Quantum Blockchain (QBT) , a technology company focused on quantum computing, blockchain, cryptocurrencies and AI, issued an update on its recent R&D efforts in Bitcoin mining.

Quantum announced a new proprietary "Method C" for more efficient BTC mining, based on machine learning and predictive AI technology. QBT said the new method was yielding consistent results, and had favourably demonstrated predictive ability in c. 30% of cases if an input to SHA-256 would produce a winning hash.

"Method C" promises significant energy savings compared to traditional ways of mining Bitcoin. QBT is now in the process of assessing projected overall cost savings to end users of the method, taking into account that it requires ASIC chips to run additional logic gates in conjunction with SHA-265.

Method C differs from QBT's previously reported Method A and Method B in that the former needs to be directly implemented onto ASIC chips at the manufacturing stage, whereas Methods A and B can be supplied to already existing miners as a SaaS product. However, QBT said it is investigating the possibility of implementing Method C in software, which would avoid the need for specialised hardware.

Quantum also said it had commenced development of its own proprietary ASIC chip for Bitcoin mining, with a working prototype currently undergoing performance testing. The prototype implements QBT's proprietary optimised version of SHA-256 per QBT's two patent applications ASIC UltraBoost and ASIC EnhanceBoost, as well as the new Method C. The chips will be used as real-world proving ground for QBT's Bitcoin mining technology.

 

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Quantum Blockchain has announced a new proprietary method of Bitcoin mining, this time implemented in hardware, promising significant energy savings compared to traditional methods. The company's "Method B" made headlines last year as it promised to increase the rate of successful Bitcoin mining by 2.6 times - entirely achieved in software.

The new Method C uses predictive AI to accelerate the cumbersome BTC mining process. Specifically, the technology tries to predict whether an input to SHA-256, the core algorithm for Bitcoin mining, is likely to generate a winning hash, or not. The underlying assumption for Method C is that an "oracle" decision is materially less computationally demanding than the SHA-256 calculation for the same input string.

QBT says the current average predictive performance of Method C is about 30%. This means that using the method, SHA-256 will avoid processing an input when the AI assesses, within the current block or the adjacent future Bitcoin blockchain blocks, that it is highly unlikely to generate a winning hash - which under the current method implementation occurs about 30% of the time.

To put it simply, if successful this will be a major advancement for the SHA-256 algorithm and the Bitcoin mining industry. QBT says that so far Method C is producing consistent results, with lab testing nearing completion. Currently, the solution requires special hardware, but QBT is also working on a software implementation, which would be even more disruptive.

To accelerate R&D, QBT is also developing its own proprietary ASIC, which is a chip designed specifically for blockchain mining. The company already has a working prototype that aims to confirm the architectural feasibility and performance of its BTC mining technology. Initial chips will be designed in a mature process node to reduce costs.

In summary, QBT is hard at work at turning its Methods A, B and C into commercial products. The IP holds tremendous promise, particularly when it can be implemented in software, but the process is labour and time intensive as it involves reverse engineering of 3rd party ASIC chips.

Yet so far, QBT has successfully engaged American and Chinese Bitcoin mining and chip giants who are awaiting more results from live tests. These include two large mining rig manufacturers in China and North America, and two of the largest US Bitcoin mining companies. Should more tests prove successful, these early discussions should evolve into commercial and technical negotiations.

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