Bitcoin mining.

[Bitcoin]

Remote Bitcoin mining.
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Cloud (or remote) mining - is the process of using hardware power to mine cryptocurrency (such as Bitcoin or Litecoin) remotely. This mining model came to existence due to the fact that the increasing difficulty of mining has made it unprofitable for mining enthusiasts to mine Bitcoins at home.
Cloud mining gives people a unique opportunity to begin mining cryptocurrency without the need for a large initial investment in hardware or technical knowledge. Despite the simplicity of the cloud mining model, it is worth elaborating on a few details, specifically it's important to highlight that remote mining comes in two forms: hosted or cloud based mining.
Miner is a highly efficient piece of mining equipment specially designed for cryptocurrency mining. Our datacenters house hundreds of miners.
Miners are connected to pools. There are many pools so HashPlus allows you to connect to ones you choose. This allows you to find the most profitable combinantion.
PAYOUT.
Next, all mined cryptocurrency is distributed among all customers of HashPlus depending on their share of server in the whole system.
The team of HashPlus has always put the task of making mining accessible not only for cryptoenthusiasts but also for common users. Through tremendous work made by the engineers, developers and other specialists of the company as well as partner companies, we have succeeded in providing the service to over 1.000.000 users.
Remote Access to Mining Rigs Ensures Tight Control.
By gaining remote access to mining rigs, cryptocurrency miners will be a step ahead of the competition and never miss out on uptime.
Cryptocurrency Mining: The Basics.
With the rapid growth of cryptocurrencies, cryptominers are becoming increasingly widespread. In order to verify and validate crypto transactions, miners enter them into the blockchain public ledger, which contains every transaction (also known as a block) ever carried out with a specific cryptocurrency. Miners sort through all crypto transactions and release the new currency, and in return, earn a transaction fee as well as a portion of the cryptocurrency they originally verified. The role itself is particularly difficult, and requires a lot of time and patience. Mining used to be a more lucrative project, back when there were less people doing it and there was more money to be made.
It is due to the complications involved with cryptomining that many miners don't solely rely on it as their main source of income. For those that mine crypto on the side, gaining remote access to mining rigs is extremely beneficial. By remotely managing your mining, you can stay ahead of the competition. There are a number of both hardware and software options that enable remote mining - each varies depending on the capacity of your mining operations and the level of remote control you require. While some options like TeamViewer offer an all-in-one solution, others provide a simple workaround to functions such as rebooting a machine or file transfer.
Remote Access Mining Rigs: Software vs Hardware.
For those performing cryptomining at a relatively low capacity, there are various small-scale hardware options that are inexpensive, but also somewhat basic in their functions.
Smart plugs, for example, can be used to shut down a computer remotely for either security or energy-saving reasons.
For many miners, a common problem is their rig freezing at an unfortunate time.
To combat this, a smart Wi-Fi plug allows users to turn their Wi-Fi off and on remotely via their smartphone.
It also enables users to monitor the energy usage of their rigs at home, which can better help miners calculate their ROI. Hardware options can provide simple, cost-efficient solutions for remote access to mining rigs.
With over 1,000,000 people using our services, we're the world's top provider of remote hashpower services.
Get started and mine Bitcoins today!
The way our service works is very simple. We're a cloud mining service that has your mining rigs already set up and ready to be used to mine Bitcoin and other cryptocurrencies.
We Already Have Your Mining Hardware Up and Running.
Putting together cryptocurrency mining rigs yourself can be quite a challenge. Buying ASIC Miners is expensive, hot and noisy. This makes it impractical for most people to set up a mining operation at home. We have the latest Bitcoin mining hardware already set up at our data centers.
Mine Other Cryptocurrencies Too.
Many other cloud mining services only focus on Bitcoin and don't give you much in terms of variety. Miner Mining is different. We let you easily mine any cryptocurrency that's available in our catalogue. You don't have to commit to a single cryptocurrency either. You can opt to switch your mining power to a different coin on the fly.
We're proud to offer daily payouts to your selected cryptocurrency wallet. With out cloud-based mining service, you'll never have to worry about receiving your payouts, as out automated system takes care of that for you.
Der Bitcoin-Remote-RPC-Miner , der nach dem Namen des Autors auch als Puddinpop-Miner bezeichnet wird, ist ein Pool-Miner-Client.
Es sind vier Miner-Client-Binärdateien verteilt:
Ein CPU miner Ein 4Way CPU miner Ein OpenCL-Miner für ATI-GPUs Ein CUDA Miner für NVidia GPUs.
RPC Miner ist eine experimentelle, dezentralisierte digitale Währung, die sofortige Zahlungen an jeden beliebigen Ort auf der Welt ermöglicht. Diese App verwendet Peer-to-Peer-Technologie, um ohne zentrale Autorität zu arbeiten: Transaktionsmanagement und Geldausgabe werden gemeinsam vom Netzwerk durchgeführt. Die App hat eine einfach zu bedienende Oberfläche.
Sie können mehr Software für Mac herunterladen, wie zum Beispiel Min, XML-RPC Client oder Zcash Miner, die RPC Miner ähnlich sind.
Anleitung zum Einrichten des Bildschirmschoners RPC Miners [ Bearbeiten ]
Zum Beispiel wird der Computer mit 1 Radeon HD 5850 Grafikkarte für den Pool deepbit.net auf Windows 7 64 Bit ausgewählt. (alle erforderlichen Treiber sind bereits installiert).
Laden Sie das Archiv Windows Bildschirmschoner RPC Miners Entpacken Sie den Inhalt des Archivs in% window% \ system32 für 32-Bit-Systeme oder% window% \ syswow64 für 64-Bit. Rechtsklick auf Desktop -> Personalisieren -> Bildschirmschoner Wählen Sie in der Liste der passenden Bildschirmschoner, in unserem Fall für Radeon HD 5850 wird es Bitcoin OpenCLMiner sein.
Bitcoin mining and Bitcoin cash mining - Don't wrestle with hot, noisy miners at home. We have the fastest Bitcoin mining hardware running for you already.
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Set up your account, start to mine your first Bitcoin and Bitcoin cash crypto currencies using our cloud mining service.
Mine Btc & Bch Cryptocurrencies.
You can mine Btc & Bch crypto currencies. Buy your mining plans in Btc & Bch coins to increase your daily mining output.
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You can buy your mining plans in Btc & Bch crypto currencies and withdraw the daily mining outputs to your designated wallet.
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No hidden fee or comission is charged by us. Every single transaction is visible to you. Start Bitcoin and Bitcoin cash mining now.
Check out our mining farm setup. We have the best equipments for the mining of Bitcoin & Bitcoin cash crypto currencies.
Accepted currencies.
We accept Bitcoin & Bitcoin cash crypto currencies for the mining of Bitcoin & Bitcoin cash crypto currencies. Buy Bitcoin & Bitcoin cash mining plans to get your daily mining returns.
Mining Plans.
We have the following mining plans for Bitcoin & Bitcoin cash crypto currencies. Buy Bitcoin & Bitcoin cash mining plans to increase your daily mining returns.
Bitcoins Factory.
NVIDIA 1060 6GB GPU MSI settings for mining.
If you are looking for Nvidia 1060 6GB GPU MSI settings for mining ethereum, this is a great place to start from, since I will show you the settings I use. If you are into mining, you might have the 1060 6GB GPU from NVIDIA. This is a great card for ethereum mining, and below [. ]
By Julian 2 years ago Share.
How to get free TokenPay.
If you are looking on how to get free TokenPay, I think you just got in the right place. I have two methods that will help you get TokenPay for free. How to get TokenPay for freeStaking TokenPay is a POS (proof-of-stake) coin. If you own TokenPay, you can earn even more just by staking [. ]
How are large Bitcoin mining operations built?
Bitcoin mining is no longer profitable in the small.
Today, the mining landscape is dominated by two different mining strategies:
Large scale Bitcoin mining operations; Altcoin miners who trade their produce for Bitcoin.
In this article we'll talk about large scale Bitcoin mining operations and how they're built. altcoin mining is discussed in several different articles on our Knowledge Base.
Energy Cost.
What this means is miners need to prove they made an effort to find the suitable Bitcoin block. Mining pools reward users by the effort they put in (work), which they must prove by submitting their "shares" every few seconds. The quality of these shares tell the mining pool how much work was invested.
When a block is found, the rewards is split among all workers, proportionally to the amount of work they proved.
Put bluntly, Proof of Work is the conversion of electrical power into heat.
All the computing done in a Bitcoin mining operation is worthless, most the obtained results are thrown out and a single winning hash is submitted into the network as the new Bitcoin block. Bitcoin's current network hashrate is at over 80 Quintillion (10 to the 18th power!) hashes per second. Ten with 18 zeroes hashes are computed all over the world each second just to find one Bitcoin winning block which will pay out 12.5 BTC in rewards.
Today, Bitcoin consumes 64 to 66 Terawatt-hours per year (estimates vary). It's more energy than all of Switzerland and many smaller countries consume.
As you can probably guess, a proper mining farm, or Bitcoin factory as some call it, requires a massive power infrastructure.
Watts Per Bitcoin.
If we do the math based on the global yearly power consumption, we can arrive at the average wattage per Bitcoin.

