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Building a Cryptocurrency Mining Rig: How to Keep Costs Small and Profits Big
Ben Tibbels
Secure and demure
There are countless ways to make money with computers, but right now there are few as interesting and potentially lucrative as mining for crypto currency. The decentralization of money has led to a digital gold rush, as individuals, mining pools, and full-fledged mining companies vie for the same blocks. So how do you stake your claim and mine your own minty fresh crypto cash? It’s all about building your rig and balancing performance with efficiency.
Is it still profitable?
They’re Mined, ALL Mined!
“Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins is licensed under CC BY-SA 2.0
The first thing that you need to understand is that, just like rushing out to California, buying a pick, and riding your donkey into the hills, mining cryptocurrency is a bit of a gamble. Even the more obscure blockchains have thousands of miners racing each other to find the winning hash. The greater the competition, the more difficult the challenge and if you don’t win the block, that’s a lot of time and literal energy wasted.
The first decision you need to make is what currency you’re actually mining. This will influence every other decision you make and it is in itself a complicated question. You need to consider the currency’s value and block reward against the difficulty of the hash and how many other miners are chasing the prize. The more difficult the race, the meaner your machine needs to be.
You’ll also need to consider the investment side of the equation. Some mining can be done with the PC you already use, but in most instances getting serious about mining means you’re going to want to invest in a purpose-built system. That means spending real money and it could range from hundreds to tens of thousands of dollars depending on the currency you’re chasing and how competitive you want to be.
Of course, that’s just a starting investment. The day-to-day cost, the incremental loss, is electricity. Throwing around hashes in the trillions per second makes a rig mighty hungry, and even moderate mining can make a noticeable impact on your power bill. So not only do you have to be mindful of your rig’s performance, you need to balance your profits against the increase in your electrical bill.
Hooray . . . math
If you haven’t already chosen the crypto you covet or even if you have, we recommend checking out a Mining Calculator. WhatToMine.com seems a little daunting at first glance but that’s only because it’s incredibly comprehensive. It can help you determine which currency you should start mining, and which parts are best for your rig by calculating their hashrate and power draw. It can even factor in the price of electricity in your area.
It’s important to remember that there are more ways to make money than just mining for gold. When everyone else heads into the hills to dig, you can make a lot of money selling shovels. We’re of course not encouraging you to start fabricating shovels (that’s a saturated market), no we’re saying that there are ways that you can build a rig, and sell or rent your hashrate power to someone else. Taking some of the risk out of the equation though also diminishing the reward.
What you’ll need:
The list is pretty short really. You need a crypto wallet to keep your currency. You need mining software to actually do the thing. And of course you need hashrate power, either purchased off someone else, or generated by your own mining rig.
Let’s start with software since it’s probably the least stressful decision you’ll need to make. They’re almost all free and they all do versions of the same thing, but there are still things to consider. The currency you’re mining is most important because you’ll need software that can actually mine that currency. There are also features and customizations offered by some programs that aren’t available universally. Start with the currency compatibility and make your decisions from there.
What’s in a Wallet?
That’s not how this works. That’s not how any of this works!
You can’t stuff Bitcoin in an old mattress and there’s no Ethereum in the Banana Stand. If you’re going to keep your coin keys safe, you’ll need some sort of storage. There are basically two sorts of storage to choose from and while one is definitely more secure than the other, neither is perfect just yet.
Cold storage refers to actual physical storage devices. They’re referred to as cold storage because they exist offline and are not remotely accessible on their own. This means that no one can just hack in and steal your Litecoin. They have their own password protections as well which makes them doubly secure. That being said you do need to be mindful of compatibility between your wallet and your currency. Physical data storage also opens you up to the possibility of corruption, and unlike traditional money, with digital currency corruption usually leads to less wealth.
Most crypto wallets don’t look like much more than a flash drive so you can easily take them with you wherever you roam. Being small and easily portable like the Ledger Nano S or the BC Vault One is great, but it also means you could lose your money the old fashioned way. By literally losing your wallet. Imagine a thumb drive falls out of your pocket in an Uber, but instead of just losing the digital copy of Alita: Battle Angel you never leave home without, you instead lose several thousand dollars’ worth of cryptocurrency. Which is the greater tragedy? Who can say?
