The hardware, software, algorithmic recipe that works
Discussion with Steven Greene
Blockchain and Cryptocurrency are not our usual area of interest. What are your thoughts?
The concept of decentralized financial transactions without the need for accountants or banks didn’t start with the blockchain or cryptocurrency. It began with Piny the Elder in 70 AD, was used by succeeding generations up through Marko Polo in 1280 and then up through1834 by the King of England.
The technology platform used, at that time to record numbers, quantities, ledgers, accounts, messages, and to provide absolute security against tampering (hacking) was called a Tally Stick. The sticks were made of wood or bone and marked with notches and impressions that described obligations, transactions, accounts payable, accounts receivable, or private messaging. The tally stick was then split so that each party to the transaction received one of two halves. When the parties wanted to settle, they put the two pieces back together to validate the original obligations between the par-ties. Because of jagged edges of the split and the fact that one of the halves was slightly longer than the other, the transactions were impossible to fake or forge. Each part had to fit precisely together meshing all the unique jagged edges for the transaction to be accepted. Here is the interesting part of this historical decentralized transaction platform. The person who advanced money or goods to another party retained the longer half of the stick. This longer half was called the stock. That should spark something in all of our minds. It seems the person that had the biggest stick owned the stock!
All jokes aside, eventually governments did get involved and this “Split Tally” or “Nick Stick” was accepted as legal proof in medieval courts through the Napoleonic Period (1804) and into the mid-20th century in Germany and Switzerland. The tally system was introduced into England to accept taxes by Henry I in 1100. The tally system was ended in England in the mid-1800s.
So, when one or more anonymous persons calling themselves Satoshi Nakamoto introduced this “new” concept of currency based on a matching mathematical, algorithmic proof rather than a middleman or bank it used a very new digital platform, but it had some historical precedent.
Everyone who is current in financial technology or who keeps up on economic news knows how much of a keen interest has been expressed by many investors and institutions, as well as the con-cern and confusion regarding this entire new financial system. The blockchain technology that drives this system seems very sound. Besides tokenized non-collateralized cryptocurrency, another asset backed crypto-tokens like Tether are being introduced. Crypto-tokens are being gamified and collected. There will be fungible and non-fungible digital assets created. Artificial intelligence networks and the new concept of private internet social communities will use the blockchain as the ultimate validator of truth. So, there is an ever-emerging future which is yet to be fully defined.
Today, this new digital backbone is currently being embraced by many companies such as IBM, Samsung, UBS, Barclays Bank, Airbus, Daimler, J.P. Morgan, Bank of America, Oracle, Google, and Goldman Sachs to name a few. So, what we know is that as this less than ten-year-old cutting-edge, international, financial and informational technology approaches over a trillion dollars of market capitalization, more than likely something new and positive will result.
Tell our readers about your company. How it started and where you are at today
Our Company NFN8 wanted to be a stakeholder in this groundbreaking technology. We wanted to learn it, understand it and build a company that was not tied only to speculation or completely wrapped up in the world of hardware and software. We wanted to take advantage of something new, emerging, and undefined, but not be taken advantage of by this new wave of the future.
It’s interesting to note, that in looking back at many of the beginnings of new technologies and industries, the early days are usually referred to by the overused cliché, “it was like the wild west.” That language got us thinking about the wild west as NFN8’s plans were being formulated. We thought about the 49ers who ran after the promise of rivers of gold in California in the mid-1800s. As history reminds us, those who speculated lost, those who provided services to the speculators like shovels, wheelbarrows, and work pants went on to be very successful. Now we knew very well that in 2015 (when we started) we could not exactly model those 19th – century successes. However, we felt we could take that philosophy and mold it into a mission for us to conquer what was in front of us today.
With that in mind, NFN8 has developed a Blockchain Managed Mining business model that has several distinct pieces. These elements make it unique and completely different from any of the other companies we have seen in the marketplace. First, I think it’s important to emphasize the businesses we are not involved in. We are not in the “bitcoin business.” We don’t speculate on a single currency. We started by thinking that the blockchain space offered opportunity. We wanted to get involved in a way that allowed us some measure of control over our business. Therefore, we did not just want to speculate on a currency and let the marketplace alone dictate our revenue and profits. As recent history has demonstrated, those who adopted that philosophy and got involved in buying and selling or who had companies that were completely tied to the price of any individual currency have not fared well.
