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New Tool Could Pave the Way for Future Insights in Quantum Chemistry – AZoQuantum

Written by AZoQuantumMay 13 2020

The amount of energy needed to make or disintegrate a molecule can now be calculated more accurately than traditional methods using a new machine learning tool. Although the new tool can only deal with simple molecules at present, it opens the door to gain future insights into quantum chemistry.

Using machine learning to solve the fundamental equations governing quantum chemistry has been an open problem for several years, and theres a lot of excitement around it right now.

Giuseppe Carleo, Research Scientist, Center for Computational Quantum Physics, Flatiron Institute

Carleo, who is the co-creator of the tool, added that better insights into the formation and degradation of molecules could expose the inner workings of the chemical reactions crucial to life.

Carleo and his colleagues Kenny Choo from the University of Zurich and Antonio Mezzacapo from the IBM Thomas J. Watson Research Center in Yorktown Heights, New York, published their study in Nature Communications on May 12th, 2020.

The tool developed by the researchers predicts the energy required to put together or break apart a molecule, for example, ammonia or water. For this calculation, it is necessary to determine the electronic structure of the molecule, which comprises the collective behavior of the electrons binding the molecule together.

The electronic structure of a molecule is complex to find and requires determining all the possible states the electrons in the molecule could be in, along with the probability of each state.

Electrons interact and entangle quantum mechanically with each other. Therefore, researchers cannot treat them individually. More electrons lead to more entanglements, and thus the problem turns exponentially more challenging.

There are no exact solutions for molecules that are more complex compared to the two electrons found in a pair of hydrogen atoms. Even approximations are not so accurate when more than a few electrons are involved.

One of the difficulties is that the electronic structure of a molecule includes states for an infinite number of orbitals that move further away from the atoms. Moreover, it is not easy to differentiate one electron from another, and the same state cannot be occupied by two electrons. The latter rule is the result of exchange symmetry, which governs the consequences when identical particles change states.

Mezzacapo and the team at IBM Quantum devised a technique for reducing the number of orbitals considered and enforcing exchange symmetry. This technique is based on approaches developed for quantum computing applications and renders the problem more analogous to scenarios in which electrons are restricted to predefined locations, for example, in a rigid lattice.

The problem was made more manageable by the similarity to rigid lattices. Earlier, Carleo trained neural networks to remodel the behavior of electrons restricted to the sites of a lattice.

The researchers could propose solutions to Mezzacapos compacted problems by extending those techniques. The neural network developed by the team calculates the probability for each state. This probability can be used to predict the energy of a specific state. The molecule is the most stable in the lowest energy level, also called the equilibrium energy.

Thanks to the innovations of the researchers, the electronic structure of a basic molecule can be calculated quickly and easily. To demonstrate the accuracy of their approaches, the researchers estimated the amount of energy required to break a real-world molecule and its bonds.

The researchers performed calculations for lithium hydride (LiH), dihydrogen (H2), water (H2O), ammonia (NH3), dinitrogen (N2), and diatomic carbon (C2). The researchers estimates for all the molecules were found to be highly accurate even in ranges where current methods struggle.

The aim of the researchers is to handle larger and more complex molecules by employing more advanced neural networks. One objective is to tackle chemicals such as those found in the nitrogen cycle, where nitrogen-based molecules are made and broken by biological processes to render them usable for life.

We want this to be a tool that could be used by chemists to process these problems.

Giuseppe Carleo, Research Scientist, Center for Computational Quantum Physics, Flatiron Institute

Carleo, Choo, and Mezzacapo are not the only researchers seeking to use machine learning to handle problems in quantum chemistry. In September 2019, they first presented their study on arXiv.org. In the same month, a research group in Germany and another one at Googles DeepMind in London reported their studies that involved using machine learning to reconstruct the electronic structure of molecules.

The other two groups made use of a similar method that does not constrain the number of orbitals considered. However, this inclusiveness is more computationally laborious, a disadvantage that will only worsen when more complex molecules are involved.

Using the same computational resources, the method employed by Carleo, Choo, and Mezzacapo produces higher accuracy; however, the simplifications performed to achieve this accuracy could lead to biases.

