The computing power equity certificate ZMC is now on sale. How can the newly designed computing power product break the "cloud mining" deadlock?

The contract computing power of the digital currency industry was first born in 2013. The issuer can lock in income and transfer risks in advance, and users also have a low threshold to participate in mining and directly enjoy mining benefits. The design concept is a win-win situation. However, in 2014 and 2015, when the contract computing power was first born, poor management and running away occurred from time to time. Many users shouted that cloud mining has become a "cloud mining pit", and the contract computing power also died down. Starting from the second half of this year, with the popularity of Zcash, computing power products have gradually recovered. With these lessons learned, can the newly launched computing power products break the "mining pit" deadlock?

On December 3, Zcash computing power rights certificate ZMC was launched on Yunbi.com. ZMC is the abbreviation of Zcash Mining Certificate, which represents the right to mine Zcash computing power and the right to obtain the corresponding Zcash.

The background of ZMC's birth is a long story. For details about the ins and outs of ZMC's optimization and expansion, please see this report. Unlike traditional contract computing power, ZMC's biggest innovation is that it packages computing power products for standardized cutting, while solving the problem of the duration of ZMC computing power products and the corresponding maintenance costs during the packaging. It is worth noting that the process of packaging and redistributing computing power is a simplified cutting process for the integrated asset portfolio, which is the first time it has been proposed in the field of digital assets.

The benefits of doing so are self-evident. For investors, they no longer have to worry about calculating the cloud computing power, which is difficult to calculate. At the same time, it is a bold breakthrough in similar products that the computing power purchased once can obtain almost permanent Zcash computing power. In this case, the so-called "cloud mining pit" and the situation of the producer running away will no longer occur. In particular, the issuer BitSE relies on Yunbi.com to issue ZMC products, which structurally guarantees the independence of the product and the independence of the transaction, and improves the credibility of the product. For asset issuers, through the simplified understanding of the product, there is no need to explain the complex concepts one by one, which is also more conducive to popularizing the product to a wider audience.

Analysis of ZMC's intrinsic value

ZMC is an attempt and innovation in the digital asset industry by the issuer BitSE and Yunbi.com. Simply put, each ZMC represents 0.05 hash/second of Zcash mining rights for at least the next 4 years. In addition, what other intrinsic values ​​does ZMC itself contain?

First of all, ZMC is a derivative certificate based on the value of Zcash itself, and its value will increase with the growth of Zcash. The Zcash code core is similar to Bitcoin, and it has taken an even further step in anonymity. The issuer believes that the value of Zcash is expected to be relatively stable and has a good linkage with Bitcoin. While ZMC obtains fixed Zcash income, it will also enjoy the added value of Zcash.

Secondly, ZMC also has more flexible trading features. For high-value digital assets such as Bitcoin, investors often need to use more funds when investing and trading, while ZMC is equivalent to re-slicing the asset value of Zcash, making its own unit value smaller. The trading threshold for investors is lowered and relatively flexible.

At the same time, ZMC itself has value independent of Zcash. Since ZMC is also a certificate that can be traded freely, in addition to being value-bound with the associated assets, it can also fluctuate due to macroeconomic or market factors.

The last point is related to the design concept. ZMC can be seen as a product that combines digital assets with traditional finance. The transactions of digital assets, especially Bitcoin, are extremely frequent, and the price rises with the tide. However, digital asset products are still unpopular at present, and the advocates are limited to the small circle of computer geeks and digital currency advocates, which is not conducive to the transmission of digital assets and blockchain concepts to the commercial society. ZMC can solve this problem better. Its design itself is to make its transactions more commercial and popularized on a larger scale.

According to the issuer's estimate, without considering the appreciation of Zcash, the expected annualized return on investment of ZMC is about 25%. Of course, investment has risks, and investors should carefully evaluate any product before investing in it.

The star team behind ZMC

To judge the quality of a product, we must also consider the team behind it. The issuer of ZMC is BitSE. It doesn’t matter if you are not familiar with BitSE, you must have heard of its other product - VeChain. ZMC is the first attempt of BitSE's brand Shuqi Asset in the direction of digital assets.

Shuqi Asset is an international star team. There is no shortage of computing power service experts and professional risk control teams, and they have rich experience in mining computing power optimization and digital asset product design and compliance. BitSE co-founder Zhang Jie is also the managing partner of Shuqi Asset. Before joining the digital asset industry, he had more than 14 years of professional work experience at PwC and Deloitte. Shuqi Asset partner Yi Lihua is a partner of Zhongwo Investment and has unique insights into the entire process of investment activities. Chief Risk Officer Ms. Li Lingbo has worked in risk management at Bank of China and Bocom International Trust. Her work experience in the field of traditional financial risk control provides guarantee for the steady development of Shuqi Asset investment products.

ZMC is carefully designed and polished by this team with strong technical R&D capabilities and rich asset management experience. It transplants the design concept of traditional financial products to digital assets. At the same time, such a design is particularly conducive to conveying the concepts of digital assets and blockchain to the business community and promoting them to the general public more quickly.

The huge potential of digital assets is a recognized fact, and how to expand the audience is the first problem to be overcome. ZMC is a beneficial attempt to standardize computing power products and be accepted by more audiences.

Learn more: ZCash Mining Certificate - Optimization and Expansion Plan