Tokenizing Cloud Mining Erik

Size: px

Start display at page:

Download "Tokenizing Cloud Mining Erik"

Julie O’Neal’
5 years ago
Views:

1 Tokenizing Cloud Mining Erik Oct. 10th 2017

Abstract Cryptotech has developed a groundbreaking application-specific integrated circuit (ASIC) technology, which incorporates our unique and patent pending unipolar design.

2 Abstract Cryptotech has developed a groundbreaking application-specific integrated circuit (ASIC) technology, which incorporates our unique and patent pending unipolar design. This patent pending design will remove 67% of the logic circuits that are necessary for today s ASIC systems. This not only reduces power consumption but allows for the strategic placement of more active circuitry on the newly freed-up area. With this in mind, Cryptotech has been able to design a cryptocurrency mining unit that not only uses up to 80% less power than our competitors and is significantly faster, but also reduces manufacturing costs by 1/3 of the price per unit. Today s cryptocurrency mining is a very energy-intensive process and inefficient way of mining. As of today, the majority of the cryptocurrency mining companies are based out of countries where most of the energy is derived from fossil fuels. This is mostly due to the fact that ASIC miners today are based on technology that is 10+ years old and consume five (5) times the energy of what our technology does. The approximate size of the Cryptotech ASIC chip will be 3 x 3mm Die size and the final chip will be approximately 10x10mm. Figure 1 Cryptotech ASIC Chip

3 Table of Contents Abstract... ii Introduction... 1 Problems... 2 Solution... 4 Technical Solution... 5 Mining Efficiency... 6 Value for Token Holders... 7 Token Deployment and Plan... 9 Team Table of Figures Figure 1 Cryptotech ASIC Chip... ii Figure 3 Energy Consumption Statistics for Bitcoin Mining... 2 Figure 4 Cryptotech Price Comparison... 8 Table of Tables Table 1 Estimated Mining Revenues & Token Value (USD)... 8

4 Introduction Cryptotech AS is a Norwegian company that has developed a new generation of cryptocurrency mining equipment for Bitcoin and other SHA-256 currencies. The equipment is based on our proprietary ASIC mining chip and low cost large capacity mining units. Our goal is to deploy a large array of miners using only clean hydroelectric energy to power the entire facility. We at Cryptotech believe that in order for cryptocurrency to be sustainable in the future, we not only need to reduce the carbon footprint of this energy intensive industry, but also make it easier for the masses to enjoy the benefits of affordable cryptocurrency mining. Cryptotech is accomplishing this by tokenizing cloud mining for cryptocurrencies through assets in the form of a cloud mining contract with a guaranteed minimum mining of cryptocurrency. 1

5 Problems There are many fundamental problems and drawbacks in cryptocurrency mining today. First is the cost and operation of mining hardware. Second is the inefficient power use with the impact of greenhouse gases. Many of these cryptocurrency miners are installed in basements, storage units, and anywhere people can fit them. This is often done with poor and/or homemade electricity connections that underestimate the power that these systems actually draw, which increases the risk of hazardous fires. There are multiple examples of Bitcoin mining farms that have burned down due to poor electrical work. Today s ASIC miners are operating on technology that was developed more than ten years ago, making them increasingly power intensive. Furthermore, many ASIC mining operations are based out of countries that rely heavily on fossil fuels for electricity, which leads to increased greenhouse gas emissions. Figure 2 (below) contains key statistics on the state of greenhouse gas emissions for Bitcoin mining. Figure 2 Energy Consumption Statistics for Bitcoin Mining 1 1 Source: BitcoinEnergyConsumption.com 2

6 According to digiconomist.net, it is calculated that between 2 and 3 kg CO2 per transaction and 8 to 13 tons of CO2 per mined coin. 2 This was calculated from an in-depth interview with one of Bitmain s mining facilities. This calculates to 12.6 million tons of CO2 released each year in China alone according to myclimate.org. This is just the beginning of how big the carbon footprint will get with cryptocurrency mining and transactions. It is only going to increase until the community comes together and changes it. Initial Coin Offerings (ICOs) and crowdsales have had an influx of popularity in However, they all have not been in good faith and many have lost out on their investment in ICOs. Even worse, some companies use shady tactics to manipulate the price of the coins or tokens to benefit financially from their corruption. However, there are new types of ICOs and crowdsales coming to the market, such as asset-backed ICOs. This is not just another way to justify an investment in an ICO or crowdsale but paired with having an ICO or crowdsale in a creditable country such as Norway - helps limit your risk as an investor. Cryptotech will be the first to offer hashing power for the purchase of a token