Overall, its a trade-off between bias and accuracy, and its unclear which of the two approaches has more potential for the future. Only time will tell us which of these approaches can be scaled up to the challenging open problems in chemistry.

Giuseppe Carleo, Research Scientist, Center for Computational Quantum Physics, Flatiron Institute

Choo, K., et al. (2020) Fermionic neural-network states for ab-initio electronic structure. Nature Communications. doi.org/10.1038/s41467-020-15724-9.

Source: https://www.simonsfoundation.org/

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Research Fellow in Geometric Topology job with UNIVERSITY OF LEEDS | 206608 – Times Higher Education (THE)

Research Fellow in Geometric Topology, Topological Quantum Field Theory and Applications to Quantum Computing

Are you an ambitious researcher looking for your next challenge? Do you have an established background in at least one of the following areas: geometric topology, topological quantum field theory, lattice and string-net models for topological phases, or higher gauge theory? Do you want to further your career in one of the UKs leading research intensive universities?

We are looking for a post-doctoral Research Fellow to work on the Leverhulme Trust funded research project, Emergent physics from lattice models of higher gauge theory. You will contribute to our project aim, which is to investigate the different types of point-like and loop/string-like topologically excited states arising in higher gauge theory lattice models for (3+1)-dimensional topological phases of matter. A central topic of this project concerns analysing the behaviour of higher gauge theory loop excitations when they move in three-dimensional space, braid and interact, and explore applications to topological quantum computing and to knot theory in four dimensions.

You will have a PhD in algebra, low dimensional topology, topological quantum field theory, mathematical models of topological phases of matter, topological quantum computing, or a closely allied discipline, alongside experience in geometric topology or topological quantum field theory. You will also have the ability to design, execute and write up research independently, and a developing track record of peer reviewed publications in international journals.

To explore the post further or for any queries you may have, please contact:

Dr Joo Faria Martins, Lecturer in AlgebraTel: +44 (0)113 343 4433 oremail:J.FariaMartins@leeds.ac.uk

OR

Professor Paul Purdon Martin, School of MathematicsTel: +44 (0)113 343 7787 oremail:P.P.Martin@leeds.ac.uk

Further information

The Schools in the Faculty of Engineering & Physical Sciences are proud to have been awarded the Athena SWANBronzeorSilverAward from the Equality Challenge Unit, the national body that promotes equality in the higher education sector. Ourequality and inclusion webpageprovides more information.

Location:Leeds - Main CampusFaculty/Service:Faculty of Engineering & Physical SciencesSchool/Institute:School of MathematicsCategory:ResearchGrade:Grade 7Salary:33,797 to 40,322 p.a.Working Time:37.5 hours per weekPost Type:Full TimeContractType:Fixed Term (6 months, available from 01/06/2020 (due to grant funding))ClosingDate:Wednesday 10 June 2020InterviewDate:To be confirmedReference:EPSMA1017Downloads:CandidateBrief

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Research Fellow in Geometric Topology job with UNIVERSITY OF LEEDS | 206608 - Times Higher Education (THE)

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One Move at a Time May Edition: Abel Talamantez and Dr. Judit Sztaray – uschess.org

Image credit: Ray Chavez/Bay Area News Group. Used with permission.

Dr. Judit Sztaray

Welcome to the May 2020 edition of One Move at a Time, the US Chess podcast in which Dan Lucas, the Senior Director of Strategic Communication, talks to people who are advancing the US Chess mission statement to Empower people, enrich lives, and enhance communities through chess. This months guests represent the Mechanics Institute Chess Club in San Francisco, California, which is the oldest continuously operating chess club in the United States. Abel Talamantez is the Chess Room Director, a position he has held since 2018, and Judit Sztaray is the General Manager of Youth Outreach and Events, a position she started in last year.

Abel has been a US Chess Delegate from Northern California since 2017 and is a current member of the Clubs Committee and a former member of the Outreach committee. Judit is the current chair of the US Chess Clubs Committee and a member of the Scholastic Council and a former Vice Chair of the Accessibility and Special Circumstances Committee. US Chess named her the 2017 Organizer of the Year and then in 2018 she won the Chess Club of the Year.

We discuss operating a club in a time of COVID-19, as well as the aspects of the clubs programs during normal times that speak directly to the US Chess mission statement.

