Boxmining v2

Author: Michael Gu

  • The PIT Exchange Review: Blockchain.com’s secret weapon

    The PIT Exchange Review: Blockchain.com’s secret weapon

    The PIT is a high performance cryptocurrency exchange which supports extremely high performance, security and access to a network of banks for fiat trades. The PIT is made by Blockchain.com, a cryptocurrency industry veteran who’s blockchain explorer and wallet is used by millions. To build the exchange, Blockchain.com hired trading veterans from NYSE, Google, Goldman Sachs, UBS and TD Ameritrade. The key selling point for The PIT is the efficiency and fairness of the custom “Mercury” trading engine coupled with the large 40M audience Blockchain.com already has.

    In this review we’ll take a deep dive a the trading features on the PIT, trading and withdraw fees, security and an assessment on liquidity.

     “We decided to take matters into our own hands, and built an exchange that puts users first, including the 40M wallets on our platform.”

    Peter Smith, CEO of Blockchain.com

    Buy Crypto directly with USD or EUR

    One of the biggest selling points of The PIT is the ability to buy cryptocurrencies with USD or EUR. As a regulated exchange, The PIT has bank accounts in good standing in both the US and European Union. This customers can buy Bitcoin without paying expensive credit card fees (Binance’s Credit card issuer charges 5% to buy cryptocurrencies). Being regulated also means The PIT has already obtained the necessary audits and permits necessary for operating an exchange.

    Daily Clearing to Fiat

    A big selling feature for the PIT is the daily clearing of fiat to a network of top banks in Europe and US. This drastically prevents liquidity issues when it comes to fiat, such as failures to withdraw Fiat. This feature will be most attractive to institutional investors (Supported by the PIT Pro) who need direct access to large quantities of fiat.

    About Blockchain.com

    The PIT is created by Blockchain.com, the first company to establish a blockchain explorer for Bitcoin. Blockchain.com was launched in 2011, with the website blockchain.info and blockchain.com. In 2013, they launched a Bitcoin wallet for iOS and Android. In 2014 Blockchain.com closed the second biggest digital currency financing around of $30.5 Million fundraising from Lightspeed Venture Partners and Moasiac Ventures.

    Simple trading interface

    The PIT offers a simple, ease to read trading interface. Trading history, order book and price history is very cleanly presented on the trading interface. The front-end also supports a large degree of customization, allow users to use TradingView to draw patterns and trends.

    The PIT exchange fees

    The PIT charges trading fees using a tiered system based on the amount of USD traded. In the starter tier, fees start at 0.14% for makers and 0.24% for takers. Maker fees decrease substantially as trade volume increases, with the lowest maker fee at 0.02% for trade volumes above $1 Billion USD.

    Tier Volume in 30 Days Maker Taker
    1 $0.00 – $99,999.99 0.14% 0.24%
    5 $2,500,000.00 – $4,999,999.99 0.04% 0.18%
    10 $20,000,000.00 – $24,999,999.99 0.03% 0.14%
    15 $1,000,000,000.00+ 0.02% 0.05%

    Is The PIT secure

    Whilst the PIT is a new cryptocurrency exchange, Blockchain.com has been in the cryptocurrency industry since the beginner. Blockchain.com has been providing wallets to millions of cryptocurrency users with an excellent security record. This gives Blockchain.com a strong reputation and presence in the industry. This puts Blockchain at the top of the list for security (however, we always recommend users to take funds off exchanges for long term storage and into their own wallet, such as the Ledger Nano X).

    As an added security measure, there is an optional feature to bind The PIT account with the Blockchain mobile wallet. This will provide additional account security.

    What coins can you trade on The PIT

    Currently the PIT supports the trading of Bitcoin (BTC), Ethereum (ETH), USD, Bitcoin Cash (BCH), Stellar (XLM), Paxos Standard (PAX), Litecoin (LTC) and USDT.

    The PIT Exchange Review

    Review Score: 4.5/5

    The PIT has three major advantages – abundance of users, access to a network of bank accounts in US & EU, and long term reputation in the crypto space. Whilst 2019 saw a sudden influx of exchanges, most don’t have licenses to work with banks or passed audits. With a simple to use, yet highly customization interface, the PIT is easy to use for new traders and also feature rich for experts.

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    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • Telegram Open Network delayed, willing to return money to GRAM investors

    Telegram Open Network delayed, willing to return money to GRAM investors

    Telegram, one of the world’s leading messaging apps, has been forced to delay the unveiling of the Telegram Open Network (TON) and issuing the GRAM token. Telegram’s Open Network was one of 2018’s hottest projects, garnering over $1.7 Billion dollars of investment over 3 phases. Many viewed telegram’s networks as a way to bring more masses into the decentralized ecosystem, as the messaging app had over 400 million monthly active users. The $GRAM token was planned to be integrated directly into the Telegram App along with support for smart contracts. On top of this, TON also offered smart contract features – allowing for Decentralized Finance (DeFi) and other applications. The network was originally planned to be released on April 30th, but the Russian based company released a letter to their investors (in Russian) on the 29th April, saying this would have to be postponed for another year at the latest.

    This news comes as a disappointment to many investors who were expecting TON to rival projects such as Facebook’s Libra (also delayed). These projects directly compete with Central Bank Digital Currencies, which are gaining traction with the launch of China’s DCEP. Although many may have attributed the change in release date to the current Coronavirus pandemic which has brought the world to its knees, it is in fact down to regulatory concerns.

    Legal troubles with the US Securities and Exchange Commission (SEC)

    The letter claimed that the decision was brought about, “in light of the recent US district court decision.” The case they are referring to is last month’s decision by a US judge that the company could not proceed with any blockchain projects or issue tokens until they resolve their dispute with the US Securities and Exchange Commission (SEC). 

