Mining Methodology for ASIC (2019.9.14)

An ASIC miner is a purpose built electronic machine that can mine cryptocurrencies. 

In simple terms, an ASIC miner is a highly specialized computer, but one only capable of crypto mining. 

ASIC stands for an Application Specific Integrated Circuit and this technology has been implemented in industries such as telecommunication and data processing for a long time. 

For cryptocurrency mining however, ASIC machines are designed to mine a specific crypto algorithm like nothing else. 

This is done by integrating a motherboard, power supply, ASIC chips and cooling fans into a case roughly the size of a shoe box. 

It’s far more than a collection of specialized components however, with modern day ASIC miners being designed and developed right down to the individual electronic circuit chips, to ensure superior hash rates and lower energy consumption. 

Each cryptocurrency has its own mining algorithm with a specific cryptographic rule set within the algorithm. 

ASIC miners are designed and built to mine on these individual algorithms by using ASIC chips to execute the mathematical equations attached to these algorithms. 

However, as ASIC miners are incredibly specialized, they can only mine crypto tokens running on the algorithms that the ASIC miner was designed for. 

A Litecoin miner could for instance not mine Bitcoin. 

As popular cryptocurrencies such as Bitcoin, Litecoin, Ethereum and Dash all have such high network hash rates, almost every miner, be it CPU, GPU or ASIC, bands together into mining pools to try and solve the mathematical equations faster. Despite this, faster hardware still means higher rewards, and this is why when investors can afford the initial outlay, ASIC miners are the favorite option as they provide the greatest earning potential in exchange for their investment. 

The major difference between ASIC miners and GPU mining rigs is that ASIC miners are specifically designed to mine a single mining algorithm whereas graphics cards can be reprogrammed to mine multiple different mining algorithms. 

ASIC miners are more efficient than GPU mining rigs however and use a lot less wattage for higher hash rates. 

This combination of less for more makes ASIC miners super-efficient when compared with graphic card cryptocurrency miners. 

This is also why coins such as Bitcoin, Litecoin and Dash are almost exclusively mined with ASIC miners, as GPU mining rigs just cannot compete for the same price. 

There are more and more ASIC miners being introduced every day and even Ethash, the Ethereum mining algorithm, is set to receive an ASIC miner. 

ASIC miners also differ in that they are completed pieces of equipment which require less maintenance and care than GPU mining rigs. 

GPU mining rigs also require assembly and design knowledge which make them unfeasible for some Bitcoin miners. 

For ASIC miners we highly recommend the Antminer series by Bitmain. 

Bitmain is the oldest ASIC miner manufacturer and have a ton of experience. 

They also have a wide range of ASIC miners and have a version to mine pretty much every major mining algorithm. 

Please note that there are multiple different ASIC miners available at different costs and which provide different outputs and potential buyers are strongly recommended to research all available options.1)      

1) Setting-up ASIC Miner

If you have decided to take the leap into ASIC mining, and you have found that the best way to make a real profit with a cryptocurrency you have selected is through using an ASIC miner rig. 

However, even though you might know how the basics of mining works, you do not really know anything about setting up these machines. 

It can seem quite complex, but it doesn’t have to be as daunting as many people make it out to be. 

The ASIC miners are specifically for Bitcoin, Litecoin, Ethereum and other multiple cryptocurrencies, as it can provide the benefit of power and speed when compared with CPU, GPU, and FPGA. While there may be some differences when it comes to setting up different brands and models of ASIC miners, you will find that the process tends to be quite similar from one to another.

Now, let’s take an example of AntMiner S9 ASIC miner to follow as a guide on how to setup an ASIC miner. 

The following mentioned steps could be followed to setup almost every ASIC miner. 

You can also follow the official guide available on their official websites for setting up of your ASIC miner through internet.

Fig: ​Antminer S9 – An ASIC Miner