[Bitcoin]

Managing the supply chain from mine site to customer|2:20

[Bitcoin]

Per day, an average of 144 Bitcoin blocks are mined. (One block every 10 minutes = 6 blocks per hour x 24 hours a day.)
That's 52,560 blocks per year.
At 64 Terawatt-hours per year, which is the same as 64,000 Gigawatt-hours per year, we get:
64,000 / 52,560 = 1.22 Gigawatt per Bitcoin block.
At today's rate, each block pays 12.5 BTC reward.
So 1.22 / 12.5 = 0,0976 gigawatt per Bitcoin. Same as 97.6 megawatts / BTC.
Any large scale mining operation should then calculate costs based on spending approximately 100 megawatts to mine a single Bitcoin.
Profittable?
Electricity costs vary greatly between states in the USA. Washington kW-h costs 9.95 cents while Hawaiians pay 30.45 cents, roughly 3 times more.
To mine a Bitcoin in Washington State, you'd invest U$ 9950.00 on average (100 megawatts) in electrical power. In Hawaii it'd cost over 3 times more.
At today's U$ 10,500.00 Bitcoin price it'd yield about 10% profit before taxes in Washington. Although most miners don't actually sell their BTC straight away. Provided they have some cash reserve, mined Bitcoin can be held until closer to the next halving when block reward will pay 6.25 BTC / block (and mining will become twice as expensive). Keep in mind that cash flow is a big problem for all large Bitcoin mining farms. Selling some of the produce will be necessary along the way.
Energy Infrastructure.
Based on the energy cost calculation, we can now estimate what kind of electrical infrastructure we'll need.
We know each bitcoin consumes 100 megawatt-hour on average with data from around the globe.
First question to ask is how much BTC does the mining operation target per day?
Let's assume the goal is to mine one BTC per day. I chose one BTC for the sake of simplicity. Since all these calculations are linear, you can simply multiply or divide by X amount of BTC as needed.
Total power consumption then will be 100 megawatt-hour over a period of 24 hours, which equals 4.17 MW-hour on average (4170 KWh). (That's a lot of energy, something like 1000 x 4.2kw electrical heaters hooked up in parallel.)
4170 KWh means instantaneous 4170 KW is consumed during one hour.
On a 220 Volt line, this means pumping 18,900 amps of current into your mining farm every second of the day.
The largest gauge electrical cables you'll find are about half an inch diameter, which will each carry about 300 amps. So to drive 18,900 amperes, you'll need 63 parallel cables from your main power distribution box over to where you'll derive individual electrical sockets.
If your working voltage is 110V you'll need twice as many cables or around 126 cables.
All this just to mine one single Bitcoin per 24 hours on average.
How much BTC do the large farms produce / day?
For comparison, let's take a look at some of the busiest mining farms in the world.
At 1.22 Gigawatt per block (derived earlier), this means F2Pool is consuming about 22 gigawatts of power every day.
BTC.com mined 20 Bitcoin blocks on September 1st 2019. That's 24.4 gigawatts.
ViaBTC mined 9 Bitcoin blocks on the same date. That's 11 gigawatts.
You can check out more mining pools by visiting the Blockchain.com explorer and clicking on the various statistics available.
High Voltage Supply.
From the above calculations it's obvious the large farms are not working on 220V or even 480 volt lines. Large scale Bitcoin mining requires a high voltage line to reach as close to the mining operation as possible as to shorten the thick cables needed for transmission.
Ideally, a series of pole pig transformers ("street transformers") should be installed at a safe location in the Bitcoin factory. The low voltage 220VAC lines should come down from it directly, avoiding long thick and expensive cables.
As you can see from large mining operation photos seen around the WWW, thinner cables go from a power distribution center to the individual miners. This is because each miner consumes 1.6 kilowatts maximum. A relatively thin cable can be used for this kind of power.
If the individual miner sockets are placed close to the pole pigs, it's possible to save a lot of money by not deploying expensive low voltage cabling.
A High Voltage supply can be arranged with your local utility company. Prices per kilowatt are usually lower than low voltage lines, but it requires some infrastructure and special safety measures near the high voltage working area.
Factory Setup.
Bitcoin mining factories are set up to dissipate as much power as possible.
As we mentioned before, mining is basically the conversion of electrical power into heat.
For a one BTC / day mining operation, you'll need to dissipate 4170 kilowatts 24×7 in order to maintain room temperature.
Let's calculate the cubic feet per minute (CFM) of airflow needed to cool a room from 100 degrees Fahrenheit to 73 degrees (about 23 Celcius which is OK operating temp for a miner).
4170 x 1000 x 3.16 / 27 = 488,044 CFM or 829,192 cubic meters per hour.
We need 488,044 cubic feet per minute of airflow to keep the hypothetical mining operation going at 23 degrees celcius whenever the temperature reaches 100 degrees Fahrenheit.
For immediate cooling (100% of 488k CFM blowing in one minute) to 23 degrees, over 270 industrial fans would be needed (left picture), but instantaneous cooling is not required for cryptocurrency mining. A 5% duty cycle, or about 10 industrial fans, should be able to keep the factory at 23 degrees. All this depends on the weather in your area. Washington state, which we exemplified earlier, is ideal for mining because of cheap electricity and cold weather.
As you can tell from these figures it's impossible to cool a large mining operation using air conditioners. You'd spend more power on those than on mining itself. Therefore the only way to keep such factories cool is through forced convection. Perhaps that's why miners choose Norway, Iceland,  and Northern China so much, after all passive airflow cooling is not a problem there.
Also considering night hours when temperature drops, it is possible to maintain constant 23 degrees using less resources during the night.
So much for cooling the factory, now for the electrical distribution.
Electrical Distribution.
Mining farms are organized into rows of miners.
Here's a front view of one such row (photo via Wikipedia):
Each miner consumes between 1.2 and 1.6 kilowatts. The cable going from the main distribution center to each miner should be able to handle at least 42% more current than continuous usage. So, at 110V 1.6 kw means 14,55 continuous amperes. Ideally, you'd buy 20 amp cable (9 AWG).
In the above picture (from Genesis Mining) you can see how neatly all cabling is tied and conducted to the central power distribution via the ceiling.
Networking.
Miners do not require large bandwidth. The nonces they hunt are tiny little things compared to the amount of bandwidth we spend on music, video and so on.
Each miner requires an ethernet connection to a switch. Each row of miners should have one active device such as a switch, to which all miners in that row will connect and from which you derive one single cable back to the networking gateway.
Each row drives just one networking cable through the duct back to the gateway, that's why you don't see such a mess of network cables in professional mining operations.
The more messy cabling you see, the less professional it is.
Beginners tend to make a mess out of their first mining attempts.
Back in the day you'd have lots of options for your mining hardware. Today you basically only have two.
For Bitcoin, you need dedicated ASIC miners such as Bitmain or their similar competitors; For altcoins you can set up GPU mining rigs.
Bitmain sells Antminers, the most popular miners out there.
Modern Antminers, such as the S17 pictured below yield about 53 TH/s, weigh 11kg and consume about 2385 watts. S17 goes out at U$ 2,727.00 retail suggested price.
According to Coinwarz, the above S17 miner would yield the following results, considering electricity prices of Washington State (9.95 cents / kw).
So an S17 produces about U$ 7.59 per day profit from mining Bitcoin.
The miner would pay for itself after 360 days of continuous operation.
Therefore, using a state of the art Bitcoin miner from Antmain you're looking at about one year before your initial hardware investment is returned.
How many miners are required?

