Bitcoin, Cryptocurrency And Blockchain News

New Ethereum ASIC-Based Miner Could Lead to Concentration of Mining Power, With Bitmain Taking the Lead

Bitmain now vying for greater control and profit share in the cryptocurrency mining space


New Ethereum ASIC-Based Miner

Cryptocurrency miners are set to adopt a new cheaper and more efficient ASIC-based hardware which could lead to concentration in the cryptocurrency mining industry. Bitmain could easily take the lead in this regard. The company, best known as the world’s foremost producer of ASIC Bitcoin mining hardware, is now vying for greater control and profit share in the cryptocurrency mining industry.

The Concentration of Power in the Ether Mining Space

The company, along with other large miners, is set to adopt new Ethereum ASIC-based mining hardware. The move to this new mining hardware is expected to lend the adopter disproportionate power in terms of confirming transactions. The new hardware is expected to be a lot cheaper and speedier. It should be available by July and is priced at $800 by Bitmain. In comparison, the GPU-based machine costs about $4000. Looking at the hash rate, the new ASIC miner can deliver a hash rate of 180 megahashes / second against the 220 meghashes / second delivered by the GPU-based machine at one-fifth the cost.

And as we know, the faster the hardware, the more miners earn.

Ether Mining Power to Rise Exponentially

Application specific integrated circuits, or ASICs, are chips that are designed with a singular purpose. Each cryptocurrency has its own cryptographic hash algorithm and ASIC miners are designed to mine using that specific algorithm. Thus, the new ASIC miner is set to overhaul the Ethereum mining space as computing power is expected to rise exponentially. The new ASIC hardware can be viewed as a threat to the traditional GPU-based mining process. Currently, ASIC miners are already being used to mine Bitcoin, Litecoin, Dash, Zcash, and Ethereum.

Image Credit: Deposit Photos