NFN8 Media decided to build a multifaceted business to profit from this new financial marketplace using equipment, technology, software, the relationship between costs and market prices and how they all related to each other. We wanted to perfect the skill of having maximum control all these moving parts.
So we put in place the manufacturing equipment which is simply the computer systems required to most effectively mine the right cryptocurrency at the right time. Our computer systems consist of off the shelf components such as ASIC’s, CPU’s and GPU’s as well as proprietary computer parts and elements. Also, the company has developed and exclusively owns proprietary software packages that we use to manage the computer equipment.
That unique combination of specialized equipment along with our own software allows NFN8 to create a variety of cryptocurrencies. Some examples are Bitcoin, Litecoin, Litecoin Cash, Monero, Bitcoin Cash, Ethereum, Ethereum Classic, Zecash, Dash, Siacoin, Byton, Electroneum, Verge, Decred, Dogecoin, Vertcoin and many more than most people have never heard of. In other words, we are participating in the entire backbone of this new technical financial market. We can create to-kens at a consistent fixed price.
However, as stated previously the timing of what to mine is just as important as owning the equipment to mine it. Those determinations can’t be profitably made on a consistent basis by using publicly available platforms such as “What- To-Mine.” The company specialized and proprietary software makes those determinations based on many factors besides the current market price of tokens. These factors include original cost and update cost of equipment, maintenance cost, and the cost of electricity. Those are considerations on the manufacturing side. Then we use a separate set of proprietary software tools, systems, and platforms to analyze the cryptocurrency marketplace on a per second basis 24/7 to determine the best trades to make with the results of what we mine.
The two software platforms speak to each other, so the trading function understands all the parameters of our costs. Our robust portfolio, reserves, ability to act with a second’s notice, utilizing snap-shot data, along with the ability to continually measure against our own baseline costs allows us to operate efficiently.
Therefore, we are not concerned if bitcoin or any other token is at $20,000 or $1.00. The cost of any token for us – no matter what the market price is fixed – because we manufacture tokens, we don’t buy them. Our opportunities are myriad. We can manufacture, hold, or sell 1 token worth $20,000 or 20,000 tokens worth $1.00 and everything in between. And we can do it one time every few days or many times every few minutes. Additionally, the fact that we operate in a decentralized market that is not loaded with middlemen – banks-traders-brokers – all who take substantial commissions enables us to make a huge volume of trades and not be burdened with punishing fees.
Do you have any plans to grow your company?
We are not in the ICO, IPO, or Note arena. The business was developed and started by the owners with their own money. The concepts, systems, and equipment that we use have been developed by us and are producing revenues and profits today. While it’s true we are growing our company; we are not growing it in the traditional way. We made a definite decision not to dilute the company by offering a security or shares. Also, we did not want to take on debt with notes or loans which can easily get out of control. So we came up with a program that offers advantages to our company and the clients who want to take advantage of our sale/leaseback program. It’s kind of unique. I believe that’s why NFN8 has been invited on shows broadcast on The Fox Business News Network be-cause our approach to growing our blockchain/ cryptocurrency business is entirely different from most everything else currently available. That is why we use the slogan:
“The Money’s in the Mining”
It’s pretty straightforward and simple. We offer purchasers the opportunity to buy the same equipment we use. We procure the equipment. Then assemble, test, warehouse, maintain, up-grade and insure it. The owner receives a bill of sale with serial numbers just like he or she would with any equipment purchase.
Simultaneous with the purchase, the equipment is leased for five years. This enables us to grow without debt or dilution and provides a consistent monthly cash flow for the lease owner. We have been offering the sale/leaseback for over a year, have started all client lease payments within 60 days of purchase and leaseback, and have never missed a monthly client payment in a marketplace that has fluctuated wildly. Anyone who is interested in this program or learning more about why we strongly believe we have harnessed the blockchain to create consistent, predictable revenue and profits for our company can contact us in the following way.