Ledger!? I hardly even Augur!
Hot storage on the other hand is all digital and while that makes it less secure in general, it also makes it much more convenient to trade or exchange. Software like coindirect or apps like Trust do take security seriously, and again, if you’re moving small amounts of currency around with any sort of frequency, the freedom and flexibility offered by these digital options may be the right decision for you. Just remember to research the transaction fees associated with each wallet and again, check to make sure it works with the currency you’re mining.
What goes into a rig?
There are three basic categories for mining rigs, CPU, GPU, and ASIC (Application-Specific Integrated Circuit). Just like everything else, the biggest factor in choosing the right rig is the currency you’re trying to mine. Once upon a time, you could mine Bitcoin with just the CPU in your desktop and a twinkle in your eye. Now very few currencies can be effectively mined with such menial processing power, and if you want to mine Bitcoin specifically, you’re going to need an impressive purpose-built machine.
A Mine is a terrible thing to waste
CPU
CPU mining is kinda just what it sounds like. You’re using the processing power of your CPU to generate hashes. This was fine and good a few years ago, but as crypto mining became more popular it also grew in competition and there’s nothing that breeds like tech advancement like competition. Your CPU just isn’t powerful enough to out-calculate a purpose-built ASIC or a mining rig running six top of the line GPUs.
That being said there are currencies out there that try to protect the average miner from being completely outclassed by those who can afford bigger toys. Monero is one such currency. They design themselves to be “ASIC Resistant” in an attempt to keep their cryptocurrency as decentralized and egalitarian as possible.
Rippin’ threads and breaking Hz
If you’re looking to dip your toe into data mining, a high end CPU like AMD Ryzen Threadripper 3990X is obviously the gold standard. Its sixty-four cores and 128 threads blaze do a lot of work, but it’s the enormous 256 MB L3 cache that really lets the hashrate fly. It can generate 64 MHs which is not a lot compared to other devices we’ll discuss in a second, but mining the right currency that’s more than enough to compete. The upside to CPU mining of course is that this investment is still beneficial to your PC even if mining doesn’t PAN out.
Another drawback to CPU processing besides its hash per second limitations is the risk of overheating. Cranking out that many complex computations can generate dangerous amounts of heat so you’ll want to make sure you have a cooling system that can take the strain.
The Cooler Master MasterLiquid ML360 TR4 is designed specifically to keep the Threadripper ripping without excess heat, and it still has a nice RGB style to it. If you want something a little less flashy, the Noctua NH-D15 is an affordable option that still boasts features like PWM and airflow up to 82.52 cfm!
GPU
RTX-cuse me while I hash and mine
GPU mining is a little more complicated but a lot more common. It’s really hard to get a bunch of CPUs to work together toward a common goal. It’s a lot easier to connect a bunch of powerful GPUs to one motherboard and set them to a task. Choosing the right GPU can be tricky at best, but it’s a thrilling part of the chase and there’s no silver-bullet answer.
Nvidia and AMD are of course the two main contenders and they each have attractive options for both the experienced hash cracker and the more minor miner. The MSI GeForce RTX 3090 is a solid option performance wise but it’s definitely a heavier investment that’s hard to come by. It’s capable of hashrates right around 110 MHs depending on the algorithm you have it hunting.
You can also find success with the XFC Radeon VII which isn’t quite as powerful, but runs more efficiently. Remember that these stats are only half the issue and the price of electricity in your area can greatly affect the balance of this cost-to-profit equation so again, please make sure you’re doing your due diligence.
Motherboard
Cryptocurrency a la motherboard
“Litecoin and Bitcoin on motherboard” by wuestenigel is licensed under CC BY 2.0
But a GPU has to connect to something and just one GPU isn’t going to deliver the hash power you need to be competitive. You’re going to need a motherboard for that rig and the more GPUs it can accommodate, the better. You want a motherboard that can connect at least six GPU. The MSI PRO Z390-A can handle that while also maintaining a respectable price tag. If you’re really going for the gusto you should look into the ASUS B250 Mining Expert that con connect up to nineteen GPUs, for some serious block busting power.
