Crypto mining is the process of verifying transactions on a blockchain network and adding new blocks to the chain. This process requires specialized computer hardware and consumes a significant amount of energy. The origin of crypto mining can be traced back to the creation of the first blockchain, Bitcoin, in 2009. Satoshi Nakamoto, the pseudonym of the creator(s) of Bitcoin, created a system in which miners added new transactions to the blockchain network by solving complex mathematical equations.
In the early days of Bitcoin, mining could be done with basic computer hardware, but as the network grew, more specialized hardware was required. The first specialized hardware used for mining was the Central Processing Unit (CPU) in a personal computer. However, soon after, miners discovered that Graphics Processing Units (GPUs) were more efficient for mining.
By 2011, companies began producing specialized hardware designed specifically for mining, called Application-Specific Integrated Circuit (ASIC) miners. These miners were custom-built to perform the complex mathematical calculations required for mining cryptocurrencies at a faster rate and lower energy consumption than CPU or GPUs. The creation of ASIC miners made it possible for miners to achieve greater profits by mining cryptocurrency.
As new blockchain networks were created, such as Litecoin (2011) and Ethereum (2015), the mining process evolved to suit their specific requirements. Litecoin’s scrypt algorithm was designed to make mining more accessible to the average user, as ASIC miners were not as efficient for mining Litecoin as they were for Bitcoin. Ethereum, on the other hand, introduced the concept of smart contracts, which opened up new use cases for blockchain technology and required more powerful hardware for mining.
The increasing popularity of Bitcoin and other cryptocurrencies has led to a rise in mining operations around the world. Countries like China, Russia, and the United States have become hotspots for mining due to their cheap electricity and favorable regulations. However, mining has also been criticized for its high energy consumption and negative impact on the environment.
In response to these concerns, some blockchain networks have introduced new consensus mechanisms that require less energy for mining. For example, the Proof-of-Stake (PoS) mechanism used by networks like Cardano and Ethereum 2.0 allows users to validate transactions and add new blocks to the blockchain without needing to solve complex mathematical equations. Instead, users can “stake” their cryptocurrency holdings as collateral to validate transactions and earn rewards.
As the mining process has evolved, so has the profitability of mining. In the early days of Bitcoin, mining could be done with a standard personal computer, and the rewards for adding new blocks to the blockchain were around 50 BTC. However, as more people began mining, and the network became more difficult to mine, the rewards were reduced. Today, the reward for adding a new block to the Bitcoin blockchain is 6.25 BTC, and the difficulty of mining Bitcoin has increased to a level where most individual miners cannot profitably mine Bitcoin with standard hardware.
To remain profitable, many miners have joined mining pools, which allows them to combine their computing power to mine blocks together and share the rewards. Mining pools often require members to pay a fee, typically a percentage of the rewards earned.
Overall, the development of crypto mining has been driven by the evolution of blockchain technology and the increasing popularity of cryptocurrencies. As new blockchain networks are created, the mining process continues to evolve, and miners must adapt to remain profitable. While mining has been criticized for its high energy consumption, new consensus mechanisms and advances in hardware technology may eventually reduce the environmental impact of mining.
ViaBTC, one of the top players in the crypto mining industry, is celebrating its 7th anniversary. The company has come a long way since its inception in 2016, when its founder, Haipo Yang, recognized the immaturity of the technologies and products in the mining industry and set out to create a more stable and efficient mining pool. The result was the ViaBTC Pool, which officially went live on June 5, 2016.
The early days of Bitcoin mining involved using CPUs installed on personal computers, but as the network grew, so did its processing demands, leading to the need for more powerful mining hardware. In 2010, Laszlo Hanyecz introduced GPU mining code, and in 2011, the code for FPGA mining machines was shared on GitHub. By 2012, the mainstream BTC mining machine had evolved to ASIC models, which replaced CPUs, GPUs, and FPGA devices, leading to a significant increase in Bitcoin hashrate.
As Bitcoin’s hashrate continued to increase, solo mining became increasingly challenging, leading to the creation of the first mining pool in 2010. ViaBTC stands as a top player in the mining industry with over one million users in over 130 countries and regions, covering 10+ cryptocurrencies, including BTC and LTC.
Technology remains a top priority for ViaBTC. The pool has optimized the broadcasting and transmitting process of the BTC network through its independently developed BTC clients, resulting in a lower orphan rate and ensuring stable mining revenue. To date, ViaBTC remains the mining pool with the lowest orphan rate.
Over the years, ViaBTC has continually introduced new functions and tools to enhance its mining services and provide users with faster and more stable computing power. These include the Transaction Accelerator, Auto Conversion, Smart Mining, Hedging Service, Crypto Loans, and Hashrate Fluctuation Notification.
Shortly after its launch, ViaBTC introduced the PPS+ payment method, which guarantees stable mining revenue while sharing miner fees. This innovative payment method allowed ViaBTC miners to earn more coins than their counterparts in other pools, and it was soon adopted by mainstream pools.
ViaBTC’s success is a testament to the company’s commitment to innovation and technological advancement in the mining industry. By creating a stable and efficient mining pool, the company aims to provide its users with the tools and functions they need to mine cryptocurrencies with ease and confidence.
As the mining industry continues to evolve, ViaBTC remains at the forefront, providing cutting-edge technology and services to its users. With industry-leading hashrates and a multi-billion dollar mining output value, ViaBTC is one of the top players in the crypto industry and one of the few companies to celebrate its seventh anniversary.