[Bitcoin]

To produce one Bitcoin per day, you need 810 x Antminers S17 and an initial investment of U$ 2.2 million dollars in mining machines.
Total power consumption for 810 x Antminer S17's would be 1.93 megawatts which is 216% more power efficient than the global average we calculated above of 4.17 megawatt per Bitcoin.
For a professional mining operation you won't need to concern yourself with the mining software.
In fact, you only need to mess with the software if you are a small scale miner.
Antminers come prebuilt and preinstalled and you won't need to do anything to get them running.
Each miner should be set up for proper networking and mining pool specs. Antminer provides special tools to help you set this up at scale.
Other mining hardware providers also offer similar solutions. Your greatest concern in setting up a mining factory is with the facilities, as already discussed.
There are some additional software requirements but they aren't specific to Bitcoin mining. You'll need a control room, a firewall, a network gateway capable of handling the sum of all miner traffic and so on. These are calculated and set up like any other server room and aren't specific to cryptocurrency mining.
In this article we've taken a superficial look at some of the infrastructure needed to mine Bitcoin at a scale.
We performed all calculations using a one Bitcoin per day yield. As you can see, Bitcoin mining is extremely costly and requires massive infrastructure to produce a single coin per day.
All the calculations we performed will double in requirements once Bitcoin halves the block rewards. There's one halving every 4 years approximately, so all these calculations are only valid for a 4 year period at most. Mining hardware also changes very quickly, so your mileage may vary with the available miners at the time you read this. Calculations are linear, so if the rewards halve, then your cost doubles. If miners become twice as efficient, your cost halves and so forth.
Bitcoin mining factory.
Bitcoin is owned by everyone and yet no one. That is how it works !
Mining is essentially computers working together over the internet to solve complicated mathematical problems in the Bitcoin code and being rewarded for finding the solutions. The mathematical problems are created by people all over the world who are trading with Bitcoin.
Cryptocurrency is controversial due to it being decentralized and not being owned by a bank/single entity. This means there is not one person controlling and verifying transactions . As a result, everyone who mines Bitcoin controls a small part of Bitcoin. Mining is essentially verifying and recording people's transactions .
These transactions then make up a block chain. Every miner receives their own 'copy' of the ledger/block chain that records all transactions that have ever taken place. Mining Factories hardware does all this work for you that is why Bitcoin mining is seen as a passive income.
Privacy of transactions.
To keep anonymity of transaction behaviours, every person who transacts with Bitcoin has unique codes for their transactions . The miners solve the mathematical problems of the codes that are facilitating transactions and make them legible. Miners are almost like bankers that approve and verify transactions by cracking the codes. They then get rewarded in relation to the amount of work they put in to the code cracking with a percentage of a Bitcoin.
High powered equipment is needed to mine Bitcoin.
It is important to have high power and efficient hardware. Mining Factory has developed equipment just for this purpose. The more 'work' your hardware does the higher your return in Bitcoin. The speed at which the 'work' is completed is known as hash rate. The higher the hash rate of your hardware the faster it solves the mathematical problems of Bitcoin.
Mining Factory has a variety of hardware that has a high hash rate that uses electricity efficiently. The more Bitcoin miners mining Bitcoin the more it validates and stabilises the system. Before a transaction can be made it needs to be verified by Bitcoin miners. The Bitcoin miners are then making the system exist by validating all transactions .
Bitcoin is an international currency that can be used anywhere.
Bitcoin can also be used universally at the same exchange rate. You can transfer money from Dollars to bit coin and then into South African rand without paying any taxes to a middle man. So, by earning Bitcoin you are earning an international currency that can be used worldwide.
There are a finite number of Bitcoins available to be mined.
After all of this you are probably wondering how mining Bitcoin makes you tangible money. The miner is rewarded Bitcoin after completing the mathematical solutions and so he is making more Bitcoin available. It is called mining because there are a finite number of Bitcoins that are available to be mined. There are only 21 million Bitcoins available to be mined. Just like mining gold or any natural resource, one day there will be no more Bitcoins to mine.
About BTC Mine.
Mining Factory is unique as their rigs are capable of miningall cryptocurrencies including Bitcoin efficiently and the rigs come with software which enables you to check on how your miners are doing from anywhere in the world.
What Would it Cost to Build a Bitcoin mining Rig Today?
Poolin.com has put together an updated analysis of the present cost of putting together a profitable Bitcoin mining rig. This information provides a unique insight into the complexities of the ever-changing mining landscape.
DETERMINING THE COST IS COMPLEX.
In the article, the mining pool notes that there a wide range of individual variables determine mining profitability. Poolin has created a mining profit estimator that breaks down these factors to better understand which rig is the best value.
Example as shown:
It is important to note that electricity costs vary widely from place-to-place, and are the most significant factor in long-term mining costs. Thus, more power hungry rigs that also produce a higher hash rate may be more suitable for areas with cheaper electricity, but less so where this cost would be higher.
Critical to all mining operations is the "break even" factor, which the mining estimator seeks to determine. This is the value of cryptocurrency that must be produced for the cost of the rig to be paid for. For example, one featured Bitcoin mining rig costs USD $1,767 to build and operate and generates $4.56 in profit per day at current prices. Thus, it would need to run for 387 days to become profitable. Factored into this number are electricity costs.
Also, however, is the fact that even after breaking even the rigs will consume electricity. Thus, they will only remain profitable as long as they produce enough crypto to cover this cost. Poolin refers to this as the "shutdown price." Determining when a rig has crossed this threshold can be very tricky.
Bitcoin mining CAN STILL TURN A PROFIT BUT REQUIRES SKILL.
Much has been made of large pools taking over the mining space, notably with regards to Bitcoin. Of particular note is the fact that the most advanced mining rigs often become available to these enterprise operations months before they can be purchased by independent consumers. For example, critics have long accused Bitmain of using its most cutting edge equipment exclusively for its own mining farms and selling only the older rigs on the open market.
Thus, successful Bitcoin and crypto mining requires a very close eye for detail. Efficiency must be a top priority, as every variable will play a role in the final outcome. This includes equipment costs, electricity costs, and choice of platform to mine. However, with proper planning, and access to the best information, profitability can be achieved.
What do you think is the price to build a profitable Bitcoin mining rig? Let us know in the comments below.

