Officers with Griffin Blockchain Providers, Inc., a blockchain group that plans to function out of the outdated AmerisourceBergen constructing in downtown Paducah, gave a presentation Thursday on the fundamentals of blockchain expertise and the way it ties into the fast-growing cryptocurrency market.
About 50 folks attended the seminar hosted by the Paducah Space Chamber of Commerce. Blockchain and cryptocurrency information among the many crowd ranged from the novice stage nonetheless deciphering the 2 phrases to some who had been working their very own small-scale cryptocurrency mining operation.
Qianjie “QJ” Zhao and Dennis Zhang, CEO and CFO of Griffin Blockchain Providers, additionally shared perception about their firm and what drew them to Paducah.
Zhang mentioned he hopes enterprise house owners and entrepreneurs realized how they might apply blockchain expertise to raised their companies.
“I believe it’s necessary, for no matter enterprise you’re in, to consider how, you already know, ‘how [could] my enterprise benefit from this new expertise?’ and the way it may doubtlessly profit you,” Zhang mentioned.
Zhang defined that blockchain is a digitally distributed ledger that shops info corresponding to transaction data. Slightly than information being saved with one centralized ledger, blockchain information are saved on a community of computer systems.
As a result of blockchains are saved on a number of networks, Zhang mentioned it’s near inconceivable to hack blockchains. If a hacker accesses a blockchain on one pc, there would nonetheless be a number of, probably tens of millions of copies, of the right blockchain saved on different networks.
Blockchain expertise and its decentralized nature is often used with cryptocurrency corresponding to Bitcoin, Zhang mentioned. Blockchains preserve observe of the transactions of Bitcoins amongst completely different customers. With no centralized location corresponding to a financial institution for transactions to undergo, cryptocurrency customers can bypass a intermediary and switch funds straight with one another, Zhang mentioned.
Due to its capacity to depart digital trails, Zhang mentioned blockchain expertise is also used outdoors of cryptocurrency. For instance, blockchains might be used to point out an individual who donates to charity precisely the place the cash is headed and the way a donation is getting used, Zhang mentioned.
Zhao described the fundamental means of mining for Bitcoin and why the corporate is taken with investing in it. Pc techniques remedy a sequence of complicated equations to “mine” Bitcoins. Miners then get rewards for mining the Bitcoins, and in addition get a portion of gross sales from future Bitcoin transactions, Zhao mentioned.
Zhao mentioned there are solely 21 million Bitcoins in existence, and about 20 million have already been mined. Mining the remaining Bitcoins is a course of that might take over a century to finish, and requires large-scale, energy-consuming pc techniques to take action. Zhao mentioned Griffin would love the ability to make use of as much as 40 megawatts with a view to function their mining operation.
In an effort to attract extra cryptocurrency firms to the state, Kentucky enacted a regulation in 2021 granting gross sales tax and use tax exemptions on business property and electrical energy utilized by blockchain firms for the needs of cryptocurrency mining. Gov. Andy Beshear additionally signed a invoice in 2021 that extends clean-energy incentives for firms to large-scale cryptocurrency amenities.
Zhang mentioned Griffin Blockchain Providers checked out just a few completely different places in the US to construct its headquarters however finally selected to begin in Paducah as a result of the state is crypto-friendly, native rules would assist their enterprise and there’s an “considerable” provide of electrical energy and land for the enterprise.
Zhao mentioned Griffin Blockchain Providers plans to begin its mining operation on the outdated AmerisourceBergen constructing in March.