ASIC SHA-256

A classic blockchain is a chain of data. Miners validate transactions and write them into blocks. The uniform rules by which validation takes place are called a hashing algorithm. Bitcoin and over a hundred other altcoins operate on SHA-256. In 2023, the complexity of the BTC network is so high that the asset can only be mined on asics. There are a large number of SHA-256 ASIC SHA-256 models available in the market. In the article we will tell you how to choose and configure a miner for effective work.

Features of ASIC SHA-256

This algorithm was created by experts from the US National Security Agency in 2002. SHA-256 is an improved version of the SHA-1 code, developed in 1995 for civilian purposes. The algorithm converts a block of data into an identifier (hash sum) consisting of 64 characters. SHA-256 has the following features:

• Resistance to hacker attacks.
• Difficulty of optimization. The value can be determined only by brute force method.
• Randomness of finding the correct value. However, the higher the power (speed of checking potential solutions), the higher the probability of finding the hash before other participants.
• Reverse decryption of data (by a known solution) is impossible.
• For each array of information (block) there is a unique hash value. The identifier changes completely even if a single character is deleted.

ASIC SHA-256 is an integrated circuit (chip) designed specifically for finding the hash sum. The advantage of the hardware is its high performance, allowing the task to be solved faster. SHA-256 ASICs have these features:

• Can be placed anywhere. The length of the miner – 35-50 cm, width – 15-20 cm, weight – 5-7 kg.
• You can mine coins only on the SHA-256 algorithm (Bitcoin, Bitcoin Cash, Namecoin, etc.).
• The latest models consume a lot of energy (3-5 kW).
• They cost from 100 thousand to 1.8 million rubles.
• Payback period – from 8 months to 2.5 years.

Technical parameters

The algorithm calculates the hash sum using the Merkle-Damgard method. Known data of the previous block are used to determine the code of the next block. The array is divided into 16 parts and shuffled 64 times. After that the algorithm outputs the hash sum, the value of which will be used to determine the code of the next block. The process is repeated.

The table contains the main technical features of the SHA-256 algorithm.

ASIC SHA-256 consists of 1-4 boards with chips, power supply and fans. The case has connectors for connecting other hardware. Asics are equipped with 5 or 7 nm chips (BM1387, BM1383). This provides high performance (10-250 TH/s) and energy efficiency.

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What cryptocurrencies are used for

Bitcoin hardforks and over a hundred other altcoins work on the SHA-256 algorithm. However, most of these projects are abandoned. Therefore, there is no point in mining them. You can keep the assets on any BTC wallet, but you will not be able to sell them. These coins are not traded on exchanges. In 2023, such assets are popular:

ASIC manufacturers working with the SHA-256 algorithm

The first miners for Bitcoin appeared in 2012. They showed results 20-30 times better compared to video cards and therefore enjoyed popularity. In 2023, the asic market is shared by such corporations:

• BITMAIN. The Chinese manufacturer has been producing mining equipment since 2013. The company specializes in different algorithms (SHA-256, Ethash, X11). BITMAIN manages the largest pools for Bitcoin mining Antpool and BTC.com. The company’s global market share exceeds 60% in 2023.
• Canaan. In 2023, the company produces equipment only for mining coins on the SHA-256 algorithm. Canaan’s market share is 25%.
• MicroBT. The Chinese company has been producing asics under the WhatsMiner brand since 2016. Engineers have focused on developing chips for SHA-256 and are constantly improving the technology. In 2022, MicroBT introduced a new model based on innovative 5nm chips.
• INNOSILICON. The company has offices in the US and China, makes asics for SHA-256, Ethash, Equihash, Scrypt, X11. The peculiarity of the products is a relatively low price with high power.

Popular models of SHA-256 asics

Bitcoin lost 77% of its value in 2022. The income of miners fell. Against the backdrop of high hosting and electricity costs, many market participants were forced to shut down and sell equipment at a discount of up to 80%.

Developers of asics also reduced prices and started offering new models with a discount of up to 70% off the November 2021 values. Large entrepreneurs with large reserves saw this as a good opportunity to increase computing power.