    Last October the SEC sued Telegram for violating its laws and selling its gram tokens illegally. The commission was alerted to Telegram after they made $1.7 billion from their initial coin offering (ICO) of their Gram token. This pre-selling was not authorized by the SEC and was out of step with securities law. 

    This SEC problem is something Telegram is finding hard to shake off. They were forced to delay their TON blockchain before, going from October 2019 to April 2020. Now they have been forced to delay even further. 

    Financial difficulties

    The life of Telegram CEO and VKontakte founder Pavel Durov - Insider
    Pavel Durov, CEO of Telegram Inc

    Each time the network is delayed, Telegram and the CEO, Pavel Durov, are also losing money. The latest delay has really hit them hard. Per the letter to investors, those who have added to the project will receive 72% of their money back. However, those who wait until April 2021 will see 110% of their initial investment returned. 

    However, how the money or Gram tokens are returned to investors is a little up in the air. The letter looked to calm investors, who made their decisions last Friday, saying: “We are continuing to engage in discussions with the relevant authorities in connection with TON and the issuance of tokens to the original purchasers.”

    The letter continued: “If we obtain the relevant permissions prior to April 30, 2021, purchasers who opted for the loan will have the further option to receive Grams or potentially another cryptocurrency on the same terms as those in their original Purchase Agreements (to the extent allowed by applicable regulatory restrictions).”

    Either way, this blockchain and cryptocurrency creation must be a costly venture for Durov, especially now investors funds are being reimbursed. The Telegram CEO said in the letter that he would be paying off the debt incurred through equity. 

    “With 400 million monthly users and organic growth of 1.5 million sign-ups each day, Telegram is the # 1 most downloaded social media application in 27 countries… Based on the valuation of messaging services at similar stages of their growth, we believe Telegram’s equity value will exceed the aggregate amount of its potential debt resulting from this offer by at least several times,”

    Pavel Durov

    Fake Telegram Refund services

    After the announcement of the GRAM refund, several scams have emerged offering fake “Telegram Token Refunds”. These services typically ask victims to pay them in advance with the promise of a larger sum refund. These of typical cryptocurrency scams that will immediately run away with the victim’s funds.

    When will Telegram Open Network be launched

    According to the latest investor newsletter, TON’s earliest launch date would be 2021. TON has suffered various delays due to regulatory issues, such as the pending investigation by the US Securities and Exchange Commission (SEC).

    Is there a refund for GRAM

    For legitimate purchasers of GRAM, there is a 110% refund for investors (non-american) and 72% refund for american investors. Please be-aware of Fake Telegram Refund services that ask you to pay money.

  • Unstoppable Domains: Get ready for a censorship immune future

    Unstoppable Domains: Get ready for a censorship immune future

    Unstoppable domains is a new type of internet domain built on Web 3.0. The key feature of unstoppable domains is that it’s censorship-resistant – it is impossible for any single entity to demand the removal of a domain. This is important as we experience more and more censorship on the internet. Ultimately the goal of unstoppable domains is to make the internet censorship resistant and information freely accessible. Instead of relying on centralized services to buy and sell domain names (eg, Namecheap or GoDaddy), Unstoppable domains uses decentralized platforms Ethereum and Zilliqa Blockchain as a neutral 3rd party. This gives registered domains censorship immunity as no government or entity can restrict or remove access to that domain. To further improve on censorship resistance, it’s possible to host the content on the Inter Planetary File System (IPFS) a decentralized hosting service where content cannot be removed.

    One of the first uses of Unstoppable Domains is the creation of easy to remember cryptocurrency addresses. One thing that scares people away from cryptocurrency is the address. A long mixture of letters and numbers almost freezes crypto users whenever they want to send or receive their digital wealth. However this can be simplified with Unstoppable Domains into a “.zil” or “.crypto” domain, such as boxmining.zil.

    What is Unstoppable Domains?

    Unstoppable Domains has been working on its technology since 2017. They are software development company utilizing blockchain technology to give power back to the people and to ease the way people and cryptocurrencies interact.

    To enhance the interaction, Unstoppable Domains has borrowed some ideas from the internet both at current age and during its early days. For example, during the early days of the internet, users had to cram IP addresses, which were the only way to send messages from one person to the other. Although the system worked, memorizing numbers and periods “.” was just too much.

    To overcome the challenge, the IP address was placed behind the scenes and brought in the Domain Name Service (DNS). The DNS system made it simpler since a human-readable address was provided, and in the background, it was tied to the complicated IP address. Therefore, an internet user just typed the name, eg, Facebook.com, and the DNS system, having connected Facebook.com with its IP address, eased the way users saw and interacted with the internet.

    Using the same technique, Unstoppable Domains seeks to put the complex cryptocurrency addresses behind a human-readable name. As such, instead of directly sending cryptos to an address, you use the human-readable name.

    The concept behind Unstoppable Domains is succinctly explained by its CEO, Mather Gould, “We’ve been crypto enthusiasts since 2012 and have believed that crypto payments were too complex to go mainstream. Just like IP addresses were replaced with DNS system, we believe cryptocurrency addresses will be replaced with human-readable names.”

    “.crypto” domain for all crypto addresses?

    Recently Unstoppable Domains announced the “.crypto” blockchain agnostic domain. The idea behind this domain is to unify cryptocurrency addresses for Bitcoin, Ethereum, Ziliqa and more.

    How to use Unstoppable domains with IPFS

    Unstoppable domains added the a new feature to work with uncensorable decentralized file hosting service IPFS. This will allow content to be permanently hosted on the internet with full immunity to government or political interference. IPFS hosts files spread across multiple locations in a decentralized fashion, so even if one server is taken down the content will still be accessible.

