What  is  Bitcoin  mining?  

Andreas  Kennemar  co-­‐founder  KnCMiner  

Why  bitcoins  need  to  be  mined.

-­‐  Bitcoin  doesn’t  have  a  central  bank  -­‐  Fixed  amount  of  coins  created  -­‐  Miners  open  source  so>ware  to  solve  mathema@cal  problems  -­‐  Important  part  that  keeps  the  Bitcoin  network        

 stable,  safe  and  secure  

How  does  mining  work  today?

1.  Buy  the  hardware  2.  Download  Free  So>ware  3.  Set  up  a  wallet  4.  Join  a  Mining  Pool  5.  Start  mining!  

Bitcoin  Mining  Pools

• Mining  solo  is  difficult  • Combined  hashingpower  for  greater  efficiency  • Paid  by  share  • Regular  payments  

Bitcoin  Mining  So=ware

• Connect  Miners  to  the  blockchain  • Connect  miner  to  a  mining  pool  • Delivers  and  receives  the  work  from  the  processors    

Bitcoin  Mining  hardware

•  Started  with  central  processing  units  (CPU)  • Moved  on  to  graphical  processing  units  (GPU)  •  Todays  hardware  is  called  Applica@on-­‐specific  integrated  circuit  (ASIC)  •  Future  hardware?  

Future?