Case / Frame
Of course all those GPUs won’t fit in your average PC case and you can’t just have them lying around on the floor. You’re going to need a frame for your rig. There are plenty of schematics for building your own mining frame but if you’d rather just invest in one you know you can trust, check our stock.
We have simple low cost options like this ASTARIN 6 GPU Mining Case, but of course you can always spend more. If you want something that can hold more GPU and look a little cleaner, check out this Magnalium Alloy Mining Rig Case that can accommodate up to twelve graphics cards. Just remember that your frame should have at least as many slots as you have GPUs in your rig, and you’re going to have to make sure it fits wherever you plan on keeping it in your home.
PSU
.S You need a PSU
You’re going to need to run power to all those GPUs, not to mention the CPU and motherboard. If you’ve ever built a PC from scratch you’re already familiar with calculating a rig’s power draw. This isn’t really any different, you’re just using a lot more power hungry components for this type of machine. Remember, it’s important that you not only provide enough power for all the components, your energy consumption is a huge part of your profit equation.
That’s why finding the right power supply is so important. Consider the EVGA Supernova 1600 T2 which is fully modular and boasts an 80+ Titanium efficiency rating. Or you could save a little money with the Thermaltake Toughpower 1500W. It’s only 80+ Gold certified and semi modular but it can move plenty of juice for a much more manageable initial cost. Definitely invest in a PSU with 80 Plus Gold certification or higher.
ASIC
A Basic ASIC
We saved the most powerful option for last. ASIC is short for Application-Specific Integrated Circuit, and basically describes a small but mighty computing machine built with one specific purpose in mind, in this case, mining cryptocurrency. They are incredibly powerful, and they lead the pack in their ability to generate hashes. They are also exceedingly expensive, quickly outdated by newer models, and somewhat controversial in their capabilities.
These workhorses are so powerful they can actually alter the landscape of the cryptocurrencies they mine. They can out hash most home-built rigs and are so expensive that your average miner just can afford them. And even if a miner feels like sinking several thousand dollars into a lean mean hash slinging machine, large companies and those with deep pockets can build big enough banks of them to decimate your odds of winning a block.
That’s just the start. Those big banks of ASIC also end up working against the principles that helped make cryptocurrencies like Bitcoin so attractive in the first place. By snatching up a disproportionately large number of blocks, these banks somewhat undermine the concept of decentralized currency.
When the crypto you mine, says CPU’s are just fine, that’s Monero
“Monero-Logo am PC-Monitor, durch eine Lupe fotografiert” by marcoverch is licensed under CC BY 2.0
That’s why some cryptocurrencies are fighting against the tide and attempting to be what’s known as ASIC resistant. Monero specifically tries to limit the amount of ASIC mining that goes into its blockchain. That means less intense competition which in turn means that prospectors can engage competitively at a much lower starting investment. That being said, no mining algorithm is completely ASIC resistant so they are always going to play a role.
If you’re after the big fish, if you’re mining Ethereum or Bitcoin, you’re going to want to look at these devices. They carry a hefty price tag, but they can reap tremendous rewards and as technology nears the cap of physical limitation, the worry of these high-investment machines being quickly outdated is becoming less daunting by the day.
If these are the droids you’re looking for, the last step is making sure, once again, that the device you’re looking to buy is capable of mining the currency you want to mine. ASICs are so specialized that they are specific to different types of hash algorithms. An ASIC designed to mine Bitcoin’s SHA-256 algorithm can be modified to mine Peercoin because they use the same algorithm. However you can’t use the same machine to mine Dash however, as that cryptocurrency uses the X11 algorithm.
A Sick ASIC!
If you’re mining the right currency and have the resources to spend then an ASIC is almost certainly the way to go. If you’re after Bitcoin check out the WhatsMiner ASIC that boasts an insane 33THs hashrate! Of course, there are always options and it’s up to you to do the research and find what’s best for the operation you’re trying to run. Keep in mind that these devices will also need a PSU, so make sure you’re factoring that into your investment calculations.
