Mining
- by Samuel Santos
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What is Hashing on the Blockchain?
https://blockgeeks.com/guides/what-is...
Cryptographic hashing is a key feature in the security and efficiency of blockchains. If you've ever wondered how so much data can be stored securely on every node in the network, hashing is a big part of the answer! We'll cover all the basics you need to know in this video!
For more blockchain guides, courses, and videos, visit us at blockgeeks.com!
Cryptographic hash functions
A cryptographic hash function is a special class of hash functions which has various properties making it ideal for cryptography. There are certain properties that a cryptographic hash function needs to have in order to be considered secure. Let’s run through them one by one.
Property 1: Deterministic
This means that no matter how many times you parse through a particular input through a hash function you will always get the same result. This is critical because if you get different hashes every single time it will be impossible to keep track of the input.
Property 2: Quick Computation
The hash function should be capable of returning the hash of an input quickly. If the process isn’t fast enough then the system simply won’t be efficient.
Property 3: Pre-Image Resistance
What pre-image resistance states is that given H(A) it is infeasible to determine A, where A is the input and H(A) is the output hash. Notice the use of the word “infeasible” instead of “impossible”. We already know that it is not impossible to determine the original input from its hash value. Let’s take an example.
Suppose you are rolling a dice and the output is the hash of the number that comes up from the dice. How will you be able to determine what the original number was? It’s simple all that you have to do is to find out the hashes of all numbers from 1-6 and compare. Since hash functions are deterministic, the hash of a particular input will always be the same, so you can simply compare the hashes and find out the original input.
But this only works when the given amount of data is very less. What happens when you have a huge amount of data? Suppose you are dealing with a 128-bit hash. The only method that you have to find the original input is by using the “brute-force method”. Brute-force method basically means that you have to pick up a random input, hash it and then compare the output with the target hash and repeat until you find a match.- By Admin
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Washington State bitcoin mining pioneer GigaWatt filed for bankruptcy this week in a suspected bid to sell the company. The move follows the departure, in August, of the company’s co-founder, David Carlson.
FROM BEDROOM TO WORLD’S BIGGEST BITCOIN MINE
Carlson started mining bitcoin as a hobby back in 2012 and saw the potential of cheap hydro-electric power in the state. A former Microsoft engineer, Carlson built the world’s largest bitcoin mine in an old furniture store in Wenatchee in 2013.
The benefit of the reduced energy costs quickly became felt and the company expanded to offer hosting services to other miners. In central Washington, electricity sells for less than a quarter of the national average.BITCOIN BOOMTOWN
In 2017, as the bitcoin price exploded, GigaWatt planned a multi-million dollar expansion on a nine-acre plot in Douglas County. Local authorities supported the scheme to create 24 prefabricated ‘pods’ where miners could set up their operations.
The company raised $22.6 million dollars in an ICO, issuing tokens redeemable for discount hosting services. Carlson and the other three owners also invested $25 million to back the project. Everything was looking rosy for GigaWatt and Wenatchee.SMALL-TOWN SLOWDOWN
If falling bitcoin prices made it hard to attract investors and clients, construction delays and budget overruns threw a real spanner in the works. The hosting pods remain incomplete and GigaWatt has faced several lawsuits from investors.
According to the bankruptcy filing, GigaWatt holds less than $50,000 in assets and has creditor claims of $7 million. It faces eviction proceedings from the Port of Douglas County, although these are ‘on hold’ pending the latest filing.CLIMATE CHANGE
The climate has somewhat changed for miners across Washington State recently. Towns are pushing back against the previously welcomed miners and Grant County has introduced higher energy tariffs for ‘evolving industries.’Despite this, the Port Executive Director hopes that the project will still be completed, either by GigaWatt or another operator. She said:The goal would be to have the project in some way shape or form completed so that it is a productive use for both the port district, in terms of lease revenue, but also providing jobs and economic growth for the community at large.
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Francisco Gimeno - BC Analyst The actual crypto landscape makes these kind of news more than it is. It is normal to have some companies investing in a new technology to get bankrupted, due to many factors, not just because the actual bearish market. Mining is a complicated and risky business and many people and companies jumped it in it when the cryptos looked rosy and a good tool to get rich.
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As mining machines harvest bitcoin, they generate excess heat. Instead of letting it go to waste, a Canadian company is capturing it and using it to warm people’s homes.
