Welcome to our comprehensive interview series – Humans of Blockchain ™ where we get the best in the business to answer a diverse set of questions.
This series will clear the air of doubt in the blockchain space today by focusing on bringing more transparency to the readers.
Not wasting much time, let’s hear it out from Mattia himself.
1. Can you give us a basic introduction about yourself Mattia? Your journey and how you got into the blockchain space.
It was the end of summer 2013 when I came across Bitcoin (BTC) for the first time thanks to a friend of mine and initially, I didn’t pay a lot of attention to it because my first thought (and approach) was “It’s just money for nerds”. Then into 2014 that same friend told me he was mining bitcoins with his brand new ASICs bought from China and taking a good profit on it till the point he decided to quit his job and move to China because with the lower electricity cost he could have a higher profitability; at this point I’ve taken the topic more seriously and started first informing myself and then studying more deeply about Bitcoin (BTC) and Blockchain technology.
Back in 2017 I’ve decided to start up a business into Blockchain Industry: the NovaMining project was originally conceptualized as a Cloud Mining company, but facing the decreased profitability reported to an increasing difficulty given by the fact that mining is becoming a business for large corporations with huge investment capabilities, we revisited the whole business model and switched it to a cloud mining marketplace based on the use of smart contracts.
2. Mining is an integral part of the Blockchain Industry using Proof-of-Work (PoW). How do you see the implementation of new Protocols in the Industry? Does that affect your business or promote it?
PoW mining stands at the base for a decentralized and safe Network where potentially bad actors are prevented to act unfairly because the computational power and the consequentially energy consumption needs: in fact the more PoW a network has, the less are the probabilities of attack (i.e. 51% Attack) by those bad entities.
Considering this, the Bitcoin (BTC) blockchain it’s, of course, the safest one, meanwhile, blockchains with less PoW are more exposed to this kind of attacks, as it has happened to the Ethereum Classic (ETC) blockchain a few weeks ago.
The current mining protocol used by most PoW blockchains its Stratum, which starts to be outdated if we look to projects like BetterHash (https://github.com/TheBlueMatt/bips/blob/master/bip-XXXX.mediawiki) proposed by the Bitcoin Core Developer Matt Corallo; however BetterHash is still a Draft and need to be first approved by the community and in case of approval it should be implemented, which is a procedure that takes a long time, especially for testing before the deployment. If such event occurs, it’s certainly not bad news for NovaMining and we’re absolutely in favor about the adoption of protocols that improve the mining scenario. NovaMining aims to solve problems as transparency and market competitiveness into the mining industry, more precisely into the cloud niche thanks to the use of Smart Contracts for increasing the end-users trust towards operators.
3. What would be the shortcomings in the segment that affect mining according to your views?
One of the biggest problems into this industry during latest years has been the lack of mining hardware producers (such as ASICs and FPGAs) that have led to Bitmain’s market monopoly, which is still the scene’s protagonist. However, since then some new companies (i.e. Halong Mining, Bitwei, GMO, etc) joined the market bringing their own products and improving consequentially the competitiveness criteria. Since then, the industry it’s suffering less the producers’ lack and it offers a bigger variety of mining equipment, preventing the frequency of such sold-out events as in the past, giving miners alternatives in case of necessity.
4. Can you tell us more about NovaMining? The vision and the mission.
We’re a Blockchain start-up which is actually working on the development of a cloud mining marketplace based on the use of smart contracts that work as a Proof-of-Stake layer between the parties. Moreover, thanks to our proprietary code, the so-called Proof-of-Hashrate-Commitment, our platform will be able to produce and verify a cryptographic proof about the hashing power amount used by operators for covering their own mining smart contracts. Our mission is to set up a new and more sustainable hashing power sale standard which prevent frauds and contracts’ asymmetries in the cloud mining industry while increasing operators’ transparency and competitiveness.
Once our MVP will be ready to be presented, we will announce the dates of our ICO/STO Token Sale launch (approximately in Q4 2019), offering our ERC-20 token that runs on Ethereum Blockchain. Further and more detailed information will be disclosed as soon as our website will be opened to the public.
Learn More about Proof Consensus Protocols HERE
5. There was a recent Market Crash in the Crypto Market, does or did that occurrence affect your Business? If so how?
The recent crash in the crypto market doesn’t affect much our company, however, we pay attention to the market trends for our ICO/STO Token Sale launch; in fact if we want to be successful does it needs to be done in the proper moment, both under investors trust as well as profitability aspects. Looking back to the past months many ICOs didn’t even reach the Soft-Cap for the lack of trust from investors for the many projects that failed. It’s well known that bitcoin follows a market cycle that seems to be loop since back into 2013, looking at the attached chart (originally posted on BitcoinTalk) it can be supposed that the market will be bullish again since September 2019, which leaves us thinking that Q4 2019 would be a great moment for ICOs/STOs launch.
6. What do you see the year 2019 holding for the mining industry?
Recently CBInsights published a Blockchain Trends Report for 2019 (https://www.cbinsights.com/research/blockchain-trends-2019/) which sees Bitcoin Mining at the second place in terms of importance. More precisely the niche will see companies facing how they will adapt to declining speculation, expand into other sectors, develop other consensus mechanisms to eliminate the need for power-hungry equipment as well as developing the current chips architectures to optimize the power consumption compared to efficiency.
Any Ending Remarks?
Since 2017 was the year of ICOs launched by start-ups that offered their utility tokens to fund their ideas in an advantageous time period offered by the bullish bitcoin market, 2019 seems to be more oriented towards start-ups who launch their STO to fund their projects with prototypes (PoC/MVP) offering their security tokens, which are more compliant with most current regulatory frameworks.
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