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

Large Scale Mining challenges


In addition to facing the same challenges as data centers, such as network connectivity, availability of electricity, and price, the largescale Bitcoin mines face numerous unique issues. The hardware replacement cycles are much shorter, measured in months rather than in years. The Bitcoin exchange rate is an external factor affecting the profitability, and the competition between the miners is fierce. Industrial Bitcoin miners were also the first to employ immersion cooling of components at a large scale. Let's examine the challenges in a little more detail.

Inexpensive and reliable electricity

One of the biggest costs for Bitcoin miners is the cost of electricity. Electricity is needed in both running the hardware and the associated cooling systems, be it fans or air conditioning. Miners, therefore, seek out locations where electricity is fairly priced. In order to save on cooling costs, they also seek locations with cooler climates. Iceland is a popular location...