[Bitcoin]

Mining Crypto For Free 2021 - Mine SUGAR Chain Crypto - Fastest Blockchain - Free Crypto Mining|12:00

[Bitcoin]

MicroBT Sets Up First Offshore Bitcoin Miner Factory to Expand US Market Share.
Wolfie Zhao.
Chinese bitcoin miner manufacturer MicroBT is looking to grab a bigger slice of the U.S. market by setting up its first overseas production center.
The company said on Friday that it has partnered with New York-based Foundry Digital LLC and a Southeast Asian company in order to improve supply chain efficiencies for North American buyers of its flagship Bitcoin mining equipment.
The Southeast Asian listed company - which MicroBT declined to name - is contracted to produce and deliver MicroBT's WhatsMiner equipment to U.S. investors, who would otherwise pay an additional 25% tax if they receive shipments directly from China due to U.S. tariffs.
The strategy is similar to that adopted by Beijing-based Bitmain, which contracts a production factory in Malaysia responsible for overseas manufacturing and shipments.
As part of the deal, Foundry, a subsidiary of Digital Currency Group (DCG) that provides miner financing and procurement for institutions in North America, will be the first to receive new batches of MicroBT's WhatsMiner M30S equipment produced in the Southeast Asian facility.
DCG, which wholly owns CoinDesk, previously said it plans to invest more than $100 million into its Foundry business through 2021 to provide loans to Bitcoin mining clients as well as buying equipment for them in bulk.
"With our collaboration and MicroBT's upgraded production capabilities, we look forward to continuing to facilitate the timely procurement and delivery of the latest generation Bitcoin mining hardware for our clients, who are institutional cryptocurrency miners in North America," said Mike Colyer, CEO of Foundry.
The move also underscores MicroBT's effort to keep challenging Beijing-based Bitmain's dominance in the bitcoin miner market, both domestically and overseas.
MicroBT managed to boost its market share by selling some 600,000 WhatsMiner units worth more than $500 million in 2019. This coincided with Bitmain's ongoing internal turmoil, which has caused notable production and shipment delays.
"The Foundry team's in-depth understanding of the mining business and regional expertise have already helped us in making the initial tests of this new supply chain a success," said MicroBT's COO Jiangbing Chen. "We will continue working closely with Foundry to provide the highest quality of machines and after-sale services to our customers in North America."
Pre-history of Bitcoin [ ]
Bitcoin in 2008 [ ]
Bitcoin in 2009 [ ]
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Bitcoin price history 2009 to 2019 [ ]
Bitcoin price chart since 2009 to 2017 and 2018 [ ]
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A Brief History of Bitcoin mining Technology.
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You are here: Home Technology A Brief History of Bitcoin mining Technology.
The rise of cryptocurrency has seen a huge industry born out of what many claimed to be one giant ponzi scheme.
While bitcoin's continuous popularity has silenced many of the doubters, Bitcoin mining, and the surrounding technology is often an overlooked aspect.
Over the last decade of bitcoin's existence, the mining aspect has seen a lot of growth and innovation, and is a critical part of the cryptocurrency industry. Here's a brief look at how Bitcoin mining and the surrounding technology has evolved.
Bitcoin is a digital currency that is built upon the underlying technology known as blockchain. The blockchain is a public, distributed and decentralised ledger where transactions are stored. The blockchain is, in simple terms, an ongoing list of algorithms that verify and store transactions.
Bitcoin mining is the act of solving these algorithms to verify a transaction and place it within a block on the blockchain. Successfully mining a block results in a mining reward, paid in btc. As Zipmex explains "It is essentially a process to contribute to the security mechanism of the Bitcoin blockchain by verifying transaction information or data to the collective ledger. This verifying process takes a ton of computing and complex mathematical problem-solving. Miners are successfully awarded Bitcoins for their contribution to the ledger based on their proof-of-work.
In the early days of bitcoin, there was a low level of miner competition. In early 2009, Satoshi Nakamoto mined the first bitcoins with a relatively simple computer. He didn't need specialized equipment to launch blockchain, he simply used an average personal computer.
As new miners joined the network, the algorithms increased in difficulty, and so the computational power needed to mine bitcoin has also increased.

[Bitcoin]

MINING TECHNOLOGY.
Up until the end of 2010, the majority of Bitcoin mining was undertaken on CPUs or central processing units. These relatively simple devices control how commands on a computer are processed and executed.
Around the end of 2010, there was a breakthrough in Bitcoin mining technology and miners began using GPUs to mine bitcoin.
Unlike CPUs, GPU devices are optimized to perform a specific set of computational tasks. Commonly used for gaming applications, GPUs excel at computing simple mathematical operations in parallel, rather than one at a time, in order to generate thousands of time-sensitive image pixels. These devices can also be re-programmed to compute other mathematical operations such as the ones required to mine new bitcoin. Because of their parallel processing abilities, GPU's are much more efficient than CPU's at mining bitcoin.
FPGAs.
Then, in the following year (2011), there was another breakthrough in Bitcoin mining technology. FPGAs, field programmable gate arrays were also re-modeled to mine bitcoin and were even more efficient.
A field-programmable gate array is an integrated circuit designed to be configured by a customer or a designer after manufacturing. This ability allows miners to configure this tech in such a way that it's better optimised for Bitcoin mining. However, these devices are more labor-intensive to build. FPGAs require configuration on both a software and hardware level, meaning the devices must be programmed to run customized code, as well as architected to run that code efficiently.
ASICs.
ASICs came to the market in 2013 and were the first custom solution for Bitcoin mining. Rather than repurposing software and hardware, Canaan Creative released the first set of application-specific integrated circuits (ASICs) for Bitcoin mining. From the outset, these devices were designed with the specific purpose of mining bitcoin.
These purpose designed, pre-optimised devices built strictly to compute the calculations necessary to create new bitcoin blocks meant they were far more efficient than any of the more general purpose devices that preceded it.
Since 2013, there has been constant improvements to the ASICs devices. However, since 2015, this has slowed dramatically. Furthermore, there's been no signs of a technology to leapfrog ASICs.
As it becomes harder to improve the efficiency of mining machines, miners will have to look to other areas to gain a competitive advantage. This could mean innovations in energy sourcing, financial planning, or even product diversification in order to secure more of the Bitcoin mining rewards.
A Brief History of Bitcoin and Bitcoin mining.
Bitcoin has taken the world by storm. Designed to be an instrument for peer-to-peer fund transfer, bitcoin gains its popularity due to its decentralized and open source nature. Unlike other fiat currencies, bitcoin doesn't need a central authority like a bank or some other government or a private institution to facilitate the transaction of funds from one person to another.
The Bitcoin network has a large number of people sharing processing power and facilitating the digital currency transactions. These people are known as miners and the process Bitcoin mining. Bitcoin mining is a vital aspect of the Bitcoin protocol, without miners, the network cannot possibly exist.
Bitcoin has been around since 2009, about a year after Satoshi.
The official Bitcoin website describes Bitcoin mining as a process of adding transactions to Bitcoin's public ledger, which is known as blockchain. Now, blockchain is a distributed ledger and it contains records of all the transactions that has ever taken place over the network. Whenever somebody makes a bitcoin transaction, these miners verify the transaction against the existing records to confirm its validity. By confirming its validity, miners ensure that no bitcoin is double spent (bitcoin once spent can't be spent again).
In order to prevent anyone from making changes to the records, blockchain is heavily encrypted and the miners use the processing power to decrypt the transaction records and the blocks to confirm its status. The mining hardware contributing the processing power solves complex cryptographic equations to identify and add new blocks to the blockchain on which the latest transaction data is stored. Miners, in turn, receive rewards in the form of freshly created bitcoin for every new block they discover. These fresh coins are given to them as an incentive for contributing to the network.
One can easily find a lot of essays on the internet explaining Bitcoin and the whole mining process in detail. Some of the best essays and papers on the subject have originated from Write My Essays, a custom writing service which many students and researchers seem to use for professional quality of work.
Now, with a basic understanding of Bitcoin mining, we can look into how Bitcoin mining has evolved in the past 7 years. In the initial days, Bitcoin mining involved solving cryptographic problems of lower difficulty levels which could be handled by a regular CPU of a personal computer. However, as the number of people and transactions increased over the network, the processing power required for mining also started to increase. Bitcoin Miners graduated from CPU Mining to GPU mining as the GPUs are much more powerful compared to CPUs.
The Bitcoin network is designed in such a way that the difficulty levels of the cryptographic problems increase at regular intervals. Also, whenever the network detects an increase in processing capacity of the miners, the same happens to maintain the block generation constant at 1 block every 10 minutes. From Moore's law, we already know that the processors are bound to become more powerful and efficient over time, which led to the development of dedicated devices for mining. These devices are called Bitcoin Miners.
FPGA Miners or Field Programmable Gate Array miners followed GPU mining. These hardware devices contained special programmable integrated circuits which were programmed to mine bitcoin. With the introduction of FPGA Miners, the CPU and GPU mining became obsolete as they couldn't compete with the processing throughput of FPGA Miners. But again, FPGA Miners were short-lived as well, as Application Specific Integrated Circuits (ASICs) based mining hardware hit the market. These ASIC Miners with customer chipsets that were designed for only one purpose, Bitcoin mining offered far greater performance than any other mining hardware available till date. They went on to become a standard and they are still being used.

