How to Become a Part of the Digital Economy: Connecting to the Blockchain Projects
Mining is one of the simplest and most popular ways of participating in blockchain projects. It does not require special knowledge, but rather is a kind of long-term investments with the expectation of quick payback and additional profit. But what is to start with, while making first steps in the area? You will learn about this from our material.
What is characteristic for mining in 2018
The period from 2013 to 2017 will go down in history as a "golden age" for those lucky ones who have entered cryptocurrency world. At that time it was possible to do solo-mining with one or two video cards and to observe with satisfaction the growing rate of bitcoin. The reward for the block remained high, electricity was consumed within reasonable limits and no one was afraid of liability for tax evasion.
In 2018 users are to take into account a number of factors that affect the final profit gain. Among them:
- tariffs for electricity in your region or availability of free electricity sources;
- computing complex power (from 6 video cards or at least 1-2 ASIC);
- investment required to purchase equipment;
- availability of free areas;
- stable access to the Internet;
- Features of legal regulation of the cryptocurrency market in your country.
A few years ago, the miners began to join pools - a pool of capacities, the main purpose of which is to receive a reward for the newly created transaction block. The more people act in the pool (up to several thousand), the higher the probability that the block will close one of them and receive a reward. The award is divided between all participants in proportionally computing capacity.
Often beginners can not overcome the entry barrier, which is necessary for getting into the pool. What to do: leave the desire to get into the world of crypto or even risk it? And where to start?
Start: equipment selection
Blockchain projects use different algorithms. For some of them, first-class processors and a lot of RAM are needed. Basically for beginners mining is done using two main types of devices: GPU (video cards) and ASIC (asic). What is the difference between them and what is better to mine with?
The main difference is in the scope of the "powers" of both devices. The video card is an obligatory component of the PC, thanks to it the image on the monitor is displayed and the most driving games are running. In the case of ASIC, on the contrary, it was invented specially for mining (only for a few blockchains). When a video card is a universal laborer and a generalist, then ASIC is a special-purpose device, nobody is interested in outside the sphere of mining.
Let's take a closer look at the pros and cons of each type of device.
Advantages of the video card mining:
- An affordable and simple tool for working with blockchain project;
- GPUs support the work with a large number of computational algorithms;
- the warranty for a video card reaches three years, it is quite easy to repair them;
- video cards are less noisy than ASICs;
- after being used it is possible to sell them on spare parts.
Disadvantages of the video card mining:
- It takes a few days to build a farm from several video cards and configure it;
- Overclocking graphics cards requires minimal computer literacy and knowledge of specialized programs;
- a massive air-cooled farm will require good ventilation;
- Video cards take up more space than the ASIC.
The approximate rating of video cards for mining (without overclocking):
Advantages of ASIC mining:
- works "out of the box" - needs to toggle, synchronize with wallet and ready to mine;
- ASIC is more productive than GPU within the limits of concrete selected blockchains hundreds of times;
- the software update happens rarely and does not require special "dances with tambourines";
- easy to take with you and transported to a new place where only a power supply and an Ethernet cable are needed for the connection;
- The device is designed for overload and overclocking.
Disadvantages of ASIC mining:
- increased noise and vibration;
- repair in case of components failure is complicated and expensive:
- you can not switch to other blockchain algorithms;
- high cost of the device;
- a huge amount of heat, which must be diverted.
