Quantum Blockchain Technologies PLC (AIM:QBT) has teamed up with a number of major North American cryptocurrency miners in order to better understand their commercial needs.
Quantum, which is developing a proprietary bitcoin mining algorithm, is seeking to test its Method B chip enhancements on Chinese mining machines that comprise 75% of the global bitcoin mining industry.
In monetary terms, at the current overall hashing power of the Bitcoin network, this represents more than 2.5 million miners, costing an estimated $5 billion at an average cost of $2,000 per mining rig.
However, due to a lack of publicly available technical documents concerning the mining machines produced by Asia-based manufacturers, Quantum has been faced with significant hurdles.
Nonetheless, through the partial redesign of its ‘Method B’ mining-enhancement process, the company can start porting on the equipment made by the largest mining rig manufacturer in that region.
Installing Quantum’s Method B on Chinese manufactured rigs is anticipated to increase the success rate of the mining probability of these machines by 2.6 times.
Quantum is hoping to pursue commercial arrangements for the deployment of its methods in the mining hardware market segment.
Francesco Gardin, chief executive and chairman of Quantum Blockchain, commented: “Quantum has now entered into the engineering phase of its first two products: Method A which our laboratory tests show an increase in the mining performance by nearly 10% and Method B, which increase the mining probability by 2.6 times.
“The overall response from the North American miners has been encouraging; by increasing the hashing power, without increasing capex could, in their view, be a game-changer, especially in the current market, where the price of Bitcoin has fallen below $30,000 and with the next ’halving’ expected in about nine months.
“The company, therefore, is focusing its main efforts on speeding up the porting process of both Method A and B in order to reach commerciality.”