In 2023, a phenomenon-level dark horse, Kaspa, emerged on the PoW track, causing a sensation in the cryptocurrency field. Since the launch of the Kaspa mainnet, its token KAS has risen more than a hundredfold in price, leading to the market’s pursuit of many small and medium-sized market value coins. On April 4th this year, BCH completed its halving, and the price of BCH rose by 147.85% in the past three months, surpassing $700 at one point. Similarly, as the Bitcoin halving approaches, the price of BTC has surged by 55.28% in the past three months, skyrocketing from $40,000 to $67,000. Additionally, more and more coins are choosing to utilize GPUs for more meaningful purposes, including combining with AI, renting computing power, and Train-to-Earn. The PoW ecosystem has rejuvenated and demonstrated vitality for further development.
Table of Contents
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Prospects of PoW Ecosystem Development
PoW + AI Trend
PoW + IoT Trend
Challenges in PoW Ecosystem
Unmet Trading Demand
Regulatory Pressure on Privacy PoW Coins
Security
CoinEx: The Preferred Platform for Coin Trading with Unique Charm
Selected High-quality Assets
Rich and Comprehensive Support for Cryptocurrency Selection
Prospects of PoW Ecosystem Development
In 2024, the PoW ecosystem is in a period of enormous potential. Despite facing some challenges, with the upcoming Bitcoin halving event, it is expected to ignite a new wave of PoW ecosystem boom.
Firstly, as the cryptocurrency market continues to mature and develop, the PoW algorithm, as one of the earliest consensus mechanisms applied in cryptocurrencies like Bitcoin, will continue to play a significant role. Although new consensus mechanisms such as PoS (Proof of Stake) continue to emerge, PoW is widely regarded as a secure and reliable consensus algorithm due to its high decentralization and resistance to attacks.
Secondly, with the continuous progress and innovation of blockchain technology, the PoW track has witnessed more innovations. By efficiently combining PoW with AI, IoT, and other technologies, a series of new projects have emerged, allowing coins to have more practical applications.
Due to the parallel computing capabilities of GPUs, which are suitable for running AI models, miners can accelerate the training and inference processes of AI models using GPUs. With the popularity of AI, the dual narrative of PoW + AI is more likely to attract attention and funds in the cryptocurrency market, such as Bittensor (TAO) and Clore.AI (CLORE) projects.
Bittensor (TAO) is a peer-to-peer intelligence market that combines PoW and AI to create a decentralized marketplace for large-scale AI algorithm models, aiming to promote innovation and sharing of AI technology. Miners in the Bittensor network need to provide computing power to run AI models.
Clore.AI (CLORE) is an AI computing power rental platform that has nearly 6000 Nvidia high-end GPUs available for rent for mining, rendering, AI training, etc. In its business model, individuals with Nvidia GPU computers can connect their GPUs to the network and receive CLORE tokens as incentives.
PoW can provide decentralized, secure, and trusted infrastructure support for the Internet of Things (IoT) while achieving decentralized and fair incentive distribution, such as the Neurai project. Neurai (XNA) is a PoW chain focusing on AI and IoT, aiming to use the power of artificial intelligence algorithms for efficient data analysis, predictive modeling, and decision-making. It also solves the limitations and lack of transparency in distribution through PoW and connects blockchain assets with IoT devices to achieve a wider range of application scenarios.
Whether PoW integrates with AI or IoT, they both play important roles in improving the speed and efficiency of decentralized networks. By introducing new algorithms or technologies, PoW enables PoW coins to have longer and more sustainable development potentials, opening up new possibilities for the development of the PoW track.
Challenges in PoW Ecosystem
The proof-of-work (PoW) consensus mechanism of Bitcoin has created a new model, and numerous PoW tokens have achieved computational power and value in the crypto world.
However, the PoW ecosystem still faces many challenges:
Compared to token projects, PoW projects face challenges in meeting the trading demand of users. Due to the higher development threshold and technical complexity of PoW projects, as well as the incomplete ecosystem (such as the lack of mature decentralized exchanges (DEX)) and insufficient support from centralized exchanges (CEX), the liquidity of PoW coins is currently poor, making it difficult to meet the trading demand of users. Trading is inconvenient, and OTC trading carries higher risks.
Last year, some incidents in the industry further highlighted these problems. For example, the closure of small coin exchange Txbit and the exposure of issues such as SafeTrade’s alleged rug pull brought considerable troubles to coin investors. These events have shown that PoW projects have some weaknesses in the trading field and need further improvement and development. Users can consider choosing CoinEx, a well-established professional coin trading platform, to improve their trading experience.
In recent years, as governments around the world have strengthened their regulation of the cryptocurrency field, privacy-focused PoW coins such as Monero (XMR) face increasing regulatory pressure. These coins, due to their support for anonymous transactions, make it difficult for regulatory agencies to trace transactions, posing risks of money laundering, illegal financing, and other illegal activities. As a result, some countries and regions have adopted a high-pressure regulatory stance on privacy coins, prohibiting exchanges from listing them for trading. Some exchanges have also delisted privacy-focused PoW coins to comply with regulatory requirements. Overall, privacy-focused PoW coins are facing increasing regulatory pressure, and their future prospects remain to be observed.
Currently, small coin projects on the market have lower total computing power, making them more susceptible to 51% attacks and other attacks. The existing computing power rental market allows attackers to temporarily rent sufficient computing power to launch attacks. Attackers only need to control more than 51% of the computing power to execute a 51% attack, including double spending and preventing transaction confirmations. The specific cost can be referred to the 51% Attack Cost website.
CoinEx: The Preferred Platform for Coin Trading with Unique Charm
Currently, CoinEx is one of the most comprehensive coin trading platforms in the market in terms of coin types.
As a secure, professional, and reliable cryptocurrency trading platform, CoinEx is committed to supporting promising high-quality cryptocurrencies and has a rich variety of PoW coin trading pairs and coin market information to meet the diverse needs of users, making positive contributions to the development of the PoW ecosystem.
The reason why CoinEx has become a coin trading platform with a comprehensive range of coins in the market lies in its unique listing strategy. The CoinEx listing team has outlined their strategy: “CoinEx does not have a specific preference for supporting projects from a particular ecosystem when screening projects. Instead, we are more inclined to quickly discover high-potential quality projects to provide CoinEx users with comprehensive asset support.” Its unique “good, fast, and comprehensive” listing strategy includes the following three aspects:
Before listing, CoinEx conducts professional and comprehensive evaluations of cryptocurrency projects from multiple dimensions, including technology, community, token economics, etc., aiming to explore cryptocurrencies with high potential.
CoinEx is one of the platforms that supported KAS trading at an early stage. It launched KAS in November 2022. Similar cases include the listing of FLUX in May 2021 and XNA in August 2023. Since its establishment, CoinEx has always maintained keen observation of the PoW ecosystem, continuously and rapidly discovering potential projects, and providing comprehensive technical development support for PoW projects based on its excellent technical development capabilities.
The global cryptocurrency trading platform CoinEx has supported more than 900 high-quality assets and strongly supports the development of the PoW ecosystem. The platform has listed hundreds of PoW coins, including PoW projects with various consensus mechanisms. It also tracks market trends and price changes in real-time, providing users with comprehensive coin market information for better market insights.
Therefore, CoinEx excels in its listing strategy, including quickly launching promising projects and providing comprehensive asset support to users, making it highly acclaimed. For more PoW coin trading, please visit CoinEx.
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