We often see a flurry of frustration in old-economy businesses trying to re-invent themselves as blockchain or crypto companies. For example, according to Krebs on Security, RadioShack relaunched as an online brand in 2020 and “now says it plans to chart the future as a cryptocurrency exchange” in an old-school way. By helping customers feel comfortable with crypto speculation. We know that a few years ago photo giant Kodak, whose primary product was replaced by the ubiquitous digital cameras on smartphones, announced moves into cryptocurrencies called KodakCoin and Kodak Cashminer, which saw Kodak’s stock price jump 60% quickly and quickly. temporarily extended. The New York Times said at the time, “Almost immediately, critics attacked the company’s plans, painting them as a desperate money grab.” Kodak soon abandoned the coin and digital mining effort and Kodak now claims to be a pharmaceutical company. Who is the next blockbuster in the form of NFT-Factory?
No, the latest surprising news is Norton Security as a crypto miner. It’s not that Norton Security is an old economy company, but it is a relatively rigid security firm offering a two-decade-old product that seems less relevant now than it used to be. In the age of the Internet, software firms of the 1990s can be counted as the “old economy”.
Norton Security has begun offering the “Norton Crypto” tool as part of its famed Yellow-branded LifeLock security software for home and business computers. Norton Crypto allows customers to pay to mine cryptocurrencies while their computers are otherwise idle. When the equipment is powered on, Norton brings all of its customers’ mining power into a single pool of computing power, which mines Ethereum, then breaks the value of the mined currency into pieces and keeps Norton Digital in the cloud. Deposits a small percentage in the wallet. for each participating customer. Norton is passionate about 15% as a service fee before assigning any value to customers. Norton claims to be offering this tool to help customers improve security by providing reliable mining equipment and “avoiding unencrypted codes on their machines that could lead to less than or even less earnings on their machines.” That might also install ransomware.”
Despite some public accusations to the contrary, Norton does not automatically turn on Norton Crypto when you subscribe to the LifeLock security software. You must turn on the device if you want to use it. However, Norton Crypto is apparently quite difficult to uninstall from your computer and it gets installed automatically in new LifeLock instances.
Writers at The Verge debunked the worst-hit myths about Norton’s move into using their customers’ computer and electricity bills for crypto-mining, but were concerned about the high fees Norton levied. He wrote that Norton’s 15% fee was much higher than most crypto-mining pool aggregators, noting that “pool operators often deduct or charge a fee to bring everyone together. However, fees are usually 1 or 2 percent.” percent, which is clearly quite low. And, of course, there’s the elephant in the room: anyone using Norton’s software has already paid the company a subscription fee for its security software. …. In real numbers, a night of mining on the RTX 3060 Ti cost $0.66 cents worth of Ethereum and $0.66 in off-peak electricity. Norton took all the gains.” Before you can use the cryptocurrency you just mined done, you will need to transfer it from your Norton wallet to a Coinbase account, the gas fee charged by the Ethereum network.
Fees are likely to cost you profits and possibly more. Is it the kind of courage that Matt Damon inspired us to adopt in his crypto-investing television commercials? No, but bringing more people into Ethereum mining increases the pool for people already invested, so the outcome is positive for crypto-hype people (such as those paying daemons to campaign for them). Not so much for others. The Winklevoss brothers win; we lose.
Why does this strategy matter for security software company Norton? Norton Crypto is a security-focused product, despite claims that Norton may offer this product to open up new revenue streams for the company. Norton is undoubtedly spotting troubling trends with its traditional product line; All companies in the antivirus software industry could soon be hurt if they haven’t already. After a 20-year climb, the independent anti-virus software industry may become obsolete within a few years. Like many important devices, antivirus shields are now being built into our machine operating systems, so Apple, Google, and Microsoft will provide acceptable anti-virus protection for most personal computer purchases.
As summarized in Vice three years ago, “With the rise of security-minded operating systems like iOS and even Windows 10, there’s a growing number of experts who think that, perhaps, antivirus software is a good way to go.” The best days of the U.S. are behind us. People may not need it that much anymore, and in some edge cases, it could pose some risk to users.” Norton may be reacting to the late life cycle state of its flagship product by forcing crypto-mining on a shrinking customer base, while the base is still vast, vast, and receptive. Maybe it’s a sensible play for an earlier ascendant company desperate for a second act.
Norton is now in the Ethereum mining business and wants your computer to participate. Could the Viral NFT Trading Cards from MacAfee or Kaspersky be far behind?