Make sure to subscribe to our family of podcasts on Google Podcasts, Apple Podcasts, or Spotify!

Podcast (one-move-at-a-time): Play in new window | Download

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As Halving Nears, Ethereum (ETH) Stands More Chances Amid Altcoins – KryptoMoney

Bitcoins major event is around the corner. Block reward halving in which mining reward will be halved from 12.5BTC to 6.5BTC is seen as a catalyst for large upside movements. In the previous week, as halving drew nearer, several Altcoins saw an exodus of investors who deemed it unwise to invest in Altcoins rather than the king coin, Bitcoin. However, for the second-largest cryptocurrency by market cap, Ethereum is seeing increased accumulation.

Blockchain analytics, Santiment noted a spike in ETH accumulation which comes ahead of the ETH 2.0 launch penned for July this year.

Glassnode, on-chain analytics firm also recently indicated that the number of addresses holding 32 ETH which is the exact amount required for validators to stake in ETH 2.0 increased by over 14% since 2019 indicating a demand surge.

ETH near term accumulation trend could have been favored by its recent bout of sideways trading which crypto investors took as an advantage to increase their exposure to the Altcoin king. Bitcoin bulls had propelled to as high as $10,000 in the previous week while ETH consolidated within the sub-$200 regions for the past few days.

In the meantime, ETH/USD shift hands at $186.84, off the $193.67 intraday level. The second-largest cryptois rising in sync with BTC, which suggests there may be more risk underway whilst the halving of Bitcoin draws near.

ETH investor growth rate as indicated by recent data depicts that it may stand a better chance than several Altcoins, analysts even positing that it may be the first Altcoin to regain ground against BTC.

ETH 2.0 which will be hallmarked by a reduction in ETH issuance and burning presumably marks a new dawn for staking as investors look forward to passive returns compared to the popular buy-and-hold alternative.

The summary of a recent ConsenSys survey showed that amid 287 ETH holders, 62% had the exact amount required for staking-32 ETH and beyond, out of this percentile, 65% showed staking interest.

Of noteworthy is that nearly half of the ETH holders surveyed indicated a basic to average knowledge of staking and ETH 2.0 reward.

Mike Novogratz, CEO of Galaxy digital sees ETH $20 billion market cap as a result of network growth positing that the fact that ETH stands as a potential store of value may have contributed to its market cap. He went ahead to state that Ethereum should be valued in the crypto-space the way Wall Street values Facebook.

Recently, the debate as to which is a better money between Bitcoin and Ethereum sparked a buzz on Twitter with most claiming that Ethereum is used as money most often than Bitcoin, coupled with recent on-chain data affirming that ETH is money.

Image Credit: ConsenSys, Shutterstock

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Bitcoin Has HalvedWhat Now? – Forbes

Bitcoin successfully went through its third halving yesterday, seeing the daily supply of new bitcoin cut by half.

The bitcoin price, which had been highly volatile in the run-up to yesterday's closely-watched halving, has remained flat since the supply squeezeup a little over 1% and hovering around $8,800 per bitcoin.

The bitcoin community has now turned to what's next for the world's number one cryptocurrency and the bitcoin price.

The bitcoin price has soared over recent months and many bitcoin and cryptocurrency traders are ... [+] feeling bullish after the third bitcoin halving.

Yesterday evening, the number of bitcoin rewarded to those that maintain the bitcoin network, called miners, was cut by halfdropping from 12.5 bitcoin to 6.25.

Many had warned the bitcoin price could crash the aftermath of the halving but most analysts seem confident the bitcoin price will climb eventually.

"The recent much-hyped halving, while largely psychological in impact, could create a catalyst drawing new players into the market and contributing to the rise in the value of bitcoin," said Gavin Smith, chief executive of Hong Kong-based bitcoin and cryptocurrency exchange and hedge fund Panxora, adding he believes bitcoin is at "the start of a multi-year bull phase" though there could be "a bumpy road ahead."

Last week, the bitcoin and crypto community was set alight by news legendary macro investor Paul Tudor Jones is buying bitcoin as a hedge against the inflation he sees coming as a result of unprecedented coronavirus and lockdown-induced central bank money-printing.

"While traditional markets grow uncertain, we can expect more investors to use bitcoin as an inflation hedge and to protect their assets against currency devaluation," said Smith.

