Lumerin launches Bitcoin mining hashpower marketplace

0:00I'm ashon adderson from blockwest capital for investment pitch media today on the Crypto Coin Show we have Ryan condrin founder of Lumin Ryan welcome to the show and thanks for taking the time yeah thanks for having me on you're very welcome excited to dive into Larin Bitcoin mining hash power you know I know a lot about blockchain but the mining aspect of it and the hash rates

0:23it's very important piece of it but I don't think I know one knows so I'm excited to dive into that today I'd love to start off by just learning a little bit more about what you and your team have built at Lumin and then we'll dive into all the details all right cool where where where would you like to start I mean we've been building the Lumin protocol for the

0:44last two years now and we just actually launched the proxy router on mainnet back Tuesday so it's only just been a few days now so you know I can start at the very beginning kind of what it is and how it functions and I guess we just go from there yeah that would be great you know just sort of a high level on what exactly is Lumin and how does it

1:05work cool so you know the vision with Lumin is it's it's a very easy data pattern it is meant to be a decentralized data stream routing system through smart contract engagements and the way we achieve that is by the Lumin node which is a peer-to-peer routing system so what we've been building over the past two years is that ual proxy node that takes

1:31its commands from the smart contracts and we've officially launched it on mainnet which is arbitrum one that is on Tuesday so what you can effectively do now is go to the Luman Marketplace which is all in kind of the Lumin UI and you can select a hash power contract you can click purchase and once that purchase actually gets included in a block on

1:58the Chain the sellers node will pick up the order and Route real hash power directly to your buyer's node and you can mine with it so you can be anywhere in the world you don't need specialized hardware and you can buy real hash power in real time and you can mine with it so we're really decoupling the location of the hardware and the control in a very

2:23decentralized way M very cool and I know many people understand that trying to mine yourself is unfeasible and costs a lot to try and do it competitively when you're when you're facing warehouses full of as6 trying to compete with something in your garage but from what I understand Cloud mining is a good alternative but there's also this decentralized Marketplace which

2:48which Luman is can you talk about the difference in that in are you how are you providing Extra Value into purchasing hash power to do mining yeah so I mean you know I've done it in my garage you know in 2012 I originally was building GPU rigs in my garage and then eventually started buying as6 and running extension cords all over my house to reach every

3:16single circuit and you know plug in as6 I think at one point I went in the addition of my house and it was 130 degrees fahit in there so I've been through the ringer with trying to build you know mines in my house and then working with miners at scale in facilities and I've seen the infrastructure and the Opex associated with all of it and it's

3:43substantial so it's not a an a reasonable or accessible thing to a lot of people in this world to be able to do that you know we will have hot beds of Mining and you whether it be in Texas or Upstate New York or you know we've heard area of South America and the Middle East now having really large mining facilities and you just can't compete with that cheap power but

4:09what you can do is you can build a virtual mining Farm where you can spin up now virtual miners anywhere in the world and that's really the vision of Lumin is providing a virtualized environment so just as AWS revolutionized the server and hosting industry by having a virtualized servers and tools and scaling mechanisms around that we want to

4:34provide the same thing U for mining incredible and yeah AWS did really revolutionize being able to spin up servers and hosting your site but the one thing that makes this better is that it's more decentralized maybe you can talk about you know the decentralized nature and I know there's a lot of problems with web hosting with AWS that they control the internet and

4:55they sort of say and can do whatever they want but that's not what blockch chain and web 3 is about so I'm curious on you know sort of the decentralized nature of Lumar yeah so everything is brokered through smart contracts so everything is fully open sourced and auditable when you interact with a seller through the Lumin Marketplace you can

5:21review the code yourself you can go in and you can look at the solidity contract and you can see exactly U what you're paying what you're paying for how it's going to be enacted with the Luman proxy router so it's fully auditable it's very different than a centralized service that as you said can you know pull the plug at any point they can freeze assets they can

5:46they can do dispute resolution on behalf of a buyer or a seller this is all governed by code so it's a predetermined engagement and that's it's very very different and it provides a lot of great freedoms and sovereignty in controlling of your data and your and your finances when you do a peer-to-peer system like this but it also provides a lot of complexities

6:12in trust and then aspects of what happens when you have a bad actor or you know someone that is trying to manipulate the system or take advantage of the system so you know be because of this you know you have a lot of very similar problems that you know say like someone like eBay actually solved when they first launched you know where

6:38you have a buyer and a seller that don't necessarily trust each other and you might have a buyer saying that they bought something never received it or seller saying that they shipped something but they never really shipped it you know and all these different engagements you know eBay has created a lot of different rules around how they do resolution and some of is

6:58through PayPal now but what's really interesting is we're kind of discovering the same type of engagements but now in a decentralized fashion so we're having to think through all the same you know engagement factors of a centralized Market but solve it in a decentralized trustless way which is not easy no it's not and it definitely is better to not have extra trusted parties