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The ASIC Bitcoin Miners have been constantly updated with newer versions with higher processing power, low power consumption and increased efficiency to make mining more profitable. While ASICs are still being used by the Bitcoin community on an individual scale, there are big companies who have set up massive data centers with thousands of such high-end ASIC miners. Individuals can invest in these projects and buy processing power. Depending upon the amount of processing power they have registered for, a share of the mining profits equivalent to their share of mining power is shared with the investors.
We can't expect the Bitcoin network to stick to this state for long, as there is a high possibility that a newer, much faster mining hardware will soon replace today's ASICs in no time.
While this article covers the bASICs of Bitcoin and Bitcoin mining, those interested in knowing more about it can do so by scouring the internet, while others who know about the digital currency and would like to share their inputs and views can contribute to the Bitcoin resources either by writing about it themselves or through services like Write My Essays to save time.
A Short History of the World's Largest Bitcoin mining Pools.
Mining pools grow and shrink, and rise and fall altogether. Today there are more extinct mining pools than there are active ones. The hashpower of the survivors secures hundreds of PoW crypto networks, from major coins such as BTC and BCH to obscure altcoins such as monero classic and "zelcash." The following guide provides an insight into the origins of the world's largest mining pools including their founders, geography, and ideology.
Mining Pools Near Their Nine-Year Anniversary.
Mining pools have been in operation since late 2010, when they emerged as a means for solo miners to share their computing resources and increase their chances of discovering blocks. While a lot has changed in Bitcoin mining since then, including the introduction of dedicated ASIC mining rigs and the rise of huge mining farms, the bASIC premise of pools remains the same. Save for a handful of privately operated exceptions, pools are open to anyone to join.
BTC mining pool hashrate distribution for the last four days.
In addition to the dominant SHA-256 mined coins such as BTC and BCH, there are dozens of altcoins that can be mined using algorithms such as the popular equihash. Mining pool 2miners.com, by way of example, records the hashrate and profitability for scores of equihash coins, its layout showing the sort of metrics that cryptocurrency miners have become accustomed to crunching in their quest to determine the most profitable coins. As mining pools near their nine-year anniversary, an examination of the nine largest BTC pools - most of which also mine coins such as BCH and ETH - captures the state of pooled mining today.
Founded : 2015.
Owner : Bitmain.
BTC hashrate (four-day average): 17.7%
Coins mined : BTC, BCH, ETH.
History : Originally created by Blocktrail to serve as a web wallet, BTC.com still provides mobile and desktop wallets as well as a block explorer and Bitcoin API. It's best known for its mining pool though, which has been in the hands of Bitmain since being acquired by the mining manufacturer in July 2016.

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Trivia : In June 2017, BTC.com appealed for the sender of a transaction with an 80 BTC fee attached to come forward, with the pool offering to return the accidental fee.
Founded : April 2013.
Founders : Discusfish and Wang Chun.
BTC hashrate : 13.8%
Coins mined : BTC, LTC, ETH, ZEC, SCC, SC, DASH, XMR, DCR, XZC, AION.
History : F2pool is China's oldest Bitcoin mining pool, and the second largest BTC pool in the world today after BTC.com. It also operates the third largest ethereum mining operation. As the Bitcoin Wiki explains, the F2pool was once known as Discus Fish on account of its coinbase signature of 七彩神仙鱼 (Discus Fish), the nickname of one of the operators. Today, F2pool captures 12.38 EH/s on the BTC network, 50.36 TH/s on LTC and 21.42 TH/s on ETH. The pool also provides Android and iOS apps and a range of tools including mining revenue comparisons.
Decoded coinbase field for a block mined by F2pool.
Trivia : In 2014, F2pool controlled 25% of the BTC network and 31% of the LTC, leading to fears that it could launch a 51% attack.
Founded : 2017.
BTC hashrate : 13.3%
Coins mined : BTC, BCH, BSV, ZEC, LTC, DCR, DASH, XMR.
History : Started by the founders of BTC.com, Poolin.com is another Chinese pool that's overseen by a company called Blockin. One of the more innovative mining pools, Poolin has developed tools such as an auto-switch feature that alternates between BCH and BTC depending on which network is more profitable. It also operates a rather bASIC Lightning Network shop, mining profit calculator, and scores of other mining apps and tools.
Trivia : In June 2019, it was revealed that Bitmain was suing three former employees for violating a non-compete agreement by launching Poolin.
Founded : 2014.
Founders : Jihan Wu and Micree Zhan.
BTC hashrate : 10.2%
Coins mined : BTC, BCH, LTC, ETH, ETC, ZEC, DASH, SCC, XMC, BTM.
History : Another Bitmain-owned operation, Antpool is Jihan Wu's original mining pool. It provides an array of advanced tools for experienced miners, particularly those who are mining at scale. Sub-account mining to a depth of three levels and anonymous mining are all supported, along with same-day payouts.
Trivia : Despite being accused of contributing to mining centralization, Bitmain launched Antpool in 2014 with a "commitment to help decentralize the bitcoin network ... and put the majority of hashing power into the hands of consumers."
Founded : 2016.
Founder : Yang Haipo.
BTC hashrate : 7.8%
Coins mined : BTC, BCH, BSV, LTC, ETH, ZEC, DASH, XMR, DCR.
History: Like most mining pools, Viabtc provides a block explorer and wallet. Yet another Chinese pool, Viabtc has since expanded to offer staking services, enabling holders to earn a passive return on their PoS coins.
Trivia : Viabtc is famed as a major supporter of bigger blocks and in 2016 mined the first Bitcoin Unlimited block. It also proposed the name for Bitcoin Cash.
Founded : 2010.
BTC hashrate : 6.7%
Coins mined : BTC, ZEC.
History: As the world's first mining pool, Slush can trace its history all the way back to November 2010, when it was first proposed under the name Bitcoin Pooled Mining Server. Slush, which began as a one-man operation, has gone on to mine over 1 million BTC.
Trivia : In March 2018, Slush Pool mined the first BTC block using ASICboost technology.
BTC.top.
Founder : Jiang Zhuoer.
BTC hashrate : 5.6%
Coins mined : BTC, BCH.
History : One of the more inscrutable Chinese pools, BTC.top operates as a private mining pool, and as such is off-limits to ordinary miners. While other Chinese pools attempt to translate their services into English, BTC.top doesn't see the need, making the pool something of an enigma to westerners.
Trivia : In July, BTC.top CEO Jiang Zhuoer debated Craig Wright, calling BSV's path "extreme" and the concept of locking the protocol back to the original 0.1 version "ridiculous."
Founded : 2011.
Founder : Valery Vavilov.
Coins mined : BTC.
History : Bitfury is an industrial mining company that created some of the earliest ASICs, and by 2014 was mining in a pool simply known as pool.io. By early June 2014, this pool, about half of whose hashpower came from Bitfury ASICs, controlled more than 51% of the BTC network, prompting the company to remove some of its power from the pool.
Trivia: Bitfury is a widely mistrusted company that has willingly collaborated with law enforcement to deanonymize bitcoin transactions and erode privacy.
Bitcoin.com.
BTC hashrate : 0.6%
History : Bitcoin.com's mining pool has been operational for three years, having launched on Sept. 21, 2016, with a mandate to push for bigger blocks. From day one, the Bitcoin.com pool could process blocks of up to 16MB, but would only mine 1MB at the time as that was all BTC's consensus rules would accept. Today. Bitcoin.com offers hardware and cloud mining, with the latter manifesting as contracts ranging from six months to two years. Bitcoin.com provides its own mobile monitoring software, while the Bitcoin.com Wallet is a major product in its own right with over 4.7 million installs.
Trivia : Bitcoin.com mined the first BCH ABC block on Nov. 15, 2018 following the split with SV.
What are your thoughts on the various mining pools highlighted here? Let us know in the comments section below.
Images courtesy of Shutterstock and Blockchain.com.
Do you want to maximize your Bitcoin mining potential? Plug your own hardware into the world's most profitable Bitcoin mining pool or get started without having to own hardware through one of our competitive Bitcoin cloud mining contracts.
A brief history of Bitcoin mining hardware.
Story by.
Tristan Greene.

