Coinbase Ventures, the investment arm of the major cryptocurrency exchange, has invested an undisclosed amount in Titan, a developer of software and services aimed at industrial mining of Bitcoin (BTC).
According to Titan's announcement, the investment will help continue the development of the company's products and improve the efficiency and profitability of Bitcoin mining companies.
Ryan Condron, Co-Founder and CEO of Titan, said "Mining has progressed from hobby to industry and critical global computing infrastructure, and Titan is poised to help world-class miners meet these challenges."
Increasing centralization in crypto mining was one of the key points at the 2020 Mining and Investment Summit
Titan offers advanced pool and mining software specifically targeted at professional miners based in the US Its network of mining nodes and panels enables miners to better compete on a global scale, according to the company.
Titan previously launched Titan Pool in collaboration with CoinMint and CoreScientific, two major mining infrastructure providers in the US Among the benefits the group offers, Titan cites increased transparency and, more importantly, resolution of some issues. jurisdictional requirements for US miners.
China currently accounts for the vast majority of the Bitcoin hashrate. Relative dominance can be attributed to a combination of attractive electricity costs and a localized supply chain.
BTC Hash Rate Falls Amid Miners' Migration In China
The Sichuan region is particularly attractive to miners due to its cheap hydroelectric power. Its importance is so pronounced that local seasons have a strong effect on Bitcoin's hash rate. But cheap electricity is not unique to China, as some regions in the US, Canada and Europe are equally competitive.
The mining supply chain, on the other hand, sees a much stronger dominance from Chinese companies. Mining hardware manufacturers are almost exclusively based in China. This gives local miners a powerful advantage in the local field, as there may be difficulties exporting and importing certain chips and devices. Although the US is catching up in terms of mining hash rate, which accounts for 14% of the total, local companies still use devices made in China.
China controls 50% of Bitcoin mining while the United States reaches 14%, reveals a new survey
This can be particularly problematic in today's geopolitical environment, where the United States actively bans products and services made in China, even going as far as to prohibit investment in Chinese companies. The mining industry has already started to respond, with some traders repatriating the hash rate. While President Trump's departure may help ease tensions a bit, some analysts believe there may not be a restart in sight for US-China relations.
Titan is primarily focused on the software side of the mining supply chain, offering a national pool for miners to join. There have also been some developments in the local maintenance infrastructure, with Bitmain offering technician certification courses in the US in May 2020.
Interest in diversifying the mining industry away from China's dominance appears to be high, but full independence is unlikely to be achieved until ASIC makers from other countries step in.
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