Blockchain technology is opening a whole new world of opportunities, but developing for the new platforms can be overwhelming. One blockchain and crypto technology company is forwarding real solutions with a comprehensive service offering.
Blockchain development has untold applications, especially in supply chain management and for and managing cryptocurrencies like Bitcoin and Ethereum. Now’s a perfect time to jump in if you have the right support.
Our research and due diligence reveals that DMG Blockchain Solutions Inc., (TSX.V: DMGI) a junior tech firm with active blockchain and crypto mining capabilities could be one of your best bets to establish yourself in the blockchain sector.
“Sell shovels in a gold rush.” That’s a phrase nearly anyone in business has heard. When it comes to cryptocurrency, DMG Blockchain Solutions appears to sell shovels, picks and jack hammers for the new crypto rush. Their know how and confidence makes trying out their best-in-class services hard to pass on.
DMG offers a set of diversified products and services to those interested in both cryptocurrencies and the associated blockchain technologies. In addition, they sport forensics and analytics of the associated blockchains, discouraging criminal activity and providing an added level of security to the technology.
By creating a business based on the powerful technology of the blockchain, but not reliant on cryptocurrency, DMG has positioned themselves to be a leader in providing entire blockchain ecosystems. [1]
The Appeal of Mining as a Service (MaaS)
Not every would-be cryptocurrency miner wants the responsibility of maintaining a server farm. To that end, DMG is capable of hosting and maintaining the equipment while handling all the expenses incurred over the mining process. They then charge prospective miners a set fee to use their servers. That’s the basis of MaaS or Mining as a Service.
The model is based on transparency; each customer of DMG’s MaaS service can see exactly what the operating costs are and what they are composed of. They know why the fees are structured the way they are and what to expect for their investment.
By leasing out the equipment instead of using the mines themselves, DMG insulates itself from the immediate ups and downs of the cryptocurrency market. It also allows them to aggregate resources, driving down costs and allowing the company to expand, thereby increasing their margins.
This also makes what DMG offers more tempting to customers: mining equipment, power, and maintenance come at a lower cost per user.
For many, using DMG’s MaaS is considerably less expensive than taking an in-house approach.
DMG is already proving up their model with real world clients. In recent months, Mogo Finance Technology created a new subsidiary, Mogo Blockchain. This subsidiary is currently leasing 1,000 bitcoin mining rigs with DMG, with the possibility of expansion in 2018. [2] They plan to use the Bitcoin created through this lease to allow Mogo members to easily buy and sell Bitcoin through their Mogo accounts.
More than Just MaaS – Diverse Blockchain Solutions
Blockchain, as a technology, can be used to better manage supply chains and asset management in nearly any industry, far beyond just finance and manufacturing. One of DMG’s primary offerings capitalizes on this opportunity.
Using their combined experience with blockchain, they offer blockchain platform development, consultancy, and enterprise solutions to meet nearly any supply chain validation need. This area of blockchain development is projected to grow to at least $19.9 billion in worldwide revenue by 2025. [3]
Given that nearly every business uses some form of supply chain, the potential for growth in this direction, capitalizing on blockchain technology, is massive. In the wine industry and the art world for instance, the blockchain is already considered a “disruptive” technology. It offers a comprehensive way to verify the authenticity of purchases and prevent fraud, among other things, and it can be used to help build trust.
With their blockchain-based platform solutions and analytics process, DMG can also help businesses develop ways to reduce expenses and extend the life of their assets. This is achieved through supply chain management and predictive analytics applied to the blockchain technology. For this purpose, DMG acquired the company “Blockseer” in early 2018. [4]
Blockseer’s primary mission is to provide valuable analysis and actionable intelligence from Blockchain data. This is primarily achieved through the use of their analytics tools.
How DMG is Making A Safer Blockchain
Blockchain, as a technology, can create the perfect environment for crime to flourish, if left unchecked. For example, Bitcoin has received its fair share of notoriety from being used in illegal and immoral transactions.
In order to put a stop to this type of activity, DMG is using their industry experience to assist accounting firms, legal firms, and law enforcement agencies on an international scale. They will focus on all cryptocurrencies, not just Bitcoin or Ethereum.
That same focus on security is the primary feature of their enterprise applications for supply chain management. Blockchain technology can help businesses to keep a closer eye on each step of the supply chain process and highlight any potential problem areas in a secure and nearly infallible way.
Canada – The Perfect Home for DMG
In Q4 2016, DMG built their first “mine” in Alberta, Canada. They opened their second mine in British Columbia in Q3 of 2017. In Q4 of that same year, they launched their Mining as a Service in Japan and receive initial orders of C$3M.
In 2018, they plan to open yet another mine in Canada.
