Tether Unveils New Software To Boost Bitcoin Mining Efficiency And Capacity
Paolo Ardoino, the CEO of Tether, went on X (formerly Twitter) to reveal more details of the software offering. In his tweet, the Tether chief explained the primary objective of the Tether BTC mining software, which is to enhance the efficiency of managing mining capacity. He believes this could make Bitcoin mining operations more effective.
Ardoino said the Bitcoin mining software is “really high-quality stuff”, “super modular”, and “highly polished”. He also emphasized his role as a core contributor to Tether’s mining farm orchestration tool ‘Moria’. Adding that the program built using Holepunch technology will eventually be extended to monitor energy produced by mining.
In a previous tweet, the CEO said that Tether’s Moria mining tech makes use of Holepunch to “collect and analyze” infrastructure data and to interact with all mining hardware connected to the network.
Ardoino claims Moria can enable communications between components within a Bitcoin mining ecosystem through streamlined, secure, attack-resistant, and cost-effective channels.
Holepunch is a peer-to-peer platform jointly developed by Tether, Bitfinex, and Hypercore to help blockchain developers build data-intensive Web3 applications. The $10 million encrypted protocol launched in 2022 runs on the Lightning Network, a layer 2 scaling solution for Bitcoin that enables faster and cheaper BTC transactions.
Moria provides every miner with a public and private key that will define their unique identity within the ecosystem. According to Ardoino, who is also the chief technical officer (CTO) of crypto exchange BitFinex, this setup will allow for encrypted and secure streaming of data through “hypercores” and command reception via “hyperswarms”.
He says the approach reduces complexities related to firewall configuration, enhances resilience to failures, and allows for easy replication of the mechanism across Web3 platforms.
Ardoino says Moria “feels more maintainable and modular” than any other crypto mining solution Tether developers have tried before.
Tether Plans To Replace Dollar Reserves With Bitcoin
Recently, Tether has been making major moves focusing on the Bitcoin mining sector. In May, the company behind the most-traded cryptocurrency – Tether USD (USDT), revealed plans to allocate 15% of its monthly profits to Bitcoin.
The announcement came days after Tether declared a net profit of $1.5 billion in its Q1 2023 financial report. According to the stablecoin issuer, the plan is to follow in the footsteps of MicroStrategy and strengthen company reserves by replacing U.S. Treasury bonds with hard currencies such as Bitcoin.
As per Tether’s financial records at the end of the first quarter of this year, it holds $1.5 billion worth of BTC in hand, making up 2% of its reserve assets. Meanwhile, 85% of the company’s holdings were in cash, cash equivalents, and short-term deposits like Treasury bills.
At the time, Ardoino said Bitcoin was an obvious choice as an investment asset for the company due to its limited supply, decentralized nature, and its updated position as a favored asset among institutional and retail investors.
Business intelligence software provider MicroStrategy is one of the largest corporate holders of Bitcoin. As of August 1, the company owns 152,800 BTC worth over $4.5 billion. The tech firm started replacing its dollar reserves with Bitcoin in the third quarter of 2020, becoming the first established company to add crypto assets to its balance sheet.
Stablecoin Company To Operate “Sustainable” Bitcoin Mining Farm In Uruguay
Tether’s Bitcoin mining arm also has plans to start operations in Uruguay. The stablecoin issuer has partnered with an unnamed licensed company in the Latin American country to set up a mining farm that will be powered entirely by renewable energy sources.
In a press statement, Ardoino said the aim is to mine “sustainable” Bitcoin with a “minimal ecological footprint” while “upholding the security and integrity of the Bitcoin network”.
Uruguay is said to produce almost 95% of its energy from renewable sources such as solar, wind, and hydropower. Tether is also considering expanding the Bitcoin mining service to Brazil and South Africa by next year.
At the time of writing, Bitcoin (BTC) is trading at $29,190 – up 0.2% in the last 24 hours.