Dr. Timo Hanke, serves as Chief Cryptographer of CoinTerra Inc. During 15 years of research in mathematics at the crossroads of computer algebra and number theory, Dr. Hanke has held post-doc positions at renowned international universities such as the Technion in Israel, a lecturer position at RWTH Aachen University in Germany, and has published articles in high-ranked scientific journals. Naturally, due to his background in cryptography.

The Dr. Hanke in collaboration with the renowned security expert Sergio Demian Lerner, have developed a new Bitcoin mining method that can increase mining revenue by up to 20%, translating to an increase of $30 million in annual profits if used by one of the biggest Bitcoin mining pools.

As we can read from their AsicBoost web:

The method is based on an ingenious new way to process work items, both inside and outside of the Bitcoin mining ASIC. It involves a new design of the SHA 256 hash-engines inside the ASIC and an additional pre-processing step as part of the mining software outside the ASIC. AsicBoost’s hash-engine design is compatible with design philosophies such as “rolled cores” and “fully pipelined cores”. The performance gains are achieved on top of all other optimizations regarding timing, pipelining, path balancing, custom cell and full-custom designs.

The patent pending method available for licensing “involves a new design of the SHA 256 hash-engines (inside the ASIC) and an additional pre-processing step as part of the mining software (outside the ASIC)” This is expressed in the publication of the white paper. All this is achieved through parallel processing, it re-uses “outputs that would otherwise be created and discarded on a continuous basis”

A few years ago it was impossible

The new technology is a result of algorithmic discoveries that “were widely believed to be impossible,” allowing for a reduction in chip silicon area and lower power consumption by using fewer gates for each hashing core.

This shortcuts the number of computations required for mining, as the mining hardware can re-use information acquired over time or share information with other hashing cores.

The current level of profitability for mining farms, which employ rows of miner Bitcoin hardware, with few people willing to provide concrete numbers. Jihan Wu, cofounder of Bitmain, one of the largest Bitcoin mining pools and creator of the recently announced Antminer S7, told Bitcoin Magazine that the level of profitability depends on electricity prices as well as the cost of mining rigs, but he could not provide specific numbers. Bitcoin mining companies are in constant search for more efficiency leading to specialization.

Source | Asic Boost | AltcoinToday

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