    Claim protected brand names on Unstoppable Domains

    To prevent phishing and domain name stealing, Unstoppable Domains automatically protects brand names like apple.crypto and boxmining.crypto. Only verified identities can claim such domain names via the free claim tool:

    One name for all your cryptocurrency wallets?

    That’s not all; you will only require one name for all of your wallets. Yes, just one. You see, Unstoppable Domains is looking for ways of driving crypto adoption. One of those ways is to make sending crypto as simple as sending mail.

    Therefore, friends can send you Bitcoin, Ether, Litecoin, etc., using a single name. Then, in the background, the technology from Unstoppable Domains routes the different cryptocurrencies to their respective wallets. This even eliminates the need for scanning QR codes since reading them is not 100 percent accurate.

    Connecting with the Zilliqa Blockchain

    Unstoppable Domain’s version of DNS is built on the Zilliqa blockchain.

    Zilliqa is a scalable smart contract blockchain ecosystem that facilitates the creation of scalable decentralized applications.

    However, Zilliqa is only providing a platform for Unstoppable Domains to build their blockchain-focused DNS. This means that the blockchain name service, although built on the Zilliqa platform, supports external cryptos like Ethereum, Bitcoin, Stellar Lumens, etc. It also supports the use of credit cards.

    As it is built on the Zilliqa blockchain, the domains will have a .zil extension.

    Unstoppable or Censorship-resistant Domains

    Apart from helping in the general public easily interact with cryptocurrencies, Unstoppable Domains is keen on providing censorship-resistant domains.

    With these domains, the owner of the domain name has complete control of the domain and its contents. Traditional domain assets are stored on your behalf by custodians, for example Google.

    However a blockchain domain is stored in your cryptocurrency wallet which only you control. Therefore, no company, law enforcement or even Unstoppable Domains themselves can take it from you.

    It does not end there. The information used to register your domain remains private; you can choose not to give any personal information. This means that it is hard to track an individual using the data provided. Also, the content provided on the website cannot be censored by a third party; you are in full control.

    Will Unstoppable Domains be Unstoppable?

    Unstoppable Domains are setting up for a challenging journey which will see cryptocurrency being adopted by more people. Additionally, with
    censorship-resistant websites, the control is finally given back to the people.

    Unstoppable Domains certainly has the firepower to become unstoppable. They have recently announced that it secured US$4 million in funding in Series A led by Draper Associates and Boost VC. They have also received grants from the Ethereum Foundation and Zilliqa Foundation.

    Unstoppable Domains announces it raised US$4m

    In their AMA with CEO Matt Gould on 15 May 2019, Unstoppable Domains revealed their development roadmap for 2019. Over this summer they will be working on fiat un boarding and privacy tools. In fall, the majority of the focus will be websites. (Phentermine)

    On the retail side, the auction for the top .zil names will end in Summer 2019. Afterwards, anyone will be able to buy their own .zil name. Looking further, in Fall and Winter 2019, website and browser support is expected to become functional.

    Unstoppable Domains' roadmap for the remainder of 2019
    Unstoppable Domains’ roadmap for the remainder of 2019

    Final Review Verdict

    Unstoppable domains delivers a new way to prevent censorship at the domain lever using blockchain technology. Development and adoption is accelerated by the team’s recent $4 Million Dollar Series A raise lead by Draper Associates. This new round of funding gives the team more funds to form partnerships to increase adoption. Currently we’re waiting for more cryptocurrency wallets to accept the .zil addresses – currently MyCrypto and Moon are set to integrate it soon.

    Pros:

    • Strong Backing and team to deliver products
    • Good use of Blockchain technology (Zilliqa Blockchain)
    • Clean User interface

    Cons:

    • Pre-sale only – adoption and integration is coming soon

    Review Score: 4.5 / 5

    Reviewed by Michael Gu on May 31
    19/10/2019 Updated to include the .crypto domain

    Resources:

    Unstoppable Domains Website: https://unstoppabledomains.com/
    Telegram Channel: https://t.me/unstoppabledomains
    Unstoppable Domains News Update: https://www.asiacryptotoday.com/unstoppable-domain-why-blockchain-needs-it/

  • Crypto Mining Company, Ebang, files for $100 Million US IPO

    Crypto Mining Company, Ebang, files for $100 Million US IPO

    The cryptocurrency mining and hardware production company Ebang has just filed for a $100 million USD initial public offering with the US SEC. This filing not only shows the there is a market for Bitcoin mining, but that the industry in high demand. Ebang’s annual revenue is $109 million last year, despite falling cryptocurrency prices. The annual production of Bitcoin is worth $3.5 Billion USD at current Prices. Miners need new hardware as new chip technologies, such as those produced by Ebang, is both more powerful and energy efficient. In 2019, 82% of Ebang’s revenue came from application-specific integrated circuit (ASIC) chips.

    Moving to 10nm production is expensive

    One of the reasons for Ebang going public is to move to even more advanced technology and production techniques. In chip manufacturing, moving to smaller node sizes, such as 10nm makes the miner more powerful and power efficient. Ebang’s new mining chip, the DW1233 is independently developed and based on the new 10nm production process.

    Although the Bitcoin price started to recover in the second quarter of 2019, our operations generally lag behind the increase of Bitcoin price.

    Ebang Press Release

    Failed IPOs and Second Chances

    This is Ebang’s second attempt at an initial public offering, after they failed to file for an IPO with the Hong Kong Stock Exchange (HKEX) in 2018. The initial IPO was not granted by the HKSE after 6 months of application, indicating it was not accepted by the HKEX. This time around Ebang has a smaller raise of $100 Million USD as opposed to the first filing, which valued the company at $1 Billion dollars.