Congress and the Federal Reserve have pumped trillions of dollars into the U.S. economy in recent months to cushion against the coronavirus pandemic and lockdowns designed to slow its spread.

The massive action from the U.S. as well as other governments and central banks around the world has sparked fears over inflation and out-of-control debt.

However, investors have rushed toward the perceived safety of the dollar since the coronavirus crisis began.

"The rest of the world needs to either keep printing money or see their own currency eroding drastically in front of the unbeatable dollars," said Jean-Marie Mognetti, chief executive of digital asset manager CoinShares.

"Turkey, Brazil, or Argentina are the perfect examples of this. Consequently, in a world where investors continue to seek protection for their portfolios against the worlds central banks' behavior, bitcoin, a digital currency whose supply is programmatically defined to reduce until it reaches its maximum supply, would seem to be the perfect hedge for any institutional investor portfolio."

If bitcoin successfully matures into a safe-haven asset and a hedge against inflation, some analysts see the bitcoin price accelerating over the next couple of yearspotentially eclipsing its all-time high of around $20,000 per bitcoin.

I am confident we will see a new all-time high within 18 months, in the $20,000 - $50,000 region," said Simon Peters, market analyst at brokerage eToro, putting the top of the next bull market at around $100,000 to $120,000 per bitcoin.

However, Peters warned "another black swan event," such as the coronavirus pandemic, or a second wave of COVID-19, could see the bitcoin price decline.

The bitcoin price is up 25% over the past 12 months and bitcoin has now recovered all its ... [+] coronavirus crash losses.

Meanwhile, bitcoin miners are nervously eyeing the bitcoin priceand hoping it holds.

"At this price level, miners using rigs from 2016-18 will not be profitable," said Rich Rosenblum, co-head of trading at crypto market maker GSR.

"Theyll start to stream out of the market, lowering bitcoins hash rate. Its likely that more bitcoin will be sold by miners to help finance new machines. Additionally, the production of new machines has been slowed by the pandemic and its impact on the supply chain. Depending on how long prices stick around this range, we may not see this level of mining activity recover until next year."

Bitcoin's hash rate, a measure of the computing power being directed at the bitcoin network, climbed to a fresh all-time high ahead of the halving as miners tried to squeeze as many bitcoin from the network as possible before the supply cut.

If too many miners begin selling freshly minted bitcoin to pay for their operations, they could flood the market.

"If the price of bitcoin goes down, it will likely force weaker miners to wind down their operations," said Jerry Chan, chief executive of TAAL, a publicly traded crypto mining company focused on bitcoin offshoot bitcoin SV.

"They are selling the bitcoin in their treasury to pay off their financial commitments to the hashing farms for hosting and electricity. That constant liquidation is flooding the market to the downside, making it harder for other miners to continue to operate at a break even or profitable manner."

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Bitcoin Has HalvedWhat Now? - Forbes

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Craig Wright Threatened to Crash The Bitcoin Price So What Happened? – Cointelegraph

There are many halving predictions yet to come true among them Satoshi claimant Dr Craig Wrights long term advance notice from 2018 that he intended to crash the Bitcoin price.

The warning emerged from a Slack group that Wright uses to communicate with his acolytes, and his dastardly scheme makes fascinating reading.

Wrights sell-off threat came just prior to the much-hyped fork of the Bitcoin Cash blockchain to create Bitcoin SV.

Although there were some true believers who clearly relished the prospect of these events actually occurring, it was dismissed by many at the time as typical Wright braggadocio and self-promotion.

According to Wright, the sale would consist of a rolling iceberg order on a single exchange followed by significant orders on other exchanges. Iceberg orders are split into smaller lots with visible and hidden parts, the hidden parts only becoming apparent once the visible parts have been executed.

This was intended to significantly crash BTC price, and be matched with a 10x leveraged short to capitalize on this.

Simultaneously, Wright planned to throttle network hash, rejecting all transactions other than unrecognised SegWit TXs to miners and our own Exchange TXs.

This was to occur via the addition of 51% of network hash-power prior to the price crash, although no further details of how this would be achieved were given.

