Crypto currency Mining-Network Switch role (Topic Discussion)

Created: May 20, 2021 13:17:47Latest reply: Nov 16, 2021 05:22:17 2773 44 23 0 0

Hey Everyone,

I assume everyone knows what is a cryptocurrency and I just want to bring this topic to explain how network switch will play key roles in mining.

What is cryptocurrency?

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides. Think of them as you would arcade tokens or casino chips. You’ll need to exchange real currency for the cryptocurrency to access the good or service.

Cryptocurrencies work using a technology called Blockchain. Blockchain is a decentralized technology spread across many computers that manage and record transactions. Part of the appeal of this technology is its security

More than 6,700 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on April 13, 2021, was more than $2.2 trillion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was pegged at about $1.2 trillion.

Now Let's talk about mining:

Whether you’re mining for the fun of it or digging for serious profitability, power consumption and heat generation in cryptocurrency mining is a serious issue. According to a two-year-long study published in Nature Sustainability in 2018, digital coin mining may use more energy, per unit, than real-world mineral mining such as gold, platinum, and copper. In fact, the University of Cambridge estimates that Bitcoin mining alone uses more energy than the country of Argentina!

Controlling Your Costs with Network Switching Products:

Mining operations can be as small as a single rig, set up in an apartment. With these units, miners are often seeking Etherium or other less common coins. Since Bitcoin has become so valuable and Bitcoin mining so competitive, its miners are usually housed in large mining farms, with thousands of units, filling warehouses over many acres. With energy use in mind, these enormous operations are often located in northern countries where power costs less and temperatures are cooler.

For successful crypto-currency mining, you need your hardware and your networks to be completely reliable since downtime translates into lost dollars. To keep your profits up, you need to keep your energy and hardware costs and travel time down. As hashing difficulty increases, using hardware that addresses these concerns is more important than ever. Consider that some of these large farms could use up to a thousand network switches. Switches that are well-suited for crypto-currency mining, can keep your network devices connected and communicating consistently and help you reduce costs over time.

What to Look for in a Network Switch for Your Mining Operation:

-->Energy Saving Technology – Hardware with built-in energy-saving technology will help minimize heat output and energy consumption. Switches with green technology will automatically shut down when not in use, helping you keep electrical costs down.

-->Smart Fan or Fanless Technology – Digital coin mining is notorious for producing a great deal of heat and sound at mining sites. While conventional fans run continuously, smart fans can adjust speed according to cooling needs to keep the heat down and lower energy costs. Switches that use alternative methods to dissipate heat may also be an option to keep the noise down too.

-->Remote Management – When you need to be away from your mining site, you don’t want to worry about downtime. Use hardware that allows you to log in and monitor your network remotely to keep travel time down.