    Cryptocurrency mining ecosystem

    Large cryptocurrency mining hardware manufacturers have all been seeking Initial Public Offerings as a method to raise capital for expansion. Part of the reason is the growing market Bitcoin and cryptocurrency ecosystem.

  • Webinar 30th April: Will DeFi be secure enough for to replace banks?

    Webinar 30th April: Will DeFi be secure enough for to replace banks?

    This year were seeing the rise of Decentralized Finance (DeFi)— a new application of decentralized Blockchain technology that is poised to replace the trillion dollars Global Finance industry. However, recent events such as the dForce hack has shown us that hackers can exploit weaknesses in smart contracts and steal money. It’s almost like robbing a bank, except in this case the bank is flush with crypto AND can’t defend itself. In the case with dForce, the hacker stole $25,000,000 USD (talk about a good haul) and with crypto transactions we know this is not reversible. Luckily in this specific case, the team managed to negotiate with the hacker and they volunteer to return the money back.

    This whole incident highlights a big problem — DeFi applications hold huge amounts of assets and vulnerabilities in the code could lead to theft of the entire balance ( which could eventually mean millions of trillions of dollars). 

    In this special webinar held by the OKex acedemy talks we assemble 3 Blockchain security experts to discuss how to improve security in DeFi.

    Yu Guo — Secbit Labs

    Georgios Delkos — CertiK

    ZhengChao Du — Slowmist

    Moderated by: Michael Gu 

    Join us on April 30th 2020 @ 12:00pm UTC 
    👉Webinar: bit.ly/2yFnkhK

  • Bitcoin Mining Guide (2020)

    Bitcoin Mining Guide (2020)

    Bitcoin Mining is the process of using specialized computer hardware to earn Bitcoin. The annual production of Bitcoin via mining is $3.5 Billion dollars, with most of that Bitcoin going to Bitcoin miners. As miners earn rewards in Bitcoin, their profits can change greatly on market conditions – making Bitcoin mining a high risk / high reward industry. Anyone can join the Bitcoin network and become a miner. In fact originally Bitcoin can be mined on all personal computers and commonly available hardware. However, in 2020, specialized hardware called Application Specific Integrated Circuits (ASICs). These machines mine Bitcoin at a very efficiency.

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    Bitcoin is now a household name. For an invention that is just over a decade old, this is certainly remarkable. A mysterious entity by the name Satoshi Nakamoto launched Bitcoin in 2008 as an alternative to central bank currency. Bitcoin mining is an alternative to obtaining Bitcoin on top cryptocurrency exchanges. Miners often sell Bitcoin on Over-the-Counter brokers to generate passive income.

    Learn more about Bitcoin with our simple guide for beginners.

    Decentralization is a central tenet of Bitcoin. Essentially, no single person controls either the issue or functioning of Bitcoin. This system can, therefore operate and transfer funds from one account to another without centralized control. 

    Centralized control of a financial system is pretty easy. How then, does a decentralized ecosystem like Bitcoin work? The important question therefore is; how does the ledger automatically update transactions without giving either entity power to control to entire blockchain? 

    How Bitcoin Mining Works 

    The basic feature of Bitcoin is the open-source nature of the Bitcoin protocol. This means that anyone can access and update the Bitcoin code. Similarly, anyone can update the Bitcoin ledger of transactions. All that needs to be done is for your computer to guess a random number that solves an equation from the system.

    The more powerful your computer is, the more guesses it can make per second. Accordingly, having a powerful computer exponentially increases your chances of “guessing right”. This allows you to add the next “block” of bitcoin transactions to the existing chain.  

    A more complicated representation is as follows. On the one hand, you have your miner that makes “guesses”. If your mining equipment makes the right guess, you get the right to add the next block of transactions to the blockchain. The block you create is sent to other computers so that they can validate it.  At the same time, other computers in the network validate the block and update their copies of the Bitcoin blockchain. More computing power translates to greater frequency of making the right guesses. However, in line with natural rules of probability, it is virtually impossible for one computer to get it right all the time. 

    This process is what Bitcoin mining entails in a nutshell. Computers compete to add the next block and in the process generate new blockchain which automatically goes into the network. The computer that solves the block earns a “block reward” and some transaction fees on the transactions entered into the blockchain. Uniquely, the process of validation is automatic and does not rely on centralized control. Miners can decide to hold the bitcoin they create or trade it to other bitcoin community members.  

    Bitcoin Mining Hardware

    In order to profitably mine Bitcoin, you’ll need specialized hardware called ASICs. These machines are designed to specifically mine Bitcoin’s SHA256 algorithm – in essence they only do one thing but do it well.

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    Mining Difficulty 

    Perhaps, you are thinking, if it’s that straightforward, what makes Bitcoin valuable? Well, Satoshi Nakamoto in anticipation of this made mining difficulty increase as computing power increased. The mining difficulty automatically adjusts to the increase in cumulative network computing power as more miners get involved. 

    AThe reason for this is to keep Bitcoin inflation in check. See, if there is a steady stream of Bitcoin, it is easier to have stable rollout process. When Bitcoin was first launched, you could profitably mine Bitcoin using a personal home CPU. As Bitcoin became more popular, miners moved to GPU (Graphics processing Units) to carry out more calculations. A GPU can enhance a computer’s computing power to the equivalent of 30 regular PCs.  

