7nm Energy-Efficient ASIC Chips to be released by Bitmain
By Jamie Green – Crypto Broker
The giant Chinese computer chip manufacturer, Bitmain Technologies Limited, is to release a new energy-efficient 7 Nano Meter (nm) ASIC chip called the BM1397. The chip is slated to achieve new levels of performance combined with energy efficiency and a small chip area. The chips are specific for cryptocurrencies that use the SHA256 hashing algorithm using Proof-of-Work (PoW) to validate its network.
Many individuals are involved with crypto mining to validate the network and gain a reward for donating processing power. These users could then sell Bitcoin or the mined crypto back to the market for profit and to pay for expenses. As the network’s difficulty increases, it becomes longer to complete the equation and more power is needed achieve the same reward. This makes the older chips obsolete as they cannot compete with the power of new ones.
Another major issue with cryptocurrency mining is the cost implications. The network requires a lot of energy for a PoW algorithm that questions its profitability. If the money generated from selling crypto that is mined is less than the energy costs to power the device, then it’s not profitable to continue. This new chip from Bitmain requires much lower power and can achieve an energy consumption to computing rate of 30J/TH. Compared to the previous 7nm chip this is an increase of 28.6% in energy efficiency.
Though there are many ways to profit from cryptocurrency mining, some will yield better results than others. The SHA256 algorithm is very energy intensive which increases costs and reduces profit when cashing out crypto from mining. Other projects are adopting other algorithms that aren’t so labour and energy intensive such as Proof-of-Stake (PoS) or Proof-of-Burn (PoB).
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