All over the world, the so-called BlockBoxes used in bitcoin mining, are appearing in the countryside as FinTech companies and individuals are getting on the bandwagon to get the best out of the newly-emerged industry.
Creation of BitFury
These large mysterious structures are the work of BitFury Group Ltd. CEO and Co-Founder Valery Vavilov and CTO Valery Nebesny.
Latvian-born Vavilov established the company in 2011 in Amsterdam, and Nebesny, a self-taught microchip engineer, joined him after inventing an energy-saving chip.
The company, which currently has offices in the US, Europe, and Asia, along with its partners has so far mined over 1 million bitcoins, worth over $6 billion at the current bitcoin price.
What is a BlockBox?
Vavilov and Nebesny’s company has sold over 100 BlockBoxes in the past year and a half. But what exactly are those?
Unlike fiat money, virtual currencies have no central authority and instead are “mined.” Crypto miners use specialized software and hardware to solve mathematical problems which allows them to earn cryptocurrency tokens if successful.
As the mining process becomes increasingly more demanding for simpler desktop rigs, the regular computers won’t do anymore. Enter BlockBoxes.
BlockBoxes are large mining datacenters which allow industrial grade mining. They are faster, more powerful, more resilient, and have more storage space. Bitfury’s BlockBoxes offer mobility and can be set up anywhere. The BlockBox Shipping Container Bitcoin Mining Datacenter contains as many as 176 air-cooled mining servers stored in a 500 square foot (around 45 square meters) container. A BlockBox offers a total hashrate of 8 PH/s and multiple units can be deployed together for large mining farms.
BitFury’s boxes extract about 15 bitcoins a month on average and thanks to them, the company has quintupled their income for its latest 12-month period, to staggering $450 million in cash and cryptocurrency.
Vavilov hopes to double this amount at least and is very enthusiastic about the future of blockchain technology, as he expressed in his interview with Bloomberg:
“Imagine – some $300 billion of crypto wealth has already made its way into the hands of totally different, non-establishment people. Most of these people, like me, aren’t interested in private jets or yachts, they truly want to change the world. Given how much wealth is in their hands now, I expect to see a lot of good new things in the next few years—in finance, health care, education—everywhere.”
The BlockBox can be bought through a profit-sharing model where the buyer earns 50 percent of the proceeds after the initial investment of $1 million is recovered.