DMM has made a colossal step in the cryptocurrency sphere by announcing its new mining venture in Japan. Cryptocurrency, the new form of digital currency, is rapidly growing in popularity since its inception, and many companies are trying to catch this fast-moving train. Particularly for its online transactions, this maneuver can have huge implications for an e-commerce giant like DMM.
What really is cryptocurrency?
Cryptocurrency is most probably the future of money and our means of exchange. Created by Satoshi Nakamoto, it is really a side product of Bitcoin, the first cryptocurrency. However, virtual money is still a new and unknown phenomenon as described by Thomas Carper, United States Senator from Delaware, saying “Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” One of the most important aspects of cryptocurrency is that it is a completely decentralized digital cash system not controlled by any bank or government.
Cryptocurrency is a success in Japan
Japan began knocking at the door of cryptocurrency at the beginning of 2017 when China started banning all digital money withdrawals. This had huge implications in Japan’s trading volume that witnessed a high percentage increase. In fact, Japan started accepting in-store payments through cryptocurrencies, getting a huge boost by the three largest banks in the country, namely MUFJ, Mizuho, and SMBC. For instance, bitFlyer, Japan’s most popular bitcoin exchange was favored by these powerful banks as a way to test the ground.
Bitcoin is no longer reserved for the internet’s darker transactions
As a medium of exchange, bitcoin has shed its reputation for being the transaction standard of the web’s darker sides. Many reputable retailers and brands are partnering with bitcoin exchanges in Japan for legal and transparent transactions. Since digital currency is based on the blockchain technology, a digital ledger that permits the recording and safeguarding of transactions in a decentralized system, many businesses are less reluctant to join this financial revolution.
DMM is launching its own mining pool
DMM made an official announcement on its website about its intention of going for trials as soon as possible. The conglomerate plans to launch its virtual currency division by making a large-scale cryptocurrency mining farm with its own mining pool. And it is most probable that bitcoin and Ethereum are the ones targeted for the mining venture. As mentioned by the company on its website, “DMM Mining Farm’ will operate a mass-scale, made-in-Japan quality, mining farm whose operating size will be unmatched by any of the domestic operators. In the future, DMM plans an peration that ranks in top three of the world’s mining farm companies in terms of scale.”
DMM’s acceptance of cryptocurrency payment is not a surprise
As early as 2016, DMM started accepting bitcoin payments via Coincheck, a local and popular bitcoin exchange that is also a merchant service provider. The system is simple and fast as users can purchase DMM products through a digital point-based system. For example, bitcoins are exchanged for points which can be used to buy items like video, eBooks, online games and sometimes language tutoring services. Indeed, DMM has been playing a major role in the establishment of bitcoin as a medium of exchange in Japan and other Asian countries.
How does bitcoin mining really works?
Unlike traditional money, bitcoin isn’t printed or kept in a bank but discovered. Computers around the world look for these virtual coins by competing with one another. You can even send bitcoins to other people through a network where a record of all these transactions is kept in a virtual ledger called ‘blockchain’. Hence, the miner’s job is to confirm those transactions and stack them together into blocks that are chained to each other. The crucial thing about blockchain is that these data can be shared amongst thousands of users through a network of computers in a completely secure channel.
DMM isn’t the one only planning cryptocurrency mining ventures
As a matter of fact, GMO, a famous Japanese IT company, is also planning to invest in bitcoin mining in northern European countries. Founded in the early 1990’s, it mainly offers web hosting and other digital services. The mining operation is part of its plan to expand its scope of business and penetrate this rapidly growing market as soon as 2018.
Cryptocurrency is opening a new world of possibilities
Giants like DMM and GMO are right to launch their mining ventures and enter this parallel universe of digital money and cryptocurrencies. Paul Vigna and Michael J.Casey analysed this new form of money in their book “Cryptocurrency: The Future of Money? published in 2015, and say that “The system that governs how money works, with its brokers and middlemen, has stayed roughly the same for centuries. Now there’s an alternative, and it puts us on the cusp of a revolution that could reshape our world.”
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