GCIQuantum Blockchain shares soar on altcoin mining plan
( ) announced this morning that it will apply its SHA-256 based mining optimisations to other cryptocurrencies within the Bitcoin family.
Quantum said its focus will remain on BTC mining products, but it now believes it makes commercial sense to offer the same potential increase in efficiency to other related cryptocurrencies, namely the two BTC hard forks Bitcoin Cash (BCH) and Bitcoin SV (BSV).
The main difference between BTC and the two derivatives is the number of transactions per block processed. BTC sees an average of 4, BCH around 100, and BSV can reach 50,000 transactions per second. As with BTC, Quantum believes its offering will enable BCH and BSV miners to increase profitability per block mined.
Remaining amounts of BCH and BSV are roughly the same as BTC, around 1.7 million coins (out of a total supply of 21 million each). Despite the price differential between BTC and the two derivatives, Quantum has estimated there is still a market for US$2.9bn of the two cryptocurrencies, presenting an attractive opportunity for the company.
Francesco Gardin, CEO and Chairman , commented: "Our main target is and will remain to develop BTC miners. However, the same R&D results can be applied to
BCH and BSV, just by re-training our Machine Learning methods A and B (see announcement dated 15 November 2022), which we believe is a straight forward process. We are confident that our SHA-256 optimisations and the quantum version of SHA-256 will work for mining BCH and BSV with no change, due to SHA-256 being the core mine algorithm for both. Any additional opportunities for our proprietary mining technology are always welcome as it has the potential to enhance shareholder value."
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A milestone announcement from Quantum Blockchain, and markets agree, pushing stock up 17% today.
As previously announced, Quantum's machine learning IP can boost Bitcoin mining by 30% compared to commercially available ASIC (dedicated) miners. Moreover, implementation can be as simple as a software update with next to no distribution costs.
Quantum's proprietary algorithm uses a quantum version of SHA-265, the core engine for Bitcoin mining, to materially improve on mining time. Today's announcement means the company will employ the same algorithm to Bitcoin's sister cryptocurrencies BCH and BSV. Quantum has determined that the move is possible without any additional monetary or opportunity cost or time diversion from its current R&D endeavours.
Therefore, should the new strategy prove successful, it will result in a straightforward increase in value and revenue for the company, with practically no additional cost.
The mining difficulties of BCH and BSV are lower than BTC's, making them less capital intensive yet potentially as rewarding as BTC. Quantum's technology should thus offer a marked improvement in the probability of mining blocks of BCH or BSV, thereby opening up the two cryptocurrencies to a much wider audience.
Quantum's R&D continues to make headlines and attract investors - this month alone, the company's stock soared by over 100%. And as Quantum nears commercialisation, investors interested in the space should and stay tuned for future news.
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