7:25but it can also make it more complicated you know I personally for some people it's a daunting task to unless they're very interested in it to try and figure out the inner workings of how the hash rate works and the profitability of it and such and then tackling on top of that the decentralized nature you know what if I don't know code or smart

7:44contracts how is Lumin making it easy to make it you know breaking down the barriers to entry to be able to start using this and getting the hash power without having to go through a million hoops and to understand all the technical nature of it yeah now that's that's a great question because this is a big part of onboarding people into the mining

8:07ecosystem is you have to make it easy and Mining historically has not been easy even for Tech veterans and people that know what they're doing it's it's still very difficult in a lot of regards it's one thing to you know get the devices online it's another thing to even keep them online and hashing so with Lumin the goal was to make a very userfriendly

8:30interface that was very intuitive and even that was you know very difficult because there's things that we as a team assume are very intuitive but it's because we've been mining and in industry for a long time so we really had to take a step back and start having people on the you know different marketing team and you know friends and family playing around with

8:55it that haven't been you know mining for the last decade so they can really give us honest feedback of what makes sense what doesn't make sense what are some of the terms and even messaging that we give inside the UI that doesn't make sense so that was the first challenge the Second Challenge is we're we're routing realtime data streams and a lot of computers come with

9:19firewalls and are sitting behind Wi-Fi routers and so there's port forwarding issues that's actually been the biggest one to navigate so we've worked through it we have a lot of you know how-to videos and guides on how to you know set up port forwarding on your router or use enro or a similar service to do a VPN tunnel as the Lumin proxy matures we want to

9:47start baking some of that software into the install so you don't have to set up that stuff manually and I think that will be kind of a natural progression of the ecosystem is having all that built in for now I say that's one of the largest hurdles and then lastly the team at Titan has actually launched a lightning pool which is we haven't

10:11actually seen that anywhere before and I thought you know what like how do we make this as easy as possible for people to mine and another sticking point was people would have to point their hash rate at a mining pool and a lot of people have never set up a mining pool account before and that can be a little intimidating if you've never done

10:29that and you don't really understand that you know all of a sudden you're in a you're in a decentralized ecosystem buying hash power and now you're being asked to set up a username and password at some thirdparty service to actually use that hash power somewhere so the team of Titan Titan launched a lightning mining pool which is at lightning. titan. and all you do is you

10:53enter your lightning address and we baked that into the Luman proxy so when you're setting it up if you simply give the lummer proxy your lightning address it will forward the hash rate onto the Titan lightning pool and you will actually real time stream SATs as you stream the hash power so the end result was was actually a very cool effect where it's it's almost

11:19instantaneous where you load the Lumin wallet you purchase a contract you see incoming sockets on your lumer and wallet and then all of a sudden you see see Satoshi hitting your lightning wallet and it's all within you know minutes so it's it's a it's a very cool effect you're you're not waiting for Bitcoin payouts you're not waiting for you know contracts to resolve it's you

11:43know it gets picked up on the Chain within 15 seconds you see contracts or incoming sockets hitting your your wallet shortly after and then you see Satoshi hitting your wallet shortly after that the instantaneousness of it is almost like magic you know almost it's there still some some technical sticking points but we're working on those yeah and know it

12:06definitely all pays off when you see you know SATs coming into your wallet and you're like just satoshi's coming in quickly and I think that's part of the beauty of lightning wallet that a lot of people have yet to discover yet so that's a cool integration there Ryan and now now that we've sort of explained quite a bit I want to go back to the major announcement that lumr made both

12:26the arbitrum network and the launch can you just talk a little bit more about that yeah so you we've been building and testing on ethereum test net for well over a year now we released the ethereum test net to the community back in March so the community has been playing with it we have you know over 8,000 people in our telegram Channel

12:50we have lots of people in the Discord and we've had over 16,000 people sign up for the test net testing that's great we only have so much capacity so unfortunately even though you have 16,000 people jostling to play with it there's only only so much hash power we could actually give away During the testnet period it gave us

13:12a lot of really important insights into scaling and the load that these proxies could handle which is actually far better than what we were initially anticipating so the software is incredibly sound incredibly well tested but it doesn't mean there aren't bugs you know we still have some engagement issues with the way the validator system works and

13:36the Fulfillment system works but we're working through those one at a time with a lot of great feedback from the community and a big part of that and what's what's made this possible is by moving from ethereum test net and ethereum Main net onto arbitrum one so if you've played with arbitrum one at all you'll quickly see that it's far

13:58cheaper to transact on the network and it's far faster to transact on the network so we found it to be incredibly useful and we think it's going to be a really great move for our community to be able to buy you know smaller amounts of hash power in smaller time allotments because the economics are just more sound that you know with lower gas fees so