BY ADELE PETERS
Bitcoin mining uses massive amounts of energy as computers churn through the steps needed to make a record on the blockchain. Now, one mining company is recycling some of that energy to heat buildings.
Heatmine, a Canadian mining company, works in Quebec, where almost all electricity comes from renewable sources, so its carbon footprint is relatively small. But the company saw that it could also extend the value of that electricity by harvesting the waste heat from its mining machines.
The company started first with its own large warehouse. “We’re in Quebec–it’s very cold 10 months of the year,” says Jeremy Dahan, Heatmine’s COO. “So we started recycling the heat.” Heatmine first used the excess energy from its processing systems to heat its water.
[Image: courtesy Heatmine]Now, though, the company is experimenting with a network of decentralized mining machines that can connect to heating systems elsewhere, like private homes and businesses. Essentially, Heatmine connects a small mining machine to a heating system.
As the machine runs and mines bitcoin, the heat the process generates is transferred to more productive use, like warming a home.In one recent test, Heatmine piloted this equipment at a local greenhouse that grows strawberries.
“Most of the farmers have an issue because they don’t make any profit because they spend a lot of money on the heat and electricity,” says Dahan. With the new system, the cost of heat is covered 75-100%. The greenhouse was able to produce its strawberries as cheaply enough to compete with berries imported from Mexico.
[Image: courtesy Heatmine]
One of the company’s machines can provide 75,000 BTU in an hour, or enough to heat up to 300 square meters 24 hours a day. In larger buildings, the company can install additional units. The system can be used in houses or in industry.
It’s similar to projects that heat buildings with waste energy from servers (often giving eliminating heating bills for residents) or data centers that send heat into district heating systems for neighborhoods.
It’s one small way to offset bitcoin’s massive footprint. Globally, the process of bitcoin mining uses so much electricity that, by one estimate, the industry is already using as much power as the entire country of Ireland.
One recent study projected that if the industry grows at a similar rate as some other technologies, it could single-handedly produce enough emissions over the next 15 years to lock in the world for 2 degrees Celsius of global warming.
The industry will be forced to evolve. But harvesting waste heat makes sense now, and could also make sense in the future.
Heatmine plans to continue to expand in Canada, and will also begin to distribute its machines in the U.S., working in places that have cheap electricity and are particularly cold.ABOUT THE AUTHOR
Adele Peters is a staff writer at Fast Company who focuses on solutions to some of the world's largest problems, from climate change to homelessness. Previously, she worked with GOOD, BioLite, and the Sustainable Products and Solutions program at UC Berkeley. More-
Francisco Gimeno - BC Analyst Interesting solutions to energy problems, which can work in many countries in many ways. This company is pioneer in many real case solutions to problems that governments and institutions won't solve. How can we, individually, work to offer solutions to sustainable future in our lives?
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As cryptocurrency mining evolves into a global industry, the gold rush for cheap energy is disrupting a small town in Washington State—home to some of the lowest electricity rates in the country. Here, two of the biggest Bitcoin mining operations in the U.S., Giga Watt and Salcido Enterprises, reveal their new and rapidly expanding mining operations, and explain the potential of super-computing—from blockchain to artificial intelligence.
But not everyone in town is on-board. Fearing their power rates will go up, and the culture of their town would change forever, many want to put the brakes on this new, disruptive industry.
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Francisco Gimeno - BC Analyst Crypto mining done by big companies somehow defeated the idea of BTC being decentralised. However, business is business. This report is not very accurate: the idea of this town being "the next Silicon Valley" is not true. Silicon Valley is innovation and disruption, new jobs and future. This is just ASICs, Action Specific Integrated Chips which are used just for this mining work. The town gets energy from hydro so it is a renewable source. Also this is a September 2017 video which is ancient history in crypto. We should have another one with a follow up. After one year, what is the story?
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Cryptocurrency Mining – Why Iceland Is The Ideal Place
Blockchain, FinTech, ICO News, Investing, Regulation | July 3, 2018
By: Hermann Finnbjörnsson, CEO And Founder, Svandis
The advantages to using cryptocurrency are abundant, but some experts remain concerned over the impact mining will have on global economies. Crypto-mining serves two main purposes: Adding transactions to the blockchain and releasing new forms of cryptocurrency.