[Bitcoin]

Powerblock - Mining chain connectors|1:12

[Bitcoin]

Bitcoin BTC mining was once nothing more than a lucrative hobby for nerdy cryptocurrency enthusiasts. The only hardware required, in the beginning, was a simple computer. Things have changed a lot in less than 10 years.
In 2009 the first bitcoin miners used standard multi-core CPUs to produce BTC at a rate of 50 per block. If you had a couple computers lying around with decent specs you could have earned about five dollars a day. The difficulty of mining (amount of computing power necessary) was so low then it was worth it for hobbyists and crypto nerds to participate.
Today, mining 50 BTC would reward you in excess of $434,000 per block. A little over a month ago, when it was trading at nearly $20K, that same nerdy "hobby" would have netted you nearly a million dollars a pop.
But, if you are going to hop in your time machine don't go back to ancient 2009. It was a strange time where people used GPUs to play video games, instead of playing them with cardboard like we do in the present. So, we'd suggest dialing your Delorean's date display to 2010 - and bring pizza.
Arguably, bitcoin's first valuation didn't come from a giant company, it came from a hungry dude named Lazlo Hanyecz who, in May 2010, posted the following to Bitcointalk's forums under the subject "Pizza for bitcoins?":
I'll pay 10,000 bitcoins for a couple of pizzas.. like maybe 2 large ones so I have some left over for the next day. I like having left over pizza to nibble on later. You can make the pizza yourself and bring it to my house or order it for me from a delivery place ...
Eventually someone took him up on the offer and Hanyecz ended up eating a meal that, only eight years later, would be worth $8.6 million.
More importantly, in October 2010 the code for mining bitcoin with GPUs was released to the general public. As mining difficulty rose so did the need for better, more dedicated hardware. GPUs were up to the task.
Single GPU Bitcoin mining? The only way to earn an 8.6 million dollar pizza.
Mining bitcoin on a single GPU took very little technical skill. Nearly anyone with a few hundred bucks could could do it, and computational requirements were still low enough to make it worthwhile. That would quickly change however, as cryptocurrency began to catch on the community started to get some big ideas on mining hardware.
According to a research article by Professor Michael Taylor of the University of Washington:
Efforts to scale hash rates through GPUs pushed the limits of consumer computing in novel ways. A crowdsourced standard evolved wherein five GPUs were suspended over an inexpensive AMD motherboard with minimum DRAM, connected via five PCI Express extender cables to reduce motherboard costs, and using a large high-efficiency power supply to drive all GPUs.
Finally, there was a way for the little people to make money using the magic of cryptography and blockchain. It was time for everyone to quit their jobs, plug in a bunch of fairly-affordable mining rigs, and drink pina coladas on the beach.
Except mining difficulty continued to rise, and with it, the power requirements would soon become too steep for your average hobbyist to make any money. By June 2011 field-programmable gate arrays (FPGAs) were becoming all the rage.
This is what people who disarm bombs see in their nightmares.
Mining began to scale once FPGAs were modified for the purpose. The biggest draw to this hardware was the fact that it used three times less power than simple GPU setups to effectively accomplish the same task. In cryptocurrency, for a brief moment, FPGAs were the best thing that'd happened since sliced bread.
Yet, if you were an independent miner in 2011 who enjoyed your GPU setup, the writing was on the wall. FPGAs soon gave way to application-specific integrated circuit (ASIC) systems, and Bitcoin went from hobby to industry.

[Bitcoin]

