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
About the Author
About the Reviewer

Chapter 7. Large Scale Mining

In this chapter, we will examine Large Scale Mining (LSM). Bitcoin offers miners substantial rewards; as a result mining has emerged as a business. Some of these operations are well financed and are trying to achieve scale in order to realize the savings that come with it. They employ hundreds of tera-hashes of mining power. The biggest of these commercial mining operations have several peta-hashes of mining power. The Bitcoin network hashing speed recently reached one exa-hash. Mining at such a large scale has its own unique challenges. These large mining players are usually secretive to protect any advantages that they might have discovered; therefore, information about them is sparse. We will look into their operations, sometimes relying on facts and sometimes having to speculate, if the information is not available. LSM is an exciting era in Bitcoin mining and we hope that you will find it as interesting as we do.

We will delve into the following topics:

  • Large...