The process can be taxing on computer generator systems because it requires a certain amount of energy and power. The question of where to go in order to better serve the financial ecosystem is what troubles financial leaders, but those looking into Iceland should pay even closer attention.
Crypto-miners are constantly searching for ideal circumstances to maximize their profits – and Iceland is the number one choice based on environmental factors, new regulation amendments and economic sustainability.
As a founding Board Member of The Icelandic Blockchain Foundation, creator of the only Icelandic crypto-exchange, and founding team member of two successful crypto-startups (e.g., Svandis, Auroracoin), I see all types of miners. The largest of all data centers operating in this space is Advania Data Centers.
However, we see varying sizes of companies and individuals operating rigs. I have witnessed some of the most impressive setups being done just by individuals, somewhere in an apartment downtown Reykjavik, for instance. Iceland is welcoming to foreign entities doing as such. However, with a small population, there are only one or two central power utility companies and, thus, they are keen on ensuring they know who is requiring such high energy use.
The days of sending a shipping container to Iceland with a mining operation inside, hooking it up to a strong power supply, and just letting it run are over – but we believe that’s a good thing.
Location, Location, Location
Much like real estate, crypto mining is all about “location, location, location!” Iceland is located at the northernmost tip of the Mid-Atlantic Ridge, which means not only a cooler environment, but also one that serves as a cost-benefit for miners.
Less money needs to go into the high-powered units used to cool down the servers generating these cryptocurrencies. Moreover, data centers operating mining equipment experience major cost burdens in climates of variability, e.g., regions with very cold winters, but hot summers.
The systems emit a tremendous amount of heat to run at full capacity and Iceland’s environment is ideal for running these units as efficiently as possible, especially when concerning the renewable energy sources afforded to the country – namely, volcanic activity.
The Powers to Regulate
Thus far, the Icelandic government has only passed a KYC/AML bill requiring companies that hold wallets on behalf of customers, exchanges, ATMs, etc., to register with FME (the Icelandic SEC). The Ministry of Justice proposed a new amendment to the current anti-money laundering regulation that involves the first definition of cryptocurrencies into the Icelandic law.
It is not clear if the bill will pass before the summer break, but if it does, all businesses that offer exchange services will have to register with the FME (The Financial Supervisory Authority) within one month of the law passing. It is essential to pass legislation that impedes illegal activity, and we have to make sure that the regulation is fair and not a burden to people and businesses innovating in this space.
The Myth of Crypto-Economic Turmoil
Overall, cryptocurrencies have a way of creating a more sustainable economy because of their accessibility and relatively low transaction fees. Crypto-mining is part of the blockchain process and should be looked at as a positive as well.
When it comes to new ideas, especially in the form of a digital currency, experts are cautious on their ability to instigate growth – especially when not vetted properly. Iceland puts itself at one of the greatest advantages because of its friendliness toward cashless societies and advancements in technology.
Final Thoughts
Coming up with new crypto units involves using computing power on an industrial scale to solve complex algorithms. Recent news claims the crypto boom could crash Iceland’s economy, but their stability is a leading example of how important crypto mining is to the tech community. Iceland is not only the ideal place for data centers, but one that should serve as an example to the benefits of having a positive attitude toward digital assets – and digital access!-
Francisco Gimeno - BC Analyst Many countries are trying to get the money and the development from the blockchain and crypto economy. Iceland is well located for crypto mining (climate and energy wise) and is starting to make some soft regulations which will support the new ecosystem. Everything is location, location, as the old wise people knew.
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China-based Bitmain on Tuesday announced its specialized digital currency mining system for ethereum.
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Speaking with Mad Money host Jim Cramer, NVIDIA CEO Jensen Huang recently claimed that “cryptocurrency is here to stay,” and he “doesn’t see the craze ending anytime soon.”
Though it first came to fruition in 2008, bitcoin gained a solid taste of mainstream popularity in 2017 when its price began rising faster than anyone had anticipated.
The year started with a single bitcointrading at nearly $1,000, though things ended on a higher note when the currency nearly grazed the $20,000 mark.Since January 2018, bitcoin and other virtual currencies have experienced serious drops in their prices, but Huang is convinced that cryptocurrency remains as popular as ever.
“Cryptocurrency will be here,” he stated in the interview while discussing the future of finance. “The ability for the world to have a very low-friction, low-cost way of exchanging value is going to be here for a long time.”NVIDIA is a technology company based in Santa Clara, California.
