For ten years, mining’s largest cryptocurrency has come a long way. Hundreds of bitcoins per day to the current level of 12.5 BTC per block. From mining on the CPU, as bequeathed to Satoshi, to the giant farms of tens of thousands of specially adapted for this device, absorbing megawatts of electricity. The rules of the game. And wherever the game is played for money, people divide and conquer.
Now a large share of bitcoins mined, Chinese giant pools like Antpool, and BTC.com. But in Russia — where else — showed up the person who wants to change the status quo. Although the road ahead will be long, audacity and optimism provide a solid Foundation for Michael Gerlis and pool gate.emcd.io, known to many as simply the EMCD.IO.
What is gate.emcd.io? It is a pool with automatic switching algorithm. It redirects power to the most profitable coins and pools to benefit from mining the maximum profit. Independently monitor the exchange rate of coins and the profitability of the different pools is quite tedious. Now you have a pool, which makes it for you.
Hey Michael. Tell us how came the idea to create a Gate? Someone suggested, or borrowed someone else’s model?
It all started with the fact that we had purchased mining-equipment not the most pleasant price. Wanted to do something quickly to pay off. Started jumping on the coins, to pools, to see where it makes more sense profitsee. Understand that the best for us is no solution. So you need to do your pool.
Took the package Yiimp. [Yii Mining Pool — management solution for pools with open-source based on PHP framework, Yii. — approx. the editor]. A very long time trying to bring it to a normal state and to build a pool. But it was someone else’s code, reworked several times. In the end, at that time I suffered with Yiimp about 8 months and have not achieved what you wanted.
The resulting pool was good only for mining altcoins a little-known, and can compete with bitcoin pools did not work. The award was significantly less, so rested in the scaling and growth. Dokrutili own exchange plugins, updated the backend to support asicboost (technology that reduces the electricity consumption of Asimov at ~200 watts), but it has not justified itself.
Stood November 2018. We realized that in this configuration, to modify the pool will not work because of too large number of “crutches”. So I decided to try to write code from scratch, although the working pool version EMCD has been.
Unlike a conventional pool, which we were trying to start a new pool-switcher should automatically switch power miners on best mining coin. Now this is a conservative proxy of the capacity on P2рool own Bitcoin node, DGB solo, solo BCH pools, and while there is sufficient capacity in the pool ckolivas’a, which is the only one opposed to the Chinese conglomerate. Р2рооl — pool is a decentralized network of Bitcoin, we have our own node that mines solo. Why P2pool? Because to its nodes we have not grown to her very high demands.
Mined coins are exchanged on the stock exchanges through the API and paid to the miners in BTC. Everything happens on the side of the pool, the user simply gives away its power.
How many people in the team? How difficult is it generally to write a pool from scratch from a code perspective?
In the development team about seven people: one front-end developer, one designer, the other coders. Pool to write is quite difficult, because there is no documentation and the niche is quite narrow. Moreover, the documentation is missing, and everything to do with mathematics and R&D [research and development — approx. the editor]. Most time is spent on code, of course. Part of the results is visible now is correctly working strategy without reconnection, which can withstand tremendous power. Another part of the user does not see the connection to the exchanges and the exchanges.
That wakes in the middle of the night? How to cope with the piles and other surprises? Any problems at all?
The middle of the night Wake completely absurd situations: for example, burned a data center. Or cut off the Internet in a data center hosting provider. Different events happen. Sometimes there is the feeling that prevents something from above.
There are problems with anything not related. People fall off the equipment from stratonov, and they don’t switch over to the backup strategy. I think in the week we will solve this problem and all will be well. People are generally satisfied and support the team.
But there are pitfalls. Inhibit data centers that are not able to switch IP addresses. Slow DNS caching, which can’t reassign IP addresses. Hamper users who can not send the logs of their equipment, if they have something not working. And they need us to get competent feedback and error handling, if any.
How active the miners are transferred to you at the pool?
It is almost impossible to negotiate with major miners who have 10 thousand pieces of equipment. They were all happy. For example, representatives of Ice Rock Mining just said, we won’t switch, we’re fine. It is unclear how to approach them. They have their own project, cloud mining is almost, but not quite cloud. By the way, the only one of the ICO-the enterprise, which still works.
I spoke with their CTO — Mikhail Pluzhnikov. Misha said in a recent mitape Binance: “come on to Chat, but to switch we won’t.” I am, of course, a little offended, because a lot of the soul-invest in the project, and the like as IceRock our allies. Gives them cashback btc.com while the profit we even cashback BTC more.
So they worried, do not want to work. Same with other major miners, who have their own data centers. It’s very difficult to explain that if they will give their power to us and not the Chinese, it will get as much if not much, then even a little more. They are very hard to draw. But small miners are safely switch them all happy.
