Three major problems of Swarm to be solved, Bzz head mine bonus, Bzz return cycle

Time:2022-11-21

The decentralized storage project known as Vitalik Buterin, the founder of Ethereum Square, has become popular.

A slew of high-profile hashtags has really made the group a buzz. However, behind the aura of the project, there are a lot of uncertainties and risks, which are easy to be selectively ignored.

Swarm, located in the decentralized content storage and distribution network of the Ethereum ecosystem. Swarm was one of the official projects of the Ethereum Foundation when it launched in 2015. Initially, it was incubated under the leadership of the Ethereum Foundation. Since then, the project has been spun off from the Etheron Foundation and gradually developed and funded by an independent team.
  Three major problems of Swarm to be solved, Bzz head mine bonus, Bzz return cycle

Students before and after Swarm completed two rounds of financing. The cost of the most recent private placement round was US$6 million. The average subscription price of the native token BZZ was about 0.25 U. Subscription investment management institutions mainly included KR1, HashKey, NGC Ventures, etc. Judging from the information on the public list of institutional personnel, the lineup of institutional services for investment companies is not very luxurious.

Swarm is currently at the end of the test network, which has attracted a large number of miners and provided a 1 million bzz airdrop reward. Swarm has been tested to date with over 270,000 active nodes, spread across the globe (see below). Miners in the testnet create nodes to receive checks of different values ​​and can use the mainnet stage to cash out bzz. The timing of the mainline is uncertain.

Building Swarm test nodes has become a hot business. Many Swarm miners are actively selling Swarm nodes to retail investors, and the prices of individual nodes are also different.

In addition, not long ago, there were not many BZZ shares subscribed by institutions in the resale market for investors in the currency circle, and the price level of BZZ privately placed outside the market has reached more than 30 US dollars. If we calculate according to the average price of BZZ private placement at 0.25 US dollars, the profitability of early education institutions and investors has reached 100 times.

Early investors sold private equity stocks, retail investors snapped up BZZ stocks or swarm test nodes outside the market, and miners actively participated in the test network and sold swarm nodes. The seemingly contradictory phenomenon is worth pondering.

Group economic model is unclear

Judging from the information currently released by Swarm, less information can be found about the economic model. BZZ issued a total of 62.5 million copies (first release, there may be additional issuances), and the issuance status is as follows:

Filecoin

The Swarm Foundation will use 50% of the initial issuance of BZZ for fundraising and 20% for the team. And they can’t see that BZZ is allocated to miners for mining, which is quite different from the routes of many Chinese and other information storage management projects.

Economic models determine the life and death of blockchain projects to a certain extent. What is the position and role of Bzz in the group network? What are the values? Although there is no explanation in the white paper released by swarm, the sale of bzz private equity funds is very common at this time, and the unclear economic model hides huge risks.

The mining mechanism is uncertain

Currently in the test network stage, as long as a connection is established between the nodes of the Swarm network, there is a chance to get a check and exchange it for BZZ. Checks of different denominations mean different probabilities of exchanging BZZ.
  Three major problems of Swarm to be solved, Bzz head mine bonus, Bzz return cycle

The mechanism of the Swarm test network gives miners a greater opportunity to cheat. It is reported that because BZZ node companies do not necessarily need funds to occupy too much information storage time space and computing teaching resources for students, Swarm miners have opened multiple virtual machines on one smart machine to run multiple Swarm nodes. Then connect through the relationship between different network nodes to get more tickets. This means that the cost for miners to run Swarm nodes is extremely low, and the Swarm nodes bought by many small and medium-sized retail miners are not an independent Swarm mining machine.

According to the monthly report released by Spot, there are some differences between the future mainnet and testnet.

In the future main network stage, 35 highly connected nodes will be selected as the “queen” nodes in the test network, and the “queen” nodes will be the main force of the network to ensure the stability of the network. Group miners can only be considered valid if they communicate with the “queen” node, which is very different from the current test network mechanism.

Whether it is necessary to store data in the main network stage, whether it takes up too much computing resources, whether the bandwidth requirements of nodes are adjusted, etc. All of these determine the configuration of the mining machine.Three major problems of Swarm to be solved, Bzz head mine bonus, Bzz return cycle

Does Swarm’s application provide value?

Starting from the virtual square, it provides data storage and bandwidth sharing services for dapps in the virtual square, which is the external cognition of group positioning. As a storage protocol suitable for virtual parties, the group has designed a consensus process and infrastructure based on virtual parties. This means that the versatility of swarms is limited.

Swarm is more similar to IPFS protocol + Filecoin, and is more suitable for hot data storage. Swarm is more dependent on bandwidth resources and will bring huge value to Dapp data transmission and storage in the Ethereum ecosystem. However, at present, the number and data scale of Dapps are limited to some extent by the performance of the Ethereum public chain.
Three major problems of Swarm to be solved, Bzz head mine bonus, Bzz return cycle
In addition, Ethereum has developed support for the IPFS protocol in the data layer, and data analysis on Ethereum can be stored in the IPFS network (not the Filecoin network). Swarm has a market competition environment relationship with the IPFS protocol management to a certain extent.

How to determine its own positioning and application scenarios, how to better provide data storage services for Yitaifang, and how to accept challenges from external competitors will be the problems that Spot continues to face.

However, at the operational level, group data storage and bandwidth sharing services have not yet been realized, and bzz cannot obtain the value of bzz. How can the short-term value of bzz only be supported by consensus? Who will be the backbone of this support?