BREAKING: After Much Speculation Bitmain Announces P2Pool Bitcoin Cloud Mining Service

Journalist:
Scott Fargo @TalonTech1
September 2, 2014
After Much Speculation Bitmain Announces P2Pool Cloud Mining Service

Bitmain has announced a cloud based mining service called HashNest. For several months now, the community has speculated about whether Bitmain was building a cloud based service, and as Bitmain always do, they chose to hold their information until now.

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Coupled with the announcement of HashNest is that they are actively working on improving the P2Pool-protocol and will be implementing it for their services. This news comes on the heels of Coincadence buying P2Pool.org. Bitmain has also said they will keep it open source which is a nice surprise as they has not released the source to their modified cgminer controller software as required by the GPL license. Here is their statement on the P2Pool news:

We are investing significant resources into the development of p2pool mining protocol. At present, the hash rate of HASHNEST is mined from ANTPOOL, zero (0) fees, which will soon be contributed into p2pool. The development of contributed into p2pool is almost completed and in the final testing and deploying. The code of ANTPOOL will be open sourced, and we are confident that you will be impressed by the outstanding contribution that BITMAIN put into p2pool protocol. We have a focused team who are developing the p2pool mining protocol, and the goal is to have 80% of the total network hash rate join p2pool within next 12 months. At that time, the whole Bitcoin community will never be anxious about the potential risks of the decentralization risk associated with the pool mining model now.

Bitmain has purchased Snowball.io to have a base platform for the service.

BITMAIN is announcing the acquisition of HashNest.com – a cloud hash platform which was originally named Snowball Exchange (Snowball.io). Hashnest.com will operate independently to build a reliable, economical and decentralized platform that serves the worldwide mining enthusiasts and hosting operators. What’s more, this is also a step to enhance the fundamental safety of Bitcoin.

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Bitmain also has an integrated trading platform as well on HashNest that will allow users to buy, sell and trade hash rate and cryptocurrency miners all on the platform in an easy, secure way. The trading platform is a big deal as many competing Cloud Mining services do not have trading (other than CEX and a couple lesser known ones). Bitmain leveraging its name and hardware will immediately give it scale, and some trust that other brands do not have. They give examples of how the exchange will work within HashNest.

How to order hash rate:

Click “hash rate” on the top site – choose the trading market that you’d like to buy the hash rate in the drop down menu – click “+” in the pop-up drop-down menu – click “Buy” – add amount in the text box. Please set trading password before first time transaction.

Your order will be placed on the trading market, and waiting for the deal. The order will deal when a selling price matches your ordering price, and the Bitcoin will be transferred to the seller, at the same time, the buyer will get the hash rate. The ownership and earnings of these hash rate will belong to buyer.

Bitmain has thought this through and been planning for months to bring this to the market. I will be getting more exclusive info on the ecosystem and verification in the coming days. It is exciting to see more companies investing in the industry and branching out into more forms.

Here is more on their official statement.

With the rapid growth of Bitcoin industry, the hash rate of Bitcoin keeps increasing. The cost of mining rigs is gradually getting lower as the constant R&D efforts. Let’s consider a middle-class mining fans as an example. Funding the capital and making a decision to take risks to join mining industry are the easy part. It’s more difficult for him to spend a lot of time/patience on deploying/maintaining the mining rigs and meeting the electricity needs and managing the heat. In the future, most of the mining rigs will be deployed in specialized hosting farms, enterprising and professional teams will help to search the low cost energy and maintenance for the rigs. The miners will access their miners and hashing power remotely, just like the popular VPS business model in the Internet.

However, we still need to keep decentralization in this centralization trend. It is sure harmful and dangerous to the Bitcoin industry and the eco-system if the majority of hashing power are controlled by a handful of people.

Cloud Mining is going to become more and more important as power and heat dissipation requirements become higher and more difficult to handle. GAWMiners recently launching the Hashlet cloud system, and now Bitmain HashNest is expanding the market in a big way.

Another juicy tidbit of information lost in the news of HashNest is that the rumored BitmainASIC Scrypt Miner called the L1 is real. Stay tuned as CCN will be bringing you some exclusive info on that soon.

Image from Shutterstock.

Last modified (UTC): September 2, 2014 08:13

Scott Fargo @TalonTech1

I am a disabled former Systems Admin, computer tech, business manager enjoying crytpo currencies. I am deeply involved in the mining ecosystem and physical coins, It fascinates me how it has brought people from all over the world together into a tight knit supportive community with commerce and tech.