BFC could be the biggest dark horse in 2020
Mortgage mechanism raises blockchain revolution
Two problems have bothered the blockchain industry forever: hashrate monopoly and miner keep selling short. Too many projects collapse on these two issues and never come back again. Devs and experts have been fighting the two issues and now BFC may have finally solved it.
What is BFC mortgage mining?
BFC adopts a mortgage system and improves PoW into CPoW. Basically, miners mortgage a certain amount of BFC according to hashrate. Currently, miners are required to mortgage 300 BFC per 1KH, otherwise, only 30% of mining rewards can be obtained and the project Foundation gets the rest 70%. Moreover, unmortgaged mining revenue decreased by 1% each week until it reaches 5% eventually. The current unmortgaged mining revenue is 22% starting from 29 Dec 2019.
300BFC/1KH is the initial mortgage ratio. After the whole network hashrate maintains and exceeds 6MH for over two weeks, BFC will initiate dynamic mortgage and will reduce the difficulty and adjusted every two weeks. The first dynamic adjustment will happen in about two months according to miner community prediction. However, the specific decline has not been disclosed.
How to overcome two major problems？
By adopting Cockaroo 29 algo, BFC could effectively resist ASIC and avoid hashrate monopoly. The mortgage mechanism makes 51% attacks almost impossible for BFC. Unlike other coins where miners keep selling short. As unmortgaged rewards will turn to 5% four months later, miners are unwilling to sell reward BFC, hence mortgage mode effectively reduces the market circulation rate and makes BFC a long market.
At least for now, BFC has overcome the two long-standing problems facing by the blockchain industry.
Is mortgage mode safe?
Holders could release mortgaged BFC by clicking the redeem button on the pool and BFC will only release back to the holder specified address. Release back to holders specified address is the only move that pool could operate. The BFC will release back to holder address after 1152 blocks confirmation, around 4 days. Another good way to prevent huge price fluctuation. However, Some holders complain that the redeem button should be on the local wallet, not on the pool. According to miningpoolstats, currently, there are 1.28million BFC mortgaged in four pools, among which BFCpool accounts for 1.05million.
Also, BFC created an official platform duobi.cc where miners and holders could cooperate. Basically, a place where miners rent BFC from holders and split revenue on a certain proportion.
High revenue
According to miner OS, BFC full mortgaged revenue holds absolute leadership in the market. The mortgage mechanism scared away many traditional miners at first, but under high profit and growing confidence, more and more miners start to accept mortgage mode. F2pool shows that BFC daily produced ranking is set to surpass XMR and DASH.
Long market
By prevent hashrate monopoly and reduce market circulation, BFC tries to build a long market. Its ultimate goal is to achieve the ecological cycle as shown below.
BFC listed on MXC and Digifinex now. According to informed sources, mainstream exchanges are approaching BFC. In the first half of 2020, BFC will face two major milestones, namely unmortgaged rewards down to 5% and dynamic mortgage. BFC price should increase significantly by then maybe reach $50 based on a conservative estimate. If everything goes well, BFC will be the biggest dark horse in 2020.
Useful links
Official site: https://www.bitfree.vip/en/
Explore: https://explore.bitfree.vip/
MXC: https://www.mxc.com/trade/easy#BFC_USDT
Telegram group: https://t.me/bitfree_Cash
Mining Tutorial: https://blog.f2pool.com/en/mining-tutorial-en/bfc_en
