10 May
2023
Quantum Blockchain Technologies
Plc
(“QBT” or “the Company”)
Significant
improvements in bitcoin mining success rate and energy use
driven by advances
in proprietary software
Quantum Blockchain Technologies plc (AIM: QBT) has now completed
a key testing phase of its proprietary bitcoin mining search
algorithm and is pleased to announce satisfactory results. The test
results show that QBT’s algorithm, known as Method B, has
theoretically increased the rate of successful bitcoin mining by
2.6 times compared to standard bitcoin mining industry practices
widely used over the same time period.
The research results and the statistical methodology used to
validate them give the Company confidence that the research
approach being used has uniquely identified some properties of
the SHA-256 space that other research teams have
not detected.
The Company’s algorithm also theoretically reduced electricity
consumption by 4.3%. To illustrate this, a mining farm - with
100,000 miners(1) - would save up to $4.5 million per year when applying Method B and
only considering the impact of the reduced energy consumption.
Given the expense and accessibility of current bitcoin mining
equipment, ASIC chipsets and mining strategies, these results are
based on a bitcoin mining difficulty(2) lower than the
difficulty currently in the market. However, the research results
and the statistical methodology used to obtain them give the
Company confidence that its algorithms should be scalable for
commercial use. This would enable a step-change improvement in the
probability of successfully mining bitcoin using the current
bitcoin mining standards in mining equipment, ASIC chipsets and
mining strategies akin to what is in commercial use globally.
Up until now, the bitcoin mining industry has mainly sought to
achieve improved mining efficiency by optimising hardware and its
integrated firmware. The Company’s R&D team of senior
researchers from leading European universities has taken a
different approach. It is focusing its intensive R&D efforts on
identifying and exploiting certain key predictive properties in the
operation of bitcoin’s SHA-256 cryptographic hash functions as
originally designed by the United
States National Security Agency and first published in
2001.
Assuming continued successful progress with testing, the Company
believes its proprietary software has the potential to
significantly improve the financial performance of bitcoin mining
once deployed at full-scale. It is currently expected by the board
that QBT’s algorithm could successfully improve the likelihood of
mining success while lowering the energy cost of the process.
Francesco Gardin, chairman and
CEO of Quantum Blockchain Technologies summarises the Company’s
recent experimental success, “Following nearly two years of
research by our Machine Learning R&D teams, we believe we have
achieved conceptually what appears to be a real breakthrough in the
bitcoin mining industry. Under rigorous testing conditions, our
algorithms are achieving a marked increase in the frequency of
successfully mining bitcoin, while lowering electricity
use.
“We will now speed up the next phase of testing allowing us to
confirm our current results at a degree of difficulty as close as
possible to conditions now prevailing in the bitcoin mining
industry. In addition, we intend to begin development of the
industrial commercialisation phase of our bitcoin mining Method B,
including deployment on mining rigs of the type currently in
widespread use by larger bitcoin mining corporations.
“The Company’s R&D work is both designed and carried out by
a team of senior researchers, including scientists previously
working as full tenured professors at leading European
universities.
“In parallel, the Company continues its R&D efforts to
design and fabricate a next generation bitcoin mining ASIC, as well
as utilise quantum computing hardware and software to similarly
improve the success rate of mining bitcoin.”
(1) Assumptions are nominal 100 Th/s hashing power, 3050W energy
consumption per miner and cost of electricity of 0.04 $/kWh.
(2) Every blockchain has a mining process by which miners can
generate new coins. An algorithm regulates how difficult it is for
the miners to mine a certain block. This difficulty is represented
by a number known as mining difficulty. The more the hash
rate, the more difficult it will be to find valid hashes for a
block. Currently, it takes about 10 minutes to mine a Bitcoin
block. After every 2,016 blocks are mined, Bitcoin adjusts its
mining difficulty, in order to keep the total block time at 10
minutes. The difficulty increases based on the number of miners and
their combined hash rate. In 2009, difficulty started from 1, today
it is more than 48T.
-ends-
For further information please
contact:
Quantum Blockchain Technologies
Plc
Francesco Gardin, CEO and Executive Chairman |
+39 335 296573 |
SP Angel Corporate
Finance (Nominated Adviser & Broker)
Jeff Keating
Kasia Brzozowska |
+44 (0)20 3470
0470 |
Leander (Financial
PR)
Christian Taylor-Wilkinson |
+44 (0) 7795 168
157 |
About Quantum Blockchain Technologies
Plc
QBT (AIM: QBT) is an AIM listed investment company which has
recently realigned its strategic focus to technology related
investments, with special regard to Quantum computing, Blockchain,
Cryptocurrencies and AI sectors. The Company has commenced an
aggressive R&D and investment programme in the dynamic world of
Blockchain Technology, which includes cryptocurrency mining and
other advanced blockchain applications.