It’s somewhat surprising that cryptocurrency and blockchain developments have not slowed, despite the presence of a bear market that’s lasted most of 2018. The area of mining in particular has had recent developments that should give a reason for excitement in the crypto community – the 7nm Bitmain chip!
Bitmain announced on Friday that it plans to release a new mining chip, using 7nm Semiconductor Manufacturing to improve efficiency. Bitmain CEO and co-founder Jihan Wu described the new chip as “Bitmain’s next-generation ASIC chip BM1391 for mining cryptocurrencies using the SHA256 algorithm”.
The new Bitmain chip “uses one of the world’s most advanced semiconductor manufacturing technologies, 7nm Finfet. The ASIC chip integrates more than a billion transistors and is optimized for maximum efficiency. Thanks to its unique circuit structure and low power technology, it is stable and more efficient”. Bitmain plans to incorporate its BM1391 chip into several of its new mining machines.
Great Market Timing
Bitmain’s mining technology developments come at an opportune time when the mainstream public has expressed significant concerns regarding the electricity needed to run the blockchain and its lack of efficiency.
Over the course of the last year, some speculate that Bitcoin mining could “consume all of the world’s energy by 2020”. Other sources explain that an Antminer uses the same amount of electricity needed to run a flat-screen TV and two refrigerators.
Great Timing For Bitmain
The new chip also comes at a great time for Bitmain, as they look toward their Initial Public Offering (IPO), which could gather as much as $18 billion.
Proof-of-Work (PoW) technology relies on miners to power the blockchain and has benefits over Proof-of-Stake (PoS), including greater decentralization. Miners for PoW do not need to own particular coins in order to mine, as is the case for PoS, which relies on coin ownership. One main knock against PoW, however, is its lack of efficiency and power requirements. Ideally, PoW mining technology would improve to run more efficiently. Bitmain’s new ASIC miner looks to be a step in the right direction.