Chaohua Community | New opportunities in the bear market, how can shared mining machines provide investors with flexible and high returns?

MintSat is a leading PoW and POC cryptocurrency digital mining service provider, committed to providing professional investors with large-scale customized mining machine sharing service solutions, and has now cooperated with top mining machine manufacturers and well-known mining pools such as BTC.com, ViaBTC, Foundry, AntPool, F 2 Pool and BTC.top have formed a strategic alliance.

On the evening of March 6th, MintSat Cofounder Martin Wu was a guest in the Odaily Chaohua community and brought a theme sharing on "New opportunities in the bear market, how can shared mining machines provide investors with flexible and high returns?", focusing on MintSat's products and services in-depth discussion.

Martin Wu said that the current mining market is developing in a diversified direction. We are optimistic about POSW, a new hybrid consensus mechanism, and believe it will bring a new mining business pattern.

The following is a transcript of the community conversation:

1. Guest questions and answers

Odaily: First of all, can you briefly introduce yourself and the core team members? How did you come into contact with the encryption world and participate in it?

Martin Wu：Mintsat team members come from all over the world, and the core members are mainly composed of 4 people, namely myself Martin WU, our on-site chief engineer Xie Hua, our mining general manager Nina, and our safety manager Sam. The four of us met at the 3rd Blockchain Global Summit hosted by Wanxiang in 2017. At that time, I was doing mining-related business. At the same time, the three of them were more optimistic about this track, so they jumped out of their respective fields and joined the Mining industry. After that, we jointly established Mintsat and began to build sites around the world, expand business.

Odaily: Can you briefly introduce Mintsat's business in general language?

Martin Wu：Mintsat is a PoW and POC cryptocurrency digital mining service provider, providing professional digital mining solutions. Since 2018, we have been providing industry-leading mining services and have been unanimously praised by users around the world. We have 5 mining farms around the world with users in more than 70 countries.

Currently Mintsat provides POW and POC cryptocurrency mining services, including BTC, FIL, ALEO. In the near future, we will also decide whether to launch Iron Fish and CFX computing power services based on market conditions and user needs. At the same time, Mintsat's self-developed trading AI has the characteristics of a stable strategy / lying down and earning / crossing bulls and bears. There is income when there is fluctuation, and the anti-slump mechanism.

Odaily: In the current market stage, which currencies do you think are suitable for mining?

Martin Wu：At the current market stage, we believe that there are two types of currencies:

One is the BTC stable currency, which is suitable for users who have abundant liquidity and want to do a certain proportion of asset allocation, because we know that the most secure currency must be BTC, and the electricity cost is low and stable, and the model is relatively main Under the premise, calculated according to the current BTC price, the payback period is currently within one year.

The other is the opportunistic currency, which can also be classified into two categories here: old trees blooming new flowers and new coins.

For example, FIL and CFX, which have become popular recently, have become popular among old trees. Because of some good news, many miners have restarted their machines, and the currency price has also made a certain breakthrough. Now it is a suitable time to purchase computing power.

We recommend Aleo and Iron Fish of the ZK track for the new coin head mining category.

Odaily: What are the advantages of Mintsat's mining farm compared with similar competitors?

Martin Wu：Where Mintsat stands out compared to its peers is price.

Compared with the price of similar competing products, in terms of BTC, our computing power price is 10% -20% lower than that of similar competing products, and the electricity fee is about 10% lower. A service fee is charged. The prices of other computing power service products and mining machines are 5% -15% lower than similar competing products.

Secondly, all MintSat products have service effective within 24 hours. If users buy it tonight, the first income will be credited to their account before tomorrow night. We provide users with 7 X 24 hours of online customer service, and if there is any problem at any time You can get help through telegram, twitter, wechat and official mail.

In terms of policy, Mintsat not only obtained the MSB photographs of the United States and Singapore, but also reached cooperation agreements with the governments where the mines are located to protect the rights and interests of Mintsat users.

In terms of FIL products, Mintsat not only requires users to provide pledged coins, but also supports the mode of paying Fil pledged coins by Mintsat, allowing users to start Fil mining with a lighter burden.

