How Bitcoin Mining Hardware Evolved: A brief History into the development of ASICS
Feb 12, 2018 Posted / 3846 Views
After the introduction of Bitcoin in 2009 bitcoin mining was nothing but a hobbyist activity performed by computer nerds and redundant students with a lot of time to waste in front of a computer browsing the internet aimlessly. Surprisingly one of these computer nerds broke the world record after he ordered anyone to deliver two big pizzas to him for 10,000 BTC. According to the post he posted in 2010 on bitcointalk, titled Bitcoin for pizzas, the user only identified as laszo, did not realise at the time that he was splashing $85 million on mere pizzas.
Bitcoin started as a fun activity with only a few people paying some attention to it major companies either did not know anything about it or didn’t waste time to because it was useless at that time. By 2010 a block of bitcoin comprised of about 50 BTC and cracking one block required the dedicated work of just one gaming PC running the Bitcoin mining software.
The the bitcoin mining difficulty factor rising almost after every week, bitcoin mining sooner became a hard task day by day. The size of the bitcoin mining block reward too kept on halving after every 4 years reaching the current 12.5 BTC.
Soon ordinary PCs were not sufficient to mine Bitcoins as more computing powers were required to match the increasing difficulty factor. A solution evolved which would provide bitcoin miners more procession powers thus an increased chance of finding more blocks and getting more bitcoin mining rewards.
Different companies manufacturing GPUs soon realised the increased demand of their products and did not only hike prices of the devices but also their production capacities and the computing power of the GPUs. Graphic Processing Units reign as superior bitcoin mining devices before being overshadowed by more sophisticated and powerful bitcoin mining hardwares. For GPUs would deliver a mining hashing power of about 800 MHS which became much lower than what the activity required for any sensible profits to be made out of mining bitcoin.
Just as ASICS were being arraigned about to be deployed fin bitcoin mining, another cheaper alternative almost similar to GPU mining was used. Field Programmable Gate Array (FPGA) is an integrated circuit designed to be configured after being built. FPGAs were manufactured to be resold to bitcoin mining equipment manufacturers who would customize the the chips into their own devices. Due to the fact that these chips are customised for mining their performance was way better than that of GPUs with a single chip performing at around 750 MHS. With more than one chip aligned in a bitcoin mining machine definitely more positive results were obtained.
The Introduction of Bitcoin Mining ASICS
Bitcoin miners continuously remained hungry for more hashing power to enable them make profits from bitcoin mining. This forced researchers around the globe to focus their attention in developing a device powerful enough match the escalating mining difficulty factor.
With speeds ranging from the lows of 5GHS to the heights of 12THS ASICs became the ultimate solution to bitcoin miners. Soon many companies started manufacturing ASICS though their prices remained constantly high.
With the right mining equipment some bitcoin miners invested billions of dollars in purchasing these mining ASICS and fused them in large bitcoin mining farms whose sizes were compared to large warehouses. Some of these bitcoin mining farms offers online bitcoin mining to the general public on a special fee plan.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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