Mining is inherently risky, with many more ways to spend money than opportunities to make it, but with the appropriate amount of planning and research there is money to be made. And just like the gold rush that sent people running for the California hills, mining cryptocurrencies wouldn’t be nearly as exciting if it were easy.
SHA-256
SHA-256 is a member of the SHA-2 cryptographic hash functions designed by the NSA. SHA stands for Secure Hash Algorithm. Cryptographic hash functions are mathematical operations run on digital data; by comparing the computed "hash" (the output from execution of the algorithm) to a known and expected hash value, a person can determine the data's integrity. A one-way hash can be generated from any piece of data, but the data cannot be generated from the hash.
History[edit]
SHA-256, which became the successor of SHA-1, bears another name-SHA-2. It's not much harder to encode than SHA-1, and its 256-bit key has never been compromised so far.
Secure communications for websites and web services are based on files known as certificates. They are used to establish and authenticate secure connections. These certificates contain cryptographic elements that are generated using algorithms such as SHA-256.
Previously, certificates were most often generated using SHA-1 as digital signature items, but the algorithm was gradually deprecated and no longer considered as secure as most Internet users would like. As a result, there was a significant shift towards certificates using the new algorithm — SHA-256'.
The transition to SHA-2[edit]
In 2016, the SSL certificate industry made the transition to a new standard — SHA-2. The transition process has been accompanied by re-issuing thousands of certificates and major software updates, which employs centralized trusted certification authorities.
The deadline for the issuance of new certificates was 31 December 2015. Basically the Internet sector had to switch to the new standard by this point, but still some errors could not be avoided.
Within the next year or two, the vast majority of Sha-1 certificates will be "extinct." As of August 2017, their number was about 500 000.
SHA-3-encryption technology of the future[edit]
Over time, cyberattacks increase significantly as the cost of computer processing power decreases. By 2020, this will make the current digital signature less secure than it is today. For this reason, the algorithm selection will be an important decision. This is necessary because temporary short-term upgrades can simply compromise its security. No hashing algorithm is able to maintain a high level of security for even a decade.
This does not mean that cryptographers will sit idly by while waiting for a problem. The Sha-2 successor, known as SHA-3, has already been completed. When the time comes to make that transition, the online technology industry will be able to use SHA-3 as its next choice. But, perhaps, by that time there will be a completely different algorithm.
It takes years to research and test new cryptographic standards before you can start developing software to support them. It is only when we are one step ahead that we can talk about one or another level of security.
Description[edit]
The initial version of the SHA-256 algorithm was created by the US National Security Agency in the spring of 2002. A few months later, the national metrological University published the newly-announced encryption Protocol in the FIPS PUB 180-2 secure data processing standard adopted at the Federal level. In the winter of 2004 it was replenished with the second version of the algorithm.
Over the next 3 years, the NSA issued a second-generation Sha patent under Royalty-free license. This is what gave rise to the use of technology in civilian areas.
This Protocol works with information broken down into pieces of 512 bits (or 64 bytes in other words). It produces its cryptographic "mixing" and then issues a 256-bit hash code. The algorithm includes a relatively simple round, which is repeated 64 times.
In addition, SHA-256 has quite good technical parameters:
block size indicator (byte): 64.
maximum allowed message length (bytes): 33.
characteristics of the message digest size (bytes): 32.
the standard word size (bytes): 4.
internal position length parameter (bytes): 32.
the number of iterations in one cycle: 64.
the speed achieved by the Protocol (MiB/s): approximately 140.
The Sha-256 algorithm is based on the Merkle-Damgard construction method, according to which the initial index is divided into blocks immediately after the change is made, and those, in turn, into 16 words.
