How the End of Net Neutrality Affects Cryptocurrency: An Interview with Zeusminer CEO Terry Li

May 30, 2014 08:59 UTC

The United States Federal Communications Commission (FCC) recently voted to end “net neutrality,” which will allow internet service providers to charge fees for faster connection speeds. Many have decried this decision, although it is still unclear what ultimate effect this will have on the internet service industry. In the meantime, many cryptocurrency enthusiasts–especially those considering an investment in mining equipment–wonder how this decision will affect them. CCN obtained an exclusive interview with the CEO of a prominent mining hardware company to tackle this important issue.

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How the End of Net Neutrality Affects Cryptocurrency: An Interview with Zeusminer CEO Terry Li

Zeusminer is a new face on the mining hardware scene, but they are making a name for themselves quickly. They recently released the first pure Scrypt ASIC miners, which is notable in its own right. However, recently, they did something virtually unheard of in the mining industry–not only meeting their estimated shipping date, but actually beating it.

Having just shipped out their first batch of Scrypt ASICS on May 20, Zeusminer CEO Terry Li is extremely busy. However, he graciously took time out of his busy schedule to share his insights on net neutrality as well as how to avoid scams in the mining hardware industry.

Terry, do you view the FCC ruling as a beneficial or harmful development for internet users?

TL: As it will be for all centralized services, this was expected. Internet services adopted the freemium model for quite some time and it’s very successful and I don’t think broadband providers are comfortable just being the infrastructure and channel as they are public companies and have to report to shareholders. For now, I don’t see there will be any change for regular internet users. However because internet would evolve on its own, new services would come along trying to solve such issues (take BitCoin and now DarkCoin for example).

What effects do you foresee the FCC ruling having on cryptocurrency?

TL: On first glance, with internet service providers giving preferential treatments to paid services (given bandwidth stays the same), cryptocurrency will be sharing less and less bandwidth. However, there are many already and more cryptocurrency application companies (exchanges, wallets, etc.) that are funded by VCs just as any company that would be paying to get preferential treatment, they should be willing to compete for bandwidth by paying. So really, I don’t see there would be a huge difference.

Will it affect the cryptocurrency mining industry?

TL: Mining doesn’t take a lot of bandwidth. Also, large farms are usually built in rural area where farm owners would be their big customer, and I doubt if they wanna lose them.

The Zeusminer Blizzard, which boasts 1.35 Mh/s of Scrypt hashing for $179

Thank you for your insights. I understand that Zeusminer has just shipped out its first batch of Scrypt ASIC miners. What separates your products from those your competitors offer?

TL: I think the major difference is that we are open and really listen to the community. Since we are the chip producers ourselves and have a very short decision making process, we act fast. Our team is comprised of really experienced people in each respective fields. For example, me, at the age of 34, is the youngest among the leader of C level management. Also, our R&D team is located in the heart of world’s electronic design manufacturing – Shenzhen, which gives us the unmatched speed in iteration and production. From the date we have the first chips till now, less than a month’s time, we have gone through 7 iterations of design (all laid out and built in bulk) and started shipping.

In an industry so fraught with scams and costly shipping delays, what advice would you give to consumers looking to invest in mining hardware?

TL: Try to find proofs of legitimacy. Communication definitely helps. Proof of progress, etc. The most important is to look out for the tape-out time. That’s the major milestone. With that done, you can pretty much expect your miner in four months. However, the way the chip is packaged is important as well. Otherwise it will end up like Hashfast, with a super fast chip but no way to build it into [a] miner.

You are also preparing to launch ZeusHash, a cloud hashing service. When will it launch and how will consumers benefit from using this service?

TL: ZeusHash will be mining for mainstream. People can start really cheap and get a taste of how it is like to see crypto coming in every day, also there will be no set up needed which is really easy to use. Taking crypto concepts mainstream and build up the whole community is healthy for the ecosystem in my honest opinion.

Featured image by Shutterstock.

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@Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

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