After Ethereum switched to the Proof-of-Stake (PoS) consensus algorithm, most miners switched to Bitcoin. By early 2023, the network complexity had increased by 65% since November 2021 (from 22.3 T to 37.5 T).

Outdated SHA-256 ASICs are no longer generating revenue, so data centers are refusing to host them. Popular models of BTC miners can be found in the table.

Advantages and disadvantages of SHA-256 asics

Integrated circuits show a high hash rate, sufficient for BTC mining. However, due to the growing complexity of the network, new models become obsolete quickly. Other advantages and disadvantages of ASICs on SHA-256 can be seen in the table.

Criteria for selecting a SHA-256 ASIC

Before investing in Bitcoin mining, you need to make a detailed business plan and take into account all costs. The main task of a miner is to break even. That is why many people strive to buy powerful equipment for minimal money.

However, do not take models from unknown manufacturers. They can be of poor quality. If the asic fails, there will be problems finding spare parts.

The performance is affected by such parameters:

• Power voltage
• Hashrate
• Processor frequency.

Cost

Price is the main parameter on which the payback of the equipment depends. Other things being equal, it is necessary to take the technique at the lowest price. The cost of an asic directly depends on the efficiency of mining. Experienced miners believe that it is not the price of the equipment that is more important, but its payback.

Used ASICs with low hash rate are sold cheaply, but you have to wait for a return on investment for more than one year. New models may be overpriced, but thanks to their high power, the investment will pay for itself in a few months.

Power consumption

This factor has a great impact on the profitability of mining. This is especially true for regions with expensive “sockets”. New models consume 3-5 kW on average. If possible, you should look for equipment with high energy efficiency (maximum hash rate per 1 kW of energy). This will make it possible to recoup the costs in a short time.

Hash rate

This parameter shows the performance of the asic. The higher it is, the more operations per second the SHA-256 miner can process. Developers are constantly developing technologies and release more advanced models. Some time after a new product goes on sale, the total power of the Bitcoin network increases – hence, the complexity of mining increases. The income of miners working on previous models falls.

During periods of high demand, users have to wait several weeks or months for the equipment to be delivered. Sometimes the equipment becomes obsolete in transit. This should be taken into account. It is better to take a model with a slightly lower hash rate and fast delivery.

Processor frequency

From this parameter depends on the hashing speed of the miner. The higher it is, the more efficient the asic will mine bitcoin. The clock frequency is measured in MHz. It shows the maximum number of pulses that can arrive at the input of the chip.

When overclocking, users strive for stable operation of the equipment with minimum power consumption and maximum frequency. You can control this parameter in the Advanced Settings tab in the manufacturer’s standard software.

How to configure an asic on SHA-256

Beginners can start earning cryptocurrency on one ASIC, and then buy equipment. For a tangible income, you need 6-8 asics. In early 2023, the price of such a farm will be 0.8-1.5 million rubles. Each device will need to be configured separately. The general algorithm is as follows:

1. Connect to the pool. It is necessary to choose a powerful service. They have a higher probability of finding a block. Users receive stable payments taking into account the connected power.
2. Optimize the parameters. Miners strive to increase the power of equipment before increasing the complexity of the blockchain. If after overclocking the equipment fails, it will not be accepted under warranty. Therefore, the operation should be carried out with caution.
3. Test for stability. You will need to launch the equipment and monitor its operation for 2-4 days. If problems are detected, you can roll back the parameters to default settings.

Connecting to a pool

In 2023, only large data centers can mine Bitcoin in solo mode. Users with low hash rate join pools. At the beginning of 2023, the greatest performance in Bitcoin mining is with such platforms:

• Foundry
• Antpool
• Binance Pool.