SHA-256 is used in several different parts of the Bitcoin network:
External links[edit]
Wikipedia.org - SHA-2
SHA-256 hash calculator - Analog flash clock widget
The Difference Between SHA-1, SHA-2 and SHA-256 Hash Algorithms
SHA-256 is not a secure password hashing algorithm - Dusted Codes
See also[edit]
Cloud mining
Original Bitcoin client
Satoshi Nakamoto
Cryptographically secure pseudorandom number generator
Cryptographic hash function
Ben Tibbels
Secure and demure
There are countless ways to make money with computers, but right now there are few as interesting and potentially lucrative as mining for crypto currency. The decentralization of money has led to a digital gold rush, as individuals, mining pools, and full-fledged mining companies vie for the same blocks. So how do you stake your claim and mine your own minty fresh crypto cash? It’s all about building your rig and balancing performance with efficiency.
Is it still profitable?
They’re Mined, ALL Mined!
“Bitcoin, bitcoin coin, physical bitcoin, bitcoin photo” by antanacoins is licensed under CC BY-SA 2.0
The first thing that you need to understand is that, just like rushing out to California, buying a pick, and riding your donkey into the hills, mining cryptocurrency is a bit of a gamble. Even the more obscure blockchains have thousands of miners racing each other to find the winning hash. The greater the competition, the more difficult the challenge and if you don’t win the block, that’s a lot of time and literal energy wasted.
The first decision you need to make is what currency you’re actually mining. This will influence every other decision you make and it is in itself a complicated question. You need to consider the currency’s value and block reward against the difficulty of the hash and how many other miners are chasing the prize. The more difficult the race, the meaner your machine needs to be.
You’ll also need to consider the investment side of the equation. Some mining can be done with the PC you already use, but in most instances getting serious about mining means you’re going to want to invest in a purpose-built system. That means spending real money and it could range from hundreds to tens of thousands of dollars depending on the currency you’re chasing and how competitive you want to be.
Of course, that’s just a starting investment. The day-to-day cost, the incremental loss, is electricity. Throwing around hashes in the trillions per second makes a rig mighty hungry, and even moderate mining can make a noticeable impact on your power bill. So not only do you have to be mindful of your rig’s performance, you need to balance your profits against the increase in your electrical bill.
Hooray . . . math
If you haven’t already chosen the crypto you covet or even if you have, we recommend checking out a Mining Calculator. WhatToMine.com seems a little daunting at first glance but that’s only because it’s incredibly comprehensive. It can help you determine which currency you should start mining, and which parts are best for your rig by calculating their hashrate and power draw. It can even factor in the price of electricity in your area.
It’s important to remember that there are more ways to make money than just mining for gold. When everyone else heads into the hills to dig, you can make a lot of money selling shovels. We’re of course not encouraging you to start fabricating shovels (that’s a saturated market), no we’re saying that there are ways that you can build a rig, and sell or rent your hashrate power to someone else. Taking some of the risk out of the equation though also diminishing the reward.
What you’ll need:
The list is pretty short really. You need a crypto wallet to keep your currency. You need mining software to actually do the thing. And of course you need hashrate power, either purchased off someone else, or generated by your own mining rig.
Let’s start with software since it’s probably the least stressful decision you’ll need to make. They’re almost all free and they all do versions of the same thing, but there are still things to consider. The currency you’re mining is most important because you’ll need software that can actually mine that currency. There are also features and customizations offered by some programs that aren’t available universally. Start with the currency compatibility and make your decisions from there.
What’s in a Wallet?
That’s not how this works. That’s not how any of this works!
You can’t stuff Bitcoin in an old mattress and there’s no Ethereum in the Banana Stand. If you’re going to keep your coin keys safe, you’ll need some sort of storage. There are basically two sorts of storage to choose from and while one is definitely more secure than the other, neither is perfect just yet.
Cold storage refers to actual physical storage devices. They’re referred to as cold storage because they exist offline and are not remotely accessible on their own. This means that no one can just hack in and steal your Litecoin. They have their own password protections as well which makes them doubly secure. That being said you do need to be mindful of compatibility between your wallet and your currency. Physical data storage also opens you up to the possibility of corruption, and unlike traditional money, with digital currency corruption usually leads to less wealth.