By the way, recently it has been Hochma. There are two major teams from South Ossetia and Moscow’s city centre. Some appreciated the difference in our favor, 7 percent in a month, others said Yes you do the same while the pool we do not sell, to connect to you will not.
What about you?
I told them the real price tag called — they were taken aback and started to ask about “normal supply”.
4.5 million rubles — given the fact that the team will continue to work. If you consider that the project head to foot put for their money, the salary of the developers, the cost of personal strengths, assessment of competitors and future profits, my offers were very low.
[Service is a proxy between the pools and the users, allowing you to mine the best coin at a time. Price complete mining-pool is very different — approx. editor]
Well, well. What kind of goal you have set? To earn money or to blame the Chinese giants?
The goal was initially to quickly recoup the equipment. Now we have a change of heart, equipment, strayed for a long time. Want to influence the market in which, unfortunately, the Chinese giants of which you speak, occupy a large part. It is about 75-80 percent. Unfortunately this makes it difficult to push various updates to the network. There are Erlay, who recently announced, but not the fact that it will miss. Lightning Network is also over Bitcoin, nobody wants to take responsibility for the cleanliness of code. It is very difficult to bring it to the masses. Plus LN is killing the decentralization as such.
If not a secret, how much have you invested and how much repulsed to feel for a growth? Competitors are strangled?
About the money: spent about 3 million roubles, for the most part, the equipment server capacity, salaries and advice to third-party blockchain experts. Money from the pool we will not make never. Will earn in the secondary services, which after certain stages in the development pool will be introduced. About competitors: they do not see. The growth of the power of the bullet is palpable. I don’t even know where in the is not being invested, people tell each other by word of mouth. It’s nice to see.
Competitors have, but the main problem is not with them. The main problem is that people are very lazy, they are hard to try to connect, to remember, to count. A paradox: people are greedy, but also lazy. Because of this, it is very difficult to attract customers, although word of mouth works. Envelopes with anthrax do not send, mafia, other issues — related to the software. We are friends with many pools, are trying to communicate. Maybe it will be joint projects, it is possible. Communicate and make friends with all firmware and software: Anthill, HiveOS, 2Miners.com.
As for pools and multipoles that how gates work — that is, connect the power to other pools, there is hardly any competition. Because we have a product built on their base models, which is very different from the usual. Models of Pul-switch we are different. There is a trade secret, which I will not say.
It seems to do the pool is not profitable, as percent even the salary is not worth it. But earning plan. What, tell me more?
Pool — a thing profitable to have a large capacity. We still have a large power there, and the transaction fees that miners get, we give to the penny. So yeah, barely enough equity. But now must faster go, took a few managers, maybe by the end of the year, collect significant power. The main profit will go to secondary services according to the type of wallet and exchanger. There’s something about it I can’t tell yet.
What a surprise from the latest developments? What a surprise in the near future?
Now working seven days a week. Reworked stratum, migrated from C++ to Golang — now strategy work faster and think Hasrat more accurately. Plan to add bot in the Telegram that will inform about payments and even piles of equipment if they happen. The email notification is already included.
Complicated: trying to make automated payments so that everything worked and that we are not broke, as at the time Nicehash. Bitter experience has taught competitors, so we have cold wallets safe. On the one hand, it’s not very good because sometimes people can sleep, to tired to push back, but the human factor I would like to exclude. On the other hand, access to cold wallets, especially from third parties, so the currency is safe.
How is the feedback with users? I noticed that you are trying to listen to them, ongoing dialogue with them and sort of give fruit.
Do what is asked for. When they want something, they report about it, and we do immediately implemented and added to the development plan. Written Roadmap for the year ahead. Think about tokenization, but we need ecenomic to work. Planning to enter the Chinese market, on the European. While working in Russia.
Recently there was news about administrative responsibility for mining. What will you do?
I hope you right. There are influential people who are also bottom. Yet not us, but November will show who is prepared. But if not, I still won’t quit. As for soulless, remember? Was born here and I want all the***camping was. But you will need to change something.
And in Cue I believe? What is the prognosis?
Honestly, I don’t believe in anything except Bitcoin. Hype is now gone, the HYIP, we have already earned. Now only faith. I understand that limited issue should lead to growth, and that the more people owns bitcoin, the less in circulation. There will be a limited offer, the demand will increase and the cost too. The more that companies such as Fidelity and Morgan Stanley are now investing institutional money in the crypt. First and foremost, in Bitcoin.
Forecast: will grow slowly until the end of the year. To halving far, I think that a 12-14 thousand dollars per BTC will do for sure. To halinga. Afterwards, we will grow.
To see the EMCD.IO on the link.
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