LD Capital: A Quick Look at Recent POW Projects

Original Author: Duoduo, LD Capital

Since Ethereum switched to the POS model, the public chains that occupy most of the market’s attention are mostly POS models. However, the POW model is still under development. Typical representatives such as KAS have proposed a new POW blockchain model. Due to the continuous rise of KAS, new POW projects have gradually attracted the attention of funds and communities. This article introduces several POW projects that have performed well in the recent market.

1. Market performance

Source: coingecko, LD Capital

Note: The data in this article is as of August 1, 2023.

As can be seen from the above table, these projects have been online for less than a year, and their market value is below 50 million US dollars. The price has achieved a good increase in the past two months.

In addition, the teams of Dynex and Neurai are anonymous and have not disclosed information. The co-founder of Microvision Chain (Twitter: @Jason_K 0001) is Chinese, and the official website does not disclose specific resume experience.

2. Narrative

The new POW projects have put forward their own narrative focus in combination with the current market environment and hot spots.

Dynex

Dynex is a neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm, which proposes a Proof of Useful Workload (PoUW) method to improve the speed and efficiency of decentralized networks.

DynexSolve can run “neuromorphic chips” that outperform traditional computing methods on a range of computing tasks. Neuromorphic computers are the natural platform for much of today’s artificial intelligence and machine learning. Dynex hopes to provide computing power for artificial intelligence, machine learning, financial technology, biomedicine, etc. on this basis.

Dynex mainly uses the computing power of GPU. According to the statistics of hiveon.com computing power management platform, DNX’s current computing power accounts for 14%, which is the largest pow token in the computing power range of the platform. .

Microvision Chain

The goal of Microvision Chain is to establish a pow public chain with high scalability, become the second layer of Bitcoin, improve efficiency and reduce costs. The agreement mainly proposes improvements in three aspects: 1) Smart contracts based on UTXO accounts can create applications; 2) Built-in decentralized identity protocol supports cross-chain, and all chain data belongs to the same ID; 3) To attract New users participate and can use Web 3 applications without buying or holding cryptocurrency.

According to the official website, the core members of the project published a UTXO model expansion method and applied for a patent in November 2021. The patent title is “Method and for hierarchically cutting data in blockchain transaction, and storage medium”. The testnet will be launched in May 2022. After verification by the High Performance Computing Center of the University of Science and Technology of China, the execution speed of the smart contract exceeds 5K TPS.

Neural

Neurai’s goal is a comprehensive platform capable of utilizing artificial intelligence algorithms, through the power of artificial intelligence, for data analysis, predictive modeling, decision-making, and connecting blockchain assets to IoT devices. Comparing Bitcoin and Ethereum, the main technical parameters of Neurai are as follows:

Source: Neurai official website

It can be seen that Neurai hopes to increase the number of transactions per second, reduce transaction fees, and support the implementation of smart contracts in the future.

2. Computing power

According to the data of Mining pool, the computing power data of each project is as follows:

Source: Mining Pool, LD Capital

Remarks: Computing power unit: H/s is the smallest unit. A random computer hash collision is done every second, which is called Hash/s. The unit is abbreviated as H/s.

1 KH/s= 1000 H/s， 1 MH/s= 1000 KH/s， 1 GH/s = 1000 MH/s， 1 TH/s = 1000 GH/s ， 1 PH/s = 1000 TH/s， 1 EH/s = 1000 PH/s。

Comparing the computing power rankings of some POW public chains with high market value and high popularity, BTC computing power ranks first, BCH ranks 7th, BSV ranks 12th, KAS ranks 29th, DASH ranks 31st, LTC and DOGE respectively It’s 38th, 39th. It can be seen that the computing power of Microvision Chain is relatively high.

It should be noted that according to the statistics of hiveon.com computing power management platform, the current computing power of DNX has reached 14%, which is the largest pow token in the scope of GPU computing power calculated by the platform, which has exceeded The computing power of KAS tokens. It is quite different from Miningpool’s statistics, which should be caused by different statistical calibers.

Source: Hiveon

The following is a graph of the changes in computing power of each protocol displayed by Miningpool:

Dynex: The overall trend is in an upward trend. Due to the recent algorithm upgrade, the computing power has declined.

Microvision Chain: The computing power is fluctuating, without significant growth or decrease.

Neurai: The computing power is on the rise recently, and the computing power of the recent increase mainly comes from retail investors, while the computing power of known pools is showing a downward trend.

Overall, Dynex has an advantage in GPU computing power, and the overall computing power is showing an increasing trend. However, due to the recent algorithm upgrade, the computing power has declined, and subsequent responses will gradually recover. In addition, KAS is now turning to professional mining machines, and its previous GPU computing power is converted to participate in DNX mining, and DNX further gains computing power. Microvision Chain’s computing power ranks relatively high, but it is highly concentrated, with a high degree of centralization, and its computing power is in a turbulent trend. Neurai has more retail investors participating in mining, the degree of dispersion is high, and the computing power is in a growing trend.

4. Economic Model

Dynex

No ICO, no pre-mining, no team reservation. The total amount is 100 million pieces, and 64.61 million pieces have been released, accounting for 64% of the circulation; the release speed is relatively fast, and the circulation will account for about 80% after two years. The diagram below shows the token release schedule and the number of reward tokens per blockchain. The token reward per block continues to decrease according to a specific formula, forming a smooth curve.

At present, the reward for each block is about 173 DNX, and a block is produced in about 2 minutes. Based on this, it can be calculated that the number of released tokens per month is about 2.67 million. Based on the unit price of 0.6 USD, the monthly release value is about 2.2 million USD.

Microvision Chain

The token release of Microvision Chain is not a complete POW model. There are also reservations from project parties and DAO builders, which are more similar to the combination of POW and POS models.

Calculated according to this release rule, about 274,000 tokens will be released monthly in the first 1,000 days, and about 3.28 million tokens will be released every year. The total amount of tokens released in three years will be 9.86 million tokens, and the circulation will account for 47% after three years. If calculated according to the price of 12 US dollars, the monthly release value is 3.28 million US dollars, and the annual release value is 39 million US dollars.

Neural

The total number of tokens is 21,000,000,000, and the current circulation is 5,873,595,098, accounting for 28% of the total.

If calculated according to the unit price of 0.00081, the new value added each month will be about 810,000 US dollars, which is about 17% of the current market value.

It can be seen that the token distribution of Dynex and Neurai is a complete pow model. 65% of Microvision Chain’s tokens are not distributed according to the pow model, and the project side has greater control. The early release ratios of the three tokens are relatively high, and early participating miners hold a large number of tokens. This part of tokens is not only a potential selling pressure, but also a potential pulling force.

Five, the problem

Of the above three projects, the most likely to be questioned is their team strength and technical feasibility. In the Dynex and Microvision Chain communities, FUD against the project side appears from time to time. The main point is that the project side’s papers are the “stitching” of multiple papers. The videos demonstrated by the project side do not represent new technologies, but just specious concepts .

The narratives of these three projects all require strong scientific research strength and technical development capabilities, while Dynex and Neurai are anonymous teams and do not disclose member information; although Microvision Chain has a co-founder’s semi-real name (public Twitter, participation in interviews, etc.) , but there is no industry reputation and participation experience in other well-known projects.

At present, many of the investors participating in such projects are funds that have profited from KAS investment, and there is a certain degree of overlap in the community.