[dropcap]B[/dropcap]itmain, one of the largest cryptocurrency mining companies has announced plans for the Blockchain Data Center to be built in Texas. The Blockchain Data Center, commonly known as a farm, is already under construction in Texas and is worth an estimated $500 million.
The release statement reads:
“This represents an investment of more than $500 million by Bitmain over an initial period of seven years into the local, county, and statewide economies,”
According to the official announcement, the Blockchain Data Center will be ready to begin initial operations in 2019 and full operations by 2020. Upon commencement of full operations, the farm will boost the economy of Rockdale, Milam County by providing 400 new jobs.
What is Crypto Mining?
The core functionality of blockchain technology relies on the security and transparency of the system. This is what makes it so attractive to the public. However, for these features to work, there has to be a mechanism in place for confirming transactions and securing the network.
Cryptomining involves a decentralized group of nodes on a system, working to confirm the transactions on that network in exchange for a system reward. These nodes are known as cryptocurrency miners and are so called because the process can be likened to mining physical items like precious metals. It is also known as altcoin mining, crypto coin mining and Bitcoin mining where bitcoin is concerned.
The basic concept behind mining is that the miners perform difficult cryptographic tasks to ensure that a blockchain network retains its secure status. In exchange, they are rewarded with a predetermined amount of whatever digital currency they are mining. Every time a cryptocurrency transaction is carried out by a user, a miner is responsible for authenticating it and updating the blockchain with that transaction.
As the use of digital currency grows more popular and more digital assets emerge, more miners are needed on several blockchain networks to verify transactions. Bitmain is capitalizing on the exponential growth of the industry and demand for miners, mining hardware and applications by expanding its operations.
Who is Bitmain?
Bitmain Technologies Ltd., is a Chinese large-scale Bitcoin mining firm with headquarters in Beijing, China. Apart from mining, it designs ASIC devices which are specialized hardware used for solving complex hash functions in the mining process.
It is currently regarded as the leading cryptocurrency mining firm in the world and accounts for almost half of all Bitcoin mining power.
What is the Bitmain Blockchain Data Center?
Bitmain’s new Blockchain Data Center represents an investment of over $500 million into local, county and state economies, spread over an initial period of seven years. This is a key part of Bitmain’s expansion plans within the North American region.
The press statement reads:
“The Milam County blockchain data center and cryptocurrency mining facility represents a key component of Bitmain’s strategic investment and expansion plans within North America.”
The facility will be located in a part of the former Alcoa Rockdale Operations site and will serve as Bitmain’s second facility in the U.S, the first being in Washington. Rumors of Bitmain’s plans first spread in July when it was reported by a local newspaper. The company had also started posting job listings for positions at its new facility on Indeed.
Bitmain has stated its plans to partner with the local schools to provide both professional and technical training programs. These programs will be tailored towards preparing local community members for careers at the new data center.
As long as cryptocurrencies continue to emerge, there may always be a need for miners. However, due to the unpredictable nature of most of these assets, it is difficult to be certain. Bitmain has shown that it is not slowing down anytime soon. Some members of the public speculate that the mining giant’s Texas move may be due to a need to cut power costs. Despite the speculation, the company has bold plans for expansion and continues to see them through.