German start-up has new energy saving chip for bitcoin mining

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minimalistic illustration of a monitor displaying bitcoin mining

For bitcoin miners, a German start-up’s revolutionary energy-saving hardware for mining cryptocurrencies is definitely good news! Typically, mining for coins involves resolving complex calculations, which use computer systems that have processors  called Application-Specific-Integrated Circuits. These are power-hungry hardware and guzzle large quantities of coolants, making the entire process of mining bitcoins into an energy-consuming affair.

Dresden-based ASICrising, soon to be named, CoinBau AG, have successfully built a solution for the over-heating issue, during routine bitcoin mining sessions. It has built a chip called ‘Wolfblood Extreme Efficiency,’ which uses energy under the most effective algorithms and works on low-voltage parameters;  the chip will run a software platform that will reudce energy consumption by half.

This will lead to an increase in the rate of bitcoin mining, the company’s Chief Executive Sebastin Krause noted.

According to WSJ report, the chip, “requires only 0.19 joules of energy for a gigahash—a mathematical equation of bitcoin mining computing power—compared with 0.37 joules per gigahash so far consumed by the most energy-efficient bitcoin-mining chip currently on the market.”

Experts such as Rainer Böhme, a Professor of economics and computer science at the University of Münster comments that, “would certainly be a leap, but not earth-shattering.”

But how far will this help?

As is the principle of every Bitcoin chip, once the algorithms for generating Bitcoins are exhausted, then new Chips will continue to replace older chips. The newer hardware will have to be more complex than its predecessor based on the production policies and market demand. Therefore, the process and demand for less-energy consuming ASICs will continue, albeit paying more native currency for the energy than that which they earn through bitcoins!

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com