Bitcoin Mining is the act of securing the Bitcoin Network through the verification of Bitcoin transactions. Since Bitcoin Mining is part of the infrastructure layer which powers the whole Bitcoin Network, every company, application and future innovation using the Bitcoin network rely on Bitcoin Miners to securely and efficiently process transactions.
Mining serves two purposes
Currency issuance of bitcoins by the Bitcoin Network to Miners.
Bitcoins are issued to a Miner when the Bitcoin Network recognises a Miner as the first to successfully solve the Block Chain Algorithmic Equation. New Bitcoins are issued by the network on average every 10 minutes until 21 million bitcoins have been released by the year 2140.
Securing the Bitcoin Network through the verification of Bitcoin transactions
When a Bitcoin transaction is performed, it will form part of the transaction ‘Block’. The chronological record of verified Bitcoin transactions is known as the Block Chain. Each Block within the Block Chain has its own Block Chain Algorithmic Equation and by solving the Block Chain Algorithmic Equation, Miners attach the Block to the Block Chain. The Block Chain is hosted by an online peer-to-peer network and shared by all Bitcoin users.
The amount of Bitcoins that are received by Blockchain Global is determined by the company’s Hash Power as a percentage of the Global Bitcoin Network Hash Power. Higher levels of relative power will increase the chances of our operation solving the Blockchain algorithm and therefore create a greater likelihood of Blockchain Global receiving the 12.5 Bitcoins currently released every 10 minutes, in addition to the transaction fees.
Hash Power Generation
Miners generate Hash Power by connecting and powering purpose built Bitcoin Mining machines, also known as ASIC Miners. As the amount of Bitcoin Miners operating and the scale of operations have increased, so too has the Mining difficulty. This has led to Bitcoin Mining machines becoming more powerful and efficient at solving the Bitcoin algorithm over time. Due to the benefits that access to the latest Mining technology brings, Blockchain Global places great emphasis on developing strong relations with multiple Mining machine manufacturers.
If you would like to learn more about the history of Bitcoin Mining, feel free to visit our Bitcoin Mining museum located at our Melbourne office.
Costs of mining
Electricity is often the largest cost associated with Bitcoin Mining. To minimise these expenses Blockchain Global actively seeks to operate in locations with most competitive electricity cost rates. Access to such low cost electricity is most commonly found in China, which is why the majority of Blockchain Global’s operations are based there. In addition to minimising costs, Blockchain Global also seeks to minimise its environmental impact by developing relationships with sustainable energy resource partners.
Mr Allan Guo
Mr Guo brings his banking, accounting and compliance background to Blockchain Global. Prior to joining the company, Mr Guo held the role of GST and Tax Accountant at NAB, in this role, reviewing and reconciled accounts of superannuation funds. Acting as Director of Peak Property Development Pty Ltd, Peak AG Real Estate Pty Ltd and Peak international Pty Ltd, Mr Guo holds a real estate licence and has been involved in a number of property developments in Australia and abroad.
Mr Guo manages the operational aspects of the Bitcoin Mining operation of Blockchain Global, which involves building the relationships to enable the Company to carry out infrastructure projects that comply with operating budgets of the Group.
Mr Guo graduated from Adelaide University with a Bachelors of Commerce (Accounting).
Mr Jacob Cheng
Mr Cheng brings more than 12 years of experience in client facing production planning and capacity management across numerous leading semiconductor foundries. The foundation of his extensive experience begins with managing capacity, allocation and collaborating with engineers to fabricate ASIC chips for IBM and Samsung at Semiconductor Manufacturing International Corporation (SMIC) (NYSE: SMI) (SEHK: 0981), which operates the largest and most advanced semiconductor foundry in mainland China. Mr Cheng subsequently took up the role of Senior Production Planning Engineer of German based X-Fab, specialising in end-to-end production planning for clients such as BMW and Mercedes. Most recently Mr Cheng acted as the Principal Industrial Engineer overseeing the expansion of the Kuching (Malaysia) foundry of SunEdison (NYSE:SUNE), the leading American Solar Silicon Wafer Manufacturer where he reported directly to the CEO of Asia Pacific on rollout progress and utilisation. His experience brings strong Logistics and Project management background, which can benefit Blockchain Global’s Mining operations by effectively coordinating the transportation, deployment and upkeep of the increasing Mining capacity under the company’s management.
Mr Cheng focuses on supply chain management and product lifecycle management of Mining Equipment and Mining facilities. Mr Cheng assists the management in the planning of the budget and the implementation of operational management.
Mr Cheng graduated from Wuhan University with a Bachelor of Engineering.