How Bitcoin is mined (Topic)

Due to the increased demand for cryptocurrency mining, chips have begun to be developed that are adapted exclusively for computing cryptographic algorithms. These are called ASIC chips.

Why is it really possible to mine only on ASIC

The appearance of such chips contributed to an increase in the speed of calculation algorithms, which had a positive effect on mining. Another advantage of this innovation is high security against hacker hacking, which guarantees the continuous functioning of endless blockchain chains.

A number of ASIC-based chip models were released in 2017. Super-powerful and high-speed chips pushed ordinary computers on video cards to the last rows of MTC earnings. Well, in the near future, they will be completely squeezed out of the bitcoin mining market.

No universal ASIC chips have been developed, they are produced exclusively for certain types of cryptocurrencies.

For example, SHA-256 is designed exclusively for bitcoin mining , the chip is SCRYPT only for Litecoins .

A number of developers have created cryptocurrencies that work with their own algorithms, for which ASIC chips are not suitable.

The essence of such a limitation is to make the computing activity of the network rise to gigantic values. The bitcoin cryptocurrency has its own specifics - in recent years, it has been mined only with the help of special miners based on ASIC processors.

Bitcoin mining farm

There are several types of farms, you should pay attention to the following types:

• Farms running on video processors (currently ineffective);
• Farms running on FPGA system (not efficient for 2017);
• ASIC farms (specialized miners).

At one time, GPU video processors worked perfectly for mining cryptocurrency, but now they are already outdated and cannot cope with a huge load.

This happened due to the growing complexity of decoding block chains in the blockchain system.

Today, a cryptocurrency mining farm is a complex of high-tech equipment, consisting of a multitude of interconnected ASIC controllers of various capacities, a powerful cooling system. They are located in one place, which helps to speed up the mining process.

Mining hardware manufacturers

Until 2017, the leading ASIC manufacturers have produced over 100 technological projects.

The increase in the rate and demand for mining has led to increased competition between IT corporations that manufacture hardware for mining cryptocurrency.

CoinTerra

CoinTerra Corporation is a pioneer and discoverer in the field of creating equipment for mining cryptocurrency, providing a linear range of miners model: TerraMiner, which includes a water cooling system and a set of chips that provide more computing power. The miners of this developer have proven themselves well in practice, due to the fact that they have been used for a long time. They also have the advantage of low power consumption.

KnCMiner

KnCMiner Corporation has pioneered the use of its own computing controllers of its own production. The equipment of this manufacturer is distinguished by its high performance ratio.

At the time when the first model of this company was published, its earnings were at least 1.5 bitcoins per day. The disadvantage of miners from this manufacturer is their cost - it is twice as much as that of miners from CoinTerra.

Devices for mining from the KnCMiner corporation can be purchased by preliminary order on the official portal of the corporation, they are not available for free sale, due to the wild demand for this equipment. It is worth noting that a large volume of bitcoins is mined in the manner of KnCMiner.

Black Arrow

Black Arrow Corporation is an honored veteran in the manufacture of cryptocurrency mining devices.

UFOMiners

UFOMiners Corporation joined the ranks of mining device developers recently, but is already very popular, producing equipment for various types of cryptocurrencies.

Is it safe?

In short, no. Asiki not only look like a piece of work made from sticks and such and such a mother. They are. Therefore, manufacturers do not give any real guarantees on them. The working life of Asik varies from 2 weeks to 3 years, depending on the conditions of detention and temperature.

They can either work the entire time and earn a lot of money, or they may not pay back even 10 of their price.

In our opinion, ASICs are worth buying if:

• You have a suitable room.
• There is money to buy more than 3-4 pieces at once.

I want to mine, but I'm afraid to take risks

Then you should try cloud mining. He takes all the risk associated with equipment breakdowns. But here there is a risk of running into dishonest offices. We wrote more about cloud mining and its profits in this article.

The Topic of Article: How Bitcoin is mined.
Author: Jake Pinkman