Like Mine The Bitcoin? This New Product Of Canaan Are Worthy Of Note

The mining tools maker bitcoin world's second largest, Canaan, Creative has launched one television set mining bitcoin. As reported by the South China Morning Post on August 2, 2018, the launch was carried out as part of a drive to build a new generation of smart devices that can support development framework and the Internet of Things (IoT).

AvalonMiner Inside

Canaan refers to a new device "AvalonMiner Inside," and in addition to market her as a smart TV, he mentions that the device has a 2.8 trillion hash processing power per second. The most powerful mining rig currently belongs to Canaan is able to process the 11 trillion hash per second, making the AvalonMiner Inside the roughly 25 percent of the same strong with top rig them.

According to Canaan, AI-powered device has many desirable features both regular users as well as miners would love it. These features include voice control, display of the profitability of the bitcoin, mining real-time and digital platform to the binding of Canaan which allows users to pay for physical gifts or entertainment content using bitcoin mined.

Not everyone is a fan of the new product, with some describe it as a marketing gimmick. Xiao Lei is one of those people that way. Bitcoin analyst based in Beijing giving his thoughts to the South China Morning Post, stated, "this is more like hype. It would be more meaningful if these companies are able to embed the functionality of mining to the big TV brands. "

As in a report from BTCManager in May that Canaan apply for initial public offering (IPO) in Hong Kong, expects to raise up to $1 billion. The company usually known for making graphics chip that drives the mining ASIC, used to mine the bitcoin quickly and efficiently. Canaan is currently locked in a battle to survive with a much larger rival, Bitmain, which controls up to 70 percent of the global market of mining devices bitcoin.

Smart business strategy or marketing?

The launch of the AvalonMiner Inside can represent more than just a marketing stunt when the wider strategy of Canaan are taken into account. The company has stated that he wants to do more than just make mine chip ASIC and dependent on one product line that for his survival.

In the Hong Kong IPO filings, the company noted, "if we can't maintain the scale and profitability of a product line of our system and, at the same time, offering new products, our ability to continue to grow will suffer."

For this purpose, the Canaanites sought to expand its offerings to compete more effectively against Bitmain. According to the company, the AvalonMiner Inside is the first of many devices that are expected to release, which was intended to build up a user base in preparation for the next generation of AI and blockchain.

What To Do With The Bitmain?

Instead of just producing chip, which accounts for about 19.5 percent of the chip market mining ASIC, Canaan would like to build a layer of the same physical infrastructure to support an expanded blockchain by removing power from the quarry the inherent risks of centralization so it can move the network as a whole. device for creating a much larger blockchain.

In other words, rather than having 10,000 miners ASIC that operate at 12 trillion hash per second, Canaan wanted to create 1 million devices "regular" who have the power to mine. Even if, as AvalonMiner Inside, they only operate at 25 percent of the capacity of ASIC, which still creates a network that is much larger and more powerful. Thus, the company can compete with Bitmain without engaging in destructive price war on mining company's ASIC ASM.

According to the story of the SMCP, Canaanites intends to launch this strategy by distributing its products to business, which will then be sold to the customer.