Samsung Partners with Square Mining to Create a Next-Generation ASIC Miner

Squire Mining, a Canadian-based company focused on manufacturing and selling mining equipment, has partnered with electronics giant Samsung and Gaonchips. The deal involves creating a next-generation 10nm ASIC chip by the end of this year.

Squire Mining used to be a mineral mining company until it completely changed its business model, moving from physical mining to cryptocurrency mining. Squire Mining explained what the deal involves:

The Company is now engaged in the business of developing, manufacturing and selling data mining infrastructure and system technology (including ASIC chips and mining rigs) to support global blockchain applications in the cryptoasset mining space. Shareholder approval for the Change in Business by a majority of the Company’s disinterested shareholders has also been obtained by way of written consent resolution

Trading in Squire Mining shares was put on hold on July 5, the date when the company announced the change in business, and resumed in mid-August - leading to the company’s stock soaring by roughly 71%.

The growth of Squire Mining stock was partially due to the $19.5 million that was raised in order to develop sophisticated mining equipment. After completing the ASIC chip development, Squire Mining is looking to create its own mining facilities.

Samsung and Crypto Mining

Samsung had already announced back in January, its involvement in manufacturing ASIC chips for mass production. They have also partnered with Halong Mining, formerly known as Dragonmint T1, to deliver chips for ASIC mining rig production.

Samsung has not disclosed detailed information about its crypto mining chips venture. However, the company has revealed that it had a positive contribution to its earnings, as Samsung’s semiconductor division accounted for about 70% of total operating profits in the first quarter of this year:

Demand for the semiconductor division increased due to sales of system LSIs [ASICs] for flagship smartphones and demand for virtual currency mining chips

Squire Mining vs Bitmain Monopoly

For years, crypto-mining giant Bitmain, together with Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest dedicated independent semiconductor foundry, have enjoyed near complete control over the Bitcoin mining industry.

Bitmain is the current market leader, as the China-based company holds 80% of the market share of mining equipment. Faced with unseen competition this year, a leaked document purports to show that Bitmain plans to employ a new price strategy. 

If the document is accurate, many will see the company's lowering of profit margins and product prices as evidence of the Bitmain's strong intent to continue its market dominance.

 

Tron Foundation Explains How the DAppChain Project Will Take ‘Quality and Quantity’ of DApps ‘To the Next Level’

The TRON Foundation officially introduced the Sun Network, a second-layer scalability solution for Tron (TRX), one of the largest platforms for deploying decentralized applications (dApps), on April 8th, 2019.

The Sun Network aims to “incorporate a series of scaling projects” including sidechains for smart contract application development and “cross-chain communication,” which has been designed to “further expand the overall capacity,” or throughput, of the TRON blockchain network.

This, according to a blog post published on April 24th, 2019 by the TRON Foundation, which revealed that the Sun Network will help “improve the transactions per second (TPS) rate and smart contract execution efficiency” on the TRON platform.

DAppChain, Tron’s Main “Sidechain Scaling Project”

The post added that “among the projects, DAppChain is a sidechain scaling project designed for TRON’s smart contracts.” The DAppChain is being developed in order to significantly “increase the capacity” or TPS rate of Tron-based DApps, while also “realizing [the] on-chain operation of DApps with low energy consumption.”

Moreover, TRON’s DAppChain project aims to “enhance security and efficiency via customizable methods,” the Foundation’s blog post explained. The first phase of the DAppChain project is scheduled to begin “on May 30, 2019,” the blog mentioned.

Commenting on the basic idea behind the Tron network scaling solution, Marcus Zhao, confirmed:

[The] Sun Network is a TRON scaling solution, incorporating a series of scaling projects such as sidechain and cross-chain communication [protocols]; DAppChain is part of the TRON side chain solution. Other details of the side chain solution will be announced later.

Zhao also claimed that Tron’s TPS rate is “considered very high compared to Ethereum.” He added that the fast-paced development of the Tron DApp ecosystem makes it is “necessary to continue to expand the TPS of the smart contract transactions on TRON." He explained that this ensures that “the DApp ecosystem [will continue to] attract more developers” and users.

According to Zhao: “The overall technical architecture of DAppChain is the decentralized chain guaranteed” by the delegated proof-of-stake (DPoS) consensus protocol.” When “compared to other scaling solutions,” Zhao believes the DAppChain is a better alternative as it “supports smart contract transactions and focuses on improving the TPS of the smart contract transactions on the mainnet” itself.

He also thinks that the DAppChain implementation will help to “lower the transaction fees” and that the sidechain would be able to “support more customizable requirements.” Zhao further noted that “major dApp vendor alliances can [also] customize some of the sidehain properties based on their own characteristics,” including creating various “sidechain incentives, transaction rates, block generation speed, and transaction confirmation speed.”

“Biggest Advantage Of DAppChain” for Developers

As Zhao explained:

The biggest advantage of DAppChain for dApp developers is that the Energy fee is very low; the confirmation time of the sidechain transaction can be shortened, thus speeding up the game and supporting more game genres. These advantages are mainly realized by sidechain’s support for smart contracts and the customizable features of side chain.

He continued:

DAppChain interacts with the main chain through a smart contract which defines a series of standard interfaces, allowing main chain to mirror assets such as TRX, TRC10 and TRC21 on the side chain and withdraw the assets to the main chain, etc. An essential principle is that all the valid assets on the side chain must come from the main chain, ensuring that the side chain is an extension of the main chain, instead of a hard fork.

How DAppChain Will Be Implemented

In the first stage of its implementation, the DAppChain will “adopt the DPoS mechanism of side chain to ensure the consensus and correctness of sidechain transactions themselves,” Zhao noted. He also stated that smart contracts would be used “on the main chain and sidechain” to ensure that “assets on the sidechain are safe” and users are able to make withdrawals without any problems.

Zhao also clarified that the MainNet will be able to “support the launch of many sidechains instances simultaneously, and the transaction pressure between different instances will not be transmitted to each other.” This, Zhao explained, would ensure that the “transaction pressure of the sidechain” will not negatively impact the MainNet’s performance. Because of this optimization, Zhao noted that the “transaction cost on DAppChain” can be reduced significantly.

He explained that “if one sidechain is nearly congested, [users would] just need to transfer excess transactions to other sidechains.”

Zhao believes: 

The key to [properly implementing] a DAppChain is the single connection of smart contract between the side chain and the MainNet. Smart contracts on the MainNet are responsible for the entrance and exit of assets on the sidechain. Whereas the sidechain is responsible for the consensus of transaction details.

He further noted:

DAppChain is an important guarantee for TRON to take the quality and quantity of its DApps to the next level, laying the foundation for a more prosperous ecosystem of TRON. Each DAppChain can be a micro-ecosystem itself, constituting the entire ecosystem when brought together.