Approximate ASIC rating
Which Cryptocurrency to choose
This issue worries everyone - and those who are "grew up with bitcoin", and those who would be happy to choose something, but is lost in the huge world of blockchains. There is something to choose from, because there are over a thousand cryptocurrencies in the world. We will briefly describe only some of them, about which you have precisely heard:
Bitcoin - it all started in 2009. The first, the most popular, the most hyped and the most desired cryptocurrency, founded by an anonymous author or a team of authors Satoshi Nakamoto. Bitcoin is not only a unit of remuneration (coin), but also a complex of calculations, a data transfer protocol and other related processes. It survived the take-off course with 10,000 bitcoins for $ 25 to $ 20,000 for 1 BTC in early 2018. In conditions of a calm in the market, access to newcomers or their associations (pools) is again available;
Ethereum - "young, dynamically developing cryptocurrency". It first appeared three years ago and was founded by a very real and lively programmer - Vitaliy Buterin. As early as the beginning of 2018, it was boldly recommended to all beginners, but now the complexity of the network has grown and it is more difficult to obtain the coin within the framework of this algorithm. Trying to improve the algorithm of conducted operations, the network founders plan to switch to the Proof-of-Stake method in which the probability of forming a new block is higher for those participants with a large number of units of account;
Litecoin - cryptocurrency, stably entering the top 5. First appeared in 2011, as an alternative to Bitcoin. Uses the main Bitcoin developments and at the same time works to increase the speed of transactions. Despite the high complexity of the network, it remains an intermediate option for beginners. The litecoin block is generated in 2.5 minutes and most network participants use video cards for work;
Monero - cryptocurrency, which appeared in 2014. It is distinguished by a sophisticated algorithm of user identification and maximum anonymity of transactions. The disadvantage is the size of transactions, which is almost 10 times bigger than analogues. Monero is mined with CPU, GPU and, of course, the ASICs;
Zcash is one of the most recent cryptocurrencies. They believe, it possibly achieved almost complete anonymity, but at the same time performs open operations. It is considered to be one of the most promising, which is caused by the excitement surrounding it on the Internet.
Anyway, when choosing a cryptocurrency, several things should be taken into consideration:
- time spent on getting a reward;
- complexity of the network;
- analytical data on the course of the Cryptocurrency and growth trends;
- minimum list of necessary equipment;
- the ability to configure the equipment quickly.
As for now the following regularity applies to the blockchain industry: the higher the complexity of the coin extraction, the higher the requirements for equipment. The high price of remuneration attracts more and more participants, which increases the complexity of the network, but reduces the amount of compensation. The level of earnings falls and mining of certain coins becomes unprofitable. Then users switch to new altcoins and the process repeats.
Setting up a wallet for transactions
To store electronic savings, you will need a purse and an ordinary leather product here will not work. There are two main types of wallets:
"Cold" wallet - wallet of this type you need to download and install on your PC. Sometimes they are implemented in the OS and if they are constantly connected to the Internet they are also called hot. There are both universal wallets, designed with the support of several cryptocurrencies, and those for one particular coin. This type is also referred to physical media. These include both special devices (flash drives) and paper printouts with a generated key. To hack and steal them through the Web is impossible, but they are likely to be lost. In that case the restoration of access will be problematic;
Online wallet - while using an external data storage service, the reward is located on a third-party resource. The user does not install additional programs on the device, but becomes dependent on the capabilities and access to a third-party resource. A subspecies of this type is a mobile wallet. This option is best for those who want to make online payments using a mobile device. The software allows you to store virtual money and always have it at hand.
One-click launch solution
We’ve described only the very first steps, on the way to membership of the global blockbuster team. Of course, while getting involved in the blockchain sphere, lots of pitfalls come up and there are even more difficulties which cannot be seen in the beginning. In fact, you have two options: to figure out all the subtleties of the blockchain mining by yourself or to delegate the key duties to professionals.
If you choose the second option, then we have great news for you. BiXBiT started its activity by trying to solve the main mining problems, from the miners’ point of view. Here's what we got:
- noise and dust;
- instability of work during overclocking;
- failure of moving parts;
- space saving;
- high density of the equipment placement;
SOLUTION: Immersion cooling
- immobility of the equipment;
- the need to create home-made farms according to outsource instructions;
- renting large-scaled spaces;
- inability of scaling due to the lack of financial resources
SOLUTION: Modular construction
- Inability to switch between cryptocurrencies quickly;
- additional OS is needed;
- setting up wallets;
- lots of educational literature must be studied in order to customize the equipment in the most efficient way
SOLUTION: Diskless Startup System
- it is impossible to be in the same room with the mining equipment
- the undue equipment generated heat is dispersed in the atmosphere
- additional air-conditioning is necessary
- no one is trying to utilize the heat
SOLUTION: efficient heat utilization
We offer ready-made solutions, which are equipped with all the necessary facility, cooling system, diskless launch system and heat utilization system. To start mining, you only need to connect to the Internet and find a power source. But we also do not limit your creativity and your desire for creation. You can choose an individual set and modify it at will! For example, you can use a different coolant or make some experiments with the constructive elements. Our facilities are so flexible and friendly that they open up new horizons for creativity.
You can order a minimum unit - a cell designed for up to 24-27 GPU or 9 ASICs. It will allow you to start a hard, but interesting way in the world of blockchain.
Try, experiment, create! And we will help you.