Two blockchain start-ups offer very different bets on the future of bitcoin mining.

Argo offers state-of-the-art crypto mining as a service to the little guy but COTI’s trustchain may do away with miners altogether.

Bankers eagerly await the Hong Kong IPO of Bitmain, the dominant provider of computer hardware for cryptocurrency miners which had $2.8 billion of revenue in the first half of 2018. But as they wonder what valuation public investors will eventually put on a company that has already raised $872 million in private funding — with a $422 million venture round completed in August that drew in Temasek Holding among others — let’s not forget Argo Blockchain.

Subscription packages

It is in the process of leasing state-of-the-art blockchain mining hardware to build up racks of servers while selling subscription packages for retail users to rent this industrial-scale mining capacity and gain payment in mined cryptocurrencies.

Democratizing mining

Argo Blockchain claims to be democratizing crypto mining, opening it up to the likes of you and me. “Your average person could not light up a mining rig,” says Edwards. “We consider ourselves fairly technical people and acquired a Linux-based rig but realized we couldn’t make significant progress without cheap power.”

Trustchain

Welcome to COTI, an Israeli company founded in May 2017, which is pushing what it calls a Trustchain, based on a directed acyclic graph (DAG) data structure instead of a blockchain. It hopes this will deliver the initial promise of cryptocurrency as a new means of payment that is scalable, low cost and so cheap for merchants and other users, especially for large numbers of low-value payments.

Incentives

There are modest incentives for those who participate in the system fairly. Users, which include merchants, receive an initial trust score, which over time rises in recognition of good behaviour, including contribution of capacity to the system, but can also be cut on evidence of attempts to double spend or not sending goods in return for payment.

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COTI

COTI

COTI is a DAG-based Layer 1, specifically designed for Enterprises. COTI’s Protocol is scalable, fast, private, inclusive, low cost and is optimized for finance