Quick overview of recent POW projects: Dynex, Microvision Chain

Since Ethereum turned to the POS model, most of the public chains that have received market attention also follow the POS model. Despite this, the POW model continues to evolve. Typical examples include KAS, which proposes a new POW blockchain model. Due to the continuous rise of KAS, new POW projects have gradually attracted investment and interest from the community. This article introduces several POW projects that have performed well in the market recently.

1. Market performance

Source: coingecko, LD Capital

Note: Data is accurate as of August 1, 2023.

The above table shows that these projects have been launched for less than a year, have a market cap of less than $50 million, and have achieved decent price gains in the past two months.

In addition, the teams behind Dynex and Neurai remain anonymous, while the co-founder of Microvision Chain (Twitter: @Jason_K0001) is Chinese, and the official website did not disclose specific experiences.

Second Narrative

Each new POW project emphasizes its unique narrative, in line with current market trends.

Dynex

Dynex is a neuromorphic supercomputing blockchain based on the DynexSolve chip algorithm. It employs the Proof of Useful Work (PoUW) method to increase the speed and efficiency of decentralized networks.

DynexSolve can run "neuromorphic chips" that outperform traditional computing methods at a variety of tasks. Neuromorphic computing is a natural platform for many of today's artificial intelligence and machine learning applications. Dynex aims to provide computing power for artificial intelligence, machine learning, financial technology, biopharmaceuticals, etc.

Dynex mainly uses GPU computing power. According to data from hiveon.com, DNX currently accounts for 14% of the computing power, making it the largest POW token in the platform's computing power range.

Microvision Chain

Microvision Chain aims to build a highly scalable POW public chain as the second layer of Bitcoin, improving efficiency and reducing costs. The agreement focuses on three points of improvement: 1) Application development based on smart contracts of UTXO accounts; 2) Built-in support for cross-chain decentralized identity protocols, all chain data belongs to one ID; 3) In order to attract new users, use Web3 applications No need to buy or hold cryptocurrencies.

According to the official website, the core team applied for a patent titled "Method, system and storage medium for layered cutting of data in blockchain transactions" in November 2021. The test network will be launched in May 2022, and the high-performance computing center has verified that the smart contract execution speed of the University of Science and Technology of China exceeds 5K TPS.

Neural

Neurai aims to be a comprehensive platform utilizing artificial intelligence algorithms for data analysis, predictive modeling, decision making, and connecting blockchain assets to IoT devices. Compared with Bitcoin and Ethereum, the main technical parameters of Neurai are as follows:

Source: Neurai official website

As seen, Neurai seeks to increase transactions per second, reduce transaction fees, and aims to support future smart contract implementations.

three. Computing power

According to the mining pool data, the computing power statistics of each project are as follows:

Source: Mining Pool, Ledong Capital

Note: Computing power unit: H/s is the smallest unit, representing one random hash collision per second, 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/秒 = 1000 PH/秒。

Comparing the computing power rankings of some leading and well-known POW public chains: BTC ranks 1st, BCH ranks 7th, BSV ranks 12th, KAS ranks 29th, DASH ranks 31st, LTC and DOGE rank 38th and 39th respectively. The ranking of Weishichain is relatively high.

It is worth noting that according to data from hiveon.com, DNX currently has a computing power share of 14%, which is the largest within the range of GPU computing power tracked by the platform, surpassing KAS tokens. Differences with Miningpool statistics may be due to different statistical methods.

Source: Hiveon

The following is the computing power trend chart displayed by Miningpool:

Dynex: There is an overall upward trend. Recently dropped due to an algorithm upgrade.

Microvision Chain: Hashrate fluctuates without significant growth or decline.

Neurai: The recent growth trend mainly comes from individual miners, and known mining pools are on a downward trend.

Overall, Dynex has an advantage in GPU computing power, which is generally on the rise. However, due to the recent algorithm upgrade, it has declined and should gradually recover. Moreover, as KAS turned to use dedicated mining machines, its previous GPU computing power was redirected to DNX mining, which further enhanced the computing power of DNX. The ranking of WeishiChain is relatively high, but the degree of concentration and centralization is relatively high, showing a fluctuating trend. Neurai has a higher degree of decentralization, more individual miners, and computing power is on the rise.

Four. Economic model

Dynex

No ICO, no pre-mining, no team reserve. The total circulation is 100 million pieces, and 64.61 million pieces have been released, accounting for 64% of the circulation. The issuance speed is relatively fast, and it is estimated that about 80% of them will be circulated within two years.

The graph below shows the token issuance schedule and the number of tokens awarded per block over time. The reward of each block is gradually reduced according to a specific formula, forming a smooth curve.

Currently, the reward per block is approximately 173 DNX, and a block is generated approximately every 2 minutes. Based on this calculation, the number of tokens issued per month is approximately 2.67 million, and at a price of USD 0.6 per token, the value is approximately USD 2.2 million.

Microvision Chain

Microvision Chain's token issuance is not entirely a POW model. It also includes reserves for project and DAO builders, more like a combination of POW and POS models.

According to the release rules, about 274,000 pieces will be released every month in the first 1,000 days, about 3.28 million pieces will be released every year, and a total of 9.86 million pieces will be released in three years. Three years later, the circulation ratio will reach 47%. If calculated on the basis of US$12, the monthly issuance value is US$3.28 million, and the annual issuance value is US$39 million.

Neural

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

If calculated according to the price of 0.00081, the value-added amount per month is about 810,000 US dollars, accounting for about 17% of the current market value.

It can be seen that the token distribution of Dynex and Neurai follows the complete POW model. 65% of Microvision Chain's tokens are not distributed in the POW mode, and the project party has significant control. Early miners hold significant amounts of coins for all three coins. These coins are both potential selling pressure and potential buying momentum.

5. Worry

Among the above three projects, the most vulnerable to scrutiny is the strength of the team and the feasibility of the technology. In the Dynex and Microvision Chain communities, FUD (fear, uncertainty, doubt) is occasionally expressed to the project team. The main concern is that the papers published by the project team appear to be "cobbled together" from various sources, and the videos they show do not represent the new technology, but merely the skin of the concept.

These three projects require strong research strength and technology development capabilities. Dynex and Neurai are run by anonymous teams that do not reveal membership information; while Microvision Chain does have semi-public co-founders (eg via Twitter and interviews), they lack industry recognition and experience with other high-profile projects.

At present, many investors engaged in such projects have profited from the investment of KAS. There is some degree of overlap within the community.