7 Solution Cryptotech is taking the hassle out of cryptocurrency mining and bringing affordability to the individual who wants to mine cryptocurrencies with ease. This eliminates the hassle of purchasing a cryptocurrency miner and having to deal with the placement, noise, heat, and energy cost that the miner creates. Cryptotech has the ability to offer such a profitable service because we have developed the world s most energy and cost-efficient system for SHA-256 mining. In addition, all of our miners will use cheap abundant hydroelectric energy within Norway to run Cryptotech miners. All of the residual heat from the operation, furthermore, can be used by the local communities for heating needs. Cryptotech will maintain a nearzero greenhouse emission by operating this way. This will help set a precedent by changing the status quo of how the world mines and pays for Bitcoins and other cryptocurrencies. Furthermore, Cryptotech s unique approach of combining groundbreaking technology with an environmentally sustainable business model gives us a tremendous advantage over our competition. In addition to the cost savings, is based out of beautiful Norway and having an asset-backed crowdsale with hardware hashing power will set up Cryptotech as the world s largest and greenest provider for mining cryptocurrencies. 4

8 Technical Solution UNIPOLAR LOGIC - and the benefits for application to Bitcoin Mining ASIC Conventional silicon CMOS logic utilizes both NMOS and PMOS transistors. The logic circuits require a significant amount of registers to store values of logic output. Cryptotech's novel unipolar logic only utilizes one type of transistor - either NMOS or PMOS only. In the case of silicon circuits, NMOS is mainly chosen for its much higher mobility compared to PMOS. Manufacturing costs are lower since the fabrication is simplified (no need for doping of PMOS transistors). The method Cryptotech employs in its unipolar logic enables a significant reduction in the circuitry required to implement certain logic functions. Initial simulations comparing a series of CMOS inverter circuits to a series of unipolar inverter circuits at the same operating voltage, frequency and loads indicate that up to 60% power reduction is realized by employing unipolar logic vs. CMOS logic for a similar amount of circuitry. Other added benefits of our unique unipolar logic include higher density (reduced circuitry for certain logic functions), resulting in 60-75% smaller die size for the same processing capability, which translates directly into cost savings. Further power savings are enabled by Cryptotech s novel unipolar logic technology at high hashrate operation. The lowest power ASICs operate at near threshold voltage (0.4V); however, for high hashrate operation, the conventional ASICs must be driven at higher voltage levels (0.6V) in order to ensure the logic gates operate at the necessary speed. Cryptotech s ASICs do not need to operate at 0.6V to attain this higher speed. This provides another significant power reduction advantage of Cryptotech s technology. In total, we expect to be 80% lower in power consumption compared to the best mining ASICs available on the market today. The first ASIC chip from Cryptotech will be designed and fabricated on a 22 nm SOI process. The vast advantages of unipolar in terms of power, speed, and density enable Cryptotech to design ASICs at 1-2 technology nodes from the stateof-the-art nodes. This creates far better cost-performance features than CMOSbased designs at the state-of-the-art nodes. 5

9 Mining Efficiency Cryptotech is at the early stages of moving into two (2) sq. ft. facilities to host thousands of our new miners. Each miner is designed for optimal performance and will be liquid cooled by cold water from a lake in Norway. The resulting hot waste water will be used to heat up the local community in the winter, thus giving Cryptotech virtually no carbon footprint on running our facilities. We get all our power from seven (7) large hydroelectric plants and have the capacity to host a wide variety of mining types. Our main facility will initially have a 150 MW power supply, but compared to traditional Bitcoin mining equipment, this will hash at the same rate as a 750 MW facility. In total, this would equal a 6.57 TWh per year power consumption if it was using traditional Bitcoin mining equipment. With our technology, Cryptotech will do the same with only 1.31 TWh per year. This is a tremendous saving that we are passing along to our Token holders. At typical electricity prices of around USD $0.10 per Kwh, operating an Antminer S9 costs you approximately USD $1200 in electricity costs per year alone. For basically the same cost as one year of electricity on an Antminer S9, you can get almost the same hash rate for two years (and bypass the initial cost of a few thousand dollars to buy the Antminer) via Cryptotech mining. This also eliminates all shipping costs and the carbon footprint that comes from shipping and operating the miner. Compared to an Antminer S9 - which hashes at TH/s with an energy consumption of approx watts - this equals an energy consumption of approx. 100 watts per TH/s. Cryptotech s advanced miners will consume power at only 20 watts per TH/s. This drastically reduces the overall power costs. Then, by combining these power savings, reduced production costs, and efficiency of running a large mining operation, we are able to offer a very lucrative opportunity to all our ICO Token buyers. 6

