What is ASIC
At a time when cryptocurrencies had just appeared and were still a little-known and completely unpopular asset, mining was exclusively done by geeks in order to maintain and develop the idea of cryptocurrencies and worked to ensure the network was operational. At that time, digital currencies were mined mainly on GPUs.
Now, when the popularity of cryptocurrencies began to roll over, mining has turned from a ‘hobby for computer geniuses’ into a very profitable business. It was then that the question arose of developing innovative equipment that would bring mining to a new level – industrial mining. So in China, a device based on microchips for mining Bitcoin was invented – the first asic miner.
ASIC (‘Application Specific Integrated Circuit’ – translated from English as ‘special purpose integrated circuit’) is a microcircuit configured to perform one specific type of work – to decrypt the algorithms on which the cryptocurrency blockchain operates; This is what allows her to do it much faster and better than her multitasking counterparts.
It is worth recalling that each digital currency operates on the basis of one or another algorithm. Accordingly, asics for mining are developed specifically for a certain algorithm.
Currently, there are ASICs for mining cryptocurrencies based on the following algorithms:
- SHA-256 (Bitcoin, Bitcoin Cash, Syscoin, Peercoin, Namecoin, etc.);
- X11 (currencies Dash, Pura, etc.);
- Ethash (currencies Ethereum, Ethereum Classic, Metaverse ETP, Ubiq, etc.);
- Scrypt (currencies Litecoin, Dogecoin, B3Coin, Bitdeal, etc.);
- Equihash (Zcash, Komodo, etc.);
- Blake (2b) (Decred, Siacoin).
For some algorithms, there is no need to buy expensive asics. They may well be replaced by cloud mining with a yield of up to 300% per annum. So, IQ Mining offers contracts for 1, 2, 5 years and perpetual for the extraction of coins based on the SHA-256, Ethash and Euihash algorithms. Contract prices start at $ 17 per year.
From a technical point of view, an ASIC miner is a block in which there are:
- Boards (chips);
- A memory block that provides software operation of the ASIC miner;
- Connectors for connecting external devices;
- Case and connecting elements.
ASIC mining is a much less energy-consuming process than mining on video cards; accordingly, the question of which is better – asics or video cards is not relevant. To catch up with ASIC in performance (which is affected by the asic quality of your video card), you will need to build a whole farm of dozens of GPUs, but the farm will not reach the ASIC level in terms of energy consumption.
The first ASICs were incredibly compact and connected to the system via usb. Of course, today such devices have already lost their relevance, as they have become unprofitable. The modern generation of ASIC miners is already more impressive in size and they are divided into 2 types depending on the dimensions of the device, its power, as well as energy consumption:
Home ASICs are more compact, work almost silently, equipped with a power supply up to 600 W, while their professional counterparts are much more bulky and noisy, but they are much more powerful and energy efficient. Well, they also differ significantly in price.
The most popular ASIC models
Currently, the most popular and reliable manufacturers of ASICs are such companies:
- Ebang Communication
- Halong mining.
Payback ASIC Miners
One of the most important issues in the context of the profitability of the mining business is how quickly ASICs pay off. The payback of an ASIC miner is the time after which the ASIC you purchased compensates for the costs of its acquisition (that is, your initial investment). It is then that the mining of digital currencies will begin to bring you the long-awaited profit.
It is logical that the payback of different devices will be different, because it depends on the following parameters:
- Miner hashrate;
- Miner cost;
- Correct equipment settings;
- Digital currency you mine.
At present, it is extremely simple to calculate the payback of your chosen ASIC. The most common mining profitability calculator will come to your aid. You just need to select the cryptocurrency that you are going to mine (the complexity of the network and the cryptocurrency rate affect the payback period of the equipment), indicate the cost of the equipment, your mining costs (electricity tariff), and after a couple of seconds you will find out how long your miner Will pay off.
Asics usually pay off for about two years. You should not expect a return on investment earlier than in 10-14 months. In addition, if the complexity of production increases, therefore, the payback period will increase to 20 months.
If you want to start mining, but do not want to invest in expensive equipment and for many months wait for the first profit, try cloud mining. With it, you can rent capacities without buying them, so you will save a tangible amount of money, and you will start earning money from the first day.
How to build an ASIC miner with your own hands
Asik’s price bites and not everyone is ready to invest such a large amount of money in their business at the initial stage. If you want to save money, and at the same time tinker with iron, there is another option – a homemade asic miner. But how to make asic yourself? Of course, for this you must have an accurate idea of what kind of unit it is and how it is designed. An ASIC miner typically consists of the following elements:
- ASIC boards, which are located in special grooves parallel to each other, and on which microcircuits are placed. One miner usually has several boards.
- Memory block, which is a very important component of the miner, which is responsible for ensuring the full operation of the miner.
- Power supply unit, which converts alternating current into direct current, which guarantees the stability of its supply. The miner itself works on AC power, but the microcircuit is powered by a constant voltage.
- Fans, which also play an important role in ensuring the smooth operation of the device, because they are responsible for the timely removal of heat (the mining process is accompanied by the release of a large amount of heat) and thereby protect the device from overheating. It is very important to use a reliable cooler in your home-made miner, and it’s even better to install several fans. Also, as a rule, heat sinks are installed on each of the boards.