As Cointelegraph reported, Bitcoins third halving event happened as scheduled, with the only untoward outcome so far being YouTube pulling the plug on our livestream party and a bunch of vaguely underwhelmed hodlers.

The hash rate has so far been relatively unaffected, and unless Wright was behind the weekends Bitcoin price drop, then we can only assume that the halving hes planning on hatching the scheme at is the one due in 2024.

Looks like everyone can breathe easy again for another four years at least.

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Bitcoin poised to shine as governments print more money: report – Decrypt

The unprecedented reaction from governments around the world to do whatever it takes to keep their economics afloat in response to the coronavirus pandemic could drive a flight to Bitcoin.

Thats the principal takeaway from the latest report by Bitcoin research firm Delphi Digital. The exhaustive documentcovering everything from the macro financial climate to Bitcoins on-chain datalooks at a mixture of historical precedent and Bitcoins current data trends to presage what the rest of the year may look like for the cryptocurrency.

The report began with a rosy reminder that the worlds economy is basically on debt-based life support. The amount of monetary and fiscal relief thats been pledged [by central banks in 2020] equates to more than $10 trillion globally, it stated.

But as governments print more money, Bitcoin (as evidenced by yesterdays successful halving) is going to tick on with a decreased inflation rate.

This activity will benefit Bitcoin in the long run, according to Delphi Digital. But it will take some time. Using the limited data they have for Bitcoins 11 year existence, the team asserted that, historically, it is notable that prior BTC cycles tended to peak when major central bank asset growth began to decelerate.

Continuing to evaluate the risk currency debasement poses for poorer populations, Delphi noted that Bitcoin is already performing well against the monies of troubled states. For instance, its up 44% against the Russian ruble, 74% against the Brazilian real, and 52% against the Mexican peso among others.

We expect the demand for non-sovereign safe haven assets to rise considerably as the risk of broad-based currency debasement increases, Deplhi reported, adding that gold has a place here among Bitcoin, which it expects to grow in market cap.

Perhaps this growth isnt so far-fetched when we crunch some on-chain numbers. The number of addresses holding fewer than 1 Bitcoin trends upwards over the last five years, while addresses holding larger amounts of Bitcoin has trended downwards. This is typically considered to be an indication that Bitcoins investor base is growing among retail (though, its important to note that multiple addresses could belong to a single, privacy-minded user).

Moreover, this recent rally following Marchs precipitous price drop was led by the spot market, typically made up of low-capitalized retail investors. But the January rally preceding the Black Thursday crash was largely institution-driven.

This level of spot volume hasn't really been seen since last summer; it's tough to know who exactly to attribute it to (holder size wise), but I definitely agree that it's bullish, Yan Liberman, co-founder of Delphi Digital, told Decrypt.

As retail volume booms, the amount of Bitcoin held on exchanges is dwindling, experiencing previously unseen outflows, according to the report.

Delphi ended its report with a nod to the previous halving, and compared how the current holder base stacks up to Bitcoins second halving four years ago.

The current composition of the underlying holder base looks nearly identical to the one leading into the second halving, the report noted. It added that, at the moment, the percentage of holders who havent moved coins for at least one year or three years is only a single digit percentage point off the figures from 2016.

22% of the network hasnt moved in 5 years, and 7.7% hasnt moved in a decade, Delphi said in its report. Adding to these findings, Liberman told Decrypt that these holders basically represent the portion of the base that's in it for the long haul, and don't care as much about short-term moves.

In other words, hardcore Bitcoiners are creating a bedrock of support as the networks so-called holders of last resort. At the very least, as Delphi said in a tweet when it released its report, the data makes one thing clear: Dismissing Bitcoin is no longer an option.

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Bitcoin Crashes as Halving Hype Loses Impetus Over the Weekend – Bloomberg

Bitcoin appears to be running out of steam just before one of the most anticipated milestones among cryptocurrency enthusiasts.

The largest digital token tumbled over the weekend, declining about 13% to around $8,675. It rebounded to about $8,840 as of 10 a.m. in New York trading on Monday. The decline took place ahead of a closely watched technical event known as its halving, when the rewards miners receive for processing transactions will be cut in half as soon as later today.

