Requirement and Guide to build a Bitcoin and Altcoin Mining farm.
For you to actually delve into something, it’s much necessary to have an idea of what you are doing. No one just goes into mining without giving thoughts about how bitcoin mining works. We could start building a mining farm and start generating bitcoin of our own.
Mining: Adding a block to a series of block chain network achieved through complex mathematical problem produces a solution with a reward of. The absolute reward for solving a block chain is 12.5btc.
First of note, the sole purpose of setting up a mining farm is to create new bitcoin which is important to be stored and sold for profit. In creating a mining farm, one of the many things to consider is the hashrate(hashpower) which determines the level of our profit in mining. It’s a direct equation; the higher the hashrate, the higher the profit. Bitcoin needs higher hashrate to solve a block problem because producing a block is a very difficult task to do and only the greatest level of hashes can solve such problem.
Hashrate is subdivided into three(3) namely;
- megahashes: this is used in solving simple mathematical problems. I t is used to do simple calculations on a PC. Megahashes are the smallest unit of hashes.
- gigahashes: this is a bit higher than megahash. It has the potential to solve little complex mathematical problems than megahashes. Graphic cards possess this kind of hash.
- terahashes: this is the biggest type of hash than the former 2 used in solving more complex mathematical problems. This is very recommendable for people going into building bitcoin mining farm.
Convincingly, we have seen the type of hashrate that suits our purpose.
Basic Requirements For Mining Farms:
Basic requirements in building a mining farm includes;
- Hardware: this is the basic requirement for building a farm. They are hashrate carriers and can be divided into 4 namely;
GPU(Graphic Processing Unit)- are designed to solve complex mathematical problems required to display pictures particularly in video games.
CPU(Central Processing Unit)- contain hashes required to solve simple mathematical problems
FPGA(Field Programmable Gate Array)- an integrated circuit designed to be configured after being built.
ASIC(Application Specific Integrated Circuits)- designed to mine specific cryptocurrency with only low power consumption.
- Software: the software to be run depends on the equipment(hardware) used. You may use a host computer when using FPGAs and GPUs. The host computer can be used to run 2 things; mining software operation (which is our major purpose here) and standard bitcoin clients.
- Electricity: it’s a major factor in which you need to build a mining farm. It’s not necessary you are online 24/7 but you must avoid disconnection at a maximum of 3times in a day. Anything more than that jeopardizes your chance of earning what you are to earn.
- Mining pool: it involves group of miners coming together to join their hardware in order to win a block reward quickly rather than only one pool owner. The profit is shared based on the pool owner’s reward. It is a very good approach in building bitcoin mining farm.
- Secondary equipments: these are other equipments needed to facilitate the mining process such as air conditioner or cooling fan, PC, wall-sockets etc.