Recently, Bitcoin transaction processor TAAL Distributed Information Technologies Inc. (CSE:TAAL | FWB:9SQ1 | OTC: TAALF) announced its closing of a $40 million public offering and completed phase 1 of its rollout of blockchain computer power at the Alberta facility.
What is TAAL’s Bitcoin business model?
Before the rise of Bitcoin SV (BSV), block reward mining as a business model was the sole purpose of miners. However, the halving events will put an end to that business model eventually and therefore Bitcoin dedicated mining companies have to ensure profitability for the post halving era.
Bitcoin’s value is not in “HODLing” it as a speculative asset or marketing it falsely as “digital gold”, but in its transactional capabilities. The real Bitcoin (BSV) offers ultra low transaction fees that allow unique and never seen before use-cases.
Foreseeing the opportunities that lay in BSV, TAAL focuses on profitability by processing transactions instead of relying on block rewards.
Stefan Matthews’ Bitcoin journey, including nChain and TAAL
Right at the beginning of the Seeking Alpha interview, TAAL CEO Stefan Matthews explains his Bitcoin journey.
In the early days of Bitcoin 2008/2009, Matthews already had an eye on Bitcoin and its potential role as a currency. However, only after 2014 Matthews said was when he acknowledged the technological capabilities of Bitcoin as a system:
I became reacquainted to Bitcoin in late 2014. And it was at that point—it wasn’t Bitcoin, it wasn’t the value of Bitcoin, it wasn’t what the coins were trading at. It was the greater understanding that I had at that time for the underlying technology.
Matthews’ Bitcoin journey went on between the years 2016 and 2017 when he held the position of CEO at the market leading blockchain technology firm nChain, of which Matthews still is a chairman of nowadays, as he explains to Seeking Alpha.
“Enabling businesses to transact and store data, and become innovative and disruptive. I mean this is what blockchain was all about,” Matthews said.
As a former nChain CEO and now TAAL’s CEO, Matthews has lived through the war on Bitcoin himself and sums up the deviations BTC has attempted to bring to Bitcoin. However, the original Bitcoin is still alive in the form of BSV, on which TAAL is solely focused.
“I look at BTC trading today at the $55,000 to $65,000 range, and I have no problems with that at all. In fact, what individuals and investors want to put their money on and speculate on ‘store of value’ or ‘store of gold’ and the restrictive avenue of use cases, that’s fine with me. (…) But what I’m focused on is high volume transaction processing for businesses at small transactional costs. Because that is what—in my opinion—the blockchain technology promised,” Matthews said.
World record breaking transaction processing by TAAL
Among the most interesting topics that Matthews discussed with Seeking Alpha was the world record breaking 638MB block that was mined by TAAL. While TAAL has previously already mined huge blocks, this famous Block #678301 of 638MB did contain multiple large files and showed again what BSV is actually capable of.
“The interesting thing with that was it was on a weekend (…) we were not aware of the activity that was being conducted that caused those transactions to be on the blockchain. And we were lucky enough to mine the block, but more importantly it proved that the work we were doing over the last couple of months or so (…) is rock solid,” Matthews explained.
Worth watching the whole interview
The interview covers parts of the history of Bitcoin and where the blockchain industry is going. TAAL is dedicated to playing a crucial role in Bitcoin’s growth and utilization. It has also pioneered the transaction processing business model as a first mover.
“TAAL is the world’s leader in that area,” Matthews said.
One of the key offers TAAL is able to make to its customers is the ability to use Bitcoin’s unique use cases by paying in fiat instead of highly volatile digital assets. This allows for businesses to interact with and in Bitcoin without having to actually own any Bitcoins.
Matthews makes it very clear that only Bitcoin SV is going to serve the various industries that are affected by blockchain technology, such as data management in general, health care, e-commerce, accounting, gaming and financials.
“This technology has created a whole new industry. (…) What’s going to happen over the next 5 to 15 years I think will be mind-blowing in many ways as the technology is being embraced,” Matthews said.
Watch TAAL CEO Stefan Matthews dissect Bitcoin on Seeking Alpha:
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.