Mintsat's Fil products have a better energy efficiency ratio than similar competing products, and the more advanced modules rewritten by Mintsat provide users with higher benefits.

Odaily: What is mining machine sharing service? What are the characteristics compared with other modes?

Martin Wu：Mining machine sharing service is a service that rents out mining machines to others to obtain income. Compared with traditional mining machine owners who need to purchase mining machines, install, maintain, operate and pay related fees by themselves, sharing mining machine services allows More people participate in cryptocurrency mining, and can earn income without owning mining machines.

The characteristics of the mining machine sharing service are as follows:

• Lower threshold: Due to the high price of mining machines and high operating costs, for ordinary people, the threshold for purchasing mining machines to mine cryptocurrencies is relatively high. The emergence of mining machine sharing services can lower this threshold and allow more people to participate in cryptocurrency mining.

• Flexibility: Through the mining machine sharing service, users can choose the appropriate mining machine and use time according to their own needs, which is more flexible than the traditional way of purchasing mining machines.

• Diversification of risk: The mining machine sharing service can diversify the risk of users, because they can reduce the risk brought by a single mining machine by diversifying their investment into multiple mining machines.

• No need for operation and management: Since the mining machine sharing service provider will be responsible for the operation, management and maintenance of the mining machine, users do not need to operate the mining machine by themselves.

Odaily: So how do we solve compliance and protect user assets?

Martin Wu：Regarding compliance, Mintsat mainly makes the following two efforts:

• In terms of licenses: Obtaining MSB (Money Services Business) licenses from the United States and Singapore proves that Mintsat can legally provide cryptocurrency services to users, and it can also reduce Mintsat compliance risks and reduce penalties such as fines faced by mining farms. Better , more stable operation.

• In terms of government cooperation: We will cooperate with the local government where the Mintsat mine is located to seek better infrastructure conditions and a safer operating environment for the mine, and at the same time bring as many positive effects as possible to the local area.

Odaily: How does the AI ​​system work? What is the value to users?

Martin Wu：The operation of the AI ​​trading system is mainly divided into the following six steps: data collection, data analysis, transaction decision-making, automatic transaction, risk control and transaction monitoring.

The underlying logic is spot grid + Mintsat AI module.

We have been training Mintsat AI for several months. Mintsat AI collects the profit and lock-up time of the grid sheet, and combines the big data of dozens of indicators such as trading volume, moving average, and market heat to repeatedly train AI.

Every time the strategy robot makes a move to place a grid order, it will first ask the AI ​​module. If the evaluation index of the AI ​​module is not good, it will skip this shot and wait for a better opportunity.

Our quantitative strategy is to directly connect to the user's BN account, link their authorized API, and conduct a smart spot grid, so that the position will not be liquidated, and in the most extreme case, it will only be partially locked.

For investors, Mintsat AI implements a customized automation + 6 trading process. All buying opportunities are issued by AI based on comprehensive analysis. This can provide investors with fast, accurate and stable transaction services. This means that users do not need to keep an eye on the market or do repetitive work, and can obtain benefits no matter how the market fluctuates.

In addition, Mintsat has also set up a VIP quantitative strategy pool. Users can put the coins produced by their own mining into the Mintsat VIP pool, and the funds will be managed by Mintsat AI. Through spot transactions, pledges, etc., Mintsat can help users realize token compound interest.

Odaily: What are the advantages of Mintsat's equipment? Is it self-developed?

Martin Wu：MintSat's equipment covers a variety of different cryptocurrencies. For example, the Antminer S 19 and S 19 Pro we use are currently the most cost-effective BTC mining machines, providing users with a very favorable price per T.