Some of the enterprises’ staple products are its graphics processing units or GPUs. These small processors, Huang explains, were some of the main reasons the company first decided to get involved in cryptocurrency last year.
The GPUs have a powerful ability to mine virtual currencies, and blockchain technology requires computers that can be distributed “all over the world” while remaining immutable and safe. Thus, Huang felt his company’s products could be greatly beneficial to cryptocurrency miners:
“The reason why cryptocurrency became such a popular thing on top of our GPUs is our GPU system is the world’s largest installed base of distributed supercomputing.
Our processor serves as the perfect processor to enable this supercomputing capability to be distributed, and that’s the reason why it’s used.”Interestingly, Huang noted that while the chips were no doubt powerful and crucial to the mining industry, he and his fellow executives are “not ready to move” on this just yet.
For the time being, NVIDIA is primarily involved in the gaming business, data centers and self-driving cars, and cryptocurrency and mining operations account for only small portions of the company’s profits.In fact, NVIDIA currently has no alleged involvement in Bitcoin, per Huang’s comments at a recent GPU technology conference.
He said its processors are predominantly used to mine ether, which accounted for roughly 6 percent of the company’s GPU sales in 2017.“Ethereum ‘ether’ was designed as an algorithm to ensure no singular entity (or a few entities) has the power to control the ether,” he said.
“It was designed so that the algorithm requires the type of computing capabilities — the type of processing capabilities — that are made possible by GPUs in a distributed system.
The GPU is popular with Ethereum because the GPU is the single largest distributed supercomputer in the world. It is the only supercomputer that is literally in everyone’s hands, and no single entity can control the currency.
”He says that the influence of cryptocurrency isn’t likely to affect how they do business in the present, though he’s very confident this could change in the future:
“Gaming is a much bigger business; data center is a much bigger business; our professional graphics is a much bigger business, and, of course, in the future, everything that moves will be autonomous, and we’ll have autonomous capabilities, and that’s going to be a much bigger market, but cryptocurrency gave it that extra bit of juice that caused all of our GPUs to be in such great demand.”
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Francisco Gimeno - BC Analyst #Crypto would be much less without #NVIDIA and other companies GPUs, as they allow crypto #mining. And when the digital economy really grows into maturity their benefits will grow too as the mining will be more distributed around the globe, instead of being in hands of crypto whales.
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Exciting Use Case! Intel May Make Bitcoin Mining Profitable for Individuals Agai... (bitcoinist.com)
INTEL TO THE RESCUE
According to a United States Patent Application released on March 29th, technology giant Intel is interested in creating specialized hardware for Bitcoin mining. The patent application was filed on September 23rd, 2016, and describes a Bitcoin mining hardware accelerator.
According to the filing’s abstract, the patent is for “A System on Chip implementing a Bitcoin mining hardware accelerator [which] may include a processor core and a hardware accelerator coupled to the processor core.”
The hardware accelerator is intended to “mine digital currency,” and “may include a first computational block, including a message digest datapath,” as well as “a second computational block.”In laymen’s terms, Intel’s new hardware would theoretically make Bitcoin mining less energy intensive, and thus more profitable.BIG BAD BITMAIN
Bitcoin mining is currently dominated by Bitmain Technologies Ltd., a privately owned company headquartered in Beijing, China. 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.
In 2017, the company raked in somewhere between $3 and $4 billion in profits.Intel, however, is set to add some competition for Bitmain’s centralized monopoly.
According to the patent filing, the Santa Clara, California-based company has apparently developed a method to reduce “the space utilized and power consumed by Bitcoin mining hardware.
”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. Randy Copeland, president of Velocity Micro — a Richmond, Virginia-based systems builder and Intel partner — told CRN: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!
Discover more from Bitcoinist here: http://bitcoinist.com/intel-may-make-bitcoin-mining-profitable-for-individuals-again/- By Admin
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Junhua Chang CEO at Lightning Network A much better approach is:
https://bitcointalk.org/index.php?topic=3237082.0 -
Francisco Gimeno - BC Analyst Who wouldn't like to start #Bitcoin mining if it were again profitable and less energy consuming? Indeed #Intel`s news are exciting. After reading this article, do you also think the same? Let us know!