Bitcoin Tops $10,000 First Time Since February, Before Halving

Its likely that were going to see increased volatility through May, with the pandemic, ongoing stimulus measures and the halving, Rich Rosenblum, co-head of trading at crypto market maker GSR, said in an email. The record open interest for futures and options at multiple exchanges adds to this. The market is in a state of information and position overload, exacerbating the potential for volatile moves.

Still, Bitcoins up near 25% this year and among its newest fans is famed macro investor Paul Tudor Jones, who said hes been buying Bitcoin as a hedge against the inflation he sees coming from central bank money-printing.

Its not the great cure for all the monetary ills, et cetera. Its a great speculation, Jones, the founder and chief executive officer of Tudor Investment Corp., said in an interview with CNBC on Monday. Hes got over 1% of his assets in Bitcoin, though it might end up being a top performer within his portfolio, he said.

Earlier: Paul Tudor Jones Buys Bitcoin With Reminder of Gold in 1970s

Bitcoin, which is a little more than a decade old, has not stood the test of time, said Jones, but the digitization of the world clearly benefits the token. He sees an expanding user base for the cryptocurrency, a hallmark of every bull market, and anyone buying Bitcoin is betting that universe will continue to broaden.

Were watching the birthing of the store of value -- and whether that succeeds or not, only time will tell, said Jones in the interview. What I do know is, every day that goes by and Bitcoin survives, the trust in it will go up.

In the near-term, many Bitcoin are looking forward to its halving, which happens about every four years and slows down the rate at which new tokens are created -- an intentional feature designed to control inflation. Bitcoin has historically bottomed 459 days prior to the halving, risen into the event and jumped after, according to research from Pantera Capital. Post-halving rallies averaged 446 days.

Heres a QuickTake on what Bitcoins halving means.

So far, Bitcoins third halving looks different to prior events and there doesnt appear to have been such a sustained price run-up, said Payal Lakhani, director of equity research and product development at CME Group, in a blog post Friday. Given the reward change has been known since Bitcoins inception in 2009, and having already seen two such events, investors may have already incorporated the supply adjustment into their models and taken positions accordingly.

The impact of Covid-19 has resulted in lower volumes as some participants focused on non-crypto markets, and some mining operations being affected by these difficult market conditions, Lakhani said.

With assistance by Eric Lam

Before it's here, it's on the Bloomberg Terminal.

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Bitcoin Mining is a Silly and Confusing Term – Anchorage Press

Dear Stevo,

What is Bitcoin mining? How do you mine Bitcoin?

-Don W., Chicago, Illinois

Bitcoin mining shouldnt really be called Bitcoin mining. Its a deceptive and confusing metaphor. It should be called something much more boring like payment processing.

Every ten minutes or so, the Bitcoin network batches transactions and processes them.

This happens around the clock. No human is involved. Machines do all the work. Your neighbor may have a computer doing exactly that at this moment. The payments that are processed during that ten-minute period, along with some other information, is called a block. All the blocks are linked to each other, all the way back to the very first block. That is why people say Bitcoin is built on the blockchain. Its an uninterrupted chain of blocks, created every ten minutes, going back 11 years.

To incentivize people to participate in this process, the Bitcoin network offers a reward for processing payments. The current reward is 12.5 Bitcoin, or roughly $125,000, using the average price of $10,000 / Bitcoin.

$125,000 is a lot to pay someone for processing ten minutes worth of payments. Everyone would want that job.

Thousands of people, and millions of computers, at any given time, want that job, in fact. To figure out who gets the job, the Bitcoin network has a rationing system.

Every ten minutes, the Bitcoin network produces a random number. The first computer to guess that random number gets to process the payments for that ten-minute period. It also gets to be the first to broadcast the results of that ten minutes to the rest of the Bitcoin network, and receives 12.5 new Bitcoin as a reward for their work.

This procedure of Bitcoin payment processing is called Bitcoin mining because, new Bitcoin are created as a reward when that payment processor successfully does its work.

There is also an additional reward paid for guessing the number. People pay fees when they send their transactions through the Bitcoin network. This is another rationing method. The more one pays, the more likely it is that their transaction will appear in the next block. If youre in a hurry, you pay more. If you can wait for the next lull in the network, you pay less. These fees paid to speed up the processing time for a transaction, often called mining fees, are an additional reward to payment processors in the network.

