In the global crypto mining industry, what happened to the global Internet in the past 20 years is happening again to the Chinese entrepreneurs, who are working in the chip, mining machine manufacture and mining technology: Innovative imitation gave way to subversive revolution, opening to a new chapter. The very same cases include Alibaba VS eBay and WeChat VS Facebook. This time, however, the speed and growth are truly phenomenal.
Yang Haipo：founder of ViaBTC
The crypto mining industry is somewhat cryptic. Statistics show that while there are about 30-50 million cryptocurrency investors and owners, but the crypto miners who get involved in the core stage are less than 500,000 worldwide.
Nevertheless, it is by the endeavor of these 500,000 users that have produced the crypto mining industry chain with a huge output of value, such as mining machine manufacturers, mining farms, miners, mining pools, developers, investors and its surrounding ecology. In fact, Bitcoin (BTC+BCH) alone has a market value of trillions of CNY, and the market value is achieved by the contributions of all crypto miners.
Additionally, it only took 5 years for us to see companies such as Bitmain emerge, and the center of the entire capital market’s attention is on the process of its emergence. The main business of Bitmain includes crypto mining chips and machines. As revealed in its prospectus, the adjusted net profit of Bitmain for the entire 2017 and the first two quarters of 2018 reached $950 million USD, with a valuation of at least $15 billion USD. There are at least two companies of the same type listed in the queue, both of which are from China, like Bitmain.
Wu JiHan：founder of Bitmain
What has been overlooked by the public is Mining pool, a software system and business model that offer crypto miners a chance to mine in the cluster, and its growth is particularly impressive. Among these mining pools, ViaBTC mining pool, founded in less than 3 years ago by a Chinese entrepreneur Yang Haipo, has been at the forefront in the global market and has a profound brand influence in the mining industry.
ViaBTC mining pool has achieved remarkable results in revenues. During 2017 – 2018, it has generated more than 50,000 BCH income (an equivalent of 200 million CNY) by charging mining fees from miners. Meanwhile, its start-up team has altogether recruited less than 20 members to develop and operate the business.
Thanks to a vertical crypto mining industry, the value chain constructed by ViaBTC in the past was very simple. From the software level, ViaBTC is an alliance, pooling the miners and mining farms that are scattered all over the world. The pool pays the miners for the hashrate they contribute proportionately. That way, the chances of coins being mined has increased and the miners guaranteed a stable income.
As for its business model, the software system of ViaBTC pool is similar to that of Google Ads or Tencent Social Ads – It solves the issue that most miners can hardly obtain a stable income by mining on their own. By mining with ViaBTC, miners and mining farms can be spared from technical issues. By optimizing network server deployment, ViaBTC makes it quicker for nodes and blocks to be synchronized and generated. Meanwhile, orphan rate is reduced and mining efficiency improved. This is a perfect business model made by dividing up their work and cooperating.
Mining Farms and Miners
In response to media interviews, Yang Haipo, founder of ViaBTC, said that he was a programmer in Tencent and intended to a freelancer developing ViaBTC the mining pool. It dwelled upon him as it did the leading role of the American TV series “Silicon Valley that his codes were way more valuable as he had thought. After ViaBTC was launched, the hashrate of ViaBTC quickly made up 10% of the entire network, becoming one of the largest mining pools in the world. According to Yang’s own metaphor, ViaBTC is pretty much like a Banknote Printing Machine, constantly and stably making you money.
Yet, in this ever-changing market, Yang Haipo is not satisfied with being driven by the relentless competition. He experienced firsthand how the mining changed from a game of European and American professional players in the early days to a Chinese-occupied crypto market after the bear market in 2014. Mining pools outside China are rare and endangered, and the giant pools that once overtook 50%+ share of the entire market have been selected out. By using the past to allude the present, Yang Haipo plans to launch a subversive revolution to maintain its prominence in the field of crypto mining.
Pushed by Yang, ViaBTC has been transformed from a crypto mining network technology service provider to an increasingly important player in the basic services of the evolution of Bitcoin protocol. In Yang’s understanding, mining pools are the operator of the entire cryptocurrency system. In the future, it will process an enormous amount of transaction in the Blockchain. Therefore, ViaBTC will participate in the development of Bitcoin node software and launch its own client to meet the massive demand on the chain.
It is the “community” of ViaBTC via the technology of value-added services and privileges scheme in blockchain that he used to start this revolutionary change. Prior to this, ViaBTC had successful attempts scratching and become aware of the benefits of “communitization”, the example being its release of “Transaction Accelerator (TA)”, a free PPS+ service. So far, TA has saved ViaBTC users up to 20 millions CNY worth of transaction fees and brought a huge traffic as well as positive brand value to ViaBTC.
Yang Haipo finally decided to set up a ViaBTC community and has recently released the ViaBTC white paper. According to the white paper, ViaBTC proposes to “pool the power of global crypto miners” and distribute part of its revenues (I.e. “50000 BCH worth of income” mentioned above) to all ViaBTC miners in different phases.
Linked by ViaBTC Token, a quality channel of the global mining industry of cryptocurrencies, ViaBTC intends to present more quality products of the crypto asset systems from mining machine manufacturers, mining farms, miners, mining pools, developers, investors and its related ecology, reach to more industry links with new upstream and downstream services and build a globally valued crypto mining community.
Yang believes that the global community of commercial entities through the block-valued technology of blockchain is an unstoppable trend. In the field of mining pools, he himself happens to be the first one to give up prejudice and be open-minded to ideas and diversification.
If his dreams come true, the crypto mining industry will become a brand new market and eventually be presented in an economically driven community. The crypto market began with American entrepreneurs, but ultimately it is the Chinese entrepreneurs from innovative imitation that launches a subversive revolution.
The core of “innovative imitation” is to improve products or services to get a foothold in markets that are slightly different from our own. Meanwhile, the core of “disruptive revolution” is that even the groups from the bottom of the market can reach out to the products that were previously not available in order to achieve leapfrog development. It’s a logic of two different markets competing against one another. Via the concept that “Everyone can own a mining pool, ViaBTC will need to achieve a thrilling leap to “pool the power of global crypto miners”.
Both Bitmain and ViaBTC are born with global blood and are able to cater to crypto miners around the world. Therefore, crypto mining is also a globally competitive industry. Entrepreneurs from all over the world are paying attention to the next move of Bitmain and ViaBTC, money machines in the industry.
Keep an eye on the next unprecedented move made by them.
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