Luckybit that was a good read thanks.
I was wondering if you could expand on your thoughts concerning how you see mining as moving from pools to cloud-hosted services.
Am I correct to assume you mean primarily that you feel the ASICMINER method of participators contributing resources through paying for shares in companies that organize & perform the mining is the way of the future? Is there an alternate method that you think has under-utilized merit, when it comes to cloud-based hashing power?
Am I also correct that you are including p2p [pool] mining methods when you discuss mining initiatives that are 'cloud-based'?
Just want to pick your brain on this. I believe in Netcoin so am looking at creating an early pool or otherwise assist this effort in a way that seems most effective and suitable. Thanks... great conversations going on in this thread and I'm taking notes .
Take a look at these examples
https://hashrack.com/hashpacks/buy https://cloudhashing.com/ We are moving into an era of virtual rigs. The technical expertise to set up these rigs is moving up into the top 1% of graduate students and engineers. How many of us can design an ASIC or put an ASIC together? How many of us can configure an FGPA? How many of us even know what FGPA is?
What I'm talking about is MaaS (Mining as a Service) replacing individual miners and mining pools. If you set up a cloud the first thing you should do is set yourself up as an L3C or Cooperative so that people don't think you're just in it to get rich and for greed. The Coop/collective should offer shares similar to ASICminer but the reason it should not be an LLC and instead has to be L3C or Coop is because decentralization of hashing power should be a common interest of all Mining as a Service entities because if this is not given priority then cryptocurrencies cannot survive. An L3C is a social enterprise which can allow you to get rich while also legally requiring you to pursue the mission of keeping the hashing power decentralized.
"An L3C is a for-profit, social enterprise venture that has a stated goal of performing a socially beneficial purpose, not maximizing income. [3][4] It is a hybrid structure that combines the legal and tax flexibility of a traditional LLC, the social benefits of a nonprofit organization, and the branding and market positioning advantages of a social enterprise. [5]"
https://en.wikipedia.org/wiki/L3CI think a Coop would work well too but a traditional corporation would not work well and could easily be turned against the community interest. This is why we have people who think Butterfly labs or some ASIC company could build an ASIC and then mine in secret. This level of distrust can only be removed if the ownership of the Coop or L3C is distributed to many individuals. A syndicate is a way to decentralize hashing and also to allow any individual to buy shares in the investment syndicate and now they own shares in the entire business network. Essentially the community would have a way of owning itself and regulating itself so that governments don't have the excuse to.
ASICminer got it right to offer shares. They are also getting it right by releasing block erupters and trying to decentralize the hashing power. But they get it wrong in some ways too. The main way they got is wrong is with this virtual pass through share stuff which requires you to buy shares with only Bitcoins and you don't even know for sure that you own it, all centralized around a few sites too etc. The shares and contracts have to be real and legally binding. I understand this was the only way to do it at the time and Netcoin might end up doing the same but I wish we could see Netcoin companies on NASDAQ someday with the investment syndicate handling all the details of buying into IPO's and protecting shareholders.
In my opinion it should be a syndicate of different kinds of Mining as a Service Coops and L3Cs who early adopters buy shares in prior to the launch of Netcoin. These early adopters along with these Mining as a Service Coops should also buy shares in the umbrella syndicate giving them voting rights similar to how shareholders have voting rights in ASICminer. The kind of stuff to vote on would be which companies are allowed to join the syndicate? If they are accepted in then they are certified by the syndicate. To be accepted into the syndicate they have to sell a portion of shares of their company to the syndicate.
This should not just take place on some virtual way like with ASICminer, I'm saying we should own actual stocks in companies and then have the profit from those stocks distributed as dividends to all the members who own shares in the investment syndicate. This means the investment syndicate could invest in your business to start a mining pool but you would have to agree to certain guidelines to receive that investment. Once investment occurs then the newsletter is sent out to members saying that your company has just been certified with a community seal of approval and to trust your company and to bring resources, support, human resources, buy shares or buy whatever it is you're selling.
A pool which is set up without being certified by the syndicate would not be considered a part of the trusted network. It would not receive investment, it would not receive marketing, and would be on it's own. To address P2P Pool based on this definition
P2Pool is a decentralized Bitcoin mining pool that works by creating a peer-to-peer network of miner nodes., a decentralized mining pool would be fine but the problem once again is if I want to buy shares and don't have the expertise to mine because I'm a doctor and I don't know anything about computers but I have enough money to see it's an investment to make, how exactly would I invest in a P2P Pool and get ROI? If it's cloud hashing Coop and it's certified by the most trusted entity which is the syndicate then as a doctor I would recognize that it's very similar to how lawyers have to pass the bar and how doctors have to be licensed. I would immediately know that I could trust that particular cloud based hashing company and would invest. The cloud based hashing company would take my money, buy mining equipment on my behalf which I'd legally own, they'd configure it all for me, they'd mine Netcoins for me or any coin I tell them to, and they'd deliver the profit directly to my Netcoin address or even directly into my checking account. They could even offer to automatically take money from my paycheck in recurring fashion to constantly upgrade. In this way the investor doesn't have to think of mining as any different from any other investment and when that happens then everyone will do it that way.