    Later, ASICs (Application Specific Integrated Circuits) came about. These were hardware equipment specifically to mine Bitcoin. Currently, they represent the gold standard in Bitcoin mining equipment and have occasional updates themselves. These ASICs have a higher “hash rate”, measured in hashes per second. Hash rate is the number of “guesses” the device can make per second. Consequently, the higher the hash rate, the higher the chance of earning bitcoins.

    Check out our video below to learn more about Bitcoin mining devices!

    Bitcoin mining-what do they use?

    Mining Pools 

    Even with top of the line mining equipment, the current mining landscape is incredibly competitive for individual miners. This has given rise to mining pools where miners combine computing power to compete effectively. If the pool successfully adds a block to the public chain, the pool spreads the reward among its members.  

    Currently, about a dozen large mining pools dominate Bitcoin mining. Mining pools charge you pool fees for participating which is something that can affect your profitability. 

    Top Bitcoin Mining Pools

    According to safestbettingsites.co.uk experts, there are 2 factors to consider when picking a Bitcoin mining pool – the location of the pool and it’s market share. The top priority would be location – the closer the pool is to you geographically the better. This is because sometimes due to network latency, shares that are mined could be “stale” – as new blocks are created rendering older blocks obsolete. It’s also important to know that Chinese servers are behind the Great Firewall of China, meaning that connections could periodically break. This means that choosing a server with low latency and close geographical location would give the highest yield.

    The second factor is the market share of the pool. The larger the market share, the more consistent the rewards. This is because blocks are continuously mined by the pool, and hence they can pay out at a consistent rate. This reduces the impact of the randomness of block creation.

    We recommend finding a pool close to your location with a high market share.

    Electricity Costs 

    Electricity is a major factor in Bitcoin mining. Bitcoin mining is certainly an electricity-intensive affair. This is because ASIC rigs have high computing power which the process of mining Bitcoin requires.  

    The high power consumption is in both powering the miner and cooling the machines which get really hot. This is why mining farms have cropped up in cold areas like Iceland to take advantage of natural cooling. 

    So, Is Mining Profitable? 

    This is a question that needs perspective. Mining on a personal PC is definitely not going to be profitable. This is because simple computers simply cannot compete with ASIC rigs and mining pools in terms of making more “guesses”. 

    So, the more computers you have and the faster your computer is- the greater your chances of generating the correct number and earning Bitcoin. Thus some people have entire farms of expensive computers to increase their chances.

    Currently, the block reward is 12.5 BTC for every block mined. Thus, you can only profitably mine Bitcoin with sophisticated equipment. Bitcoin mining farms are popular mining method to gain some of the block reward. Block rewards are set to half in 2020, reducing the mining rewards by 50%. This event is known as the “Bitcoin Halvening“. The current estimated date for the Halving is 13th of May 2020, after which the block reward will decrease from 12.5 to 6.25 bitcoin per block.

    One more obvious factor as to whether mining is profitable is the price of Bitcoin at any given time. Miners need to balance this with the expense of mining Bitcoin itself.

    Bitcoin Network Hashrate

    The Bitcoin Network Hashrate is currently above 120,000,000 TH/s. This means that if the hashrate of the network is coming for Antminer s17 (currently most popular type of Bitcoin ASIC), it would require 2.1 Million units. This would consume 5.4 Billion Watts of electricity, which is enough to power a small city! Mining rewards are split according to hashpower, with larger miners getting a high proportion of the daily Bitcoin mining reward.

    Summary 

    In summary, the following are factors which affect the profitability of mining Bitcoin:

    • Hashrate;
    • Block reward;
    • Mining difficulty;
    • Power consumption;
    • Pool fees; and
    • Bitcoin’s price at any given moment.

    Bitcoin mining is, therefore, a complicated task.

    However, investing significantly in a large mining pool is the most efficient way to go about it. The current circumstances make individual mining simply a waste of time when done on a small scale.  

    Nonetheless, it is still an activity that many investors have a significant stake in. The reality, however, is that the task will get progressively difficult with time and a select few with significant hashing power and cheap electricity will thrive.  

  • Bitcoin Mining will make a HUGE comeback in 2020

    Bitcoin Mining will make a HUGE comeback in 2020

    2020 is a huge year for Bitcoin mining. Huge changes to the mining ecosystem – changes that will spark another “gold rush” for mining. This will be spearheaded by two factors – the release of new more efficient mining hardware known as ASICs and Bitcoin halvening. The release of new hardware will give new players a bigger advantage in mining due to the efficiency factor – new ASICs generate more hashpower with less power. (https://www.sliderrevolution.com) We’re already seeing large funds like Fidelity Investments building large mega-watt mining facilities in North America and other continents. You can hare about the North America mining explosion in this podcast. This marks the return of mining as a major investment opportunity this year.

    Cryptocurrency Mining is a $6 Billion+ USD per year industry

    Sizes of Exchange, Mining, DeFi and ICO industries respectively

    One well-kept secret of the mining industry is the huge profits being generated by cryptocurrency miners (Bitcoin, Ethereum, DASH and Monero mining). Let’s start off with an industry Fact – every day $19,000,000+ USD dollars worth of cryptocurrencies are being produced by miners across the world. This means a total of $6.8 Billion dollars will be mined in 2020 alone. The biggest currency being mined is Bitcoin – with a 1,800 bitcoin being produced per day totalling to a value of $15,833,340 USD. To put everything into perspective, the ICOs only raised a total of $371 Million in 2019 according to icodata.io. Mining is currently the second largest industry behind exchanges (source: Bloomberg).

