AMAGath3rMining

Gath3r Community AMA with DBCrypto

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The following is a Community AMA that took place on the DBCrypto Telegram Channel between Gath3r and the DBCrypto community in June.

About Gath3r

Gath3r is building a cryptocurrency web-miner, developed to solve website dependence on advertising revenue by offering an alternative form of monetization.

AMA Question Highlights

Thank you for being here guys, tell us about your backgrounds and how you came to be at the head of this project. — Daniel from dbcrypto

Hey guys and thanks for the opportunity, looking forward to some great questions! — Reggie Jerath

Reggie
I started my career in Oil and Gas, and have been moving around the world quite a bit, between Canada, Dubai, Iraq, UK and India. I was first exposed to Bitcoin back in 2012, when my co-founder Gabe told me about Bitcoin, long-story short, we ended buying some LTC (Litecoin) since it was cheaper.

Post working in Oil and Gas in Iraq, I moved into marketing and advertising, working with various firms, such and MSLgroup and a few others. It was at this time I also starting GPU and CPU mining with NiceHash, this was around mid 2017.

Daniel from dbcrypto
Fascinating background… so what motivated you to pursue this web-mining idea?

Reggie
I started Gath3r with the other founders, based on a problem faced by most Publishers, — monetization. One of the startups I help out is a web-comic, and his problem was that he never wanted to show display ads or any form of advertising.

While doing some research on other forms of monetization, I stumbled upon Coinhive — This was very interesting to me, but I knew in it’s current form it would never be accepted by mainstream publishers. So we looked at their weaknesses, improved upon them and came up with the initial idea of Gath3r.

Daniel from dbcrypto
I like the concept of being able to help website owners transition away from banner ads and videos etc. (and especially for your web-comic friend) as a form of revenue and improve the UX when you are on a particular website.

How do you feel about people unaware or uninterested in the crypto-space being prompted to in-browser mine?

How will you make it easy to do and explained simply for non-crypto web-traffic?

Reggie
Ease of use, honestly, one of the biggest barriers to adoption, is the fact that block chain and cryptocurrency is that some of the vernacular involved is so technical people just do not get interested.

So for us, we knew we needed to keep the disclaimer very simple, and let people know what was happening in the simplest form possible — this is from a users perspective.

Daniel from dbcrypto
Yep. That was one of my initial concerns if mainstream/absolutely non-crypto-related websites took up the Gath3r code.

Reggie
The same challenge applies to publishers as well.

Mainstream publishers, have bias against digital media since most of them started out, and are very attached to print media. When you add cryptocurrency into the mix — it can make things even more complicated.

For publishers it also needs to be as simple as possible as well. Things like a simple dashboard, where you can see your earnings per site, a simple way to get Fiat, and a simple way to exchange crypto in real time.

While I’ll admit with Fiat payouts we have recently signed up with a partner for a fiat/crypto on-ramp for the SEPA region — it does come with additional compliance, which adds an additional layer of necessary complexity.

The main driver will always be revenue —ads, have higher drop out rates, and can degrade the UX.

Gath3r AMA Community
” For publishers it also needs to be as simple as possible as well “

Justin from dbcrypto
Merge-mining is another selling point of the Gath3r proposition. What do you envision for the merge-mining scenario?

In theory it sounds nice, but who do you think will be forking off the Gath3r chain and for what reason would they want to do it?

Reggie
Ah yes, — A bit of background on this. We finished a seed raise last year (500 ETH, which was around 200–300K ) in January. There was a 51% attack on ETC, so that is when a basic light bulb moment hit.

Can we share all this potential hashrate with other blockchains?

Well, part of the use-case and the problem we are solving is that we are allowing developers to come fork and get safe and secure hash, from the start. This could be in the form of a new project or enterprises or existing projects.

But as with most things, it will come down to the price of MM and functionality for developers.


Daniel from dbcrypto
Do you have any idea on how much or what level of revenue you will need to provide for an online advertiser to switch away from that ad-model and over to the Gath3r web-mining model?

