You might have heard a lot about the Internet of Things (IoT), but do you know what it is? IoT is a system of physical devices that are connected to the internet. These devices make up a network and they can collect and share data. IoT has wide applications in several fields. In this article we will look at it application in crypto mining. IoT crypto mining is basically using the processing power of these IoT devices for mining cryptocurrencies. This opens opportunities for mining cryptocurrencies like Bitcoin, Ethereum, Litecoin etc. How do they work?
Architecture of IoT in crypto mining
IoT devices are connected through a network that is built on different hardware and software. This is called smart home architecture. A smart home is a group of devices that are designed to work together to provide real-time automation and monitoring of lights, doors, windows, HVAC systems, and more. The architecture consists of three parts: sensors, network and actuators.
The sensors record the data from its surroundings by continuously monitoring the environment for changes in temperature or humidity for example. If we think about the network as a highway, then the sensor produces an event—the car—that needs to get somewhere fast. Which is why it has to travel on the fastest path possible–the highway!
Actuators perform an action based on this data from sensors. The most common actuator is a light switch because it uses your input (data) to turn off or turn on lights.
The sensors would be connected to a network (wired or wireless) and the data would be analyzed by an actuator system that could then make adjustments such as increasing/decreasing fan speed or turning systems on and off based on certain parameters (overheating, hardware failure etc.)
Applications of IoT in crypto mining
The IoT makes it easier to mine and monitor cryptocurrencies. The following are some of the use cases that apply to cryptocurrency mining:
- Mining pools – IoT data can be used in conjunction with existing infrastructure for building mining pools.
- Smart devices – Using a Raspberry Pi (a small, credit card-sized computer) and a thermometer, miners have prepared an algorithm to optimize the temperature of their graphics cards, which if not cooled properly, can sustain damage from overheating. Some local mining companies have been able to develop algorithms that help them estimate the amount of hash rate they will need in order to mine a certain currency.
- Enhanced efficiency – Miners can also use location data from network sensors or RFID readers on trucks to optimize routes for miners and improve efficiency across supply chains.
Benefits of IoT Crypto Mining
- While crypto mining is possible in remote areas, it’s generally easier to do it in a big city with an organized power grid as crypto mining consumes a huge amount of power. You can use IoT to do crypto mining in remote areas, which will help boost local economies.
- Energy costs are lower because you don’t need as much computing power or electricity.
- The machines used for mining will last longer and they’ll be more energy efficient, so you’ll save money on that too.
- IoT devices are more secure than traditional machines, so your crypto mining operation won’t get hacked by hackers or phishers
Key players in IOT crypto mining space
You may have heard of some of the biggest players in the IoT crypto mining sector:
- Bitmain, known for their Antminer devices; Innosilicon, makes several different varieties of IoT miners.
- Ebang, who manufactures ASIC chips; Bitfury, one of the largest producers and distributors of ASIC mining hardware
The use of IoT is a great advancement in the crypto mining sector because it provides a lot of opportunities. A major benefit is; it allows you to automate certain tasks meaning repetitive work is avoided. This allows you to focus on other areas that need attention and expertise. This increases efficiency.
The IoT has many applications in crypto mining, including data collection and analysis from an array of sources. In this way, IoT can help us collect more information about our environment, which will enable us to make more informed decisions about its future management.