The mining farms and the bitcoin rush
The history of the 19th century in the United States of America is marked, to some extent, by the “Gold Rush”. Not everything that happens in life is harmful, there are times when internal migrations in a country catalyze the conquest and development of new territory. Thanks to the gold rush and improvements in transport routes, thousands of people migrated to the west conquering it, emerging emporiums of national development that we know today in the west of our country.
Nearly a century of mining farms in search of gold
Since 1850, immense gold deposits have been discovered in the west of the country. Among the factors that encouraged the adventurous spirit of these people, some were based on a better quality of life and the possibility of making a fortune. Transportation networks facilitated the development of towns and cities. The strengthening of the media, the social dissatisfaction of both locals and immigrants which in traditional cities did not find possibilities for a better quality of life, and the existence of a commercial standard based on gold, set a record.
There were hundreds and hundreds of families who moved west in search of a better quality of life, giving rise to the mining settlements. These were groups of workers who spent whole days plowing the land to get a vein that would allow them to enrich themselves overnight.
History repeats itself: the fever is now for Bitcoin
By 2008, the world is entering a global economic crisis, where several global currencies and economies are reeling. Among them, the North American one staggered before a devaluation of the dollar, but the policy of financial quantitative easing arises and millions of dollars are issued, a strategy that did not have good effects on the financial world.
Faced with this perspective and looking for new ways that will require to counteract the effects of the economic crisis, as well as to look for alternatives to blockades or unhealthy games by the global financial centers, a new proposal, based on the digital world, arises. This is how in 2008, Satoshi Nakamoto, a Japanese technologist, published an article about the Bitcoin and the software that supported the production of cryptocurrencies, giving rise to the new world financial model, based on blockchain technology.
This proposal for a decentralized currency, free from any financial system known up to now, gave rise to a new “fever for cryptocurrencies”, among them, and the main one, Bitcoin. This global economic phenomenon led to the resurgence of mining farms, who, infected by the Bitcoin fever, set up technology centers to generate digital wealth.
What are mining farms?
For many specialists and for those who are not so, mining farms are technological centers, appropriately equipped with hardware and software equipment that allow mining bitcoins and other cryptocurrencies, which are nothing more than mathematical algorithms that allow to conquer and reproduce in digital currencies.
In other words, mining farms are large rooms with climatic conditions and electricity supply, where there are a large number of computers and servers, organized in a functional architecture responsible for mining 24 hours a day, seven days a week.
Just as there are large national command centers, there are home versions, but they require the same cooling, ventilation and constant electrical supply conditions so that computers are not affected. Logically, this type of homemade mining is not going to have the scope of large farms.
How to build a mining farm
Building a mining farm requires hardware and software robust enough to handle 24/7 work. There are many criteria for equipment, such as computers, cards, servers, air conditioning equipment, among others, that are required to achieve a functional architecture. Therefore, this structure can vary, the important thing is that it is robust and versatile enough so that it can grow and keep working efficiently. Let’s see each of the equipments that will make up your farm:
- CPU: it is recommended that you have a large number of computers. The number of computers to be used for mining will be related to the objective you set for yourself in the short, medium or long term.
- GPU: (4 to 6 units) these are the video cards that come with computers, and their mission will be to increase the power of the equipment, allowing a greater number of more – SSD disk: that allows stability and speed in the operation of computers.
- Mining software: depending on the currency you are going to mine, it will depend on the acquisition or development of special programs to interact with the cryptocurrency network.
- Power sources: due to the amount of equipment connected every day, as a farm never stops, it is best to acquire a power source between 600 and 2,000 watts, with a reserve of between 30% of the total consumption of the farm. architecture.
- Riser tubes: generally one for every three video cards is recommended.
- Operating Memory: from 4 GB.
- USB WatchDog.
- Screen emulator.
- Workspace: it is a physical space whose size must correspond to the number of computers to be installed. In this space, some racks must be assembled where you place the computers with enough space between them. You must verify the supply and electrical stability, that the power sources are operational and correspond to the number of computers. And, above all, they must have one or two air conditioning units that guarantee good air conditioning so that the computers do not overheat.
- Internet service: Logically, you must have a stable Internet service configured to handle a sufficient bandwidth with the data capacity that you are going to mine.
Types of farms:
As in any structure of nature, and more so in human activities, there are going to be two large categories of farms: basic and advanced. Let’s see what condition characterizes each one.
- Basic farms: these are those computer architectures that work with a basic equipment like the one indicated above in this article. Generally, this structure is associated with the first cryptocurrencies that circulated around the world. Its main characteristic is that its electricity consumption is lower than the more advanced ones and, therefore, the investment is lower in the long term. These structures respond to the first cryptocurrencies such as Bitcoin, Dash, Litecoin, which work with ASIC equipment, and the software used is mostly developed by the manufacturer.
- Advanced farms: these are related to working with a much more complex encryption structure and, therefore, a greater effort to solve the algorithms. In this type of farms, the GPU and the acquisition of much more advanced software are required according to the currency to be mined. The cryptocurrencies that these mines work with are Ethereum, Zcash, among others. As you can deduce, this type of farm has a higher consumption of electrical energy, therefore it requires a robust connection for the electrical supply, as well as powerful air conditioning equipment.
If you like the world of cryptocurrencies and want to venture into it, count on Péndulo Software to help you build your mining farm. You just have to call us at the phone number +1-206-741-1041, by email: email@example.com, on Instagram: @pendulosoftware or at Twitter: @pendulosoft and we will gladly guide you.