You're going to need a lot of these to make money mining BTC.
Where FPGA requires tweaking after purchase (the field-programmable part of FPGA), an ASIC is created for a specific use, in this case mining cryptocurrency. This is why ASIC miners remain the standard.
The future of Bitcoin is impossible to predict, and there's plenty of altcoins you can mine without having to invest in millions of dollars worth of warehouse space, hardware, and electricity.
But, for those who can afford it, the lure of Bitcoin mining continues to prove lucrative - at least for hardware manufacturers.
The Remarkable Story: Bitcoin mining is Advancing the Semiconductor Industry.
July 4, 2020 5:11 pm 0.
Bitcoin mining might seem like a pointless exercise in solving zeros and ones, but it is the first industry to develop 7nm chips, beating governments and giant corporations in the process.
To tell their story, what follows is an astonishing Chinese article that has been very roughly translated from Chinese with little modification.
It tells the story of the Bitcoin mining industry in China like never written before, and though it is a bit difficult to follow in places, we find it fit to print in full and with the Chinese accent:
At 850 AD, a mission led by Buddhist monk Wu Zhen set off from Dunhuang and took two years to finally reach the capital of the Tang Empire, Chang'an. In the Zichen Hall of Daming Palace, Wu Zhen brought a great news to Tang Xuanzong Li Chen who was far away thousands of miles away-Shazhou Guangfu. Since the beginning of the Anshi Rebellion, Tang Ting's border defense was empty, and the Tibetans took the opportunity to occupy the land of Hexi. When the Zhang Yichao uprising in 848 recaptured Shazhou (now Dunhuang), the Tang dynasty lost this land for nearly a hundred years.
The Tang dynasty, who had fallen from its peak, was unable to send troops to support Zhang Yichao's Guiyi Army. However, under the leadership of Zhang Yichao, Gui Yijun has regained more than ten states, including Gua, Yi, Liang, etc., with more than 4,000 miles of land, and a family of one million households. All the Tibetan forces were expelled from the Hexi Corridor Tang Weiyi. To commemorate Zhang Yichao's historical achievements in recovering Hexi, the local people dug a large cave (now 156 caves) at Mogao Grottoes and drew the famous "Plan of Zhang Yichao's Army Travel".
However, for such a hero with great achievements, he was forgotten in the official history because he was far away from the Central Plains. Regardless of the old and new Tang books, or the history of the old and new five generations, there are only a few records of Zhang Yichao. The detailed historical materials about Zhang Yichao and Gui Yijun today are more from Dunhuang's suicide note and inscriptions, which makes people sigh.
Time returns to modern times. In the context of global trade disputes, semiconductors have become the focus of attention of the people. Whether it is a national fund of hundreds of billions in size or more than 20,000 chip startups added in the past six months, it shows that The chip industry has become the sweet and sour in people's eyes.
However, just as people only remembered the hundreds of rivers and rivers, the prosperous Tang Dynasty of Wuhua Tianbao, but forgotten the mountains and rivers, and returned to the Yijun Army for thousands of miles. In the current domestic hot chip industry, there is also a forgotten lone army. This lone army is a mining machine chip manufacturer represented by Bitmain and Jianan Yunzhi, which has created a record of mass production of the world's first 7nm chip. Monopoly With nearly 90% of the global mining machine chip market share, as the top ten customers of TSMC, the order volume once exceeded that of Huawei HiSilicon; but it is also this lone army that has long been excluded from the ranking list of the domestic chip industry. Besides, it is not known to everyone, and there is no policy assistance.
Perhaps many people will sneer at mining machine chips that involve cryptocurrencies, but compared to the semiconductor industry that has spent a lot of money to support but still weak in the past thirty years, domestic mining machine chip manufacturers have defeated foreign countries in less than ten years. Many manufacturers have monopolized the global market share. What else is there to ridicule this lonely army?
The success of China's mining machine chips is by no means low in the development of mining machine chips among some populations, otherwise why have foreign mining machine manufacturers been eliminated? This is no accident, because in addition to Bitmain and Jianan Zhizhi, there are many Chinese manufacturers such as Bitwei and Wuhan Xindong. In the field of mining machine chips, we can not only see legendary stories like Bill Gates dropped out and founded Microsoft, but also the wave of the era of the past decade.

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Mining Supply Chain Challenges and Technological Change|32:11

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1. The Ideal Age.
In November 2008, more than a month after the outbreak of the global financial crisis, Satoshi Nakamoto published a famous paper in the MIT mail discussion group -- "Bitcoin: A Peer-to-Peer Electronic Cash System"; then In January 2009, the genesis block of Bitcoin was dug on a small server in Finland, declaring the official birth of Bitcoin.
Time came in 2011, and Zhang Nan Geng, who was still in school at Beihang University, first came into contact with Bitcoin. At that time, bitcoin was still the era of GPU mining -- in the bitcoin world, the miners with higher computing power, the more bitcoin they mine. To this end, Zhang Nan Geng, who has a professional background in circuit design, designed the world's first FPGA mining machine. Subsequently, Zhang Nan Geng used the ID of "ngzhang" to promote his FPGA mining machine in the Bitcoin forum bitcointalk, and began to become famous in the industry.
However, FPGA mining machines are gradually unable to meet market demand, and people have begun to turn their attention to the field of application specific integrated circuits (ASICs). For this reason, in June 2012, the Butterfly Lab in the United States fired the first shot of the development of the Bitcoin ASIC mining machine. If the Butterfly Lab's ASIC mining machine was successfully developed, most of the computing power of the Bitcoin network will be controlled by them. With the ability to launch a 51% attack, Bitcoin will no longer be safe.
In order to break the monopoly of Butterfly Lab, Zhang Nan Geng, who claimed to be "in order to defend the peace of the Bitcoin world", also began to develop mining machines. However, at this time, Zhang Nan Geng was studying for a doctorate, and he was unable to focus on the research and development of ASIC mining machines with heavy academic tasks. To this end, Zhang Nan Geng made a bold decision -- directly drop out of school and start a business.
At that time, the news of Butterfly Lab's research and development of ASIC mining machine also reached another talented young man in China-Jiang Xinyu. Known as the "roasted cat", Jiang Xinyu was admitted to the Junior Class of the Chinese University of Science and Technology with the 11th place in the country, and then went to Yale University for further study in 2011. At Yale University, Jiang Xinyu first encountered Bitcoin and quickly became interested in it. He also suspended school from Yale and registered his own company Bitfountain in Shenzhen in July 2012, focusing on the research and development of Bitcoin ASIC mining machine.
In the first half of 2013, Jiang Xinyu and Zhang Nangeng's mining machines were successfully developed, and the first batch of mining machines was delivered. But at this time Butterfly Lab is still wandering around, the chip design problem can not be solved, and the delivery date is far away. In September 2013, Avalon mining machine chips achieved mass production and large-scale shipments, and soon 800,000 chips were put on the market; Jiang Xinyu's roast cat mining machine also occupied 20% of the computing power of Bitcoin's entire network at this time. , Becoming the biggest winner in the field of mining machine chips. At this point, the era of ASIC mining has officially arrived, and domestic mining machine chip companies have taken the lead in this field.
Over the years, looking back on this past, many people will find it incredible-chips have always been a weak industry in my country. But why are Chinese mining machine chip manufacturers so successful in the early days? In addition to the "harmony" factors of Zhang Nangeng's "breaking the cauldron" and Jiang Xinyu's "brilliance", there are more two reasons: the particularity of the mining chip market and the demographic dividend of Chinese engineers.
(1) Particularity of the mining machine chip market.
In the field of chip design, there has always been a misunderstanding in the market: the bottleneck of domestic chip design lies in backward technology, and taking the Huawei incident as an example, it is pointed out that my country is currently constrained by people in terms of EDA software and underlying architecture. However, before 2018, my country's chip design companies were not greatly affected by the use of EDA software and the authorization of the underlying architecture, but the number of chip design companies that have grown up is still small.
In fact, the development bottleneck in my country's chip design field is not only in the field of technical barriers, but more importantly is the lack of market support. The embarrassment of most chip design companies in my country is that the designed chips are not used by customers, and the problems of the chips must be continuously applied in practice to be discovered and solved.
Take Huawei HiSilicon as an example. In 2012, Huawei mobile phones began to carry chips designed by HiSilicon. However, the performance of HiSilicon's K3V2 chip was extremely poor at the time, which caused the Ascend D series of mobile phones launched by Huawei to be criticized by consumers as soon as they were released: severe fever and slow loading. Even so, Huawei still chooses to insist on using HiSilicon chips and continuously optimizes them. By 2018, HiSilicon's Kirin 980 chip performance has reached the world's top. Without Huawei mobile phones' unconditional support for our company's chips, there would be no Huawei HiSilicon today.
Compared with Huawei HiSilicon's accumulated product development, mining machine chip manufacturers are more fortunate, which mainly depends on the particularity of the mining machine chip market: first, most of the mining machine equipment at that time were GPUs, and the ASIC field was still a blank market. New products and new products that belong to the market; and large companies such as Nvidia and Qualcomm do not bother to enter the field, which allows new entrants to avoid competition with industry giants and have the opportunity to grow bigger and stronger.
Secondly, mining machine chips have strong financial attributes. Ordinary chips are mainly used for various production and living activities, while mining machine chips can generate cash flow income through mining. In terms of computing power, ASIC is hundreds of times higher than the GPU of the same generation. Higher computing power means higher mining income: at that time, an Avalon mining machine priced at 8,000 yuan was able to earn nearly 70,000 yuan in income every day through mining.
As far as ordinary chips are concerned, users are more concerned about the performance of the chip; but for the early mining machine chips, as long as the user can buy a mining machine, it means considerable profit, and the performance of the mining machine chip itself At that time, it seemed less important. Therefore, as soon as the ASIC mining machine is launched, it is immediately welcomed by the market, and the mining machine manufacturers can continue to optimize the mining machine chips while selling the mining machine, thereby forming a positive cycle.
(2) Demographic dividend of Chinese engineers.
A large part of the success of Chinese mining machine chip manufacturers is due to the demographic dividend of Chinese engineers. The ASIC mining machine chip is essentially the hardware implementation of the SHA265 algorithm, and the design is not difficult. Especially in the early stage of 0-1, it does not require the participation of top talents in the field of integrated circuits. In the past two decades, colleges and universities in my country have cultivated a large number of talents with a background in science and engineering, forming a demographic dividend for the group of engineers. According to official statistics, the number of graduates of science and technology in my country has risen from 20,000 per year in 2000 to 200,000 per year in 2018, with a compound annual growth rate of nearly 25%.
The large group of engineers in the past decade may not be the top in the industry, but it has obvious advantages in labor cost and efficiency. This was fully reflected in the early competition with the American Butterfly Laboratory. At the beginning of the ASIC mining machine proposal, the domestic Avalon mining machine used 110 nm process technology, the roast cat mining machine used 130 nm process technology, and the butterfly laboratory in the United States used 65 nm process technology from the beginning. As recalled by those who experienced it at that time: Compared with the domestic developers who are suffering from high fever, they develop the mining machines around the clock; the developers in the United States are all people who love life and will not focus their energy on the development of mining machines. Butterflies has been open for booking since June 2012, but there has been no delivery until a year later, and domestic mining machine manufacturers have begun mass shipments at this time.

