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Extracting the process of adding transaction records in a public office is called bitcoin, which is called the blockchain. This general ledger is there to make any transaction, and any network user can access the general ledger. This office is also used to ensure that no one can re-spend the money they have already spent elsewhere in legal Bitcoin transactions.

Miners serve the bitcoin community so that they approve of each transaction and ensure that all of them are legal. An extractor receives a reward when a new block is sealed as of October 2017, when a bonus of 12.5 bitcoins was announced per block.

The rewards of emerging coins are likened to commodities such as gold mined. This is why this process is called extraction.

How to choose the right hardware to extract

Hash rate

Given the complexity of bitcoin mining, it is important to invest in the right hardware. There are several characteristics to consider when choosing the best equipment. One of the characteristics is the hash rate.

The hash rate is the number of calculations your hardware can do in one second. This parameter is very important. The higher your hash rate, the more likely you will solve math problems to seal the block and get your reward.

The miners are looking for a specific output of the hash function. When we talk about hash functions, each input will always give the same output, but they are designed to be unpredictable. So the best possible way to achieve a particular output is to try all the random inputs possible. In addition, mining is very competitive, so to collect rewards, the miner has to try all those random inputs as fast as possible. Choosing hardware with a high hash rate is critical to successful mining.

The hash rate is measured in MHz / sec, MHz / sec, and GH / sec units. Hardware hash rates specifically designed for bitcoin mining can range from 336MH / s to 14000000MH / s.

energy consumption

Bitcoin mining hardware is an investment and also has associated costs. The more powerful your hardware, the more power you need. Before making any purchase, you should consider the appropriate power consumption for your hardware in watts and know how much more expensive your next electricity bill will be. You do not want to spend all your money on electricity to extract coins. That is not even worth the cost.

You can also use power consumption numbers and hash rates to figure out how many hashes it takes for each watt of power to be used by your hardware. You need to divide the hash rate by the number of watts to do this. For example, if your hardware hash rate is 4500MH / s and requires 32 watts of power, you will have 140625MH / s per watt. You can either use an online electricity bill calculator or check your electricity bill to find out how much it will cost you physically.

In some cases, you use your computer to run the extraction hardware. Your computer will not have its traction beyond what the extraction hardware consumes, so you need to add this to your calculations.

See also: Staking on Binance

Hardware for bitcoin mining

In the recent era of bitcoin, many people were interested in it because, for them, bitcoin was a revolutionary and liberating idea. A world run by banks, tax authorities, and large corporations that care about how people spend their money, it is a decentralized network where ordinary users are responsible for ensuring that transactions are done correctly. , Was like a comfortable breath in the open air. In the past, the value of bitcoin was by no means even close to its current value. So many miners were motivated not only by profit but also by the idea of ​​bitcoin itself. They could generate hash sequences and consolidate transactions using sufficient power from computers or laptops.

In some cases, miners found that high-end graphics cards had the potential to increase bitcoin mining power significantly. Those graphics cards consumed much less energy than work units, and the results were 50 to 100 times better than before. Subsequently, extraction devices were introduced. They increased mining capacity fivefold, allowing the first mining farm to be built at an operating profit, paving the way for the bitcoin mining industry.

These days, bitcoin mining has become a lucrative business. Many people pay their bills by working on huge bitcoin mining farms. These farms are configured using various extraction hardware such as graphics cards and air conditioners. They need a lot of electricity to operate, so access to a cheap energy source is advantageous. This cheap electricity has made Chinese bitcoin mining farms so lucrative.

Those who aspire to make money mining bitcoins will need to compete with companies worldwide with almost unlimited resources spent on mining farms, such as the hundreds of personal miners who are added to their power to create mining pools.

Also see: List of prices

Suitable CPU for extraction

Among the bitcoin mining hardware, your computer is the least powerful category. CPU stands for central processing unit and refers to your computer’s processor. In the past, the only way to extract bitcoin was with this processor, and it was very efficient and expensive (all you needed was a computer with a powerful enough processor).

However, when miners tried to make the network more secure and extract more bitcoins, they innovated on many fronts. So, today, processor extraction is essentially obsolete. You may have been using your laptop for decades to extract without even a fraction of a coin.

GPU suitable for extraction

GPU stands for the graphical processing unit. It is one of the features of high-end graphics cards. These graphics were specifically designed to compute all the complex polygons. That was present in high-level video games, which made them excellent, especially in the mathematics necessary for hashing to troubleshoot transaction blocks.

Despite costing hundreds of thousands of dollars, GPUs offered miners a superior advantage over CPU hashing. For example, a processor will generally provide less than 10 MH / sec. In other words, an ATI 5970, one of the most popular graphics cards, can provide you with more than 800 MH / sec when it starts mining.

Widely, graphics cards led to the advent of the first mining equipment, which was essentially computers that were configured with complex calculations. Those devices could either be dedicated exclusively to extraction or serve as a computer that meets all other needs (for example, as a gaming system and be used part-time only for extraction).

But, like CPU extraction, GPU extraction has declined today. Or the introduction of specially designed mining hardware, the difficulty of bitcoin mining has increased so much that graphics cards can not easily cope with it. These days, even if you have access to free power, GPUs probably never even pay for themselves.

FPGA

The next step in developing bitcoin mining was the introduction of FPGA (Programmable Digital Integrated Circuit) mining. FPGA is an integrated circuit designed to be configured after construction. The circuit enabled a mining hardware company to purchase chips on the cover and customize them for bitcoin mining before placing them in their structure.

The introduction of the first FPGA devices was a complete success and completely changed the bitcoin mining landscape. This was the first hardware developed specifically for extracting cryptocurrencies. They provided the extractors with energy efficiency and ease of use benefits. While a typical 600 MH / sec graphics card can consume nearly 400 watts of power. A standard FPGA extractor might provide an 826 MH / sec hash rate of 80 watts. This development allowed the first large bitcoin mining farms to build.

ASICS

Special-purpose integrated circuits (ISICs) are microprocessors designed and manufactured solely to extract bitcoins at terribly high speeds. These circuits offer a 100-fold increase in hash power while reducing power consumption compared to all previous technologies. Some experts refer to ISIC as “bottom line” technology because there is nothing to replace it soon.

Because these processors were specially designed and built for this purpose. They can be extremely expensive and time-consuming, but the speeds are incomparable. Top-of-the-line processors like the AntMiner s9. They have advertised speeds of up to 14000000MH / sec, but these devices cost $ 1,265. Of course, there are more affordable processors for $ 50, but their advertised speeds are considerably lower.