Book Image

Bitcoin Essentials

By : Albert Szmigielski
Book Image

Bitcoin Essentials

By: Albert Szmigielski

Overview of this book

Blockchain is being billed as the technology of the future. Bitcoin is the first application of that technology. Mining is what makes it all possible. Exploring mining from a practical perspective will help you make informed decisions about your mining setup. Understanding what the future may hold for blockchains, and therefore for mining, will help you position yourself to take advantage of the impending changes. This practical guide starts with an introduction to Bitcoin wallets, as well as mining hardware and software. You will move on to learn about different mining techniques using the CPU, GPU, FPGA, and ultimately the ASIC as an example. After this, you will gain an insight into solo mining and pool mining, and see the differences between the two. The book will then walk you through large-scale mining and the challenges faced during such operations. Finally, you will take a look into the future to see a world where blockchain-based applications are commonplace and mining is ubiquitous.
Table of Contents (15 chapters)
Bitcoin Essentials
Credits
About the Author
About the Reviewer
www.PacktPub.com
Preface
Index

Pros and cons of ASIC mining


Mining with an ASIC has its advantages and disadvantages. Let's examine these in order to understand if and when it is appropriate to use ASICs to mine Bitcoin. As you might recall, mining started on CPUs and then it moved over to GPUs, then briefly to FPGAs, and finally to ASICs. These machines are perhaps the last stop in hardware used for mining.

Currently, there isn't anything on the horizon that will replace ASICs any time soon. Quantum computers could theoretically be a candidate but such machines either do not exist or simply are not available to be acquired.

Pros of ASIC mining

ASIC mining is the fourth (and perhaps the last) step in mining hardware evolution. Currently all the serious miners, including professional installations, use different types of ASICs to mine. They are the most energy efficient of all miners and of course, they are also the fastest hashing machines available. If you think of yourself as a serious miner, you should be running ASICs...