Showing posts with label Cryptocoin mining. Show all posts
Showing posts with label Cryptocoin mining. Show all posts

Friday, March 30, 2018

Plattsburgh N.Y. bans cryptocoin mining for 18 months

The city of Plattsburgh in New York state has become the first US city to ban cryptocurrency mining. The ban is set to last for the next 18 months.

At a council meeting the other night the ban was passed unanimously. The Plattsburgh mayor's office claims that the aim of the law is to consider “regulations before commercial cryptocurrency mining operations results in irreversible change to the character and direction of the city.”
Cryptocoin miners attracted by cheap power rates
Colin Read, Plattsburgh mayor claimed that the residential rate of 4.5 cents per kilowatt hour were the cheapest rates in the world. Whether that is so it is much lower than the 10 cents on average the rest of the country pays. It will obviously attract miners to the city and as the enclosed video shows, already has. The city also charges industrial enterprises only 2 cents per kilowatt per hour as an incentive for companies to move to Plattsbugh.
Coinmint operates in Plattsburgh
Coinmint operates the largest bitcoin mine in the city. Bitcoin mines use enormous amounts of electricity. In January and February the mine used about ten percent of the total amount of power used by the city.
Power bills soar for city residents
Plattsburgh is allocated 104 megawatt hours at the cheap rate per month. When the allotment is exceeded, the city has to purchase power at a much higher rate on the open market. As a result, some residents have seen their monthly bills go up by one hundred or even two hundred dollars according to complaints made to the mayor. Given this background one can understand why the bill came to council and was passed without a single negative vote.
Cryptocurrency mining

Cryptocurrency mining refers to the process of solving mathematical problems by computation. When a problem is solved the miner gets to secure a block in the blockchain and is rewarded with coins. The more coins are mined the more difficult the problem. In simplified form the process is described in the video below.
Minders search worldwide to find cheap sources of power. Iceland has many mines because of its cheap power and cold climate that can cool machines without the extensive use of fans that use power as reported in a recent Digital Journal article.

As more and more powerful computers are used there is a shortage of the chips needed to provide all the computing power needed. This has created shortages of chips in areas such as gaming and even astronomical research.
Samsung is now making chips that are designed specifically for cryptocurrency mining for coins such as bitcoin and ethereum.
Provisions of the ban
The law is set out in detail at this website.
The law takes effect once approved by the mayor and filed with the New York secretary of state.
Officials will work with residents and the local cryptocurrency mines over the 18 months of the ban on the power issues.

Thursday, March 1, 2018

Cryptocoin mining causes shortage of GPU's used in astronomical research

Aaron Parsons an associate professor of Astronomy at the University of California Berkeley is using an array of radio telescopes to help him discover the first stars that formed in the universe about 13 billion years ago.

Aaron Parsons
Aaron Parsons is both an Associate Professor of Astronomy and Head Graduate Advisor at the Berkeley campus of the University of California. His specialties are radio astronomy instrumentation, cosmic reionization, digital signal processing, experimental cosmology, formation and evolution of large-scale cosmic structure.
Parsons' work with radio telescopes
Parsons' radio telescopes are made up of hundreds of antennas which detect radio emissions that are throughout the cosmos. All the data received needs to processed by a supercomputer to create a map of the sky. This map can aid Parsons in spotting the earliest stars. Ultimately this will help understand how the universe changed from plasma into galaxies and planets.
Parsons' radio telescope is called the Hydrogen Epoch of Reionization Array (HERA) with hundreds of antennas that are located in South Africa. He is currently trying to upgrade the system.
The world's largest radio telescopes are shown on the appended video.
General Processing Units (GPUs)
In a computer you have a central processing unit or CPU and also a general processing unit(GPU) that processes data from video and images. GPUs are also equipped with a large number of Arithmetic Logic Units (ALU), which are responsible for performing mathematical computations. These ALUs, allow the GPU to make many more calculations than the CPU, leading to improved output for the crypto mining process.
The mining process by solving complex mathematical problems allows the miner to add blocks to the blockchain, and rewards him with coins, while verifying the transactions as described in the appended video. As the problems become more complex the miners need more GPU's to solve them.
Mining companies roam the globe looking for locations with cheap power and other advantages. As a recent Digital Journal article reports Iceland is regarded as a paradise for miners with ample cheap power and cool temperatures.
Cryptocoin mining uses huge amounts of power. Bitcoin mining alone is said to use as much power as the whole of the Republic of Ireland. In Iceland mining consumes as much power as all Icelandic households.
Cost rise and shortage of GPUs
Parsons is attempting to upgrade his system to a total of 350 antennas. However, he found the price of the GPUs he uses has gone from $500 dollars to about $1,000 each. This will cost him about $32,000 extra money that he needs to hire graduate students.
Parsons said: “I kind of rolled my eyes a little bit. I usually think of cryptocurrency as some kind of peripheral thing, and I was surprised and a bit annoyed to discover that it’s impacting the bottom line of our telescope.”
The demand for GPUs is so great that chipmakers such as AMD and Nividia have been unable to keep up with demand. Even PC gamers are feeling the effects as are other scientists.
Negative consequences for Parsons
Given financial constraints Parsons might find it necessary to build a smaller telescope but it might not be able to detect faint signals that the large telescope could. This could hinder his research.
Jack Hickish who works with Parsons said that with the shortage it is virtually impossible to buy the GPUs in bulk and save money so that it becomes more difficult to buy them in the quantities that Parsons needs. Hickish said: “It’s really difficult to buy them in the quantity we want. The vendors we’ve spoken to are hesitant to promise us 40, and if I can get that availability, I can get a quote. But [if] you order a week from now, you have to quote again because they might be gone.”
If the GPUs remain expensive and difficult to buy research with radio telescopes will be much less effective and will be held back until more GPUs become available.
Previously published in Digital Journal

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