    Miners upgrading and replacing older hardware (often confused with “miner capitulation”)

    Ironically the miners have perpetuated myths such
    as “mining is not profitable” or “the bitcoin mining death spiral” to deter
    new players coming into this profitable space    . Many reports in 2019 have
    featured erroneous calculations that Bitcoin mining is not profitable. This is
    because researchers have incorrectly assumed that miners are getting
    expensive commercial electricity costs     of $0.07-12 cents per kilo-watt
    hour. This is far from the truth – mining operations receive considerable
    discounts as they purchase low priority power (meaning they will get cut off
    grid in the event of a surge in power usage). The actual figure is in the range
    of $0.01 – $0.03 per kw/h. This means miners are generating large amounts of
    profit. It is the biggest industry in the blockchain space, and yet it is
    surrounded by both mystery and false information.

    New
    Hardware (ASICs) is game changing

    New high efficiency Bitcoin mining hardware is coming in 2020 will be a huge game changer. Bitmain will be releasing the new Antminer s19 based on the 7nm manufacturing process. Competing ASIC manufactures are also making new chips, with Innosilicon and Canaan hot on the heels. This die shrink increase the hashpower of chips whilst reducing power consumption at the same time. These two factors mean these new units will be more efficient – the biggest factor contributing to Bitcoin mining profitability.

    Hashr8 – New MiningOS

    New operating systems dedicated for mining cryptocurrencies such as Hashr8 are also being launched this year. These OSes will make it easier for commercial, enthusiast and retail miners to improve mining efficiency and management. This is a huge positive trend for the industry as a whole as it makes professional tools mainstream and accessible to the general public. This will level the playing field and reduce the gap between large-scale miners.

    Sources

    Size of Defi Industry: https://defirate.com/defi-growth/
    Cryptocurrency Exchanges: https://hackernoon.com/where-the-multi-billion-dollar-cryptocurrency-exchange-industry-is-headed-f697af6fd7c0
    MinerUpdate: https://minerupdate.com

  • DASH mining guide (2020 Edition)

    DASH mining guide (2020 Edition)

    DASH mining is the process of generating new cryptocurrency using specialized mining machines known as “ASICs”. This guide teaches you the basics of DASH mining and how to set up your ASIC. DASH miners are specialized machines designed to solve the “X11” hash function used to protect the DASH network. When a miner finds a hashed result that meets the network difficulty requirements, it is submitted to the DASH network. Once verified, the miner will be rewarded in DASH cryptocurrency, thus generating an income for the mienrs. In order to mine DASH, you’ll need to get an ASIC. It’s no longer possible to mine DASH using CPU or GPU (unlike Monero or Ethereum mining).

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    What is DASH

    DASH (also known as Xcoin, Darkcoin) is a form of digital currency that is not controlled by any government or individual entity. DASH is based on Bitcoin technology, with some major differences between:

    • Anonymous transactions – DASH transactions are anonymous, so it is impossible to trace the source of DASH funds. This offers significant privacy benefits for DASH users.
    • Instant confirmation – Masternodes instantly confirm DASH transactions, whilst Bitcoin transactions take 10-30 minutes to confirm.
    • Low fees – DASH transaction fees are significantly less than Bitcoins or any other bank for that matter.
    • X11 Algorithm – DASH mining uses a different algorithm called X11.

    How Profitable is DASH mining

    Daily Revenue from mining rewards differ everyday – this is because mining difficulty changes and hence the daily reward. Revenue is dependent on the power of the Graphics Processor Unit (GPU) involved, with higher Hashrates being faster and more profitable

    • Network difficulty- Think of it this way, every day the same wage gets paid to all the DASH miners in the world.
    • The value of DASH– The current USD value of DASH is important for those seeking profits in fiat currency (USD) or even Bitcoin (BTC).

    What is X11?

    X11 is a chained hashing algorithm that uses 11 different hashing algorithms to secure the network (hence the “11”). The algorithms Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, Simd and Echo are used in sequence, repeated one after another until the very last function. This will give a final hash value which is then submitted to the blockchain if it meets the difficulty requirement. X11 is designed by Evan Duffield to improve the security of the blockchain. The reasoning is that if one of the algorithms are compromised, there are 10 others to continue to protect the network.

    The second reason X11 was designed is to make it harder to create mining ASICs (although we know that this is now possible). For a period of 2 years, it was possible to mine DASH using a conventional computer via CPU and GPU mining. However, this is no longer the case as chip makers have found ways to create high specialized X11 ASICs.

    DASH Pool Mining

    There are two main ways to mine DASH – solo mining or pool mining.

    Pool Mining (working together)

    • Work with others to mine and share rewards
    • Get paid per share, on a hourly or daily basis
    • Less random / dependent on luck
    • Pools take some fees (0.5-3% depending on pool)

    Solo Mining

    • You mine the entire block reward (3.11 DASH per block) – no pool fees
    • Random Chance and probability – you can go days or months without rewards
    • Not viable if Hashrate is low – single GPU will take years to mine a block

    Generally speaking, pool mining is the preferred method for most miners. This is because it provides a reliable stream of daily income, rather than large random bursts. Thus it allows miners to better calculate their profits and losses.

    List of top DASH mining Pools

    There are 2 factors to consider when picking a DASH mining pool – the location of the pool and it’s market share. The top priority would be location – the closer the pool is to you geographically the better. This is because sometimes due to network latency, shares that are mined could be “stale” – as new blocks are created rendering older blocks obsolete. It’s also important to know that Chinese servers are behind the Great Firewall of China, meaning that connections could periodically break. This means that choosing a server with low latency and close geographical location would give the highest yield.

    The second factor is the market share of the pool. The larger the market share, the more consistent the rewards. This is because blocks are continuously mined by the pool, and hence they can pay out at a consistent rate. This reduces the impact of the randomness of block creation.

    We recommend finding a pool close to your location with a high market share.

