January 31, 2018 -- ADVFN Crypto NewsWire -- Technology giants
Samsung are said to be entering the cryptocurrency world in a move
that has positive ramifications for miners at large.
As reported earlier this week in Korean news
outlet The Bell, the South Korean conglomerate will produce
Application-Specific Integrated Circuits (ASIC) processing chips in
its own foundry in a deal with Taiwanese manufacturer TSMC.
Ironically, TSMC provides the ASIC chips used in Bitmain’s
Antminers, but it’s new partnership with Samsung could well provide
the first real competitor to Bitmain’s chip manufacturing
ventures.
Bitmain’s
stranglehold
Chinese mining giant Bitmain has long had a monopoly on the
mining community. Having developed ASIC chips, Bitmain quickly
turned the Bitcoin mining game on its head.
ASIC miners, which are highly efficient at solving the SHA256
algorithm used to confirm transactions on the Bitcoin blockchain,
outperform traditional GPUs - which muscled hobby miners and
their existing graphics cards out of the market.
With its own mining farms powered by its in-house, signature
ASIC Antminers, Bitmain has become somewhat of a black sheep
in the mining community due to its 29% global hashing power
dominance through its Antpool and BTC.com mining pools.
The big dogs enter
mining
Samsung’s foray into the cryptocurrency mining space has a
number of ramifications for the mining community. It signals the
arrival of a mainstream, global electronics conglomerate to the
cryptocurrency space. Samsung has established itself as one of the
top global producers of high quality electronics, and its looking
likely that its ASIC chips will be highly efficient and
powerful.
A number of mainstream tech firms may consider following suit -
given the massive demand for ASIC mining units worldwide. One only
needs to look at the demand for Bitmain’s flagship S9 Antminers.
Recent batches launched on its website have sold out within
minutes - highlighting the voracious appetite for quality ASIC
miners.
A household name like Samsung further legitimises cryptocurrency
mining as a viable business venture. While it will almost
certainly be a revenue booster for Samsung, the company shied away
from making any financial predictions on its new venture. The true
tester will be the mining community’s feedback once the new chips
are launched.
Reports suggest that mass production of the chips began in
January 2018, while Samsung are said to developing GPU mining chips
which will be focused on altcoin mining algorithms. This could be a
boon for Ethereum miners in particular, however further
announcements will be needed to provide clarity there.
Samsung are said to be producing chips for the Chinese market
first and foremost so it’s not clear when the rest of the world
will have access to Samsung-powered ASIC miners.
Author: Gareth Jenkinson