- Connectors for communication with external devices. You must understand that the miner will need to be connected to other devices and provide the necessary outputs for this.
- Corps. Of course, the fruit of your efforts must be placed in some kind of enclosure. In the latest models, manufacturers use an aluminum casing, as this improves heat transfer. You can use both an aluminum box, and the case from any other thin-walled metal. It is very important to ensure the effective removal of hot air (holes should be provided in the housing).
Before you start assembling ASIC for mining, you need to draw a diagram, purchase all the necessary equipment, as well as determine the size of the device. If you are going to install a miner at home, then it would not hurt to make it as compact as possible, as well as take care of noise isolation (use a special box). In addition, you definitely need to calculate the profitability of your homemade asic, because your creation may well prove to be ineffective.
In general, you can only build asic yourself if you know something about it. For beginners, it is better to start with cloud mining and rent a device remotely.
Which ASIC to buy
If you, soberly assessing your capabilities, realized that you can’t assemble a miner yourself, you can always buy a finished product. However, the choice of the unit also needs to be approached wisely. To begin with, you should decide which algorithm you will work with and then specifically get acquainted with the miners who decrypt this particular algorithm. When choosing an ASIC, you should pay attention to the following device parameters:
- A hash rate is a key indicator that determines how many coins you manage to mine and for how much time. The higher the hashrate, the faster your ASIC will iterate over the necessary values for signing the block, the faster it will be able to get coins, the shorter the payback period of your miner and the more profit you can get in the future. Older miner models cannot boast of a good hashrate (for example, the Avalon Asic, Asic Neptune, Asic S7 hashrate is much less than 10 TH / s, which means that buying such a miner will be unprofitable for you). More current or the latest models give a much more impressive hash (for example, the Bitfury Asic B8 hash is as much as 49 TH / s, Asic miner x11 – about 32 TH / s), but the energy consumption of such miners is quite high. Accordingly, it is better to look at miners with an average hash rate (for example, Asik D3, Asik M3).
- Microprocessor frequency. This parameter also plays an important role, because it is the frequency of the processor that determines the level of hashrate. The speed of your unit and how many operations an ASIC can perform per second depends on how fast the ASIC processor works. The hash rate and microprocessor frequency are not the same thing. When choosing a miner, be sure to pay attention to this parameter. The higher the frequency, the better.
- Power usage. The payback period of your miner, as well as the size of your future profit, also depends on this indicator. The higher the energy consumption of your car, the more you will spend on paying electricity bills. Here, unfortunately, there is a double-edged sword: the more powerful your equipment and the higher its hashrate, the more it will consume electricity. You need to choose an option that will have the highest hashrate with the lowest possible energy consumption.
- Price. Probably the most important question is how much is ASIC. The second important question is where to buy asic. The higher the hashrate, the higher the processor performance, the lower the power consumption, the more expensive the ASIC will cost you. Often the price of equipment is also affected by the ratio of supply and demand in the market.
How to connect asic miner
Connecting and configuring ASICs is a fairly simple process. Of course, instructions are attached to each device, where each step is detailed, however, in principle, all ASICs are installed in approximately the same way, although some manufacturers or models have their own characteristics.
Installation of asic miner is carried out as follows:
- First, connect the ASIC power supply. To do this, you need to connect the connectors from the power supply to the device case (you will hear a characteristic click), and one of the connectors to the system control panel. As a rule, the outputs are the same and the connection sequence is not important.
- Then connect the network cable to the router.
- Carry out a test run. If you connected everything correctly, the network connection indicators will come on, the fans will start to run at low speeds.
- Determine the IP address of your miner. To control the equipment you need to find out what IP address was assigned to your ASIC. You can resort to the help of various utilities or go through the browser to the main page of the router and find the appropriate settings.
- Then go to the miner’s web interface for management, where you can select the settings you are interested in, namely: specify the mining pool, adjust the microprocessor frequency, power, upgrade firmware, etc.
- Further, you need to save the settings, after which your ASIC will reboot and then it will be ready to work. You can check the status on a special tab where the main processes are displayed, and you can check the cryptocurrency mining statistics in the account of your mining pool.
Please note that you must ensure that your miner has the appropriate temperature regime, because in case of overheating, the protective mechanism will work and your device will turn off.
These recommendations are quite general, so you should still carefully read the instructions and only then proceed to configure your ASIC. If you do not speak foreign languages (the instruction will not necessarily be translated into Russian), then you should look for a high-quality overview of the model of miner you are interested in on the network.
Despite the ever-increasing complexity of the network and fierce competition in this industry, the mining business is currently very popular among professionals, as well as among beginners or amateurs. In this article, we talked about the notorious asic mining, learned what it is, and also discussed the most popular models of miners, learned how to build asic yourself or how to choose the ideal model for yourself.
In general, a mining business can bring you very good profit if you approach this issue wisely and correctly organize the process. In our country, such a business is quite promising, because the electricity tariffs are quite low, which allows to minimize mining costs. Such services are also offered by remote data centers on favorable terms. We hope that this article has helped you understand this issue.