Blockstream launches mining facilities with Fidelity and LinkedIn founder as clients

Blockstream launches mining facilities with Fidelity and LinkedIn founder as clients

Bitcoin development company Blockstream unveiled a new mining facility and mining pool aimed at enterprises, with the Fidelity Center for Applied Technology and LinkedIn founder Reid Hoffman being named as two of the service’s first clients.

Announced Thursday by the Canada-based firm, the mining operation is capable of a hefty 300 megawatts output spread between two facilities in Quebec, Canada, and Georgia, U.S.A. If it were running at its full capacity—6 exashes of mining power, according to Forbes—Blockstream’s mining would have accounted for nearly 9 percent of the Bitcoin network hashrate on Aug. 8.

Decentralizing mining

The new service has been slated as “colocation” for mining—not “hosting”.  As such, Blockstream will install and maintain customers’ own mining equipment in the two locations, while purportedly allowing the devices to be operated remotely by clients and controlled “with complete transparency.”

The colocation play comes as an apparent effort by Blockstream to decentralize Bitcoin mining and de-risk the network from a 51% attack, an event that in recent years may have come dangerously close to occuring with Bitmain and other conglomerate pools at times mining more than 40 percent of all blocks. There is still some evidence suggesting that Chinese miners control a dangerously large percent of the mining hash rate, but a recent ban on crypto mining in China may have changed that.

Power to the miners

Doubling down on this effort, Blockstream has also raised the curtain on its own mining pool utilizing a new, supposedly more decentralized, protocol created by longtime Bitcoin developer and Blockstream co-founder Matt Corrallo.

The “BetterHash” protocol purportedly allows individual miners to control which transactions are included into new blocks as opposed to being determined by a centralized pool operator who may use the hashrate maliciously, according to Blockstream CSO Samson Mow.

At first only Blockstream Mining customers will be able to access the pool, however, which has apparently been running on a testnet for a year.

For now Blockstream Mining is intended strictly for “institutional and enterprise customers” and Blockstream’s own mining operations, but will in the future be made available for smaller clients, the company said.

Posted In: , Mining
Invest with AMFEIX

Like what you see? Get more Bitcoin mining news in your inbox

Subscribe to CryptoSlate, our daily newsletter containing the top stories and analysis.

Sign up to stay informed
Jonnie Emsley

Jonnie Emsley

Fintech Journalist @ CryptoSlate

Jonnie is a writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. Discovering new corners of the world and emerging tech trends makes him tick.

View author profile

Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.