Bitfury’s North American Mining Proxy Hut 8 to List on TSX This Month
Vancouver-based Hut 8 Mining Corp., a part of the Bitfury Group, is scheduled to list on the TSX Venture Exchange in Toronto, Canada this month. After its debut, Hut 8 will be 49 percent owned by the parent group, and the remaining stock in the hands of insiders and private placement investors.
It is planned that by mid of the year, Hut 8 will acquired 60 megawatts of Bitfury’s mining power in Canada and have an exclusive agreement with the parent company to develop new farms in all of North America, according to its investor presentation. Hedge fund mogul Mike Novogratz is also said to be financing the deal.
Bitfury reportedly has 172 megawatts of hashing power, mined over a million coins, and its yearly revenue was an estimated $350 million. And Chief Executive Officer Valery Vavilov puts the company’s market share at about 10 to 12 percent.
The Canadian Connection
Canada has been able to leverage its cold weather and cheap hydro-electric power to attract cryptocurrency miners, but in this case the came for another reason. The TSX allows firms to easily raise public funds, a critical point for Bitfury who needs to compete with the much larger Bitmain. “This industry’s dependency on highly efficient silicon can determine who wins and loses,” explained venture capital investor Bill Tai. “Part of this equation is access to capital. It’s very much like oil rigs, the more you can put up, the more output you’re going to get.”
Sean Clark, chief executive officer of Hut 8, commented: “This is about access to capital and scale. We found a perfect vehicle to capitalize incredibly quickly. Bitfury now is going to rebalance the global network.” He added that: “If the capital markets react as we expect them to, there’s the opportunity to vend in other parts of Bitfury. Potentially all of Bitfury – piece by piece.”
Written by Bitcoin.com
Seven UK Companies Form Cryptocurrency Trade Body
Leading Cryptocurrency Companies form Crypto UK Trade Body
Seven leading cryptocurrency companies operating the UK have formed an independent trade body tasked with developing self-regulatory standards for the cryptocurrency industry, in addition to “engag[ing] policymakers.”
The members of Crypto UK are Coinbase, Etoro, Cex.io, Blockex, Commerceblock, Coinshares, and Cryptocompare – comprising trading platforms, exchanges, asset managers, merchants, comparison websites, and intermediaries from the cryptocurrency sector.
“Regulation is Imminent”
The Crypto UK chairman and managing director of Etoro, Iqbal Gandham, described the trade body’s mission as “promot[ing] best practice and to work with government and regulators,” emphasizing his hope that the group can develop “the blueprint for what a future regulatory framework will look like.”
The CEO of Coinbase UK, Zeeshan Feroz, stated that the “fundamental” goal of Crypto UK is to “engag[e] as a single industry with the government,” adding that “Regulation is imminent and that’s a good thing.”
Crypto UK has issued a code of conduct outlining the principles by which its members are expected to adhere. The code of conduct emphasizes the need for members to operate with transparency and in full adherence to UK regulatory requirements, in addition to making practical propositions with regards to the management of customer funds.
Cryptocurrency Sector “Severely Misunderstood” by Regulators
Crypto UK has stated that it seeks to “raise understanding of the sector at a time of significant growth in popularity,” emphasizing the need for pressure to be placed on government “to introduce appropriate regulation to protect consumers and business certainty, [whilst] allowing the sector to flourish in the UK.”
Mr. Gandham described the cryptocurrency industry as being “severely misunderstood” by mainstream institutions. “That’s why Crypto UK has been established,” Mr. Dandham said, “to promote best practice and to work with government and regulators to ensure that the UK benefits from the exciting potential of this international technology.”
Written by Bitcoin.com
Crypto All Stars Brings Your Favorite Twitter Traders to the Blockchain
Pyramid Scheme Meets Proof of Ego
This week’s must-have blockchain game is next week’s relic, so the odds of Crypto All Stars standing the test of time seem remote. In the here and now though it’s a shameless but amusing take on the meme birthed by Crypto Kitties back in December. The project of Twitter trader Crypto Randy Marsh (who naturally includes himself as one of the cards), the game features many of the cryptoverse’s loudest luminaries including Crypto Cobain, Bitfinexed, and Ari Paul. Thanks to their desire not to be usurped by their peers, many of the “celebs” have already bought their own cards several times over.
There are many ways to make money in the cryptosphere, and appealing to traders’ natural vanity is a clever ploy. For the proles who don’t possess these “legendary” shitposters’ follower count or portfolio, there’s the satisfaction of at least getting to own one of the Crypto All Stars’ unique contracts…until the next sucker buys it off you at least. The prospect of witnessing crypto OGs slapping down $10,000 of ETH at a time to prove they’re the whales they purport to be is strangely satisfying.
For “players” who feel that 5 ETH for The Crypto Dog(avatar: a dog wearing sunglasses) is a tad pricey, there are cheaper bargains to be had in Ether Tulips, Crypto Kitties, Crypto Titties, Tron Dogs, and many more blockchain trading games. Open Sea marketplace has thousands of the virtual cards for sale. Ether Tulips is about to launch player battles, while strategic card based MMO Neon District is launching soon. Given the amount of ether wasted weekly in ICO exit scams and pyramid schemes, games like Crypto All Stars are arguably one of the better uses for the ethereum network.