The pool is chosen with a minimum ping, a small commission and a convenient interface. To connect the asic you need to:

1. Create a BTC-wallet to withdraw profits and copy the address. Among the most reliable is the “heavy” interface of Bitcoin Core. Users download the full blockchain to a computer and access it directly. However, the storage takes up a lot of space on the hard disk (more than 350 GB) and takes a long time to synchronize.
2. Register on the pool’s website.
3. Copy the data for connection (URL ports) from myAlpari.
4. Determine the IP of the device. You can use the console or download the software specially designed for this purpose from the developer’s site (Advanced IP Scanner).
5. Enter the admin panel of the device and open the Mining stat tab.
6. Enter port addresses. It is better to fill in 3 fields, so the connection will be more stable.
7. Specify the wallet (for Binance Pool account ID on the exchange).
8. Save settings.

The pool will find the equipment within 10-25 minutes. You can track hashrate and mining statistics in the Workers tab. If the performance of the worker is zero, you need to check the connection of the miner.

Overclocking

Due to the ever-increasing complexity of the network, miners are forced to increase capacity. To do this, they buy additional machines or artificially increase the performance of existing ones. This way, the hash rate can be increased by 15-30%. Powerful equipment consumes more energy. Therefore, it is necessary to replace the power supply. In 2023, there are such ways to increase the speed of mining:

• With the help of standard developer software. Manufacturers do not recommend overclocking asics, so the option is hidden from users. To find it, you will need to go to the admin panel, right-click on the free space and click on the item “View code”. In the window that appears, you need to select the BOOST mode and click on TURBO.
• Through custom firmware. The software should be sought from the developers. They are freely distributed on forums and blogs. Some companies release their own builds and sell them on websites.

Developers post instructions on how to install the firmware. However, not always users can do everything correctly.

With unsuccessful overclocking, the ASIC can burn out. If there are no technical skills, there is an option to order optimization in service centers.

Firmware is able to reduce power consumption, increase the hash rate of the board and each chip separately. For example, the program reduces the frequency of damaged elements and increases it for better quality ones. In this way, it is possible to reduce power costs without loss in hashrate. This increases the speed of mining.

Factory reset

When custom firmware is unsuccessfully applied, users may encounter hardware malfunctions. In this case, you can roll back to the default settings. To do this, you need to:

1. Turn off the asic and wait 30-40 seconds. The fans will stop spinning.
2. Press the Reset button.
3. Turn on the equipment and wait 2-3 minutes.
4. Release the Reset button.

If everything is done correctly, the async will change IP. The new address can be determined through the Advanced IP Scanner program or another utility.

Conclusions

In 2023, miners are focused on bitcoin. After Ethereum’s transition to PoS, it is the most mined coin. In 2022, the complexity of the blockchain has increased by 65%, but this does not stop the enthusiasm of participants.

Integrated circuits are used for BTC mining. Manufacturers are improving the technology and producing more powerful machines. ASICs have pre-installed software, so mining is easy to set up and receive passive income. The main disadvantages are noise and vibrations. Powerful farms need to be installed in specially equipped rooms or data centers.

Frequently Asked Questions

📢 How to increase income from BTC mining without overclocking?

Many pools (Binance Pool) offer to activate the co-mining mode. In addition to BTC coins, participants will receive other cryptocurrencies on the SHA-256 algorithm (Namecoin, Syscoin).

✨ How to mine Bitcoin in solo mode?

You can deploy a server yourself or use a ready-made solution in a pool. In the second case, you need to pay a small commission (0.5-1%). It is important to take into account that mining in solo mode is profitable only with a hash rate of 100 EH/s.

📌 Is it profitable to mine altcoins on the SHA-256 algorithm?

Such assets bring lower returns compared to Bitcoin. They grow slower and can be excluded from the listings of exchanges. It is better to activate dual-mining – simultaneous mining of BTC and popular altcoins.

🔥 How to extend the life of an ASIC miner?

It is necessary to keep the equipment in a well ventilated room and if necessary put additional coolers. The equipment should not be allowed to heat up above 80 degrees. You should perform regular maintenance and clean the miner from dust.

⚡ What should I pay attention to when choosing mining equipment?

The main parameters are price and energy efficiency. The first one affects the payback period. The second shows how much electricity should be spent for each TH of power.

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