For the Aleo cryptocurrency, we have developed the Aleo mining machine, which has the advantages of high stability, low energy consumption, quiet energy saving, and high quality. Each mining machine has to go through rigorous 7 test runs before the official operation. The specific configuration is as follows:

Processor: AMD EPYC 7002 and 7003 series

Motherboard: GPU multi-card motherboard customized by self-developed factory, which can accommodate up to 6 GPU card slots

Memory: Customized MGNC DDR 4 2666 32 GB 8 (a total of 256 G memory)

SSD: WDC SN 730 M.2 NVMe SSD 2280 1 TB High Speed ​​Solid State Drive/Intel P 4510 NVMe U.2 SSD 8 TB High Speed ​​Solid State Drive

GPU：RTX 3090* 6/RTX 3080* 6 

In terms of Fil encryption currency, we use Inspur NF 5466 M 5 models, dual Intel Xeon processors, support multiple operating systems, and are equipped with FIL professional acceleration modules, with a storage capacity of 525.6 TB.

Odaily: What are the characteristics of Aleo mining? Why did Mintsat launch Aleo mining?

Martin Wu：First of all, Aleo adopts the POSW mechanism. PoSW provides the Aleo network with the same level of security as Bitcoin's PoW.

To give a simple example, the mining process is equivalent to the process of continuously generating zero-knowledge proofs, that is, "ZK mining".

The main features I think are the following three points:

1. GPU mining: Aleo uses a GPU-based mining algorithm, which does not require high-end ASIC mining machines, but requires a graphics card with high energy efficiency.

2. Difficulty adjustment: Aleo adopts a dynamic difficulty adjustment mechanism, which can adjust the mining difficulty according to the total computing power of the mining network to ensure the fairness and stability of mining.

3. Privacy protection: Aleo uses zero-knowledge proof (Zero-knowledge proof) technology to protect the privacy of mining and transactions, ensuring that no sensitive information is leaked during the mining process.

There are several reasons why Mintsat launched the Aleo product:

First of all, we think Aleo is a sufficiently mature, open source and decentralized product. I have been a part of the Aleo community since its inception, and I often attend Aleo community meetings. The founder Howard Wu's speech in Berlin in September 2022 convinced me that Aleo is a milestone project that can really promote the ZK track and decentralization. We believe that Aleo can broaden Mintsat's computing services.

Judging from the hotspots of the sector, the ZK track is gradually rising and is being valued by the market. As the importance of privacy protection has become increasingly prominent, more and more blockchain projects have begun to explore zero-knowledge technology and launch related products and services. As the leader of L1 on the ZK track, Aleo is an existence that cannot be ignored. We believe that Mintsat needs to launch Aleo computing power products.

In addition, Aleo has powerful VC support. At present, Aleo has received investment from first-class funds and individual investors including Coinbase, A16z, Polychain, Tiger Global, SoftBank Vision Fund, Samsung NEXT, etc., totaling 228 million US dollars.

In terms of miners, since Aleo's GPU computing model is relatively simple, the entry barrier is low. Mintsat can undertake the computing power of Ethereum miners and some other GPU mining machines, thereby increasing the computing power of the entire network and driving up the price of tokens. Therefore, early participation in mining can obtain more tokens at a lower cost, bringing higher profit margins to Mintsat users.

Odaily: How is the Aleo chain positioned? Can you briefly introduce it? Does Mintsat have other layouts besides mining on Aleo?

Martin Wu：Aleo is the first Layer 1 public chain project that uses zero-knowledge proofs to solve privacy issues while ensuring programmability. The core of its technology lies in the two core sections of Zexe and Leo. The Zexe consensus protocol is improved on the original zk-snarks technology of ZeroCash, which can not only encrypt simple token transfer transactions, but also interactive transactions at the application level; A programming language that can modularize the zk-snarks of the Zexe consensus protocol, so that any Dapp operating on the Aleo platform can use zk-snarks.

In addition to mining on Aleo, Mintsat will open the pledge of Mintsat Aleo output according to the wishes of Mintsat users to help users increase their income. The efficiency and flexibility of the Mintsat Aleo mining machine, we will carry out the research and development of the ASIC chip after the Aleo computing power runs smoothly for a certain period of time.

Odaily: Almost all new public chains now adopt the PoS mechanism, and there are fewer and fewer PoW chains. How do you view the future mining market? Will there be high-value new currencies entering the market?

Martin Wu：With the transformation of ETH from POS to POW, more and more new public chains have begun to adopt the POS mechanism, which has indeed brought certain challenges to the traditional PoW mining market. Compared with the POS mechanism, POW needs to consume a large amount of computing resources and electricity, resulting in higher operating costs, and may lead to computing power concentration and computing power monopoly.

