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What makes Samsung to build ASIC chips for Cryptocurrency Mining

What makes Samsung to build ASIC chips for Cryptocurrency Mining
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Written by Ben O’Hanlon

It is quite natural for any business to enter the growing sector, especially when it comes to just modification or altering few processes. This will apply to Samsung too, which is in the field of making chips. Therefore, its interest to take advantage of the rapidly growing cryptocurrency market is not surprising to any and fits well to expand its operations. The company indicated its intention of offering ASIC chips to not only mine bitcoin or ether but also assorted digital currencies. It would start supplying the chips to Halong Mining, a hardware manufacturer for miners.

Increasing Competition

Before its foray into the mining sector, Samsung was known to make high-capacity memory chips for GPUs. Incidentally, these GPUs, which were mainly meant for computer graphics operation, possessed the capabilities to mine digital currencies. However, its alliance with Halong would undoubtedly boost hectic competition in the ASIC industry. Currently, Bitmain, a Chinese firm, is dominating the chip-development sector until now. Therefore, intense competition for supremacy in the sector is in the cards.

Interestingly, both Bitmain and Samsung work closely with Taiwan-based semiconductor firm, Taiwan Semiconductor Manufacturing Company. The ongoing developments in the sector are also undoubtedly aiding the Taiwanese firm to lift its revenue to $400 million a quarter from $350 million. The latest news is not a new one since it has been in the air that the Korean firm has been working with a Chinese mining firm.

Rumors Turn To Reality

On April 10, rumors had become a reality when MyRig, an online mining rig firm, posted its twitter page picture about the semiconductor material that is called as a ‘wafer.’ The company disclosed it was used for fabricating integrated circuits and manufactured by Samsung. However, Halong mining has kept quiet in respect of its new alliance despite Dragonmint T1, which is its first miner, is ready to be acquired, bitcoinmagazine.com reported.

Significantly, reports suggested the item has the potentials to be the most efficient miners in the world. That would mean that it would top Antminer S9, which is from the Bitmain staple, as far as performance is concerned. In March, another report gave enough indication of Halong software being involved in improving the overall efficiency of a mining network. This was regarded as an update and called as “AsicBoost” that was created in 2016 itself by Timo Hanke, a former CTO of CoinTerra.

Shortcuts For New Blocks

Halong has a membership with Blockchain Defensive Patent License (BDPL). As a result, the technology is available equally to the members of mining firms resulting in exploring a part of Bitcoin’s proof-of-work algorithm. This enables miner to resort to shortcuts for finding new blocks. However, only Halong Mining is the only firm in using the AsicBoost variant despite its availability to others.

As far as Samsung, the company has already worked with Ebang to develop DW1228 chips for mining machines of bitcoin. These chips were estimated to lift the hash rate to 18TH/S. Reports suggested that these machines were launched in early February first and that units were sold immediately.

About the author

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Ben O’Hanlon

As a writer, journalist, teacher and consultant, Ben has experienced lots of things. He believes in the idea that words can change the world. He currently resides in Ireland. He loves his family and says the thing that comes next to the family for him is his passion for writing.