an introduction to bit coins and bit coin mining

ByAnirudh Katikala Under Guidance: Prof. Jaehwan John Lee

AN INTRODUCTION TO BIT COINS AND BIT COIN MINING

What is Bit coin…?

• Bit coin a digital currency(Crypto Currency).• The modern Electronic Payment System.• Transactions made by exchanging encrypted hash codes.• Peer to Peer network.

Limit:Bit coin Network generates no more than 21million bit coins.Unit:The Units for bit coin is BTCValue:1BTC=104 USD($)

Advantages:•Decentralized•Privacy•Open source•No Perquisites

Applications:•Video games.•Gifts•Exchange pools•Explicit Content

ALICE Bob

50BTC

30 BTC are to be TransferredBut 18 BTC

returned 2BTC Transfer fee Will

get 28 BTC

Terms involved in process:•Bit coin Miners•Pseudonyms•Proof of Work•Digital Signature•Transition Block

How Bit coin works..???

What is bit coin mining…???

• Miners responsible for bit coins.• Solve a Math problem using algorithm.• Pool Mining. -Slosh

- GTC• Crypto Graphic Hash functions used Algorithms used are:

-MD5(Message Digest-5) -SHA-256

Technical Trends…??

Mining Performance measuring terms:•Mhash/s = millions hashes per second (raw speed performance; may not be very energy efficient with some models)•W = watt (maximum power consumption, i.e. energy per unit of time: 1 W = 1 J/s)•Overall Cost and cost of hardware.•CPU was used to mine failed due to more time consumption and heat.•GPU increased mining power failed due to more power consumption.

600 MH/s graphics card will consume upwards of 400w of power.•FPGA mining device will provide more mining power at less power consumption .

hash rate of 826 MH/s at 80w of power.•An ASIC has proved having more mining power today.

1 GH/s = 1000 MH/s at 60w of power.

Technical Trends Pictorially:

Slower Mining Faster Mining

Fastest Mining