Bitcoin FPGA

Bitcoin in a Nutshell

Bitcoin is a peer-to-peer currency based on public key signatures and an ingenious double-spend-prevention mechanism based on a cryptographic hash function (SHA256). Nodes in the Bitcoin network are rewarded for finding x,such that SHA256(SHA256(x)) is below a certain target (this is called mining). The first node to find a solution earns Bitcoins.

The Bitcoin network adjusts this target so that on average,a solution is found every 10 minutes,based on the total computational rate (MH/s) of the network.

A node's chance of winning is roughly equal to the fraction of total MH/s that it contributes to the network.

Mining requires the latest technology and/or low electricity costs to remain profitable over time. Only the most power-efficient survive.

In mid-2011,GPU mining was highly profitable,with many ATI GPUs paying for themselves in 6-9 months,counting power (but not cooling,maintenance,configuration,or other) costs. However,as an increasing number of GPU miners chased those returns,the difficulty adjusted and large-scale GPU mining inevitably became unprofitable.

BitCoin Mining FPGA Card

Field Programmable Gate Array miners are under active development and use around 1/10th the power of a GPU,at the same performance level (MH/s). The upfront capital investment is higher than for GPUs; however,once made,the lower operational costs should enable FPGA miners to earn a significant monthly profit,even at price and difficulty levels where GPUs cannot. FPGAs are more power-efficient for mining,and over time are likely to make GPU mining unprofitable. Once the electricity to run a GPU costs more than the bitcoins it can produce,most miners will turn them off,and either sell their GPUs,or repurpose them.

A GPU process shrink does not change this situation; a 45nm FPGA still uses less electricity per MH than a 28nm GPU. And of course - 28nm FPGAs will arrive around the same time as 28nm GPUs,keeping FPGAs firmly ahead throughout 2012.

Now is the best time to switch to FPGA-based mining,to enjoy a major technological advantage over most other miners.

The FPGA End-Game