Overview

04/01/19 06:26 UTC-4

ASIC mining: how it works and how profitable it is today

ASIC Mining Overview
ASIC Mining Overview

With the advent of cryptocurrencies, there is another opportunity for earning and running a business. Mining allows not only to maintain the viability of cryptocurrency, counting transactions, but also to have an additional source of income.

But with a special approach, this source can become the main one.

Interesting in the section: CCG mining: overview of the Cloud-Mining Service

Before the advent of special mining-equipment, netizens earned their video cards by "mining" crypto-coins and selling them on the stock-exchange. The use of video cards in this regard was difficult as the main source of income, since for large income it was necessary to have many video-cards and, as a result, a lot of energy.

 

Characteristics and work principles

Officially, ASIC stands for Application Specific Integrated Circuit.

With the advent of mining ASICs, it became possible to mine cryptocurrencies in much larger quantities. Manufacturers of ASIC-miners have developed chips that are better and faster than other chips to decipher the algorithm underlying the functioning of one or another blockchain.

ASICs are developed for one or another algorithm and decode it ten times faster than video-cards and any other electronic devices, since all their components are directed to work with this algorithm.

Interesting in the section: Main Features and Future of the Decred

Due to this, the power consumption spent on obtaining one crypto-coin is significantly reduced. To achieve the performance of an ASIC-miner on a farm of video-cards, the farmer will have to build a farm for dozens of video-cards, and the power consumption will be tens of kilowatts.

ASIC-miner with the same performance will consume 1-2 kW. Professional ASIC miners consume more, but overall, the performance/power consumption ratio is no match for the video-card farms.

 

Purchase of equipment

These devices can be quite expensive and difficult to buy, and in most cases,  it will be necessary to purchase a good quality power supply unit to ensure maximum efficiency.

When buying a device, you should think about how soon you will receive a return on the initial investment. This is determined by the device’s hash-capacity – that is, the number of blocks it can generate daily – less the cost of electricity, mining-pool fees, and the current complexity of mining. To do all the calculations you can use a profit calculator, for example, the one that is available in Coinwarz. The function allows you to enter all the data in order to more accurately calculate the return on investment.

Editor: Yulia Krasnaya

#ASIC #mining #cryptocurrency #miners

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