Most crypto wallets don’t look like much more than a flash drive so you can easily take them with you wherever you roam. Being small and easily portable like the Ledger Nano S or the BC Vault One is great, but it also means you could lose your money the old fashioned way. By literally losing your wallet. Imagine a thumb drive falls out of your pocket in an Uber, but instead of just losing the digital copy of Alita: Battle Angel you never leave home without, you instead lose several thousand dollars’ worth of cryptocurrency. Which is the greater tragedy? Who can say?
Ledger!? I hardly even Augur!
Hot storage on the other hand is all digital and while that makes it less secure in general, it also makes it much more convenient to trade or exchange. Software like coindirect or apps like Trust do take security seriously, and again, if you’re moving small amounts of currency around with any sort of frequency, the freedom and flexibility offered by these digital options may be the right decision for you. Just remember to research the transaction fees associated with each wallet and again, check to make sure it works with the currency you’re mining.
What goes into a rig?
There are three basic categories for mining rigs, CPU, GPU, and ASIC (Application-Specific Integrated Circuit). Just like everything else, the biggest factor in choosing the right rig is the currency you’re trying to mine. Once upon a time, you could mine Bitcoin with just the CPU in your desktop and a twinkle in your eye. Now very few currencies can be effectively mined with such menial processing power, and if you want to mine Bitcoin specifically, you’re going to need an impressive purpose-built machine.
A Mine is a terrible thing to waste
CPU
CPU mining is kinda just what it sounds like. You’re using the processing power of your CPU to generate hashes. This was fine and good a few years ago, but as crypto mining became more popular it also grew in competition and there’s nothing that breeds like tech advancement like competition. Your CPU just isn’t powerful enough to out-calculate a purpose-built ASIC or a mining rig running six top of the line GPUs.
That being said there are currencies out there that try to protect the average miner from being completely outclassed by those who can afford bigger toys. Monero is one such currency. They design themselves to be “ASIC Resistant” in an attempt to keep their cryptocurrency as decentralized and egalitarian as possible.
Rippin’ threads and breaking Hz
If you’re looking to dip your toe into data mining, a high end CPU like AMD Ryzen Threadripper 3990X is obviously the gold standard. Its sixty-four cores and 128 threads blaze do a lot of work, but it’s the enormous 256 MB L3 cache that really lets the hashrate fly. It can generate 64 MHs which is not a lot compared to other devices we’ll discuss in a second, but mining the right currency that’s more than enough to compete. The upside to CPU mining of course is that this investment is still beneficial to your PC even if mining doesn’t PAN out.
Another drawback to CPU processing besides its hash per second limitations is the risk of overheating. Cranking out that many complex computations can generate dangerous amounts of heat so you’ll want to make sure you have a cooling system that can take the strain.
The Cooler Master MasterLiquid ML360 TR4 is designed specifically to keep the Threadripper ripping without excess heat, and it still has a nice RGB style to it. If you want something a little less flashy, the Noctua NH-D15 is an affordable option that still boasts features like PWM and airflow up to 82.52 cfm!
GPU
RTX-cuse me while I hash and mine
GPU mining is a little more complicated but a lot more common. It’s really hard to get a bunch of CPUs to work together toward a common goal. It’s a lot easier to connect a bunch of powerful GPUs to one motherboard and set them to a task. Choosing the right GPU can be tricky at best, but it’s a thrilling part of the chase and there’s no silver-bullet answer.
Nvidia and AMD are of course the two main contenders and they each have attractive options for both the experienced hash cracker and the more minor miner. The MSI GeForce RTX 3090 is a solid option performance wise but it’s definitely a heavier investment that’s hard to come by. It’s capable of hashrates right around 110 MHs depending on the algorithm you have it hunting.
You can also find success with the XFC Radeon VII which isn’t quite as powerful, but runs more efficiently. Remember that these stats are only half the issue and the price of electricity in your area can greatly affect the balance of this cost-to-profit equation so again, please make sure you’re doing your due diligence.
Motherboard
Cryptocurrency a la motherboard
“Litecoin and Bitcoin on motherboard” by wuestenigel is licensed under CC BY 2.0
But a GPU has to connect to something and just one GPU isn’t going to deliver the hash power you need to be competitive. You’re going to need a motherboard for that rig and the more GPUs it can accommodate, the better. You want a motherboard that can connect at least six GPU. The MSI PRO Z390-A can handle that while also maintaining a respectable price tag. If you’re really going for the gusto you should look into the ASUS B250 Mining Expert that con connect up to nineteen GPUs, for some serious block busting power.
