Even amidst a meltdown in bitcoin and cryptocurrency markets, the mining scene has been heating up as a growing number of hardware providers compete to get their specialized products in the hands of the mining community.
One can say that whatever happens to Bitcoin and its peers, the technology developed is here to stay.
And as the competition grows, so too the strategies diversify. CoinTerra went with pure muscle with its TerraMiner, while Butterfly labs switched gears by moving into cloud mining.
More recently, Gigoptix launched ASIC (Application Specific Integrated Circuit) chips customized for crypto mining, offering advantages of lower power consumption and quicker speed-to-market.
An Israeli startup, GetReal, is now looking to make its mark, saying it plans to launch an ASIC chip of its own. The company specializes in bringing technological concepts into reality, combining the disciplines of hardware, software, communications, mechanical and wireless technologies to meet the needs of its clients.
There are several Israeli companies that are innovators in areas cryptography and semiconductors, making the country one the growing hotspots when it comes to bitcoins and mining.
GetReal is confident that they can grab a sizeable chunk of the market. Technology does not seem to be an obstacle; the next major hurdle is to secure funding.
DC Magnates connected with GetReal CEO Netanel Goldberg on what they envision their new chip:
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Can you confirm the nature of this chip and how it stacks up against the others?
Yes, we will produce ASICs. They will be far better than others you are aware of.
How do you foresee the mining “bloodbath” playing out?
The bloodbath I referred to was related to the electricity costs: The same way that ASICs have made CPU/GPU and even FPGA mining non-profitable, the ASICs will compete among themselves on mW/TH/s performance.
And how will it affect Bitcoin prices?
This will have no direct effect on the bitcoin prices, but on two other prices: The BTC ASIC/Mining equipment prices and more importantly on the validation fees.
To put it in other words, until the era of quantum computing mining, the same competition as Intel/Samsung/Apple/Broadcom have when pushing silicon technology down to smaller geometric will happen between the BTC ASIC vendors. This will drive the mining HW costs down.However, as you get more and more miners in the game they all profit lower and lower BTC per watt.
Only the best ones will survive. The others will have to raise the bar and not accept 0.0001 BTC as validation fees anymore to cover for their ever-growing electricity costs.
Since there is no penalty for miners for not doing transaction validation, only transactions that will be “generous” enough will be validated… We therefore assume the de-facto minimum of transaction fees will reach ~0.2% to ~0.5%. This is yet far below Paypal (2.9%) or Mastercard (1%-3%) or Amazon ($1-$1.5 per item).