JUN 14, 2021
When Chia network (XCH) degenerates into a hardware competition, are we able to make changes?
Let’s take a look on Chia network. The threshold of mining XCH is too low at the moment, which results in unfair monopoly. It obviously disobey the original intention of Chia network. It can be said that the crypto mining market urges a more environmentally friendly, intelligent and fair decentralized network ecosystem.
A group of several unknown programmers and miners came up of an arrogant idea under the collision of geek and punk thinking, to overthrow and rebuild the whole world of hardware mining.
They called this project Silicoin network. It represents a domino effect in blockchain world. The aims of Silicoin network is to complete the unfinished mission of CHIA network. SIT is Silicoin’s protocol token.
Mainnets and testnets are common technical terms used in the cryptocurrency world to denote blockchain networks that possess vital functions. A testnet is often used as a testing site for the development and continual enhancement of the mainnet, while the mainnet itself is the actual, functioning protocol that powers the blockchain network. The steps to develop the Silicoin network are as follows:
The testnet 1 is the first phase of testing, which is based on a fork of the Chia network. It estimates online in the early June. During the this test, 4.2 million SIT test tokens will be airdropped as mining startup capital and the test tokens for Tulip phase can be exchanged for the test tokens for the second phase later.
The testnet 2 is the second phase of testing. The beta version of Silicoin’s mainnet will be online after the staking algorithm is debugged. At this stage, the staking and mining functions will be opened to further test the Silicoin consensus mechanism (Proof-of-Balance) and mining system.
Proof of Balance combined the advantages of PoW and PoS. Silicoin network uses its own technology, based on economic models and traditional PoW mechanisms to realize a fair coin production method that automatically adjusts the difficulty of mining and gradually halves block rewards, and combined with the consensus mechanism of PoS to reduce energy consumption requirements, avoid the paradox of over-centralization of computing power, and finally form a balance between workload and capital, giants and retail investors, interests and contributions.
Silicoin’s staking and mining system will linearly weight the user’s computing power. In order to avoid excessive centralization caused by the monopoly of resources and funds, the mining mechanism of the Silicoin network encourages small and medium miners to contribute to the computing power of the entire network. Thus mining in the Silicoin network is not mandatory to stake SIT. It means the higher the computing power, the higher the staking amount, which is aiming to achieve a balance between retail and large investors and take into account the interests of all members of the community.
The total amount of initial SIT test tokens in this testnet is 1 million, of which 50% can be exchanged for test coins produced during the testnet 1 mining and the remaining is for development and ecology in the future.
The testnet 3 is the upgrade of testnet 2. In this phase, all test tokens in the testnet 2 phase will be 1:1 mapped to the testnet 3
After all the tests are finish, Silicoin network will enter main net stage. It means the Silicoin mainnet will be officially launched. In this phase, all test tokens in the testnet 3 phase will be 1:1 mapped to the mainnet.
With the launch of Silicoin mainnet, Proof-of-Balance is applied in cryptocurrency mining officially. In this way, the advantages of resource-based and token-based consensus mechanisms are combined to ensure that the attacker must have dual advantages in resources and funds from the security of the consensus. From the fairness of the mechanism, everyone has the opportunity to participate in the Silicoin network.
At that time, Silicoin will gradually launch a series of DeFi expansion functions such as SIT financial payment, NFT casting, staking and mining, SilicoinSwap, etc., to create a complete Silicoin financial win-win ecosystem.
In conclusion, giants cannot over-occupy network resources no matter they got massive equipment or they have huge amounts of funds. That is to say, giants need extremely high costs to monopolize the hashrates under Proof-of-Balance, so it benefits small miners and the security of the Silicoin network.
Silicoin provides a living space for small crypocurrency miners, contributing to a more decentralized and fairer blockchain network and gaining benefits. This is not only the uncompleted mission of CHIA network, but also the initial intention of Bitcoin and Nakamo Satoshi.
In a brutal system with internal connections like the blockchain, a small initial energy may cause a series of chain reactions just as the domino effect. Perhaps Silicoin’s small effort can only cause unnoticeable gradual changes, but these small changes may trigger an earth-shaking evolution. We are small but we are many.