Reggie
Yes, I do I can whip up some quick calculations for comparison — I’ll need some basic numbers such as: # of sessions per month, and time-on-site per session.

These numbers would be preliminary but should give you a rough idea.

A blog with 5.6 M sessions per month, with a CTR of .35 and CTC of .2, and CPM of $1 would earn around $4,760 after commissions from Google or the middleman.

Note, these numbers change a lot depending on the originating traffic.

Daniel from dbcrypto
OK, and do you have any comparisons for equivalent with Gath3r or is it too early to say? Do you have that info?

I guess not because the token will be volatile to a degree.

Reggie
I can base it on the IEO price for now, but with the GTH model not live and more importantly without the difficulty factor it’s just estimations, but based on what we have at IEO price we can say we can match 60–70% depending on the difficulty.

Comparing that to an XMR miner, which of last year during the peak of the bull got as close as 90% as ads, right now its fallen to 10% or so.

” No one like ads at all, and data collection is another issue as well”

Justin from dbcrypto
If you can provide a stable and significant level of revenue through the web-mining model, why wouldn’t a website just keep both models running?

Reggie
No one like ads at all, and data collection is another issue as well, but yes for sure, there will be websites that will do both.

All we ask is that you tell your audience.

Justin from dbcrypto
Fair enough. That makes me think though, can they run the code without telling their visitors?

Reggie
No.

100% the users have to be informed, one way or another. While there is some room of how that is done. Hidden mining, or better known as “crypto-Jacking” is not possible.


Daniel from dbcrypto
It might be good to just cover this Reggie…

Could you simply explain for us that aren’t super familiar with it, what Auxiliary PoW is, and how you can essentially increase the security of another lesser known/used chain with AuxPoW?

Reggie
AuxPoW is when there is a parent and child relationship between two different chains. The parent chain in most cases will be the chain with more PoW, and the child-chain requires PoW.

This is done through merge mining. Two chains using the same or similar algorithm are effectively using the same amount of computational power to secure both networks— A miner mining BTC can use their hashpower to mine BTC while securing Namecoin (for example) without an added cost, and for securing Namecoin, the miner gets an additional reward.


Justin from dbcrypto
Another question Reggie, what is the Gath3r Foundation’s purpose?Why do you have a separate foundation?

Reggie
After getting feedback from developers and the community, we understood a foundation (in the form of providing Grants) is a good way of aiding adoption.

Their main purpose is to award grants to interesting projects, and to enhance the ecosystem.

A separate foundation for the main reason that Gath3r executives should not have majority control over it, since their objective is different from Gath3r Ltd.

Daniel from dbcrypto
With that in mind, why is the foundation due to be formed in Q1 2020 and not now?

Reggie
To have a properly functioning foundation we need part of the ecosystem running, and our aim is to get some of bigger projects to sit on the board as well. The whole process would take time.


Daniel from dbcrypto
Private Masternodes. What are they, why are they important and is the idea for everyday users or website owners to run them?

Reggie
Masternodes are nodes that use and maintain — they hold a full copy of the blockchain. We would need to implement a light node and full node system — similar to how Nimiq has done it. The reason is that we can host a full node a website or application, at most the node needs to be under a few MB.


Justin from dbcrypto
The loyalty system is about sharing mining payments with users… how will that work?

You would have to somehow link a user to a wallet etc. It sounds like a bit of effort, and we know that it can be hard to capture attention for more than 30 seconds these days.

Reggie
Well it’s about giving back to the users right, so publishers can opt to share earnings, if they want.

But yes it would require some set up from users, to some extent at least. But through our partnership a real value addition comes in the form of web-based staking. Once configured, user can have their loyalty coins sent to their web wallets, to stake. We are betting on the fact that the users are getting tangible value, so I don’t think it would be too much of a headache to solve.

