Blockstream
Blockstream

Blockstream Launches New Mining Service, Fidelity An Early Customer

Blockstream, a Canadian firm focused on developing products for the cryptocurrency industry, announced the launch of two large data centers for enterprise level co-location services. 

The developer of Bitcoin satellites and consumer wallets also introduced the BetterHash protocol-based Blockstream Pool. The company’s latest products are aimed at preserving the decentralization of the Bitcoin (BTC) network. 

Blockstream Data Centers Could Account for 7.5% of Bitcoin Network’s Hashrate

Based in Quebec and Georgia, Blockstream’s new data centers reportedly have a total energy capacity of 300 megawatts. If operated at full capacity and with the latest mining hardware, the data centers could account for approximately 7.5% of the Bitcoin network’s hashrate. 

As noted in a blog post published on August 8, 2019 on Blockstream’s official website, the facilities offer a solution for co-location of clients’ mining hardware, which covers delivery to the data center, installation, and maintenance. 

Customers are able to remotely manage their mining machines while having access to real-time analytics information for each device. At present, Blockstream’s proprietary service is designed mainly for enterprise and institutional clients. Notably, the Fidelity Center for Applied Technology was announced as an early adopter of the new service. 

Last month, Fidelity’s management filed for a crypto-related New York Trust License.

Miners Can Have More Control Over Which Transactions to Include

As explained, Blockstream’s comprehensive mining solution includes the first BetterHast protocol-enabled mining pool. The protocol allows miners to control and determine which transactions will be added to their newly generated blocks.

The BetterHash protocol has been developed to solve an important issue with most mining pools, as it allows the pool operators to decide which transactions will be included in their blocks. According to Blockstream, this increases the decentralization of the Bitcoin blockchain, and makes it more difficult to launch attacks on the world’s largest cryptocurrency network. 

As mentioned in Blockstream’s blog post, published by Chris Cook and the company’s chief strategy officer, Samson Mow:

“We firmly believe that Bitcoin holders and businesses involved in Bitcoin should take part in mining themselves, to help maintain the decentralized security of the Bitcoin network.”

Currently, Bitcoin mining has high entry barriers as prospective miners have to establish their own mining facilities, which is a costly and expensive process. Another option is to select a hosting provider but this can be problematic due to “inexperienced teams, limited control over miners, and unpredictable pricing,” Blockstream’s management notes. 

However, the Canadian blockchain firm aims to address these issues by offering a turnkey, enterprise level co-location service that allows users to remotely monitor and control their mining hardware with “complete transparency.”