    Pool Market Share Location Reward System Pool Fee
    Antpool 26% Asia / China PPS (Pay per Share)
    PPLNS (Pay per last N Shares)    		 1-4%
    ViaBTC 17% Asia / EU PPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		2-4%
    Coinmine.pl 7% EU PPLNS (Pay per last N Shares) 0-1%
    dash.btc.top 4.7% China PPS (Pay per Share) 0%-2%
    miningpoolhub.com 1% EU
    USA    		 PPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		1%

    DASH Cloud Mining

    In 2020, DASH Cloud mining contracts are not profitable. This is because mining has become more competitive with lower margins – forcing miners to reduce costs. Cloud mining is hit the hardest because of they have large overheads like advertising spends and legal costs. In our latest research, we found that cloud mining providers were charging 184% for the same hashrate than home-made solutions.

    What else can I mine with X11?

    When you purchase a DASH miner, you’re limited to mining the X11 algorithm. X11 algorithm can mine coins such as Smartcoin, Pura, and Hatch. Admittedly, there are not many other good coins to mine using X11 ASICs, with DASH being the most valuable of the bunch. This is unlike other algorithms such as SHA-256 which is used in Bitcoin mining, Bitcoin cash and BitcoinSV.

    Masternodes vs. Mining

    There are two was to make a passive income on the DASH network – mining and masternodes. Like miners, masternodes also generate a DASH reward every time a block is created on the DASH network. The reward distribution is as follows:

    • 45% – Miners reward
    • 45% – Masternode reward
    • 10% – DASH treasure (DASH DAO – Decentralized Autonomous Organisation)

    As you can see, masternode node holders get equal amounts of rewards as miners. In order to become a masternode, a total of 1000 DASH must be staked by the node holder. At the current price of $60 per DASH, this means a total of $60,000 must be staked in order to gain masternode rewards.

    The function of masternodes is to provide additional layer 2 services to the network. This includes sending pre-approved transactions (InstantSend), improving security of the network (Chainlocks) and privacy features (PrivateSend). The 1000 DASH required by the masternode serves as collateral to ensure good behavior. If the funds are moved or spent, the associated masternode will go offline and stop receiving rewards.

    The biggest factor in deciding whether to mine DASH or getting a DASH masternode is the financial commitment factor. The advantage of a masternode is that the 1000 staked DASH can be fully returned at the end of operation, whilst mining equipment will become obsolete over time. In addition, masternode holders are given the right to vote in the DASH treasury which gives funding to future developments. The disadvantage of masternodes is the high initial investment, which cannot be less than 1000 DASH.

  • What REAL cryptocurrency mining looks like

    What REAL cryptocurrency mining looks like

    Cryptocurrency Mining can be tough to get started with – but there are always mining expert’s who are willing to lend a hand and share their wealth of experience. One such person is Alex Hillman, he runs cryptocurrency mining farm with over 300 GPUs. We asked detailed questions about how he got started, his mining setup and what advice he would give to beginners getting started with mining.

    Miner Bio: Alex Hillman

    Alex Hillman (@SpillyGuy) comes from a computer and programming background. He currently mines at 3 different locations, including dedicated warehouses and research labs. He mines with more than 300 GPUs, often times on multiple cryptocurrencies at the same time.

    Can you tell us about your mining operation (Where/ How many people are involved / Power usage)

    When the technology started taking off I knew it was something I wanted to be involved in with my computer and programming back ground. We currently run well over 300 gpus at 3 locations including dedicated warehouses and research labs.

    What type of setup – solo or pool mining do you use

    We tri or quad mine all of our gpu miners. Often we mine coins like Ethereum or Raven while dual mining something like LBRY or DECRED on the GPU extra memory. We accomplish this most cases with Claymore Miner. On the CPU we use a xmr-stak style miner to mine coins like Loki, Monero or Sumocoin.
    Last you can mine on pools that create extra tokens and with the fpga cards we do this as well.

    We mine on large pools like ethermine with a private
    workgroup of about 50 clients and friends to increase profits and luck factor.

    Do you use ASICs ?

    No we strongly disagree with the logistical cycle and ethics of building single use products like this that have such a short life span.

    Mining is Loud and Hot – have you ever been driven crazy by the noise or Danced around naked when setting up gear?

    I often jam while building but we try to do all of our
    thoughtful work away from the computers. But yes I have danced naked in the
    mines many times.

    What do you think is the biggest challenge when it comes to mining

    Having enough power to grow

    Do you ever dabble in speculative mining – if so what new coins are you into

    Yes spec mining can be wildy profitable. At the start we
    mined sumocoin about several hundred a week at 0.07 cents. We sold those coins
    at 14.00usd so it paid for our first dedicated miners.

    What happens when hardware breaks ? who repairs them?

    Spencer my business partner is the expert on trouble shooting most often its a software driver issue or a hardware issue like usb or risers going bad.

    What is the most controversial thing to happen to you?

    We helped attack the EOS and ADA blockchain with our GPU network in a effort to prove their lacking security.

    What advice would you give to a someone who wants to start out mining

    Start simple with a single computer at home. Use a gaming or work computer toss a good video card like a Nvidia 1070Ti or Nvidia 1080ti in it and start speculative mining first.

    Nvidia or AMD – which team are you on?

    Nvidia produces coins at a more efficent power rate and with
    far less loss and heat. Its really not a question amd is cheap and quick while
    Nvidia is the better option over time

    Cloud Mining – in your opinion are they legit or scam

    All a scam…. why would I rent you my money tree for any
    money less than it makes me. The business model is flawed from the start.
    Remote hosting is a thing but in most cases if someone is trying to rent you
    cloud mining they are hedging out their own risk by making you take it all.