Justin from dbcrypto
You say in the whitepaper that publishers are put into pools. By that token they are not standalone and mining by themselves with their users… so how will that work and how will you classify a website by size as you mention in the whitepaper? Is there any choice or transparency on the website owner side?

Reggie
Pools are needed for a few reasons; if all websites were in one pool, you would have disproportionate earnings going on.

Websites are categorized by pools based on size in terms of hashrate. Unfortunately the website will not be able to choose what pool they go into. As they can then game the system by joining a much smaller pool size.

” We have already have a SEPA payouts partnership that was just announced.”

Daniel from dbcrypto
When you talk about smart contracts and interoperability in the whitepaper, it seems like the interoperability component is just between the Gath3r chain and any auxiliary chains… is that right? Further, no interoperability with other chains outside the Gath3r ecosystem? Just wanted to confirm that.

Reggie
Correct, at this point it would be only for the child-chains.


Justin from dbcrypto
“…where permissible, in FIAT currency”.

How realistic is that statement? Do you have any potential cases where you might be able to offer a cash payout? Or is this rather a hope for the future?

On the roadmap as Q4 this year, so you must have made some headway here?

Reggie
We have already have a SEPA payouts partnership that was just announced. There are more and more crypto/fiat bridges that are coming up. But we are limited to where the ramps exist.


Daniel from dbcrypto
I’ve got one on the token… you say that it will start off as an “unlimited supply blockchain” — what’s the inflation rate?

Farrukh
The inflation rate for the first 2 years will be 21%, halvening is set for 600k blocks, for which the ETA is 2.3 years after the blockchain is live.

Justin from dbcrypto
Following on from that and concerning sustainability, you mention you will move to a limited supply where only approximately 60M extra coins will be minted… how will you decide that?

Reggie
Basically, we need our ecosystem to reach a certain size before we trigger over.

The factors include: Sustained Volume over time, Hash Rate sustained over time, Number of Top end participants (publishers), Number of Active Forks of a predefined chain size.


Daniel from dbcrypto
One of the most important questions in my mind. How will you stimulate the demand side for the GTH token? Ultimately, the proposition is to monetize your website with the token which will mean selling for FIAT in most cases I assume.

Someone needs to be on the other side of the trade, who is going to be buying and why?

Farrukh
There are a few places where demand would come from, the utility for GTH coins is widespread throughout the ecosystem.

They will be required for staking and masternodes, which is done by many PoW coins which locks up supply as well.

GTH will also be required as payment for network interaction charges, and importantly, as payment for child chains utilizing the merge-mining.

Daniel from dbcrypto
Quick follow-up before we finish, how do you anticipate the balance there of supply/demand? I feel as if there is intrinsically going to be a lot more sell-side pressure.

Reggie
To ensure we have sustainable growth, we will always ensure we have an even ratio of Publishers to chains. As we grow, we would on-board more publishers and chains. What we would not do is on-board an uneven number of publishers or chains. Since the demand comes from the child-chains, and supply from the publishers.


Thanks Reggie and Farrukh for your time and thank you everyone for joining us 
— Daniel from dbcrypto

Thanks for having us! 
— Reggie Jerath

Website
https://www.dbcrypto.io

Twitter
https://www.twitter.com/dalb0013

Telegram
https://www.t.me/dbcryptochat

YouTube
https://www.youtube.com/c/dbcrypto

Please note that some questions and or answers may have been edited to account for grammatical errors and appropriate presentation. This summary does not necessarily include all questions asked and answered during the event.

Thank you to the Gath3r team for supporting our work and sponsoring this AMA session.

*Disclaimer – Gath3r are our Media Partners and therefore this content is sponsored by them. The fees paid by this project are used to pay for The Daily Chain salaries, dev work, hosting services, travel expenses etc.. that are required to make this company a success and continue to provide the community with great content on a daily basis.

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Alex Libertas
Alex is the Founder of The Daily Chain and has been in the space for just over two years. Fascinated by the community and everything that blockchain has to offer, Alex dedicated himself to creating content and contributing back to the industry.

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