Quantum Blockchain Technologies PLC (AIM:QBT) this week shared details of its progress on the commercialisation of its software-only version of Method C, known as Oracle, which improves mining efficiency through operating system-level integration.
The company said the new version eliminates the need for hardware changes and reduces the time-to-market for enhancements from 18 months to just a few weeks.
CEO Francesco Gardin told Proactive that this marks a significant evolution from the previous ASIC-dependent version.
He explained that the Oracle software modifies existing mining software such as CGMiner, leading to a 10% improvement in what the company terms “quality hashing” - which is a performance metric based on the number of high-difficulty hashes rather than pure hashing speed. Gardin highlighted that essentially the amount of energy usage is the same, but the number of quality hashes achieved by the miner is higher.
Here, we take a closer look at the discussion.
Proactive: Francesco, very good to speak with you. This new software-only version of Method C marks a big step forward for QBT. How does it change your commercial roadmap compared with the original hardware version?
Francesco Gardin: Good afternoon Stephen. Yes, definitely. It was really hard work to derive a version of the method that would not depend on the hardware implementation. We knew that providing less information to the engine while creating the Oracle would lead to results that wouldn't be as good as the hardware version.
However, this puts us in a position where we can actually implement it at the operating system level of the miners. Instead of the usual 18-month cycle from when an ASIC manufacturer decides to implement a method to when it is actually available and installed, we can now make changes directly to the operating system. This reduces the time to market to months instead of a year and a half.
And in fact, we are going down this path very, very quickly.
Proactive: You've also reported a 10% improvement in mining efficiency in lab tests. What does that mean in real-world terms for Bitcoin miners and potential partners?
Francesco Gardin: That means we modify the CGMiner or SP miner — the operating system of the mining rigs — and we basically improve what we call the quality hashing. Everyone talks about hashing speed, which is important, but there's a more sophisticated way to assess miner performance: quality hashes. That refers to how many good hashes — above a certain level of difficulty — are generated.
And that’s exactly what we do. By installing this, the energy required is the same, because it operates at the level of the control board. But the number of quality hashes, with difficulty above ten, increases. So, same energy, same machine, different operating system — with our Oracle, more quality hashes are generated.
It sounds simple, but it took ten months of intense work. We generated huge amounts of data — so much that our petahash machine needed repair from overuse. We had to hire a specialist, and now we have control of an old Bitmain S9 miner. It's not competitive now, but it’s perfect for demonstrating the Oracle’s capabilities.
Now, all the ASIC manufacturers we're in discussions with in the US want to begin real-world tests. Their condition is to send us a machine. We'll modify the operating system and demonstrate better performance with our Oracle. None of them has said no because they understand we’re not ready to share our Oracle’s proprietary details — which took years to develop.
That’s why we’re here in Dallas — talking to miners, holding meetings. They are willing to send us their machines so we can demonstrate performance improvements.
Proactive: And, of course, as you mentioned, you're in Dallas at the Mining Disrupt conference. Francesco, how close are you to commercial deployments following the conversations you're having there?
Francesco Gardin: With this version of Oracle C, from the time we receive a machine to when it is implemented, it usually takes between four and six weeks, depending on the CGMiner version. Then we return the machine to them for testing — with and without Oracle — to evaluate the difference.
This is a key decision point for these companies, especially those struggling to keep up with Bitmain, the market leader. Any opportunity to close that one-to-two-year time gap is vital for them.
Proactive: Francesco, sounds like an exciting period for the company. I hope you continue to keep us updated with your progress.