Nevertheless, we believe that the POW mechanism still has advantages in certain scenarios. For example, for application scenarios that require higher security and decentralization, the PoW mechanism may be more suitable.

At present, the mining market is developing in a diversified direction. We are optimistic about the new hybrid consensus mechanism of POSW, and believe that it will bring a new mining business pattern.

For the emergence of new high-value mining currencies, it needs to be considered from many aspects. From the perspective of miners, we believe that 2023 is a good time to deploy BTC mining, because there are good development prospects in terms of the overall cycle of BTC and the halving of BTC output in 2024. In addition, we should also focus on POSW, ZK track mining coins, and storage and computing tracks, such as Aleo and IronFish.

Odaily: In recent years, a number of listed mining companies have emerged. Home miners and small and medium-sized miners are gradually withdrawing from the market. How do you view the future trend of the mining industry? Do retail investors no longer have the opportunity to enter the mining industry?

Martin Wu：With the withdrawal of home miners and small and medium-sized miners from the market, the entry threshold of the mining industry will become higher and higher in the future, tending to develop in the direction of clustering, enterprise, specialization and compliance. In addition, as the application scenarios of blockchain technology continue to expand, the mining market may also be combined with other fields, such as edge computing and artificial intelligence.

At present, for retail investors, the optimal mining option is a model similar to cloud computing power or mining machine sharing, because this model has low entry barriers and low operational difficulty. Users only need to purchase the products they need in professional mines like Mintsat, and then they can start mining, which also reduces the risk of users participating in mining.

2. Community questions

Q1: In mining services, there is uncertainty in the currency price, and MintSat starts charging service fees after the user pays back. What is MintSat's standard for judging the user's payback?

Martin Wu：According to the BTC net income produced during the user service period is greater than the cost you invested.

Q2: Can the depth of Aleo's current secondary market support users' mining, and is there a sufficient hedging mechanism to ensure users' income?

Martin Wu：We currently have a corresponding mechanism for Aleo’s mining machines and computing power services, specifically computing power compensation for BTC or other mainstream currencies. The specific plan will be updated in the official website announcement.

Q3: Is the withdrawal fee high?

Martin Wu：Withdrawal fees are the same as BTC real-time transfer fees.

Q4: How does MintSat ensure the security of user assets?

Martin Wu：From the most basic aspects of policies and regulatory mechanisms, because mining farms are not similar to centralized exchanges, we are currently developing corresponding on-chain asset verification channels, which will be announced on the official website after completion.

Q5: Will the proceeds be transferred to the address or to the platform users before withdrawing cash?

Martin Wu：The daily income will be posted on the platform as soon as possible, and users can withdraw cash at any time.

Q6: Has Aleo not joined the main Internet cafe yet? Already started selling computing power?

Martin Wu：Aleo products are currently in the pre-sale stage. The pre-sale products we sell will have a bottom-up mechanism, and at the same time, we will guarantee that there will be no additional charges for the pre-sale products when the computing power price skyrockets.

Q7: Is Aleo mining expensive? Just like renting a bicycle is not as good as buying a car?

Martin Wu：The cost is determined based on Aleo's floating difficulty, electricity costs, maintenance costs, etc. Users can choose to buy physical mining machines to run, and we will provide a full set of after-sales tracking assistance.

Q8: Can I mine Aleo with a few hundred dollars?

Martin Wu：The shared computing power service can customize the purchase quantity, and a few hundred yuan is also fine.

Q9: Can you tell me about the mining machine models and quotations of mainstream coins?

Martin Wu：We will announce the specific machine models and quotations in the form of charts after the AMA.

Q10: How many U can we mine with the experience computing power given away?

Martin Wu：Our Mintsat official website has a real-time income calculator, you can experience it.

Q11: Is Aleo’s shared computing power less efficient than buying mining machines yourself?

Martin Wu：Sharing computing power will not lead to a decrease in computing power. Sharing computing power is to reduce personal costs and improve mining efficiency.