Case / Frame
Of course all those GPUs won’t fit in your average PC case and you can’t just have them lying around on the floor. You’re going to need a frame for your rig. There are plenty of schematics for building your own mining frame but if you’d rather just invest in one you know you can trust, check our stock.
We have simple low cost options like this ASTARIN 6 GPU Mining Case, but of course you can always spend more. If you want something that can hold more GPU and look a little cleaner, check out this Magnalium Alloy Mining Rig Case that can accommodate up to twelve graphics cards. Just remember that your frame should have at least as many slots as you have GPUs in your rig, and you’re going to have to make sure it fits wherever you plan on keeping it in your home.
PSU
.S You need a PSU
You’re going to need to run power to all those GPUs, not to mention the CPU and motherboard. If you’ve ever built a PC from scratch you’re already familiar with calculating a rig’s power draw. This isn’t really any different, you’re just using a lot more power hungry components for this type of machine. Remember, it’s important that you not only provide enough power for all the components, your energy consumption is a huge part of your profit equation.
That’s why finding the right power supply is so important. Consider the EVGA Supernova 1600 T2 which is fully modular and boasts an 80+ Titanium efficiency rating. Or you could save a little money with the Thermaltake Toughpower 1500W. It’s only 80+ Gold certified and semi modular but it can move plenty of juice for a much more manageable initial cost. Definitely invest in a PSU with 80 Plus Gold certification or higher.
ASIC
A Basic ASIC
We saved the most powerful option for last. ASIC is short for Application-Specific Integrated Circuit, and basically describes a small but mighty computing machine built with one specific purpose in mind, in this case, mining cryptocurrency. They are incredibly powerful, and they lead the pack in their ability to generate hashes. They are also exceedingly expensive, quickly outdated by newer models, and somewhat controversial in their capabilities.
These workhorses are so powerful they can actually alter the landscape of the cryptocurrencies they mine. They can out hash most home-built rigs and are so expensive that your average miner just can afford them. And even if a miner feels like sinking several thousand dollars into a lean mean hash slinging machine, large companies and those with deep pockets can build big enough banks of them to decimate your odds of winning a block.
That’s just the start. Those big banks of ASIC also end up working against the principles that helped make cryptocurrencies like Bitcoin so attractive in the first place. By snatching up a disproportionately large number of blocks, these banks somewhat undermine the concept of decentralized currency.
When the crypto you mine, says CPU’s are just fine, that’s Monero
“Monero-Logo am PC-Monitor, durch eine Lupe fotografiert” by marcoverch is licensed under CC BY 2.0
That’s why some cryptocurrencies are fighting against the tide and attempting to be what’s known as ASIC resistant. Monero specifically tries to limit the amount of ASIC mining that goes into its blockchain. That means less intense competition which in turn means that prospectors can engage competitively at a much lower starting investment. That being said, no mining algorithm is completely ASIC resistant so they are always going to play a role.
If you’re after the big fish, if you’re mining Ethereum or Bitcoin, you’re going to want to look at these devices. They carry a hefty price tag, but they can reap tremendous rewards and as technology nears the cap of physical limitation, the worry of these high-investment machines being quickly outdated is becoming less daunting by the day.
If these are the droids you’re looking for, the last step is making sure, once again, that the device you’re looking to buy is capable of mining the currency you want to mine. ASICs are so specialized that they are specific to different types of hash algorithms. An ASIC designed to mine Bitcoin’s SHA-256 algorithm can be modified to mine Peercoin because they use the same algorithm. However you can’t use the same machine to mine Dash however, as that cryptocurrency uses the X11 algorithm.
A Sick ASIC!
If you’re mining the right currency and have the resources to spend then an ASIC is almost certainly the way to go. If you’re after Bitcoin check out the WhatsMiner ASIC that boasts an insane 33THs hashrate! Of course, there are always options and it’s up to you to do the research and find what’s best for the operation you’re trying to run. Keep in mind that these devices will also need a PSU, so make sure you’re factoring that into your investment calculations.
