The digital era has brought changes to all walks of life. However, more and more people are feeling trapped in the digital system, creating a sense of oppression. Deliveryman, doctor, librarian … every industry has trapped a group of people.
The development of blockchain accelerated the progress of the digital era. Cloud mining, as the top component of this industry chain, has lowered the entry barrier for cryptocurrency and accelerated the primitive accumulation of capital for some people. The rags to riches effect attempted more people to participate. Today, we are going to discuss what is trapped in the field of cloud mining.
The rights and wrongs of cloud mining power platform
According to relevant statistics, the global cloud mining industry is expected to reach $270 billion by 2022.
Cloud mining power is the quintessential engine of the digital economy. The existing public cloud is basically a centralized monopoly. It not only wastes the mining power of terminal equipment resources but also threatens data privacy and security. It hinders the service flow of cloud mining power platforms, results in an elevated operational cost.
There are several other traps. Many cloud mining agencies adopt centralized services. Their mining income data is rigged. Take Filecoin as an example. Its users often find it difficult to distinguish the effective storage mining power from the ineffective ones. Hence, their users cannot obtain genuine node information. There is no transparency in mining incomes. Due to the poor liquidity of the platform’s mining power and the lack of financial services, large amount of user capital is trapped on the platform. This results in a no-win situation. Miners lose their credibility. Users have to sue for their rights. Capitals are trapped. Product operation will become more difficult. Users are miserable due to unsatisfactory income.
How to determine if a cloud mining power platform is reliable and viable?
Simply put, cloud mining is a way for mining farm operators to sell their mining power to different investors. With the emergence of more and more cloud mining power platforms, it is crucial that we must choose a reliable platform.
Whether it is a centralized cloud mining power platform or an innovative decentralized cloud mining power financial services platform like DMEX, users should always have the ability to distinguish a good platform from the bad ones.
First, we must look at the operation. Centralized cloud mining power platforms often have a dark history such as debt disputes. Users must be careful to avoid those platforms with non-transparent mining power data and insufficient operation funds. In order to be successful at cloud mining, one must pay enough attention to the quality of the mining pool. The mining pool must be able to guarantee a stable operation of the mining power. They must also provide effective mining power to the users.
Another important criteria is whether the platform is supported by actual mining farms. A trust-worthy centralized cloud mining power platform is generally willing to take the initiative to disclose information on their mining farm. Investors should avoid contact with Ponzi schemes.
Innovation is also an important criteria. One year in blockchain might equal to a decade in the other industries. There are numerous new investment opportunities almost constantly. From traditional PoW mining to transaction mining, then to DeFi liquidity mining. Innovation comes ceaselessly. Recently, there is a new practice to tokenize mining power into NFT. This creative practice by DMEX is becoming the focus of innovation by combining traditional finance’s ABS with DeFi. This improves the liquidity of mining power and liberates a large amount of funds.
The efficient and transparent digital era places great emphasis on trust and transparency. Blockchain technology acts as a safeguard. If all data can be uploaded to the chain via smart contracts during the cloud mining process, there will be no space left for dodgy centralized double-dealings.
Before we invest, we must understand a basic principle that trust is often more important than profit. Suppose if there is any problem with the platform, investors can only find someone to sue. This is a rather passive strategy. However, if the entire cloud mining process can be systematically managed by DAO governance mechanism such as the one on the DMEX platform, it will greatly enhance the efficiency, safety, and transparency of the funds for both miners and users. After all, a good mechanism can bring out the positive side of human nature.
In addition to understanding the operating model and the background strength, we must also consider human factors. After all, wherever there is human involvement, there will be weaknesses of human nature. As Luo Zhenyu mentioned in his new year speech, each of us should learn to be responsible not just to a task, but also to the people behind the task. Otherwise it is easy for one to get trapped and exert a negative influence on others.
Indeed, life will become more transparent, more efficient, and clearer in the future. Only by taking responsibility can we think out of the box.