Aside from being home to many of DMG’s founders, what makes Canada such an attractive place for cryptocurrency mining facilities? DMG’s mines gain two big advantages just by locating in the Great White North.
First, they are exposed to the cold.
The servers used in the mining process put off a lot of heat – and we mean a lot! Dealing with all that heat can rack up major expenses. However, by locating in Canada, which has a cooler environment in many locations, it’s possible to lower cooling costs considerably.
The second advantage is raw energy costs.
Canada already has one of the cheapest costs for power per kWh of any developed company. [5] As early as 2030, Canada, specifically Alberta, is projected to see electricity production bids at less than 5 cents per kWh. Better, most of this energy comes from renewable resources, including wind, solar, and hydro plants.
By the end of 2018, DMG has plans in motion to require 160 megawatts to power three sites, two of which are currently active and one which is nearing completion. [6]
A Strong Foothold in the Japanese Cryptocurrency and MaaS Market
The chairman of DMG, Chris Filiatrault, has deep ties to Japan. In fact, he wrote his first book about Bitcoin in Japanese. With his leadership, DMG has gained access to a group of thousands of bitcoin traders and influencers. Some of these connections were primary drivers in the initial $3 million CAD earned in the of DMG’s MaaS in Japan in December of 2017. [8]
Most recently, DMG received a second order in excess of C$3 million from Forside Financial Services Inc. (“Forside”), a company headquartered in Tokyo, Japan for the hardware purchase and set-up, with monthly recurring hosting revenues to begin upon completion.[9]
These relationships are significant as, currently, Japan is the only country in the world to recognize and regulate bitcoin as a legitimate currency. Further, Japan is responsible for more than 50% of all bitcoin trades.
Through a partnership with the Bitmasters network, DMG anticipates additional demand for its MaaS model from the Japanese Bitcoin market.
Blockchain Supply Management for the Cannabis Sector and Fleet Management
The cannabis industry suffers from a complex supply chain with many quality control checkpoints. Blockchain technology has the ability to make this process much more secure from beginning to end. In addition to product management, blockchain brings tight security and peace of mind to producers, customers, and regulatory agencies by allowing everything to be tracked and verified, virtually nullifying the potential for tampering.
In early 2018, Emerald Health Therapeutics and DMG Blockchain technologies have declared their intent to create a Joint Venture, CannaChain Technologies.
Not only does this encapsulate intent to create a supply chain management system, but also an e-commerce platform. Plans for the platform include automated regulatory reporting, easing the burden on Licensed Producers. [10]
DMG has also begun collaborating with Element Fleet Management (EFM-T) to develop a blockchain-based smart contract platform to facilitate life-cycle management and vehicle tracking. Element is North America’s largest fleet leasing company.
The relationship with Element Fleet Management is important not only because Element makes DMG one of the first to explore fleet management inefficiencies using blockchain technology, but also because Element has become a strategic investor in DMG Blockchain Solutions Inc., taking a 9.9% stake in the company in its initial transaction in 2017.
CannaChain and Element Fleet Management are just two examples of DMG’s applications applied to massive growth markets in need of its unique solutions.
The Stellar Team Backing DMG Blockchain Solutions
DMG’s team is a group with a diverse range of qualifications, even when you compare them to their competition. Like nearly every rising star in this sector, they have a strong foundation in cryptocurrency. However, the company’s focus on security and ensuring it has an edge in current leading cryptocurrency sectors is mirrored in the makeup of their management team and makes them stand out from the pack.
Here’s a sample of the foremost talents of the growing team at DMG:
• Dan Reitzik – CEO and Director – Focuses on building companies centered around societal change. This includes the Digital Youth Network, a joint venture involving Rogers Wireless and Universal Music.
• Danny Yang – CTO – Recently appointed to this position after the acquisition of Blockseer, a company he founded. Mr. Yang has also previously been involved in a startup meant to enhance Bitcoin use throughout underserved markets in Asia. He is founder of several data science companies.
• Sheldon Bennett – Chief Operating Officer – With three years experience leading Bitfury’s Canadian mining operations and 20 years management experience total, Mr. Bennett has significant international experience and local relationships.
• Steven Eliscu – EVP Corporate Development – Most recently head of finance at Bitfury, Mr. Eliscu’s portfolio also includes 9 years as an equity research analyst and several years of owning his own consultancy business in the corporate development space.
• Simon Padgett – Chief Compliance Officer – A British ACCA accountant in addition to having a Canadian CPA and an MBA from Oxford and being a Certified Fraud Examiner, Mr. Padgett has experience in just about every facet of forensic accounting, risk management, and financial investigations.
