What is a good hash rate for bitcoin mining on a production farm

What is a good hash rate for bitcoin mining on a production farm

What is a good hash rate for bitcoin mining? To profitably work with bitcoin, and mine it on your farm, you need to know such a thing as hash. The most important thing is that there is a knowledge of writing a hash in cryptography. It can mean, depending on the context, two things: a hash function, or the result of performing such a function. If very simple, the hash function is an algorithm that accepts for input any data (file, text, picture, binary code) and generates from it a succession of letters and digits of a fixed length.

Table of content:

  • What is a Hash
  • How to generate many bitcoins
  • Economic expediency
  • Do it yourself write a hash for bitcoin
  • How the hash is connected with the crypto currency bitcoin
  • New model of the asic for bitcoin mining

What is a Hash

Hash – this is a special addition, which on any line gives out another, a fixed length. So, for example, the md5-hash of the word “hash” is computed:

  • $ echo ‘hash’ | md5sum
  • 6962fab449d4a713c8189dba4025d405

The selection of bitcoin-blocks

You can see the word “block” in the client program. A block is a data set that includes:

  • Hash of the previous block;
  • Some new transactions;
  • “Salt” (nonce) – a sequence of bits that can be freely changed.

And the main condition: the hash of the block must contain a specified number of zeros at the beginning. This is not done to complicate the task, but rather to simplify.

  • Of course, not every block will contain a specified number of zeros at the beginning of the hash. And since the modifiable part of the block is only one – it’s “salt” – we’ll go through all the possible variants of “salt” until we get the desired hash. According to the rules of the network, at the current moment for finding a new block, the client is given 25 bitcoins.

This is what is called “mining” – generation of bitcoins.

  • Diffuculty is another condition for finding a block. The diffuculty depends on a number, less than which should be a hash. Every 2016 block the diffuculty changes. This is necessary for the blocks to appear once every 10 minutes, not more often and not less often, despite the increasing or falling power of the network. If the capacity of the network grows – the diffuculty is revised and grows, if it falls – the diffuculty also falls.

How to generate many bitcoins

How long will it take?

  • First, run the client program and allow it to generate bitcoins. After a while, it will show you the speed of selection in hashes per second. Now enter this speed into the special calculator. Do not forget about the fact that you need to enter mega-hashes per second, that is, the entered unit means one million hashes per second. Counted?
  • If the calculator gave you an acceptable time for you, then I congratulate you – there is nothing to worry about. Just generate bitcoins as before. But most likely you just forgot to transfer kilohash in megahash.

Economic expediency

In general, the rate of bitcoin at each time point is roughly equal to the amount of electricity spent for its generation on a conventional processor. Who needs to buy bitcoins if they can be generated on their own?

There are three ways to make the generation of bitcoins economically feasible:

  • Use more efficient processors for calculations;
  • Generate in the hope that the rate will rise and the generation of bitcoins will pay off;
  • Use the idle time of computers and perceive bitcoins as small donations.
  • The first current miners learned well and began to generate bitcoins in graphics processors of graphics cards, and then on specially designed chips. Such “calculators” allow you to calculate hashes by orders of magnitude faster than the CPUs of the computer.
  • Generation of bitcoins can also be of purely speculative value. Suddenly tomorrow, for each will give a million dollars? In general, it is not necessary to generate them in this case – you can just buy it.
  • The third option seems to me the most reasonable. You use the idle power of your computer to maintain network stability, as a reward you get a bit of bitcoins. Generating this scheme will always bring profit, as the generation costs will be zero. Well, if they are higher, it is no longer “the use of idle capacities.”

Generates in this way that the same files always result in the same hash, and different ones – ideally, different (the case where two different input sequences give the same hashes is called a collision of a cryptographic function and is considered a vulnerability).

  • There are a lot of hash functions, and for each function there are many implementations. But all of them, strictly speaking, do the same thing: they make it possible to guarantee that several files are the same without having the files on their hands.
  • And now, in order to become even clearer, I will demonstrate in practice. Hit in Google “sha256 online” (this is the function we will use in all examples). Play with it, driving different data.