10 Value for Token Holders Token holders will benefit by participating in the most efficient and green cryptocurrency mining operation in the world. They will be the first to experience affordable mining by having access to Cryptotech s proprietary ASIC chip and miners. Token holders the ability to exchange their tokens for Cryptotech mining services. Tokens are smart contracts issued on the Ethereum blockchain and can be traded freely until they are exchanged for hashrate. Due to high demand, Token holders will become part of a privileged group of people who actually own a right to mine at our facility. Our Token value is a right to exchange the token for a hash rate of 1TH/s per token and is valid for two (2) years from its purchase. The earliest date for the exchange is August This is an all-inclusive token, which includes all maintenance fees and electricity costs for two (2) years. Once two (2) years have passed, token holders will still hold an exclusive right to mine on a 1TH/s capacity for the remainder of the equipment s lifetime (expected to be approx. four (4) years). After the first two years, token holders will have the opportunity to renew the maintenance and power agreements for another two years at competitive prices. Every token holder that participated in the initial crowdsale will open a special Token holder account at our mining farm. This account will have many benefits, including the priority right to renew agreements once the initial 2-year period expires, pricing discounts on upgrades and other benefits that non-crowdsale customers will not have. Currently, as of November 1 st, 2017, the value of bitcoin is approximately US $6500 and the current bitcoin global hash rate is approximately PH/s. Given the above figures, one token should give you the following return on investment (ROI): 1 TH/s gives a turnover of approx. USD $1.25 per 24-hour period. Due to increase in complexity from the increased hash rate on the network, we estimate that the revenue per day starting from August 2018 will be approximately USD $1 per day per TH/s (based on a minimum Bitcoin price of USD $5500). In the second year, we estimate that revenue per day per TH/s will drop further to approximately USD $0.80 per day. 7

Table 1 Estimated Mining Revenues & Token Value (USD) 1Th/s First Year Second Year Estimated Token Value Revenue $365 $292 $657 Additionally, should the Bitcoin value increase significantly above USD

11 Table 1 Estimated Mining Revenues & Token Value (USD) 1Th/s First Year Second Year Estimated Token Value Revenue $365 $292 $657 Additionally, should the Bitcoin value increase significantly above USD $5500, one could expect a further increase in ROI. Apart from the Token purchase price, there are no further costs during the first two (2) years of mining. Electricity and maintenance fees are all included in the initial Token price for the first two years. Cryptotech is so confident in our product and your earning potential that we even issue you an earnings guarantee. If the Bitcoin price during the period between August 2018 and August 2020 does not fall below USD $5500, we can guarantee that each token purchased will have mined USD $600 worth of Bitcoin. If not, we will extend your cloud mining contract for free of charge until each of your 1 TH/s has mined a total amount of bitcoins equivalent to minimum USD $600 each. That is a 500% return on investment guarantee for those purchasing tokens between Nov 5 th and Nov. 30 th, Figure 3 Cryptotech Price Comparison Regular token price is set at $200 but will be sold at 50% discount to early stage supporters for only $100 each. Between Nov. 5th and Nov. 30th

12 Token Deployment and Plan 1. Cryptotech Tokens are expected to be listed on major exchanges starting in mid-december 2017 once the early bird period is over. a. Initial token holders are almost overnight guaranteed a 100% return on investment upon listing since the list price will be based on the regular price. b. Only a total of 1 million tokens will be minted, and all tokens will be made available for sale during the crowdsale. Cryptotech does not intend to trade tokens at other prices than $100/token during the crowdsale and $200/token at regular price. 2. Once tokens hit the exchanges in December 2017, Token holders will be able to trade their tokens freely on a variety of exchanges, where the market will regulate the price of their tokens. In August 2018, all token holders are free to exchange their tokens for hashrate with Cryptotech upon which the Holder will receive regular payments of Bitcoins based on a number of tokens they exchanged. Equivalent to the hashrate they hold and difficulty of Bitcoin mining. Cryptotech intends to solo mine in its own pool and will charge no pool fees for mining. 9

Team In addition to the core team described below, we also work with various subcontractors on many aspects of our technology such as PCB designers, software

13 Team In addition to the core team described below, we also work with various subcontractors on many aspects of our technology such as PCB designers, software programmers, hardware manufacturers and others. Our ASIC chip is expected to start mass production in Germany in April Our core founder team consists of the following. 10

INVEST IN SOLAR ENERGY AT ANY SCALE

INVEST IN SOLAR ENERGY AT ANY SCALE THE SOLAR FARM BACKED ICO PITCH DECK v1.1 ABSTRACT Sunmoney Solar Group (SSG) is a community-funded renewable energy company, established in 2013 with a 2 million euro