is in a period of great potential, ready to create a new wave of enthusiasm with the upcoming Bitcoin Halving.
First, as the cryptocurrency market continues to mature and evolve, the PoW algorithm, one of the oldest protocol mechanisms applied to cryptocurrencies such as Bitcoin, will continue to play an important role. Despite the emergence of new protocol mechanisms such as PoS (Proof of Stake), PoW, known for its high degree of decentralization and resistance to attacks, is still widely regarded as a secure and reliable protocol algorithm.
Secondly, with the continuous advancement and innovation in blockchain technology, the PoW path has seen more innovations, effectively integrating PoW with artificial intelligence, IoT and other technologies, leading to a number of new projects and enabling coins to have more practical use cases.
● PoW + AI Trend
Due to the GPU’s proficiency in parallel computing, it is well-suited for running AI models such as deep learning, allowing miners to accelerate the training and inference processes of AI models. With the growing popularity of AI, the PoW+AI narrative is more likely to capture the interest of the crypto market, as seen in projects like Bittensor (TAO) and Clore.AI (CLORE).
Bittensor (TAO) is a peer-to-peer intelligence marketplace that aims to foster innovation and sharing in AI technology by combining PoW and AI to create a decentralized marketplace for large AI algorithm models. Miners on the Bittensor network need to provide computing power to run AI models. (For more information, please see: https://www.coinex.com/en/info/TAO)
Clore.AI (CLORE), mining, payment, AI training, etc. It is an AI computing power rental platform equipped with approximately 6,000 high-end Nvidia GPU chips that can be rented for . In their business model, individuals with Nvidia GPU computers can connect their GPUs to the network and earn CLORE tokens as incentives. (For more information, please see: https://www.coinex.com/en/info/CLORE)
● PoW + IoT Trend
PoW can provide decentralized, secure and reliable infrastructure support for the Internet of Things (IoT) while providing decentralized and fair incentive distribution like the Neural project.
Neurai (XNA) is an AI and IoT-focused PoW chain that aims to leverage the power of AI algorithms for efficient data analysis, predictive modeling, and decision-making by using PoW to address distribution limitations and lack of transparency. It can also connect blockchain assets to IoT devices for broader application scenarios. (For more information, please see: https://www.coinex.com/en/info/XNA)
Whether partnered with artificial intelligence or IoT, PoW plays a crucial role in increasing the speed and efficiency of decentralized networks. PoW coins may have longer-term development potential by introducing new algorithms or technologies, creating new possibilities for the development of the PoW path.
Challenges Facing the PoW Ecosystem
Bitcoin’s Proof of Work (PoW) consensus mechanism has pioneered a new model, serving as a benchmark for numerous PoW tokens and adding to its computing power and value in the crypto world.
However, the PoW ecosystem still faces several challenges:
● Difficulty meeting transaction demand
Compared to token projects, PoW projects face difficulties in meeting user transaction demands. Due to the high development hurdles and complexity of PoW projects, as well as an incomplete ecosystem (such as the lack of mature decentralized exchanges DEX) and insufficient support of centralized exchanges CEX, PoW coins currently have poor liquidity, making it difficult to meet user transaction demands, leading to inappropriate trading. and causes high risks in OTC transactions.
Some events that took place in the sector last year further underlined these problems. For example, the closure of junior mining coin exchange Txbit and the emergence of issues such as SafeTrade’s questionable Rug Pull have caused significant problems for mining coin investors. These incidents point to weaknesses in PoW projects in the transaction domain that require further improvement and development. Users may consider choosing the established and professional mining coin exchange CoinEx to enhance their trading experience.
● Privacy Regulatory pressure on PoW coins
In recent years, privacy-focused PoW coins like Monero (XMR) have been facing increasing regulatory pressure as governments around the world have strengthened regulations on cryptocurrency. Because they support anonymous transfers, these coins pose a risk of being used for money laundering, illegal financing and other illegal activities, making it difficult for legal authorities to track transactions. As a result, some countries and regions have adopted strict regulatory stances on privacy coins, prohibiting exchanges from listing them. Additionally, some exchanges have begun delisting private PoW coins to comply with regulations. In general, private PoW coins are facing increasing regulatory pressure, and their future development prospects are subject to observation.
● Security
Small-scale mining coin projects on the market have lower total hash rates, making them more vulnerable to 51% attacks and other malicious activities. The current hash power rental market allows attackers to temporarily rent enough hash power to launch an attack; Attackers only need to control 51% of the hash power to perform a 51% attack, including double spending and blocking transaction confirmations. Specific costs can be found on the 51% Attack Cost website: https://www.crypto51.app/.
The Preferred Platform for Mining Coin Transactions: The Unique Attraction of CoinEx
CoinEx is currently one of the most comprehensive mining coin exchanges on the market.
As a safe, professional and reliable cryptocurrency trading platform, CoinEx is dedicated to supporting promising high-quality cryptocurrencies, providing a wide range of PoW coin trading pairs and coin market information to meet various user needs and actively contribute to the development of the PoW ecosystem.
CoinEx is known for its comprehensive coin listing strategy, including quickly launching projects with potential and providing comprehensive asset support to users. Our unique “good, fast, comprehensive” coin listing strategy covers the following aspects:
●Selecting high quality assets
CoinEx conducts professional and comprehensive evaluations of cryptocurrency projects from various dimensions, including technical aspects, community and token economy, to thoroughly explore high-potential cryptocurrencies before listing.
● Rich and fast cryptocurrency selection
CoinEx was among the first platforms to support KAS transactions, launching KAS in November 2022, alongside cases such as the listing of FLUX in May 2021 and XNA in August 2023. Since its establishment, CoinEx has closely observed the PoW ecosystem, continuously and quickly uncovering potential projects, and provided comprehensive technical development support to PoW projects based on its excellent technical development capabilities.
● Comprehensive and complete cryptocurrency support
Global cryptocurrency trading platform CoinEx has strongly supported the development of the PoW ecosystem by supporting more than 900 high-quality assets. The platform has listed hundreds of PoW coins, including projects with various consensus mechanisms, and provides real-time tracking of market trends and coin price changes, providing users with comprehensive coin market information to grasp market dynamics.
Therefore, CoinEx Exchange is recognized and widely acclaimed for its excellent coin listing strategy, including promptly launching high-potential projects and providing comprehensive asset support to users. To trade more PoW coins, visit CoinEx: https://www.coinex.com/tr
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