Startup Radius interviewed guys from 2Miners – a mining pool for different mining algorithms. Learn how they help newbies to start mining, how they rely on content marketing, and why it’s important to educate your users and treat them like a treasure. Oh, by the way, Reddit community helps 2Miners grow a lot, so make sure to discover their marketing and development hacks below. Enjoy!
Can you tell us about what you are currently doing? What is 2Miners?
First of all, 2Miners is a mining pool for different mining algorithms. We have created this pool backend and frontend from scratch and not from the free open-source software which allows us to implement lots of unique features. This creation of ours is very similar to the Tesla car. They have reinvented the car, and we have reinvented the mining pool and mining process in general.
In addition to the pool, we are working on our blog where we have lots of “for dummies” articles about mining. Unfortunately, this business has advanced, and many miners have no idea what is happening now when they press the red button on their mining rig or ASIC device. They don’t understand where to find extra rewards or vice versa, lose their profit. We are explaining every tiny part of the process: what is cryptocurrency wallet, how to save your crypto coins, how to build the mining rig, how does the mining pool work, etc.
What is a mining pool?
Every 10 minutes (on the Bitcoin network) one of the miners will find a solution and all the mining world gets a new task to calculate. The miner who finds the answer (actually a new block in the blockchain) gets a 12.5 BTC reward, so all the miners together are paid approximately 1800 BTC ($30 000 000) on a daily basis.
During the earliest days of the mining, any processor or GPU had the sufficient power required for finding many solutions per day and earning a reward. With an increase of the interest to the cryptocurrencies, the difficulty level of mining also increased, and a standalone PC could not find as many solutions anymore. Nowadays specialized ASIC devices are used which are a million times more efficient than CPU’s. Because Bitcoin prices increase, more and more people are buying mining devices to compete with others in this golden fever of the XXI century.However, even a modern mining device can’t find the block solution alone. So miners have decided to unite their efforts and create mining pools. Therefore, even weak devices that are working simultaneously on solving the same problem have a chance to find the solution. If one of the pool miners encounters it, then the reward is then portioned between all the miners of the pool.
Why are you creating this? Was there a particular source of inspiration or was it just a money-making idea?
The slogan of our team is “Whatever you do – do it well.” We are not working on multiple projects at the same time. We are focused on one thing, and we want it to be perfect.
We started mining on GPU’s half a year ago and soon discovered that there are none of the following: detailed manuals on how to build the mining rig, how to mine and so on. We have not found the mining pool that could satisfy our needs as well. At first, we made our first test version of the pool for our friends and us. Then we realized that if we could build an excellent product we could get a lot of users. The more miners we have, the more money we make as the pool gets its percent from all the miners that connect to the pool.
Time for bragging! How big are you – traffic, users, anything else?
We are still a relatively small pool. However, we after working for one month only our audience has grown from 10 miners to 600. We’ve paid out more than $300 000 in crypto coins. Every day we have 10 000 unique users at our pool and this value is continuously growing.
We’ve started with just 4 cryptocurrencies available for mining. Now we have 14!
Who are your main competitors, and how good/bad are they?
Ethermine.org and Nanopool.org are our main competitors if we are talking about Ethereum mining. These pools created at the beginning of the Ethereum mining era, are, of course, the most common pools around the world. All the top pools are from the same source, and they look the same but don’t provide features that help miners. Some of the big pools have notifications for miners, but usually, notification is via email which is slow and often inconvenient.
All the significant pools are collective pools. We have made not shared pools and SOLO pools for each coin available. SOLO pools are not used often but are an exciting thing. In SOLO pools miners are back to the roots. Nobody helps them to find a block solution, but if they obtain it, they get the entire reward themselves. On some coins mining difficulty is so high that SOLO mining is like going to a casino. You could find a block soon or in a couple of months time.
Here is an excellent example of Bitcoin Gold Solo Mining at our 2Miners pool: one guy found 2 BTG blocks – 25 BTG ($7600) in 1 week and all his mining rig cost was less than $15 000. Unbelievable!
What are these new features you’ve implemented?
SOLO pools for all the coins we have.
Telegram bots – the unique and very cool tools. We provide you with two types.
The monitoring bot which is checking what is happening to the miner’s mining rigs. It sends the notification if some of them go offline and it also provides the pool statistics of the mining rigs in real time. All these announcements are sent via Telegram messenger instantly. There is no need to check your email every time because as everybody knows email could go to spam or could freeze in the mail server for some time.
New block bot works in Telegram as well. It tells to the miners when the pool finds a new block of a particular coin. It is quite useful especially for SOLO pools where every miner is in need of a new block.
We’ve implemented specially dedicated ports for mining rig rental services like Nicehash or Miningrigrentals.com. Our pools are 100% compatible with them, and all the work which is done by rented devices reaches the pool correctly.
How do you find your users, and how do you treat them?
Some of the miners just find our pool at one of the crypto subreddits or on one of the crypto forums like bitcointalk.org. Other are reading our blog articles and study how to mine in general. Of course, they are used to our pool and all the cool stuff we have.
We show to the miners detailed statistics for 1 hour / 12 hours / 24 hours / 7 days / 1 month rewards etc. We notify them if the rigs go offline. We show for each miner the reward which he will get if pool finds block right now.
That is really amazing that our auditory is ready to help each other. We have chats in Slack and Telegram where every question is answered quickly by active chat members and not even pool admins. These people help us a lot and they are really encouraging us every day. Most of them have studied how to mine on our posts so first we helped them and now they are helping us.
What were some of the prominent challenges while building 2Miners early on and how did you solve them?
We’ve found some bugs in the cryptocurrencies blockchains while we were adding new coins. For example one of the cryptos has an error somewhere in the code, and it could cause the pool not to receive rewards for the block. The pool is paying miners automatically, and we’ve spent a couple of days sorting this out and correcting the system to avoid this from happening.
The most significant problem we faced with was a data center shutdown. At the beginning of the 2Miners project, we realized that server uptime and DDOS protection are crucial factors in this business. We’ve chosen one of the best data centers, and we’ve implemented a backup system. We were working hard to promote the pool for a week and then in one moment all our servers went offline. Grrr. We’ve realized that our backup system was not working correctly and we were forced to wait for the servers to come back and that took a couple of hours. That was a disaster as we worried about losing all the miners we invited during the week. We were astonished that in less than 24 hours all of them were back. This incident proved to us that we created something unique.
Based on your experience, if you could give a marketing advice to other companies, what would it be?
You have to produce literally tons of high-quality content both for your site and for guest posts. Create a buyer persona and figure out where and how you can catch their eyes.
Which marketing channels do you prefer and why?
Content Marketing works pretty well for us. As well as various cross-marketing partnerships with those that work with several mining software companies.
How are you monetized, and why did you choose this current monetization method?
All the pools on the market take a small percent of the reward received by miners. We are taking a 1% commission – the average value among the other pools. The math is simple here: the more we grow, the more income we have. Of course, we plan to update our servers and security while more and more miners join us.
What are the top 5-10 products/services you use in your company (marketing, development, business) and why do you like them?
We use several quite popular tools in our marketing department, and some of them are:
- Ahrefs.com – Best link analysis tool we ever used
- Buffer.com – Easy and light-weight social media scheduler for everyday needs
- Streak.com – CRM inside your Gmail account, absolutely must have when you handle 100s of emails daily
- Mailtrack.io – Best email tracking app for Gmail we found