To answer the question - if you want to mine Bitcoin, the way to mine is to hook a computer up to the Bitcoin network, and to instruct your computer to guess at the random number every ten minutes by running mining software.

At $10,000 / Bitcoin, and 12.5 Bitcoin per reward, $17 million in block rewards are available each day. With so much money to be made in this process, many options exist for how to participate. New options are constantly being developed.

Mining, or payment processing, is a fun way to participate in the Bitcoin network. Some even do this for a fun hobby, others do it to learn a new skill, still others might do it with the intent of strengthening the network, regardless of the reward that could be involved.

Allan Stevo is a cryptocurrency industry veteran and author of The Bitcoin Manifesto.

Email him atBitMatts@protonmail.comwith your questions for the column.

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The CoinDesk 50: Bitmain, the Behemoth of Bitcoin Mining – CoinDesk

Founded in 2013, the Beijing-based Bitmain Technology remains at the center of the crypto economy. With its flagship AntMiner bitcoin mining equipment still dominating the hardware market and its mining pools accounting for about a quarter of the Bitcoin networks computing power, it retains a uniquely powerful place in the ecosystem of by far the largest cryptocurrency and blockchain project.

Thats not to say it isnt also controversial. Its vocal support for a Bitcoin hard fork (Bitcoin Cash) in 2017, following contentious community disagreement, won the company, and its masterminds, many enemies.

This post is part of the CoinDesk 50, an annual selection of the most innovative and consequential projects in the blockchain industry. See thefull list here.

Over the years, Bitmain has been involved in many controversial developments to the point that the Chinese crypto community refers to its foes as the mining avengers. In 2017, Bitmain filed a lawsuit against Yang Zuoxing, the former design chief behind Bitmains AntMiner S9 who started a rival miner manufacturer MicroBT, over patent infringement. But Bitmain lost the case eventually.

Then in 2018, it brought another lawsuit over non-compete violation against the former creators of Bitmans mining pool BTC.com, who left the company to start a rival service PoolIn, which has become the worlds top two bitcoin mining pool by total hash rate.

Bitmains story started with Wu Jihan, one of the earliest bitcoin evangelists in China, translating Satoshi Nakamotos white paper to Chinese in 2011.

He invested in probably the worlds first known bitcoin-denominated initial public offering in 2012. It was a project started by Jiang Xinyu, a.k.a Friedcat., who was crowdfunding bitcoin to roll out an application-specific integrated circuit just for bitcoin mining.

The hardware sold well initially and sensational success followed. In 2013, Wu, with a finance and psychology degree from Chinas prestigious Peking University, decided to start his own company to manufacture mining hardware. He was joined by Zhan Ketuan, his partner on the technology side, who, in six years, would find himself ousted from the company in a coup started by Wu.

Bitcoins last halving event in the summer 2016 marked the beginning of two years of extraordinary growth at Bitmain.

In 2017 alone, still only four years old, it made $1 billion in profits. It made another $1 billion for the first six months in 2018 and then went on a high-profile fundraise in the summer, netting $700 million from external shareholders with a bet. The deal is this: if Bitmain cant go public within five years since the fundraise at an agreed term, external investors could require the company to redeem all of their investment with an interest.

At that time, Bitmain was boasting a hardware market share of nearly 80 percent. So the agreed term for the IPO was nothing but ambitious: raising at least $500 million at a valuation of no less than $18 billion.

So much has changed in 2019, since its first IPO attempt failed in March in Hong Kong.

Its rising rival, MicroBT, whose founder won over Bitmains patent infringement lawsuit, is seriously undermining Bitmains market dominance.

In 2019, Bitmains mining pools BTC.com and Antpool lost the top two spots to F2Pool and Poolin, the latter of which still has an ongoing case with Bitmain over alleged non-compete violation.

When Wu Jihan returned in a coup in November 2019 to kick out his founding partner Zhan, he told his people hes back to save the sinking ship. Whether his tough comeback will work as he expected is yet to be proven, although it appears prepared to roll out more powerful equipment to weather the upcoming halving.

It remains to be seen if Bitmain can replicate the sensational success it once had following the 2016 bitcoin halving.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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The CoinDesk 50: Bitmain, the Behemoth of Bitcoin Mining - CoinDesk

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