Written by Bitcoin.com
Ethereum’s Magic Solution? ‘Fellowship’ of Coders Embark on Governance Quest
Ethereum’s world computer is in need of a magic touch.
As developers continue to clash over yet another controversial software update, some of ethereum’s top minds are working together to conjure up a solution for what has been a troubling absence of late — community consensus.
Recent discussions concerning the return of lost funds — and a type of code fix that necessitates an “irregular state change,” or platform-wide software revision — has led to internal conflict, with developers questioning their authority to make contentious changes while appealing to the public for opinions on the matter.
Strung up in the aftermath of the Parity fund freeze, a new developer collective is seeking to better organize such debates to achieve the kind of global consensus they believe the project requires to move forward.
Led by developer Greg Colvin and the Ethereum Foundation’s Jamie Pitts, the Fellowship of Ethereum Magicians hopes to provide a structured working group where ethereum coders can coordinate in line with existing best practices for open-source development.
“We’re talking about, ‘Gee, you know, there’s many, many millions of dollars just stranded out there for no good reason that we technically could fix, and should we?’ And again, we don’t have the forums to come to community consensus on these things,” Colvin told CoinDesk.
Often occurring as a result of faulty code, some developers see the return of lost funds as an obligation, while others feel that such actions could be potentially criminal — a polarization that has led to bitter infighting.
“I think having that level of collegiality among the researchers and developers makes it easier for those conversations to take place and stay civil,” Colvin said.
Worsening the state of the situation is that, in the case of decentralized protocols, any disagreement could lead to competing versions of the software – as occurred following the DAO hack of 2016, which led to the creation of a rivaling cryptocurrency code base called ethereum classic.
“I think the DAO is an example of making a big move without an adequate consensus,” Colvin said, adding:
“The fellowship would be the community standing up and saying well, let’s get ourselves organized to form consensus around these things.”
To Colvin’s point, the recent dispute has revealed fault lines in the platform’s development process overall.
Originally proposed to simplify the process for implementing fund returns, EIP 867 was criticized by some, with EIP editor Yoichi Hirai flatly refusing to even merge the proposal at first. Hirai’s decision, along with the proposal itself, has pushed the community to rethink how much changes should be implemented — with some arguing that the process is too centralized.
“I don’t want to be part of the ethereum community anymore if only one entity can singlehandedly block any proposal,” Parity’s Afri Schoedon wrote on Twitter.
According to Colvin, such struggles hinge on how quickly the community has grown.
“The core developers initially were a pretty small group who all knew each other,” Colvin said. While in these early stages, technical decisions could occur more easily, at this point he said, “It’s a much larger group, it’s spread all around the world.”
Having first publicized the call for participation on reddit, the fellowship is set to begin with a workshop at the upcoming ethereum community conference, EthCC, next month in Paris. From there, Colvin hopes this will expand into a dedicated council by July.
And Colvin maintains that these in-person meetings can do a lot for resolving technical conflicts that can persist online for years.
“Sometimes you need to sit down in person and actually get to know somebody and establish a level of communication that wasn’t there before,” Colvin said.
In this way, the fellowship models its structure off the Internet Engineering Task Force, or IETF, an international collective of technicians devoted to the upkeep of the internet.
“I saw the IETF is probably the most relevant example of a success in that domain,” Colvin said. Having “kept the internet running for many years,” according to Colvin, the IEFT is built to cope with large numbers and does this by combining larger assemblies with smaller, more specialized groups.
“Each group does its thing, and it would be a rare nerd who would be interested in lots of these groups,” Colvin continued.
Like the IEFT, the fellowship’s governance process advocates what is called “rough consensus and running code,” meaning that the dominant majority within a given discussion will be given precedence, dependent of course on its technical proficiency – the key criteria of judgement for any position held within the group.
Crucially for Colvin, the IEFT achieves this without any kind of corporate funding or any other sponsorship body that could in some way influence the activity of the collective.
“We don’t want it to be any sort of top-down imposition on the community. It has to be a forum, a consensus building forum for the community.”
By combining an open process, an informal membership structure and an emphasis on technical responsibility, Colvin hopes that the fellowship can finally provide an adequate platform for the community to resolve its more sensitive topics.
Indeed, the question of lost funds isn’t the only technical crossroads ethereum is facing today — and arguably, it’s a trivial discussion compared to the changes that are due to be implemented down the line.
“We’re talking about moving from proof-of-work to proof-of-stake, when we’re still designing proof-of-stake, when it’s still not totally clear it will work. We’re talking about moving into sharding, with two or three different designs in flux. We’re talking really big changes to the protocol,” Colvin said.
According to him, it’s crucial that the wider development community, and not just the core developers, have a voice in these fundamental changes.
“Do we move to proof-of-stake? There’s more than a small number of people who care about that and who know about that and have something to contribute,” Colvin continued, concluding:
“So, that’s the idea, it’s just an offer to the community.”
Written by CoinDesk.com