StumbleUpon A lot of people are talking about crypto mining these days, but do they really understand the ins and outs of this concept. In this article we will look to understand the hardware behind Proof of Work, and how it plays a key role in defining the sustainability and level of decentralization of various currencies that are available for mining today.
ASIC— application-specific integrated circuit— in its most basic sense is a hardware device that is built especially for highly specific digital applications. To elaborate on the capacity of this chip, we should consider the example of a BTC ASIC which is known to possess a hash rate that is atleast a thousand times better than a regular laptop CPU. As we speak, there are more than a dozen trusted hardware manufacturers that design and sell specialised ASICs for commercial use.
In-Depth Look With the crypto-mining market expanding at a furious rate, profit returns that once seemed achievable from this lucrative avenue have diminished to a large extent.
2. GPU Mining:
With the mining sector full of independent as well as corporate players, ASIC mining profits have been dwindling for the past couple of months. One can think of the ASIC mining market as one that values the acquisition of hashing power. Since there are hundreds of competitors in this field today, profits are hard to come by. In fact, according to a recent statistical study, the tera hashes per second have increased to such a level that monthly interests are now decreasing rapidly.
This has made it hard to reap sustainable dividends unless one is working with large capital backing. In addition to this, performing trillions of hashes per second also leads to serious performance issues over time. ASIC rigs which work day-in, day-out are known to become hot and lose some of their efficacy.
Unless an efficient cooling system is deployed to regulate machine temperatures, one should be ready to face loud fan noise and hashing issues. At this point, we also need to factor in one of the the most important issues associated with ASIC mining— Electricity consumption.
ASIC machines are known to be power guzzlers and in countries where electricity rates are high, users should be ready for large power bills. But what exactly does this mean? Well, in a basic sense currencies that are ASIC immune are ones that make use of hashing algorithms that are more complex and thus require more computer memory.
As a result of this, the hardware needed to implement such coins are more structurally intricate and require more financial input.