Receive all Bitcoinist news in Telegram! Intel Corporation is bitcoin mining profitability in developing specialty hardware for the mining of Bitcoin, which may help small-time miners once again turn profits.
A System on Chip implementing a Bitcoin mining hardware accelerator may include a processor core and a hardware accelerator coupled to the processor core. In laymen’s terms, Intel’s new hardware would theoretically make Bitcoin mining less energy intensive, and thus more profitable. In addition to operating several of the world’s largest Bitcoin mining pools, Bitmain manufactures ASIC chips and the mining hardware that uses those chips. Intel, however, is set to add some competition for Bitmain’s centralized monopoly. Bitcoin mining is currently incredibly energy-inefficient and has proven to be less profitable the more the price of Bitcoin decreases. This, in turn, has forced out many small-time miners while increasing the stranglehold on the sector by large-scale operations, such as Bitmain.
However, Intel’s new technology could make small-time mining profitable once again and, in doing so, help wrest control from the hands of mining giants. Once this new Intel technology comes to market, ultimately more people will mine again because it’s profitable again, driving down the market value of the coins, and finding a new market balance that will again put locations with lower electricity costs back at the advantage. Intel has previously shown an interest in cryptocurrency. Last year, the semiconductor-producing giant partnered with Chinese firm Tencent for an Internet of Things blockchain solution. What do you think about the cost of Bitcoin mining?
Would you be interested in more energy-efficient mining solutions from Intel? Let us know in the comments below! Images courtesy of Shutterstock, Bitcoinist archives. Japanese internet giant GMO has announced pre-orders for its B2 Bitcoin miner — the world’s first miner equipped with 7nm processing technology. Ella Zhang, the individual in charge of Binance’s venture incubator Binance Labs, doesn’t have a particularly fond view of the current cryptocurrency market.
Speaking to Bloomberg, Binance Labs’ Ella Zhang stated: We’d like the bubble to break. Why Don’t Startups Need to Spend Money for ICO Marketing? When you hear about bitcoin “mining,” you envisage coins being dug out of the ground. But bitcoin isn’t physical, so why do we call it mining?
The bitcoin protocol stipulates that 21 million bitcoins will exist at some point. What “miners” do is bring them out into the light, a few at a time. They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain. Backtracking a bit, let’s talk about “nodes. A node is a powerful computer that runs the bitcoin software and helps to keep bitcoin running by participating in the relay of information. Nodes spread bitcoin transactions around the network.
These group outstanding transactions into blocks and add them to the blockchain. By solving a complex mathematical puzzle that is part of the bitcoin program, and including the answer in the block. The puzzle that needs solving is to find a number that, when combined with the data in the block and passed through a hash function, produces a result that is within a certain range. For trivia lovers, this number is called a “nonce”, which is a concatenation of “number used once. How do they find this number? The hash function makes it impossible to predict what the output will be. So, miners guess the mystery number and apply the hash function to the combination of that guessed number and the data in the block.