GCIQuantum Blockchain says its software solution can boost Bitcoin mining by 30%
( ) provided an R&D update this morning on the development of its proprietary Bitcoin mining technology.
Quantum said preliminary results of its "Machine Learning Method B" showed a 30% improvement over commercially available ASIC chip-based miners. The company also said regularities identified within SHA-256 computation may warrant a new patent filing.
Quantum is investigating a potential 3rd party licensing strategy to exploit early revenues.
Quantum also said it has appointed Dr. Rita Pizzi as Chief Research Officer.
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For those not versed in blockchain terminology, an ASIC is a device that uses hardware acceleration to mine cryptocurrency (in this case Bitcoin) at a much faster rate than hardware built for generic-type computation, such as a GPU or a CPU. Quantum's solution aims to accelerate the process further at the software level, resulting in higher efficiency of mining and ultimately higher profits for the miner.
Quantum's report of a 30% improvement over commercially available ASIC miners, achieved in software, is significant to say the least. The resulting patent, licensing, and commercialisation should result a clear profit boost for the company in the near term.
Still, Quantum has more testing to do before it moves on to commercialisation. The company said results obtained by two of its three Machine Learning (ML) groups in repsect to the development of knowledge-based algorithms (Method A and Method B) have been integrated into a prototype software accelerator that is now ready ot undergo extensive testing.
The computational requirements to validate Method A and Method B are quite challenging and may eventually require the use of a supercomputer, but for now Quantum will rely on existing market-available ASIC miners running its software. Quantum's IT R&D platform is already quite powerful, reaching 100,000 GPU cores in recent months, plus a set of recently acquired 100TH/s ASIC miners.
Preliminary results using Method B have already yielded the aforementioned 30% improvement in mining efficiency, and that is regardless of the chip/hardware used by the ASIC. Quanutm's software does not result in higher power consumption.
Because Quantum's product is software that yields a strict improvement in BTC mining speed, its deployment and commercialisation will be a simple matter of replacing the native control software of ASIC miners with Quantum's own. This is akin to a software update that requires minimum distribution costs and can be accomplished through fully digital channels once R&D is complete.
Quantum says it is working with a cryptography expert to refine SHA-256 computation and, upon collation reaching a critical mass, may file a new patent application relating to a proprietary ASIC implementation.
Apropos to its name, Quantum Blockchain is also investigating mining methods employing quantum computing, but admits that the technology is still some years away from being viable for cryptocurrency mining.
Despite the positive news from there is still much negativity surrounding Blockchain in general and Crypto Currencies in particular due to the recent FTX cryptocurrency exchange scandal, which has dragged the entire sector down over recent days. Something that is clearly outside the control of QBT.
Nevertheless, Quantum's stock did jump more than 20% two weeks ago after the company was awarded €6.2m in an Italian court ruling, demonstrating the stock can recover quickly on the back on positive news. This was a major financial win for the company which had finished FY2022 with £1.3m in cash eq.
These are exciting times for Quantum Blockchain and we recommend investors interested in the crypto sector the company as it prepares for commercial deployment.
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