Canaan Creative has now launched what it hopes will be the future of the blockchain and the first of a series of releases that will improve its position as it battles for increased market share in the btc mining device market.
Named the AvalonMiner Inside, the smart TV also doubles as a bitcoin mining device, and while some dismiss it as a PR stunt, Canaan believes that this could be the future of bitcoin mining.
An ASIC Killer?
Canaan Creative is the world’s second-largest maker of bitcoin mining equipment behind Bitmain. While Bitmain controls an estimated 70% of the mining rig market in addition to its substantial bitcoin mining operations, Canaan controls about 18% of the market.
Canaan’s ‘AvalonMiner Inside’, has the capacity to process 2.9 trillion hashes per second which might sound like a lot, until the capacity of existing ASIC rigs is taken into consideration. The most powerful mining rig in Canaan’s current inventory can process 12 trillion hashes per second, which means that the AvalonMiner Inside only has about a quarter of the power available to a regular mining rig.
Even including the added features like voice control, real-time bitcoin mining profitability display as well as a link to Canaan’s entertainment platform where users can pay for content and gifts using mined bitcoin, this still does not seem on the surface to be a device that is rather practical.
The catch though, is that Canaan has not built a device that is intended to directly compete with Bitmain’s Antminer or other comparable ASIC miners. What Canaan is trying to do is to build a new generation of blockchain-enabled IoT devices that blend seamlessly into the background.
These devices will expand the blockchain and increase its hashrate while simultaneously reducing the centralization risk inherent to the dominant model of larger bitcoin mining farms. Instead of taking on Bitmain in a potentially painful price war on a turf that has only one clear leader, Canaan hopes to democratize bitcoin mining by making people buy mining devices for reasons other than bitcoin mining.
A network of five million networked devices operating at 25% of an ASIC miner’s capacity will, in theory, produce better results than a network of 500,000 ASIC miners working at full capacity.