What is Inside a Mining Machine (What is a Mining Machine Actually Calculating)

What is inside a mining machine? After the halving of Bitcoin, what is inside a mining machine? According to data from CoinMarketCap, as of now, there are six cryptocurrencies with rising prices, namely BTC and ETH. However, there have been no significant changes in the trend of their prices; on the contrary, the prices of some altcoins have actually declined.

Mining is not a new concept or a new technology, but rather a method that requires continuous improvement and optimization to solve problems. Since a mining machine is essentially a computer system, it can be used to mine various digital assets and other types of applications. Although this service has brought many new features, such as computing power leasing, it still faces a great deal of uncertainty due to its complexity and difficulty in operation. This has led to many miners being unable to purchase mining equipment and opting to use devices that are better than traditional computers for investment.

What is a Mining Machine Actually Calculating

Editor’s note: This article is from BlockBeats (ID: blockbeats) and has been authorized for reprinting by Odaily Star Daily.

What is a mining machine actually calculating? Mining is essentially a calculation process, where we compare the output and consumption of digital currencies such as Bitcoin before making judgments. For example, if the price of Ethereum is currently close to $30,000, based on this price, these Bitcoin can be approximately purchased with 2 RMB/kWh or a few dollars per unit of ASIC mining machine. And currently, graphics card mining on the market requires a power cost of around 5 yuan to be profitable. So, where do these electricity costs come from? Simply put, the Antminer S19Pro and MicroBT M30 series mining machines have similar power consumption characteristics, but their power efficiency ratios are different. In the market, only one Bitcoin hash rate exceeds 10TH/s, which is equivalent to 4GB, but it can only process 100 transactions per second. Therefore, to obtain the optimal solution, a machine below 2000T must be chosen to achieve a return of more than 20P. This model is very suitable for ordinary users to participate in mining, especially well-established manufacturers such as Canaan and Ebang are continuously investing in producing their own chip devices. However, some people believe that the current hardware products cannot meet the requirements of mining, and as the market becomes more heated, mining rewards will decrease. So, what exactly is a mining machine? In fact, the value of a mining machine is mainly determined by three factors:

1. The construction and maintenance costs of the mining farm. According to the “2020 Blockchain Industry Development White Paper,” more than half of the global companies use “cloud computing power,” which means that a certain quantity or specific proportion of virtual assets held by users will be used to pay for operation costs, server maintenance, and data storage services.

2. The stability of the network environment. Since most computers are centralized, some miners cannot obtain enough data and transfer it to other individual mining pools. For example, three manufacturing companies, Bitmain, MicroBT, and Whatsminer, have purchased resources and services provided by Bitcoin mining service providers through third-party hosting. At the same time, they use distributed ledger technology of cloud computing power to achieve lower costs and more efficient mining experiences.

In addition, many companies are starting to research how to make it easier for customers to access their own mining software. Of course, this is also true for cryptocurrency mining, not just traditional computer mining. Although many people do not know the reasons behind mining, it is clear that when people truly understand mining, they will find that most players in the mining industry are playing games or making money through stock trading. In the domestic mining industry, stories of “mine owners” are often told. For example, a popular project recently was a new model called Antminer A16Z that went public in the first half of this year. At that time, the official website stated that this new machine has high performance and high security. Later, the official website announced the launch of a product called AntMiner A12.