NODE Haven: A bitcoin mining co-operative

bonanza-kreep (66)in #nodehaven • 6 years ago (edited)

From the dawn of the bitcoin era, “decentralisation” has been one of the most commonly used terms in the cryptoindustry. For many, it is more than just a buzzword; it denotes the promise of a techno-utopian future in which businesses and customers alike will escape the stultifying control of central institutions such as governments and banks by relying on blockchain technology.

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Cryptocurrencies are vital to this vision, and yet they may also be its weak spot. Ironically, and ominously, bitcoin mining – once the foundation of a decentralised ecosystem – is now increasingly concentrated in the hands of the few. As the level of effort required to generate new tokens increases and more powerful and expensive hardware (namely, specialised ASICs) is developed, mining is starting to drift out of the reach of ordinary users and into the hands of major businesses – particularly ASIC manufacturers.

NODE Haven attempts to neutralise this threat to the “bitcoin dream” by making effective mining available to the everyday user again. The team behind it means to do this by establishing a mining equipment co-operative and making all the necessary equipment available and affordable for everyone willing to participate.

What are NODE Haven's products?

NODE Haven's primary objective is to develop, manufacture and distribute Application-Specific Integrated Circuits (ASICs) specially designed to run bitcoin mining programs at affordable prices. The initial project, expected to take from 7 to 11 months to reach completion, is NODE B7, a 7nm BTC miner. According to preliminary estimates, the NODE B7 should provide up to 60% more hash-rate at up to 50% higher efficiency compared to the current industry standard 16nm ASICs.

The company does not intend to stop there; if this first project is successful, it plans to continue developing more and more advanced mining equipment, including ASICs that would be optimised for mining altcoins instead.

How will the co-operative model work?

All of those projects will be financed and organised with the help of the innovative Product Development Vehicle (PDV) model, which relies on the NODE Haven Token (NODE) to encourage a consumer focus. This is done by rewarding the managers with the tokens that are also used to buy the company's products, making them directly invested in ensuring the value of the token by keeping the prices low and the quality high.

Customers will be able to use the token to reserve any given NODE Haven product in advance during the week after detailed specifications and the initial run size are announced. After that, they will have two weeks in which to make the payment, optionally paying +10% of the price in a different currency to repurchase the reservation token.

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Equipment that has not been reserved will become available to the general public in exchange for other currencies, as will any equipment on which the reservation was allowed to lapse (in which case the reservation fee will be reimbursed). NODE used for the actual purchase will be permanently removed from circulation. It will also be possible to use NODE to buy other products, such as brand apparel and power supplies.

How can you benefit from NODE Haven?

Assuming it takes off, supporting the PDV will allow bitcoin miners to receive superior equipment for lower prices. NODE holders will also benefit from having early access to the company's products. The company's intent is that its customers, investors and in some cases managers should be one and the same, which should help develop a dynamic and responsive ecosystem, stimulating continued development.

What are NODE Haven's advantages?

The technical side of the project is handled by Advanced Semiconductor Technologies LTD – a company with a long record of developing ASICs, including, over the last 5 years, bitcoin-oriented ASICs. The NODE Haven team has done its research on the field and intends to learn from the successes and mistakes of other companies, such as CoinTerra. They intend to use a transparent, co-operative business model that has had some successes in other fields and seems to be well-suited to the cryptoindustry. The PDV model is innovative and provides an incentive for the company to remain true to its stated objectives.

Token pre-sale

The NODE Haven Token (NODE) is based on ERC20. Its ongoing pre-sale, with selective access, is limited to 10% of the tokens. The main sale will take place from July 1st to July 21st 2018.

The ongoing evolution of bitcoin mining

NODE Haven offers a solution for a very real and deeply felt problem afflicting the bitcoin mining community. Even if one is not emotionally invested in the values of decentralisation and “one CPU, one vote”, there is no denying that the shift towards ASIC-based mining and the resulting centralisation of power within the industry in the hands of the manufacturers has created some real problems unanticipated by the original developer of Bitcoin. The fact that mining has already become impractical for most ordinary users is frequently discussed. Also, the concentration of control over the prices and distribution of mining equipment undermines some of bitcoin's key advantages as a currency, exposing it to potential corporate or government meddling and making it increasingly less accessible and less valuable.

The PDV model is innovative and we all know that innovation involves risks. However, if it succeeds it may well become the next step in the continued evolution of bitcoin mining. By democratising the manufacture of ASCIs, it would help bring bitcoin back to its roots, or at least provide an important counterbalance to the current centralising trend. This would be of great value, not only to the miners themselves but also to everyone else connected to the bitcoin economy, as it will make the currency more secure and more equally distributed. It will also increase public interest in bitcoin mining, and in cryptocurrencies in general, by levelling the playing field. That will have profound consequences for the entire industry.