Telegram AMA with Titan’s CEO, Ryan Condron — 06/11
Hey Titan Community! Just like we want to get to know you, we want you to get to know us as well as you can. That said, we love to engage in a conversation with you and answers your questions every time we can.
That is precisely what we did a couple of weeks ago on our Telegram channel. Our CEO, Ryan Condron, jumped in and solved your doubts. So, in case you missed it, here is a summary of what we discussed that day.
Naturally, the first thing to do was explaining what we do and what we want to solve. Ryan started Titan after one idea: To decouple the creation of hashrate from its control. But it’s better if we let Ryan explain it himself: “If we can decentralize the control, then we can keep layer 1 networks more decentralized, allowing more people a chance to vote, if you will.”
Titan aims to be a piping protocol for proof-of-work blockchains. In other words, a thin layer 0 protocol sits between miners and layer 1 networks. The protocol would allow miners to deploy smart contracts that could route their hashpower based on market dynamics of their choosing, among other things.
To do that, Titan would provide a library of sample contracts and marketplace (DEX) environments to start. However, we want you to get involved: “We want to encourage the community to build on top of the protocol and drive its vision,” said our CEO. Like other blockchains, anyone will have the opportunity to build their own dapps and platforms on the Titan protocol.
The Titan token
A primary focus on questions was the Titan token. What will it do, and what role will it play in the Titan blockchain.
The token, just like any other blockchain’s native cryptocurrency, is meant to regulate the state of the network. At first, we considered building the protocol on top of another project, but although there were many good options, none of them was a perfect fit for what we needed. That is why we decided to create the Titan token.
Furthermore, having our own cryptocurrency enables the Titan community to have complete control over the environment moving forward. No third parties are involved.
The hashpower marketplace and collateral staking
The Titan marketplace will be a decentralized exchange, which will enable miners to sell the hashpower they produce to the highest bidder. Let’s explain how this works.
Users will have access to hashrate trading in a trustless, decentralized manner, powered by smart contracts. For that to work, they will have to lock collateral into the contracts.
Will the Titan token be the only collateral accepted? Not at all. We are indeed doing our initial sample contracts and marketplace DEX environment with Titan token staking, which allows us to use our token to drive the market dynamics. This won’t be a requirement, though, as users will have the choice to use stablecoins or other cryptocurrencies as collateral at their discretion.
There will, however, be required Titan token staking for network validators to ensure they have a vested interest in being good actors. This is a standard security practice in the cryptocurrency industry and has proven effective, which is why we’ve decided to implement it.
What makes Titan unique?
Let’s imagine you’re a miner with considerable computing power. You’re connected to a pool that is giving you a decent income. Why would you choose Titan Protocol to sell your hashpower instead?
Firstly, we’ve seen over the years that there has been a consistent demand for purchasing hashrate products, even if at an unreasonable profitability calculation. This customer base willing to pay more for the convenience of hassle-free hashrate procurement boosts potential profitability to miners. In short, miners could sell their power for a higher amount than the value of the coins they mine.
Fair enough, but if that’s the case, another question comes up. Why don’t people purchase BTC or another proof-of-work coin directly rather than buying hashrate at a higher cost? According to Ryan, the answer lies within the core principles of PoS networks: “There is additional value in minting your own blocks or mining your own coins directly that is almost impossible to put a valuation on.”
After answering the most popular questions, we invited all of you to ask away your personal, more particular inquiries. You can see them hereunder.
Is Titan giving control over block construction to the individual hashrate purchaser?
The short answer is yes. We aim for complete hashrate decentralization, and that includes block construction and transaction inclusion. Otherwise, it is just economic decentralization. With Titan, the purchaser would have full control of the hashpower. If they choose to construct a block with it, that is their choice to make. It’s entirely up to them.
How is Titan handling switching slippage at layer 0? Has the loss factor of pushing shares from pool to pool been measured?
We haven’t measured the loss factor yet, but we did find a way to do high-speed connection switching (on most PoW networks). That said, the marketplace will most likely need thresholds of how often the switching happens depending on the blockchain.
How does Titan incentivize miners to sell their hashrate on the marketplace? Don’t they make more by keeping it to themselves?
It depends. The goal here is to enable miners to become as profitable as possible. For that, they need as many tools and options as they can get. The Titan Protocol will provide many of those tools, in addition to a platform in which the mining community will be able to build their own.
Let’s explain that with an example: In a Bitcoin bear market, miners may want to offload some risk by selling off hashrate in the form of long-term contracts. They are betting on BTC price going down, so they sell their hashrate in advance and obtain better profits than if they kept mining and sold their BTC. This would also give them liquidity to expand their operation.
Thank you all for tuning in!
As we mentioned above, Titan aims to solve real problems for miners. In that mission, your involvement is paramount to us. We appreciate any questions, comments, and feedback that helps us better understand your experiences and challenges.
As we always say, we are constantly looking for new spaces and opportunities to interact with the community. We invite you to visit our website, follow us on Medium and social media, and join our Telegram channel to be part of the conversation and stay alert for upcoming events.
We’re counting on you. Together, we can build the future of crypto mining.
See you around!
The Titan Team