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2. The Industrial Age.
In 2013, the mining machine chip market belonged to the "Gemini" era of Zhang Nan Geng and Jiang Xinyu. Domestic mining machine chip manufacturers relied on the engineer dividend to get the lead on the starting line, but this advantage is not solid because of the design of the mining machine chip at the initial stage. The difficulty is not great, and the entry barrier is very low. Due to the high profits of the early mining machine market, many new mining machine manufacturers have emerged in the country, and a lot of foreign manufacturers such as , Sweden and Japan are watching. In the fierce market competition, how did domestic manufacturers win the final victory? This has to talk about a famous company-Bitmain.
Compared with the prestigious Bitmain, the experience of its founder Wu Jihan is also legendary. Wu Jihan, a graduate of Peking University in economics, worked in the financial industry in his early years. Since 2011, he has paid attention to Bitcoin and has done a lot of work for it: becoming the moderator of the Bitcointalk Chinese community, the first time he will be Satoshi Nakamoto's Bitcoin paper Translated into Chinese, and the science fiction writer Chang Keng established the first bitcoin information exchange platform in China-Babbitt. In April 2013, Wu Jihan, who saw the right timing, resigned from the financial industry and established Bitmain with the Jenke group with a background in IC design.
Under the leadership of the Zhanke regiment, Bitmain quickly developed a 55 nm mining machine chip, and launched the Ant S1 mining machine in November 2013. With its excellent performance, Bitmain quickly occupied a part of the market share. However, the good times are not long. In December 2013, the cryptocurrency market began to enter a cold winter. The price of Bitcoin fell from the peak of $1,100 to the lowest point of $200.
In the long winter of 2014, the mining machine market was also greatly affected, and a large number of mining machine manufacturers closed down. The "genius boy" Jiang Xinyu also did not survive this winter -- Jiang Xinyu launched the third generation chip BE300 in early 2014, but there were serious quality problems, which led to the slow sale of the chip, and Jiang Xinyu, which suffered serious losses, then disappeared from people's vision. .
Unexpectedly, Bitmain began to rise in the cold winter: Ant S2 mining machine began to sell in April 2014; Ant S3 mining machine was launched in July; Ant S5 mining machine was mass-produced in December; in November of the second year The successful development of the Ant S7 mining machine...Under the fierce offensive of Bitmain, when the market gradually recovered in the second half of 2015, people were surprised to find that almost only the Antminer of Bitmain remained in the mining machine market. In 2015, Bitmain's annual net profit reached 334 million yuan, making it a well-deserved industry giant.
Why can Bitmain achieve such great success? Many people think that the design of mining machine chips is low, which was true at the beginning, but as the mining machine market gradually matures, chip design has begun to show a trend of specialization and industrialization. The special feature of the mining machine chip is that it is mainly used for parallel computing, so the computing power is not so important. The key is the power consumption of the chip-for the two mining machines with the same computing power, who consumes less power, then Whose electricity cost is lower, and thus has an advantage in the market.
To this end, after a series of explorations, the developers of Bitmain have discovered a standard unit suitable for a large number of tubes with dynamic logic area. The special feature of this standard unit is that its trigger is dynamic. Compared with the static logic flip-flop, the advantage of the dynamic logic flip-flop is that its area and power consumption are half of the former.
Similarly, during this period, Yang Zuoxing, a Ph.D. graduate of Tsinghua University, began to join Bitmain as a part-time job, and brought a fully customized methodology. As we all know, current chip design relies on EDA (Electronic Design Automation) tools, and fully customized methodologies break this model. The fully customized methodology adopts customized and artificial design in the three design links of RTL designed fab cell library, logic synthesis and layout, and every detail design strives to be meticulously carved. Despite this inefficiency, all aspects of the chip have been custom designed, resulting in a significant increase in the power consumption × area optimization ratio of the chip.
Under the dynamic logic scheme and fully customized methodology, Bitmain completed the research and development of the Ant Miner S7 series (28 nm) and S9 series (16 nm) in 2015. The performance of these two models is far superior to other manufacturers, and the cost of their products is only half of that of their competitors.
The chip design industry is characterized by its special market structure. For the general industry, low-end products occupy most of the market share, but high-end products have a lower market share. What is special about the chip market is that there is often a "winner takes all" situation.
With the successful sales of ants S7 and S9, Bitmain has become a giant in the mining machine chip market, occupying more than 80% of the market. Under the strong technical advantage of Bitmain, foreign mining machine chip manufacturers have been out of business: in 2014 and 2015, high-profile KNC, bitfury, Spondoolies-Tech, 21 Inc. all soon declared bankruptcy or withdrew from the mining machine chip market. With the turnover of Bitmain's employees, dynamic triggers and fully customized methodologies have gradually spread to other domestic chip manufacturers, but related technologies are still retained in China. In 2017, the Japanese GMO company wanted to enter the mining machine chip market, but its outdated technical design simply could not compete with domestic manufacturers, and soon withdrew from the market due to losses.
At this point, the mining machine chip market has become the world of Chinese manufacturers. Data show that in 2017, China's three major mining machine manufacturers, Bitmain, Jianan Yunzhi and Yibang International, monopolized nearly 90% of the global market share, and the rest were also used by other Chinese companies such as Wuhan Xindong, Bitwei, etc. Manufacturers share.