CEO of cryptocurrency miner Hive Digital envisions blockchain and AI collaborating.
Aydin Kilic, CEO of Hive Digital Technologies, asserted that blockchain and AI may complement one another despite their industries’ rivalry.
When the cryptocurrency mining company Hive Blockchain decided to delete the word “blockchain” from its name in July and change it to Hive Digital Technologies to better reflect its entry into artificial intelligence, it sent a message to the IT sector.
In response to falling cryptocurrency prices, a larger movement among crypto miners is to shift their focus away from mining digital currencies. Riot Blockchain, a cryptocurrency mining company, changed its name to Riot Platforms in January. In June, cryptocurrency miner Applied Digital announced a $460 million agreement to host AI cloud computing at its data centre.
With the conclusion of ETH mining in September 2022, $HIVE has started converting its fleet of 38,000 Nvidia GPUs from miners into cloud infrastructure, which is the next phase in our development into a diversified data centre operator.
Despite the name change, Hive Digital Technologies CEO Aydin Kilic and Chairman Frank Holmes confirmed in a statement to Cointelegraph that the company is still actively engaged in Bitcoin and cryptocurrency mining.
However, when it comes to Web3 development, they now perceive two emerging industries — blockchain and AI — as being almost symbiotic.
“Blockchain and AI can definitely coexist because they both form the foundation of Web3.”
Kilic asserts that the fundamental distinctions between Web2 and Web3 will be leveraged to improve Web3’s user experience over time.
“AI makes Web3 more adaptable. Although Web2 has all of this metadata, you lose your privacy since all of the major Internet service providers stealthily harvest it for their own financial gain, according to Kilic.
“With blockchain, you may control your own data and have complete privacy. But how can you have a curated web experience without such metadata? In order to make it more intuitive and adaptive, AI is used in this situation. All of it interrelates, he said.
“Metaverses and DAOs will play a role where AI plays a role, and vice versa. Web3 as a whole is still in its early stages.
The place “where these pillars of technology actually get applied in novel ways that are broadly adopted is yet to be seen,” he continued.
Ethereum provided insightful lessons.
The first publicly traded cryptocurrency mining company was Hive Digital Technologies, which established its first Bitcoin mining facility in 2014 and went public three years later in 2017.
Holmes said that the company’s ability to adopt new technology was largely due to the lessons it has learnt from mining both Bitcoin and Litecoin.
Ether and $26,028
“Ethereum mining has significantly improved our mining processes. And mining Ethereum is much more delicate equipment than, say, driving a Jeep. Instead, it’s more like driving a Porsche. For an ASIC, you need two workers for every one employee, he added.
According to Holmes, these lessons were essential for understanding how to pivot and make sure they had a wide enough scope of both product and technical know-how to benefit from developing innovations.
Related: Despite an increase in global mining production, Hive Blockchain revenue decreases by 44% year over year
Hive’s team decided to spend more money on dual-processing chips rather than solely mining-focused ones so that the company could conduct mining operations while also providing high performance computing.
“One of the things about which we were concerned was Ethereum’s switch from Proof of Work to Proof of Stake. We initially anticipated a longer timeframe, but we decided to purchase Nvidia chips nevertheless. And we decided to move on with putting out our High Performance Centre site alongside it about 18 months ago.
Crypto remains a priority.
Kilic emphasised that the business continues to concentrate on Bitcoin and cryptocurrency mining.
“We have some of the highest Bitcoin per exahash monthly rates in the business. We presently mine Bitcoin at four exahashes, and by the end of December this year, we plan to reach six exahashes.
“Decentralised trust will gradually gain acceptance as a fresh and efficient trust architecture. On the internet, we have previously witnessed this growth of understanding.
Additionally, Kilic provided a thorough description of how their 38,000-strong fleet of Nvidia GPUs is used on a daily basis.
The remaining 37,500 cards are still engaged in proof-of-work mining, where they continue to mine other cryptocurrencies using a profit switching method that changes daily. Currently, 500 of them are engaged in either AI or HPC computing. In essence, we mine the most profitable coin every day using the GPU hash power. Kilic clarified.