For example, a hash from the word TJournal:

  • 7db3a63e07638d7c795ee95210497048a7cc976f98f11ca8d5e2fc10b4dc374f

But from tjournal:

  • c3ea30a9f5a650ee53db452cf17209412abbcee72b264ebfb1c7fa49b57fd8c9

Enter the data yourself in any online calculator, and you will get exactly the same results as me: the same for the same lines, and different – for different.

Do it yourself write a hash for bitcoin

  • All. This knowledge is already enough to create a simple blockchain. It’s amazing, is not it? Block – a chain of cryptographically related blocks.
  • Let’s create the first “block”. It can be anything, but we already adhere to the analogy with bitcoin and transactions, so it will also record the monetary relationship.
  • The hash has nothing to count on, so everything. We save it with the name 1.txt in the special daddy (FYI: in the crypto currency block such block is called Genesis block, and yes, there it is also registered manually). Have you saved it?
  • We go to one of the previously sites (you can guess that the real blockchain does not go to any sites, but cause the functions preprogrammed in them, but for our simplest case we’ll do everything manually), and consider a hash for this file.

Important facts about mining

  • What is a good hash rate for bitcoin mining? In the blockchain of bitcoin as of June 27, 2017 there are 473011 blocks, which contain information on almost 250 million transactions. It’s a lot. 250 times more than the comments on TJ since its foundation. Today, the number of blocks exceeds these figures and continues to develop at the speed of a successful project.
  • On the rights of “do you know what?”: The bitcoin chain is really big, and there everything is not as rosy and smooth as some would like to imagine. For example, even in the middle of the chain, there are registered and hand-affixed blocks. It’s not that it compromises the instrument, but it’s also not right to hide the fact itself. So it goes.
  • And again to our sheep. You can create all the files yourself, or you can download my archive from 10 files and a control containing only the hash of the last “block” and nothing else.

The blockchain is ready?

  • Nearly. The body is ready. The most important thing is missing: the integrity check function, which would say everything is fine with it, or someone interferes with these files. We can also check manually.
  • Elementary. Go through all the files in sequence, find each hash and compare it with the value written in the next order in the order. If at least one does not converge, then the chain is damaged. But it is more convenient and reliable to do this with software tools.
  • Hash is written on the most popular in terms of penetration of the language in the world – the bash, which means that users of GNU / Linux, MacOS, Android (Termux environment) – will not have problems with the launch.
  • Windows users can be advised to install cygwin or Linux subsystem for windows, which appeared in Windows 10.

How the hash is connected with the cryptocurrency bitcoin

  • In our case, the hash-sum of the block must contain a certain number of zeros. The block consists of the previous block (hash sum), the hash of all the included transactions, and an accidentally sorted number.
  • If to speak in terms of understandable analogies, the ideas of the blockchain – electricity, bitcoin and other cryptocurrencies – a light bulb over your head. Bitcoin is just one of many ways to apply the ideas of the blockchain, and even, in my opinion, not the most important.
  • Much more interesting is its economic essence, and it is worth mentioning this in more detail. First, remember, analyze, or just take it for granted: today it is a speculative economic bubble.
  • This is a scarce commodity that is bought / produced / purchased primarily in the calculation of quick profits in the short term. This is not bad and not good, it is a familiar situation for any stock market, and in general for the economy.

New model of the asic for bitcoin mining

The Chinese manufacturer of ASIC-miners Bitmain has launched the sale of a new batch of Antminer S9. Payment is accepted only in Bitcoin Cash. At 12.00 Moscow time on December 19 the sale of a new batch of ASIC-miners from the world’s largest producer Bitmain started. The equipment is to be delivered at the end of February 2018.
ASIC-miner Antminer S9 has a processing power of 12.5 to 14TH / s. Consumes about 1300 watts. It is intended for mining of the crypto currency by SHA-256 – bitcoins and bitcoin cash. After carrying out monitoring without taking into account the needs and operation of the network, the revenue from bitcoins mining using Antminer S9 will be about $ 33 per day, the Bitcoin Cash production will bring the owner about $ 50 per day.
What is a good hash rate for bitcoin mining? Want a good hash, do it yourself, just get a good look at this. Or contact one of the companies that will help you with this case.