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Samsung confirms that it is making crypto-mining chips

Feb 01, 2018 Posted /  6542 Views

Samsung confirms that it is making crypto-mining chips

So, China might have thought that when it introduced a ban on cryptocurrency mining- it would be an end of an era. But nothing of a sort happened and more and more countries came out to support and accumulate profits from the lucrative cryptocurrency mining business. US, Canada and Russia were frontrunners in that. Nonetheless, not only countries but companies too are supporting their respective government plans and many mainstream companies are coming forward to support the business.

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Samsung confirmed yesterday that it has dived into the profitable cryptocurrency mining business. Samsung's chip-making division is into manufacturing of crypto-mining chips. The Korean news outlet The Bell broke the news on Tuesday and after that, the company itself affirmed the news to TechCrunch.

“Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips," the company told TC without unveiling any further details or elaborating about the project.

The coming of a mainstream company like Samsung into the crypto-mining business can be called as an interesting development for space which witnesses great amount of volatility every day. In fact, Samsung could become a very serious contender to Chinese companies like Bitmain, Canaan and the US giant Bitfury. All of these companies are professional manufacturers and specialize in producing ASICs (application-specific integrated circuits). These chips are specifically designed to mine Bitcoin and other cryptocurrencies.

The process of mining

Bitcoins and most other cryptocurrencies are obtained through the process called mining where a network of computers solve mathematical algorithms (tough maths problems) which in return fuel the network and its payment system. Almost all cryptocurrency functions on same or in some cases with little difference mining models that processes and creates new coins.  

Earlier, Bitcoin mining was not as costly affair and almost anyone with the knowledge could mine Bitcoin at home using their normal computers. But as the virtual currency became popular and its mining was professed as a lucrative affair, the algorithms and their level difficulty slowly increased. At present, bitcoin and alike have reached a level that they need high power computers such as ASICs for mining.

Though it is a profitable business, which can be summarised as the exact reason that company like Samsung which is regarded as one of the world's largest chipmaker has entered into this business. Taiwanese company TSMC, which manufactures chips for Bitmain and Creative, appended $350-400 million in revenue in the immediate quarter solely from the crypto-mining business.

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Tags: SamSung Cryptocurrency Mining crypto-ming mining chip

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