Bitcoin[note 5] is a payment system invented by Satoshi Nakamoto,[note 6] who published the invention in 2008 and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.:4 Transactions are verified by network nodes and recorded in a public distributed ledger called the block chain. The ledger uses its own unit of account, also called bitcoin.[note 7] The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency, although prior systems existed.[note 8] Bitcoin is more correctly described as the first decentralized digital currency. It is the largest of its kind in terms of total market value. Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. This activity is calledWhere do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn t have a central government. With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine. Bitcoin mining is the process of adding transaction records to Bitcoin s public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain aBitcoin is an innovative payment network and a new kind of money. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous paymentI mine for Bitcoin. I show what I run under the hood and what others who mine Bitcoin are up to. I m also on Twitter, follow @BitcoinMiner Got something to add? Feel free to submit a post of your own. Digital rendering of the still-on-the-drawing-board CoinTerra AIRE Miner. Bitcoin-mining hardware maker CoinTerra announced today that it was accepting pre-orders for their newest creation, the 16nm AIRE Miner. On paper, it looks like a promising entry in the mining wars: 4.5 TH/s at 1350 watts at the wall, or around 0.28 watts per gigahash. If true, that level of efficiency doesn’t sound like bad deal for a pre-order price of $2,500.
Shortly after the announcement, however, skeptics began pointing out some troubling elements of the CoinTerra’s announcement. The most striking concern is that CoinTerra told CoinDesk that their new SHIVA ASIC “delivers a five-fold increase in performance-per-watt,” something that sounds like a true breakthrough. Unfortunately, it also sounds a little tooMining is the process of adding transaction records to Bitcoin s public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere. Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function. The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction feesBelow are statistics about the Bitcoin Mining performance of ASIC hardware and only includes specialized equipment that has been shipped.
GPUs, CPUs and other hardware not specifically designed for Bitcoin mining can be found in the Non-specialized_hardware_comparison. Notes: Mhash/s = millions hashes per second (double sha256 raw speed performance; may not be very energy efficient with some models) Mhash/J = millions hashes per joule (energy efficiency; 1 joule of energy is 1 watt during 1 second: 1 J = 1 W*s) W = watt (maximum power consumption, i.e. energy per unit of time: 1 W = 1 J/s) Be sure to research any of these vendors and machines intensely before spending any money. Bitcoin double SHA256 ASIC mining hardware Product Advertised Mhash/s Mhash/J Mhash/s/$ Watts Price (USD) Currently shipping Comm ports Dev-friendly AntMiner S1 180,000 500 800 360 299 Discontinued Ethernet GPL infringement AntMiner S2 1,000,000 900 442 1100 2259 Discontinued Ethernet GPL infringement AntMinerAt first, miners used their central processing unit (CPU) to mine, but soon this wasn t fast enough and it bogged down the system resources of the host computer. Miners quickly moved on to using the graphical processing unit (GPU) in computer graphics cards because they were able to hash data 50 to 100 times faster and consumed much less power per unit of work. During the winter of 2011, a new industry sprang up with custom equipment that pushed the performance standards even higher. The first wave of these specialty bitcoin mining devices were easy to use Bitcoin miners were based on field-programmable gate array (FPGA) processors and attached to computers using a convenient USB connection. FPGA miners used much less power than CPU s or GPU s and made concentrated mining farms possible for the first time. Today s modern and best bitcoin mining hardware Application-specific integrated circuit (ASIC) miners have taken over completely. These ASIC machines mine at unprecedented speedsFirst Bitcoin mining pool in the world Operating since December 2010 Over 939,000 BTC mined since December 2010 Long history of stable and accurate.