Mining is inherently risky, with many more ways to spend money than opportunities to make it, but with the appropriate amount of planning and research there is money to be made. And just like the gold rush that sent people running for the California hills, mining cryptocurrencies wouldn’t be nearly as exciting if it were easy.
Ok so you might be wondering what's an algorithm. So bitcoin uses SHA-256.
SHA-256
SHA-256 is a member of the SHA-2 cryptographic hash functions designed by the NSA. SHA stands for Secure Hash Algorithm. Cryptographic hash functions are mathematical operations run on digital data; by comparing the computed "hash" (the output from execution of the algorithm) to a known and expected hash value, a person can determine the data's integrity. A one-way hash can be generated from any piece of data, but the data cannot be generated from the hash.
History[edit]
SHA-256, which became the successor of SHA-1, bears another name-SHA-2. It's not much harder to encode than SHA-1, and its 256-bit key has never been compromised so far.
Secure communications for websites and web services are based on files known as certificates. They are used to establish and authenticate secure connections. These certificates contain cryptographic elements that are generated using algorithms such as SHA-256.
Previously, certificates were most often generated using SHA-1 as digital signature items, but the algorithm was gradually deprecated and no longer considered as secure as most Internet users would like. As a result, there was a significant shift towards certificates using the new algorithm — SHA-256'.
The transition to SHA-2[edit]
In 2016, the SSL certificate industry made the transition to a new standard — SHA-2. The transition process has been accompanied by re-issuing thousands of certificates and major software updates, which employs centralized trusted certification authorities.
The deadline for the issuance of new certificates was 31 December 2015. Basically the Internet sector had to switch to the new standard by this point, but still some errors could not be avoided.
Within the next year or two, the vast majority of Sha-1 certificates will be "extinct." As of August 2017, their number was about 500 000.
SHA-3-encryption technology of the future[edit]
Over time, cyberattacks increase significantly as the cost of computer processing power decreases. By 2020, this will make the current digital signature less secure than it is today. For this reason, the algorithm selection will be an important decision. This is necessary because temporary short-term upgrades can simply compromise its security. No hashing algorithm is able to maintain a high level of security for even a decade.
This does not mean that cryptographers will sit idly by while waiting for a problem. The Sha-2 successor, known as SHA-3, has already been completed. When the time comes to make that transition, the online technology industry will be able to use SHA-3 as its next choice. But, perhaps, by that time there will be a completely different algorithm.
It takes years to research and test new cryptographic standards before you can start developing software to support them. It is only when we are one step ahead that we can talk about one or another level of security.
Description[edit]
Over the next 3 years, the NSA issued a second-generation Sha patent under Royalty-free license. This is what gave rise to the use of technology in civilian areas.
This Protocol works with information broken down into pieces of 512 bits (or 64 bytes in other words). It produces its cryptographic "mixing" and then issues a 256-bit hash code. The algorithm includes a relatively simple round, which is repeated 64 times.
In addition, SHA-256 has quite good technical parameters:
block size indicator (byte): 64.
maximum allowed message length (bytes): 33.
characteristics of the message digest size (bytes): 32.
the standard word size (bytes): 4.
internal position length parameter (bytes): 32.
the number of iterations in one cycle: 64.
the speed achieved by the Protocol (MiB/s): approximately 140.
The Sha-256 algorithm is based on the Merkle-Damgard construction method, according to which the initial index is divided into blocks immediately after the change is made, and those, in turn, into 16 words.
SHA-256 is used in several different parts of the Bitcoin network:
External links[edit]
Wikipedia.org - SHA-2
SHA-256 hash calculator - Analog flash clock widget
The Difference Between SHA-1, SHA-2 and SHA-256 Hash Algorithms
SHA-256 is not a secure password hashing algorithm - Dusted Codes
See also[edit]
Cloud mining
Original Bitcoin client
Satoshi Nakamoto
Cryptographically secure pseudorandom number generator
Cryptographic hash function
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