14:24you know that's that's in short we launched last Tuesday on arpm one that's our first main net release because it's all written in solidity we can actually really release a Marketplace on any evm there have been some talks on doing a binance release and some other Network releases for now we're just focused on the arbitrum build but it doesn't

14:46mean that members of the community can't Fork it and launch it wherever they want wow that's very exciting congratulations and it's it's always fun when you have so many people joining in on the test net phase that you realize that this is something that people want you know we need to SCA we need to be able to scale and make sure know the sites aren't going down because

15:06it's too much traffic it's it's a good problem to have so that's great to hear for the team at Lumin and you know I wanted to touch back on just Mining and you know we talked at the beginning about how you went through the tedious process of setting up all the hardware and stuff and it's not just that of actually getting Hardware it's just like

15:27the investment that you have to make in purchasing Hardware to understand you know the break even level and the profitability of mining there's different factors that can affect profitability of mining whether it's like the price of Bitcoin or the competitiveness of the hash power can you talk a little bit about you know the profitability in without obviously with

15:49this decentralized way you don't have to go purchase Hardware yourself so that's great you know that lowers a lot of initial costs but what are sort of some of the things that affect the profitability of how profitable you can be using a hash power Marketplace yeah so profitability is tricky on resale right because if the hash power is profitable to the

16:15the minor itself then they wouldn't sell it on the marketplace right so there's two reasons why a minor might sell their hash power one is they want to hedge their risk so they're going to forward sell their hash power to someone that wants to buy out into the future that you know that would be worthwhile to a minor and they might

16:37sell at a discount the other reason why they would want to sell is at a premium so they might want to sell in smaller chunks if someone's willing to pay a five or 10% premium on the hash power the buyers in this case we would see you know someone that wants to transition their web 3 tokens or erc20 tokens out of an evm system and

17:05they want to move it into a Bitcoin system or Bitcoin Network in a seamless way right and this might be in a decentralized way an anonymous way there's currently no other way that I know of to acquire Bitcoin an truly anonymously than through mining everything else has to go through some type of central system you have to receive the Bitcoin from someone or from

17:30somewhere the only truly Anonymous way of receiving Bitcoin is through the block reward so because of that you know if there's if there's people that truly want to do a seamless transition or Anonymous transition out of a web 3 defi ecosystem into real Bitcoin Lumin currently is the only path for that and that would be sold at a premium from miners so these are

17:59these are the two sides of it what we really what we really see is there's going to be most likely several hash power marketplaces launch and they could all be on top of Lumin it's really an open proxy it so it can be pointed at any set of marketplaces but we foresee that there would be a kyc AML Marketplace maybe even for North America where

18:27more publicly traded miners would buy and sell hash power in a more trusted type environment we see more Global unregulated Market that would be more Anonymous more of the Wild West that's a little trickier because it's you would have to limit the scope of each of the contracts to limit the amount of trust between the buyer and the seller but the game mechanics

18:53around a open Global Marketplace are going to be a lot more complicated than a more trust kyc AML Marketplace but we do really see in the near future we'll most likely have different types of marketplaces popping up on top of the Luman protocol depending on the different groups of users that want to use it very interesting Ryan and

19:17what is the best way for people to learn more about these kinds of marketplaces and to try out the new Luman arbitrum update yeah so you can check it out at lin. that's l m r i n. It's an easy download you can Bridge your tokens over to arbitrum send them to your wallet and play around with the marketplace all inide a easy to use un interface so it's all kind of

19:47baked in one install the team works really really hard to make it a very intuitive interface would love for you guys to join the telegram to reach out to us with feedback and definitely get involved in the project you know I often say that it doesn't matter how good the technology is if there's no Community you can have the best technology on Earth

20:10and if no one's using it then it's not going to go anywhere likewise you could have the worst technology on Earth and a ton of people using it and a very vivacious community and it will it will last you know a lot of people will will point at Dogecoin as the leading indicator of this right at the end of the day we're we're making decentralized networks and a network is

20:34people so you are going to have the most success in your project if you can engage a community and keep the community involved and that's really what we're working on is we want the community to get involved we want the community to give us feedback to get involved in the marketing and the development and the spreading of the word that hash power equals freedom

20:58and if you want to truly interact with the Bitcoin ecosystem if you truly believe in freedom in finance and sovereignty and wealth then please come join us at Luman get involved and help us keep hash power decentralized and free awesome wise words Ryan and thank you so much I will leave the link to the Lumin platform in the notes below as

21:26well as the telegram and the other socials that mentioned thank you for you know keeping the principles of decentralization in the marketplace I'm excited to go check it out again after this new arbitrum update all the best with everything lummer in moving forward and let's follow up in the near future cool thanks