news material Bitcoin: Samsung has THE solution for greener mining
The South Korean Tech giant, Samsung Electronics is about to develop an ultra-efficient thin chip ready for mining. This new 3-nanometer chip would boost the performance of electronic components, including GPUs and CPUs needed for mining. An innovation that could significantly increase the yield of Bitcoin miners and reduce greenhouse gas emissions caused by the blockchain’s proof-of-work protocol.
Bitcoin proof-of-work mining
As you probably know, to mine bitcoin, you need computing power. This is due to the “proof-of-work” (pos) protocol which allows the validation of blocks on the blockchain. Concretely, to secure the network, the bitcoin blockchain puts a multitude of machines in competition and their computing power in order to solve an extremely difficult equation. Once this equation is solved, a BTC reward is given to the miners.
As a result, Bitcoin is very efficient but also very energy-intensive, and often considered one of the most polluting technologies. Although the network tends to use more and more renewable energy, its mode of operation is based on the exploitation of electricity, a bad point for a sustainable use.
Nevertheless, as innovations progress, electronic components come to mitigate the effects of the blockchain on the ecosystem.
Samsung and its new mining chip
Samsung is one of the largest semiconductor suppliers. The brand notably supplies Apple, Nvidia or even Intel in the design of their products.
Indeed, Samsung could well support cryptocurrency miners (POS) in their activity since the Korean multinational has initiated the production of chips with impressive performance with relatively low energy consumption. The new 3 nanometer electronic chip would offer 23% higher efficiency compared to the 5 nanometer chips of the older generation. Samsung also claims that these new 3nm chips will consume 45% less power compared to 5nm chips.
This new hardware introduced in future graphics cards or processors could make the most powerful mining machines on the market quickly obsolete, such as the ASICS Antminer S19X model and its 5nm chip from Bitmain.
The race for more and more powerful technology to mine Bitcoin
This announcement is intended to be reassuring for miners at a time when many are unplugging the machines given the decline in the cryptocurrency market.
In addition to the fall in prices, the rewards awarded to miners will be reduced by two during the halving 2024: the natural cycle of Bitcoin which takes place approximately every 4 years. For this reason, miners will need ever more computing power to be profitable in relation to hardware and energy consumed.
Hence the need for ever more efficient and less energy-consuming equipment.
Samsung is well aware that this chip should not last a while since, as you know, in addition to mining, games and software are always more energy-intensive. With this in mind, Samsung Electronics plans to develop new 2-nanometer electronic chips by 2025.
Although the news is encouraging for all users, the performance could lead to strong demand, and consequently, a shortage of stocks like the Nvidia Rtx 3000, despite gamers among others…