Shanghai, China — Alex Yang, a Singapore-based entrepreneur, founded HPool, a proof-of-capacity (PoC) mining pool that emerged as the top PoC mining pool in just four years. Yang recently discussed how the PoC mining pool is shaking up the blockchain industry at a press conference. He stated that after carefully studying various verification methods of the consensus algorithm, he found that both proof-of-work and proof-of-stake are not working and only PoC can trigger the most primitive spirit of Bitcoin (BTC). By making equity investments, Wanxiang Blockchain Labs helped Yang create a near-monopoly project in the PoC field, which he named HPool. The PoC mining pool was later upgraded by Yang and his team.
The role of the mining pool is to allow miners to concentrate their computing power and share their computing power income so that they can obtain a more stable income per unit of time. This has great significance in building a consensus in a decentralized network. Large miners can enjoy a stable return and small miners can obtain income on time, thus forming a virtuous circle.
In addition to the basic mining pool services, HPool also has a user service system that includes online status monitoring, offline push notifications and joint pledge mining, among others. These can lower the barriers for ordinary users to participate.
For a long time, HPool was in the top few PoC mining pools. In 2017, legendary programmer Bram Cohen retired from BitTorrent and started Chia, a decentralized hard disk mining blockchain project. Chia had close interaction with Yang’s HPool after three years. From 2018 to 2020, HPool was in a tepid state. An investment from Fenbushi Capital, a well-known name in the industry, further consolidated HPool’s leading position in the PoC sector.
In April 2021, the price of Bitcoin reached $63,000. The market capitalization surpassed Amazon, Tesla and Facebook, only after Apple and Google among those giants of enterprise. The value of Chia increased as well through the investment and support of Coinbase. As the world’s only listed digital asset exchange, Chia quickly started a whirlwind among miners. In the beginning, Chia’s cost could be covered by its returns in one week. From mining pools to individual miners, they all actively participated in this hard disk mining experiment and so did Yang, who began to promote Chia in HPool’s mining pool. With years of accumulated technical experience and the leading position in this industry, HPool was chosen by most miners as the link of their mining pool.
However, users reported in some forums that HPool was secretly deducting computing power, resulting in a decline in their earnings. Yang and the team studied the technical vulnerabilities and data broadcast to identify the problem. Afterward, they began to dispel rumors by using simple words to explain the technical principles and computing power issues in major forums, media and websites.
On the other hand, the popularity of Chia made the mining rigs difficult to buy. Some suppliers began to sell the mining rigs under the name of HPool, hoping to get more profits from it. Later, when the price of Chia dropped, they published radical articles under HPool’s name, trying to lead the conflict to the official organization. This caused many miners who bought mining rigs to go to HPool, asking for an explanation and solutions to which HPool had to explain the situation to customers one by one. At the beginning of this incident, Cohen, founder of Chia, chose to stand with the miners in criticizing HPool, asking users not to use HPool because of the problem of stealing computing power.
Faced with the crisis, Yang shared the latest technical knowledge with the miners while also dealing with the remaining problems of the mining rigs business. At the same time, he actively contacted Chia officials and provided all necessary materials to show the fairness and transparency of HPool. With Yang’s continued efforts and the improvement of Chia’s mining ecology, the crisis was finally resolved. Miners found that HPool could get the highest profit compared to new mining pools. HPool withstood the test of the market and since then, HPool has been firmly occupying the top position in the global ranking of PoC and Chia mining pools.
In the near future, more mining pools will participate in the competition and share HPool’s market. But for Yang, clarification of various misunderstandings remains the top priority. Secondly, PoC mining pools can flourish. Each mining pool has its own characteristics and a sufficient number of service providers of mining pools can bring positive competition to the industry, therefore better meeting the different needs of various users.