• Chris Filiatrault – Chairman of the Board – Co-founder of DMG, 30 years of experience developing software and technology for the Japanese market, and responsible for opening the first Bitcoin ATM in Tokyo. [7]
FEATURE STOCK: FOR COMPARISON
DMG Blockchain Solutions Inc.
TSX.V: DMGI
Market Cap: CDN$163.76 Million
DMG Blockchain Solutions is a diversified Blockchain and cryptocurrency company that together with its clients and partners, develops blockchain based supply chain management utilizing artificial intelligence (AI) and Blockchain. They also offer Mining as a Service (MaaS), which enables clients to own physical mining assets. DMG also offers world-class forensics for tracking and preventing nefarious uses of both Bitcoin and Ethereum.
Recent News: Emerald Health Therapeutics and DMG Blockchain Solutions establish letters of intent (LOI) to create a cannabis supply chain management and e-commerce platform.
Blockchain and Crypto Winners: Too Late for Early Gains, But Great to Study
We compare some of the major companies that are responsible for developing and deploying the infrastructure and underlying support of blockchain and crypto technology. Obviously, these are large, established companies that are well funded. These companies produce the computer processors and chips used to create the digital currencies in the process that’s become known as mining, along with the providers of support to blockchain technology.
NVDIA Corporation
NASDAQ: NVDA
Market Cap: $133.72 Billion
NVIDIA Corporation operates as a visual computing company worldwide. It operates in two segments, GPU and Tegra Processor. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets.
Recent News: Nvidia and construction giant Komatsu partner on AI for job site safety
Micron Technology
NASDAQ: MU
Market Cap: $49 Billion
Micron Technology, Inc. provides semiconductor systems worldwide. The company operates through four segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. The company was founded in 1978 and is headquartered in Boise, Idaho.
Recent News: Micron’s DRAM, NAND Trends Look Good in 2018, Says MKM
Advance Micro Devices
NASDAQ: AMD
Market Cap: $9.76 Billion
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Its primarily offers x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs), and professional graphics; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles.
Recent News: AMD Wins Another Cloud Provider With Baidu ABC Services
Microsoft Corporation
NASDAQ: MSFT
Market Cap: $654.54 Billion
MSFT, the 40-year-old enterprise software company, is a big booster of open source and it may be the best and most low-risk bitcoin entry point. Microsoft is building Blockchain as a Service on its Azure cloud, the biggest rival to Amazon in hosting cloud applications. MSFT also has a framework for enterprise blockchain networks, dubbed Coco.
Recent News: Microsoft unveils new Bing search features Google doesn’t have
Our Feature Company: Consider Immediate Action on DMG Blockchain Solutions Inc.
DMG has a lot going on, but they have also proven in less than two years that they have what it takes to follow through with their plans and command a leading role in their space. The company has a truly diversified business model, creating both innovative blockchain solutions and a growing MaaS capacity.
In a short period, DMG have secured several high-profile and high-volume clients and are already making a consistent profit, allowing them to reinvest and expand. They have strategically placed their physical operations in Canada, giving them an economic and environmental advantage.
At the same time, their management team has deep, strategic ties to the cryptocurrency markets of both Japan and China. Above all, their business model allows them to offer services within the cryptocurrency market without being reliant on it.
Their blockchain platform development and forensics solutions are some of the first to be offered in a comprehensive way with few obstacles to scale and growth.
DMG Blockchain Solutions Inc. provides a wholistic approach for those wanting to engage in development blockchain technology, cryptocurrencies and crypto mining. They also handle accounting and forensics for blockchain platforms.
We are really positive on blockchain technology and its future prospects. However, it’s hard to find solid companies with honest service offerings in this space.
DMG has shown exceptional growth in a relatively short time frame. They have a diverse range of management with proven skills to rely on and deep connections. We think that may be their biggest asset.
Regardless of the cryptocurrency market swings, we believe DMG Blockchain Solutions will produce big things in 2018. We put DMG Blockchain Innovations on our “must have / must watch list” of emerging companies.
Of course for those wanting to sink their teeth into crypto mining on a bigger scale, DMG’s MaaS system gives access to the cryptocurrency mining game first hand.
Note**
Things are taking place so quickly in the blockchain space that you need to stay up to date on developments, like legislation, new technology and currencies. Be sure to current on DMG Blockchain Solutions’ news and events at https://dmgblockchain.com, which we expect will be many as they roll out additional blockchain and cryptocurrency advances.
Blockchain News Group
Editorial Staff
Editorial Sources:
[1] https://www.dmgblockchain.com/productsservices.html
[2] https://news.bitcoin.com/fintech-company-mogo-plans-to-launch-bitcoin-mine-in-british-columbia/
[6] https://www.cbc.ca/news/business/electricity-prices-markets-auction-alberta-1.4417616
[7] https://www.dmgblockchain.com/investors.html
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