Chinese Firm Linzhi Set To Mass Produce Ethereum and ETC ASIC Miners As Tests Go Live
Following a year’s wait on the ethash application-specific integrated circuit (ASIC) miners frim Linzhi, a China based mining equipment developer, the company confirms the production of 200 units as a test run. Since the announcement back in September 2018, the company have been researching and working on the test unit, which if successful will kick of a battle with incumbent firms such as NVIDIA and Bitmain.
The machines aim to grab a significant share of the roughly 5 million ETH mined every year (~$900 million USD at current rates) and the 9 million Ethereum Classic (ETC) mined every year.
A World of Power and Efficiency
The powerful ethash ASIC miners were announced back in September 2018 promising a higher efficiency, power and lower electricity usage than the current machines. The founder of Linzhi, Chen Min, also a former chip design head at Canaan Creative, expects the latest release of these machines to mine at speeds of 1400 mega hashes per second (MH/s) with a power efficiency of 1 KWh per hour. In terms of profitability, the ASIC miner has a daily profit of $6.70 USD.
Ethereum to Proof of Stake (PoS)?
Despite the efforts put in place by Linzhi’s team to put together the ASIC miners, talk in the Ethereum community is to switch to the proof of stake (PoS) mechanism which does away with the need to mine completely. Furthermore, the community voted the implementation of the ProgPow algorithm that sets to reduce the influence of large miners in the network.
Chen is however unabated by the talk of a possible failure of the ASIC miners as he maintains the community is still unsure on whether to lock out large miners. He commented,
“Our plan A is to focus on ETC mining. So if ETH will still be an option, that’s something good to have. In the ethereum community, the ProgPow plan still has some uncertainty. For the time being, we don’t see it as a market that we will obtain, so I don’t really care that much.”
ASIC miners are enablers of centralization hence the calls to implement the ProgPow algorithm. To promote centralization, the company will implement a reverse discount facility that increases the price of the miners the more a single entity buys.