It is a well-known fact that bitcoin mining hardware has changed by leaps and bounds in recent times due to the evolution of new central processing units in the market. On April 6, Monero tweaked its mining algorithm to curb any potential threat of ASICs and preserve ASIC resistance.” That same day, Ethereum core developers met to discuss whether they should change Ethereum’s algorithm and ultimately decided not to for the time being, much to the chagrin of the Ethereum community.
Gate-array ASICs are always a compromise between rapid design and performance as mapping a given design onto what a manufacturer held as a stock wafer never gives 100% mining rig circuit utilization Often difficulties in routing the interconnect require migration onto a larger array device with consequent increase in the piece part price.
The ASIC chip of choice determines, in large part, the cost and efficiency of a given miner, as ASIC development and manufacture are very expensive processes, and the ASIC chips themselves are often the components that require the most power on a Bitcoin miner.
The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty.
Some crypto enthusiasts have proposed an idea that seeks to level the playing field with a hashing algorithm like SHA-3 which is easier to implement on mining hardware than the SHA-256, and it’s likely to force all companies developing ASIC miners to start from the scratch.
Bitcoin ASIC miners are actually designed to calculate the SHA-256 hash algorithm In the case of Litecoin, Scrypt That means technically they could mine any other coin that’s based on the same algorithm, though typically people who buy ASIC hardware designed with one particular coin in mind, mine that coin.
IMO right now it’s best to wait – we’re just starting a “generation transition” and ALL of the older generation stuff is getting very iffy on RoI, especially with the Bitcoin Block Reward halving due probably next July (possibly late June if hashrates shoot up too much) unless you have very cheap electric or can get a used unit VERY inexpen$ively.
One of the biggest advantage of having an ASIC chip instead of a typical miner is that while other miners are busy waiting for the transactions to be processed, you will be mining the coins at a much higher rate, giving you a strategic advantage over them.
A range of factors, including unequal access to cheap electricity, cheap labor, and backdoor deals with regulators will give some large mining businesses a competitive advantage over smaller mining operations, regardless of whether ASICs are involved or not, he argued.
Due to the incredible amount of money mining farms have invested, Proof of Work systems have essentially turned into Proof of Stake blockchains as most of the network is secured by entities that have bought resources for the sole purpose of acquiring hash rate.
The main advantage of using an ASIC to mine Ethereum is it is far more efficient than a GPU. In the last few months, bitcoin has started to grow again, sustained by an increasingly higher hashrate , to the extent that the previous historical record has been broken, with some short-term corrections.