A nouveau riche manufacturer, with its $3.8 million of investment, is prepared to manufacture its foremost band of mighty new machines for mining cryptocurrencies ethereum and ethereum classic. 37 wafers, which takes up it to build about 200 application-specific integrated circuit miners, have been ordered by Linzhi, which wants to vie with makers of general-purpose computing chips such as NIVIDA, Bitmain and InnoSilicon, to Taiwan Semiconductor Manufacturing Company. Linzhi was established in February 2018 by Chen Min.
These sample units will check whether the machines can mine effectively. A major step towards mass production will be adopted on the basis of the result of the test. Five million ether which worth up to $800 million is being mined every year and around nine million ethereum classic which is worth up to $60 million is being mined every year indeed.
The new company, which is willing to manufacture ethash ASIC, is self-founded and the amount of investment is $4 million. The specification for Linzhi’s ethash ASIC miner has been set at 1400 MH/s which will cost electricity level of one Kilowatt-hour.
For example, NVIDIA’s GTX TitanV 8 card can compute 656 MH/s with an energy consumption of 2.1 kWh. Relying on the current price and electricity cost of $0.04 per kWh, GTX TitanV 8 would bring a daily profit of $7.35. But in case of being used for mining ETC, the daily profit would be around $6.70.
With a view to seizing the two networks, the computing power racing on ethereum and ethereum classic is around 160 and 13 TH/s in some respects.
A great amount of Linzhi’s capital is being spent on the field of research and development of the chip design to stake the sample testing units will deliver the desired mining power. Linzhi wanted to start mass production from early June but it caused late because of the late ordering the first batch of wafers. They were hopeful about moving ahead the remaining of the schedule meaning 12/2019 for sample machines and 02/2020 for mass production.
The risk of activation of antique ProgPow algorithm, voted by Ethereum community who also wanted to transition from proof-of-work to proof-of-stake, for removal of the edge maintained by large miners, the timing for that switch is yet undeclared. Their Plan A is to focus on ETC mining. They think ProgPow plan is having uncertainty.
When it begins to take in pre-orders if sample units prove to be fruitful, the company aims at adopting a ‘’reverse discount’’ strategy. That means, you are likely to pay more, if you buy more. Demoting any single entity from buying too many machines is the reason of this. Final pricing hasn’t been fixed for each unit to be sold at pre-orders. Their plan is to obtain a payback period of four months for every single miners with a tiny number of orders.