  • China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative: Nationwide effort to adopt Blockchain

    China’s Blockchain Initiative

    China has start a country wide initiative to rapidly adopt Blockchain Technology and ‘urgently’ develop use cases. China’s President Xi Jinping personally appealed for a greater urgency to develop blockchain in-front of the Communist Party of China Central Committee. This sentiment was echoed in by state media People’s Daily published a front page article on “Placing Blockchain as one of the countries core initiatives, with a target on key breakthroughs“. On top of this, national TV station CCTV-2 had various news segments dedicated to discussion blockchain technology – with a key emphasis that Blockchain, not Bitcoin is China’s key focus.

    China’s leading newspaper, People’s Daily, calls for Blockchain Adoption

    This huge initiative to push Blockchain is clearly related to the launch of China’s National Digital Currency – “DCEP” (Digitial Currency / Electronic Payment). This new currency is issued by the People’s Bank of China (PBoC), and will act as both a replacement for Researve Money (M0) and as a digital cash. DCEP will initially be rolled out to banks affiliated with PBoC and eventually to the general public via Tencent and Alibaba.

    It is important to point out the DCEP will be a centralized & private blockchain. New currency on the network will be issued by the PBoC via authority from the Chinese Government. There will be no public participation in the network, unlike the decentralized Bitcoin network which uses Blockchain to form an open public consensus.

    Blockchain, Not Bitcoin

    One of the key areas of contention in the cryptocurrency space is whether a private or centralized Blockchains have value.

    • Opinion 1: Bitcoin, not Blockchain
    • Opinion 2: Blockchain, not Bitcoin

    Proponents of Bitcoin argue that Blockchain’s key value is that it allows for a decentralized network, a leaderless network where anyone can join, participate and verify transactions. The argument is that if the purpose of a Blockchain is record transactions like a database, centralized databases like MySQL or MongolDB will have higher efficiency than Blockchain. Thus, it would only make sense to use Blockchain when there is a need for public open consensus. Following this argument, cryptocurrencies like Bitcoin and Ethereum are neccessary for a Blockchain to function, as they play an intrinsic role in rewarding good actors on the network.

    Proponents of Blockchain argue that the Blockchain offers security and transparency, giving it a distinct advantage over traditional databases. China takes this argument one step further and actively discourages the use of cryptocurrencies and trading in cryptocurrencies (eg. Cryptocurrency exchanges are banned in China).

    Government condones “Air Coins” and Cryptocurrency Speculation

    State media People’s Daily have explicitly condoned cryptocurrency speculation and brought accusations against “air currency”. Air Currency, or air coins, is a chinese colloquial term used for cryptocurrencies that have no intrinsic value, very much like air. This move is designed to counter-act the surge in rushed venture capital investments into different cryptocurrencies in China, many of which don’t have a real use-case. In addition, the article explicitly called for illegal transactions and money laundering to be rectified, suggesting further enforcement actions against none state regulated cryptocurrencies. This heavy enforcement can be seen as a “stick” measure to push users away from decentralized cryptocurrencies into the centralized national currency, DCEP.

    “Blockchain is a Scam” is Censored by Social Media

    WeChat blocks articles calling Blockchain a Scam

    Experiments done by @cn_Ledger and other Chinese media sources have found that articles calling Blockchain a “scam” are actively being censored in China. Anyone posting these articles will find that they are quickly deleted and may face potential account suspensions. This type of media content control is standard in China once the Central Party issues a particular doctrine. Media platforms are quick to comply, or they will risk the removal of their ICP license.

    Cryptocurrency Mining is no longer “Banned” in China

    The Chinese Government is no longer pushing for the elimination of cryptocurrency mining (such as Bitcoin and Ethereum mining). This is a complete 180° reversal of government policy will take effect on 1 Jan 2020, meaning mining will a legal and taxable industry in China. Previously “Cryptocurrency Mining” was part of a list of industries to be eliminated. This change comes directly from the new edition of China’s Industrial Structure Adjustment Guidance Catalog, where an updated revision no longer mentions cryptocurrency mining as an industry to be phased out.

    Traditionally China has always played a major role in Bitcoin, Ethereum, Litecoin and DASH mining. This is mainly due to the abundant supply of cheap electricity in China (especially in the Sichuan and Mongolian regions), where electricity costs can go as low was $0.02 USD per kw/h. To find more about Bitcoin mining, check out our full Bitcoin mining guide.

    Overall this policy reversal sends strong positive signals about cryptocurrencies in China. This is a clear indicator that the Chinese Government recognizes the importance of mining and it’s role in decentralized public Blockchains. Such policy changes suggest a positive future where other policies halting cryptocurrency development could be reversed.

    Cryptocurrency trading is still banned

    China has banned cryptocurrency trading since 2017. The government has taken down chinese operation of big fiat exchanges such as OKex, Huobi and BTChina. Chinese exchanges no longer have fiat bank accounts. As users move to peer to peer trading. Alipay has made it clear that it will not tolerate crypto trading on it’s platform.

    What about Chinese Blockchain projects like Vechain and NEO

    Whilst China’s Blockchain Initiative explicitly discourages the speculation in cryptocurrencies – Blockchain projects are thriving in China. This is a Cryptocurrency is a core part of Blockchain – Satoshi Nakamoto created Bitcoin and Blockchain together in his 2009 white paper. So whilst the Publications by the central government tries the downplay cryptocurrency speculation, every public cryptocurrency network must have an associated platform token.

    Having the Blockchain initiative being pushed forward will greatly help the adoption of projects like Vechain in China. At the end of the day, the government validated the value proposition of Blockchain, answering many skeptics who are critical of Blockchain’s real life use case.