On January 3, 2009, Satoshi Nakamoto mined the Genesis block on a small server in Helsinki, Finland, and received a reward of 50 bitcoins, marking the start of cryptocurrency mining.
From CPUs to ASICs
In Satoshi Nakamoto’s initial vision, BTC mining could be done using CPUs installed in computers. In its early days, Bitcoin remained in the dark and offered no value. It wasn’t until 2010 that Bitcoin enthusiast Laszlo Hanyecz argued that GPUs could have higher compute performance per second, and he was right. After Hanyecz shared his GPU mining code with the community, Bitcoin saw its first mining rate grow 20,000 times, from 6 MH/s in January 2010 to 120 GH/s in December 2010.
Bitcoin Mining Rate Growth in 2010 (Source: BTC.com) Interestingly, Hanyecz, who introduced GPU mining, was also the one who started Bitcoin Pizza Day. Hanyecz made a lot of bitcoins from GPU mining he created himself and spared no effort in promoting cryptocurrencies. For example, this man bought two pizzas with 10,000 BTC, giving real value to this cryptocurrency for the first time. The advent of GPU mining and the rise in the price of BTC led to an arms race with miners constantly looking for new ways to improve their mining rate. In 2011, someone shared the code for FPGA mining rigs on GitHub, ushering in a new era dominated by specialized mining rigs. In 2011, the Bitcoin mining fee rose from 116 GH/s at the beginning of the year to close to 30 GH/s at the end of the year, a growth of almost 300X.
Bitcoin mining rate growth in 2011 (Source: BTC.com) 2012 saw the birth of ASIC miners, which are top models, and Bitcoin mining rate skyrocketed from 20 TH/s to 12 PH /s, an increase of 600 times. Since then, ASIC models have replaced CPU, GPU and FPGA machines as the main BTC mining machine.
Bitcoin mining rate growth in 2012 (Source: BTC.com)
From solo mining to mining pools
The increasing rate of mining raised new concerns — Is Bitcoin mining still profitable as more and more miners join the business? Realizing the limitations of solo mining, Czech programmer Marek Palatinus found a solution: bring BTC miners together, pool the resources, and share the profits. In 2010, Marek created Slushpool, the world’s first mining pool. Since then, BTC mining has gradually transitioned from solo mining to mining pools. Despite the fact that mining pools gather a large number of miners, miners are not always tied to one pool, which has led to the sudden rise and fall of many pools. For example, in 2013, GHash.IO attracted a lot of miners with its zero-fee policy. By 2014, the pool’s maximum mining rate had exceeded 51%, raising concerns in the Bitcoin community. However, this giant pool ended up shutting down in 2016 due to repeated large-scale DoS attacks. Clearly, mining pools require strong technical capabilities. In the early days, many pools underestimated the technical requirements of the industry. As a result, they were hacked and shut down just like GHash.IO. Having realized the immature technologies and products in the pool industry, Haipo Yang, one of the early builders on top of Bitcoin, decided to create a more stable and efficient pool to strengthen BTC mining, a key channel for maintaining operations. network normals. In just two months, he independently completed the code for ViaBTC Pool, which was officially launched on June 5, 2016.
ViaBTC, riding the waves
Created in a time of fierce competition, ViaBTC has remained a major player in terms of mining rate, thanks to its stable technologies, innovative products, and satisfying user experience. Shortly after its launch, ViaBTC invented the PPS+ payment method, based on the conventional PPS and PPLNS methods. This new method guarantees stable mining rewards while sharing miner fees, thus allowing ViaBTC miners to earn more coins than their peers in other pools. Later, major pools began to adopt the PPS+ payment method. ViaBTC’s PPS+ invention has catalyzed changes in industry rules and brought higher and more stable mining profits for miners. At ViaBTC, technology is always a priority. For example, the pool optimized the process of issuing and transmitting the BTC network through its individually developed BTC client. Thanks to its high-speed block update networks distributed around the world, miners can discover and issue new blocks faster. Additionally, these efforts have decreased the orphan block rate, ensured stable mining profits, and improved network efficiency. To date, ViaBTC remains the mining pool with the lowest orphan block rate. Over the years, ViaBTC has also introduced a wide range of features and tools, including Transaction Accelerator, Auto Conversion, Smart Mining, Hedging Service, Crypto Lending, Mining Rate Fluctuation Notification, Profit Sharing and Referral Commissions, to provide users with more lucrative mining and derivatives services. Looking back over the past 7 years, ViaBTC has seen the ups and downs of cryptocurrency mining. GHash.IO is just one of many pools brought down by network attacks. In addition, there have also been pools damaged by disrupted cash flows, as well as pools abandoned by miners due to unstable block returns. ViaBTC, by contrast, has remained committed to products and technology, with a focus on users. These efforts have paid off, as it is one of the few cryptocurrency companies to have managed to celebrate its seventh anniversary. Currently, ViaBTC provides services to more than one million users in more than 130 countries and regions, covering more than 10 cryptocurrencies, including BTC and LTC. Furthermore, it is one of the top pools in terms of cryptocurrency mining rate, including BTC and LTC mining, and has cumulative mining returns worth several billion dollars. In the future, ViaBTC will continue to provide professional, efficient, secure and stable cryptocurrency mining services to miners; while developing comprehensive, reliable, secure and satisfactory crypto products through dedicated efforts. At the same time, it will guide the progress of the mining industry to witness the new future of the blockchain together with its users.
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