Bitmain Has a Competitor: DragonMint Unleashes More Efficient Machine

As Bitcoin mining becomes more energy intensive, the competition is on to produce new machines.

Right now, Bitmain dominates the market for mining rigs, selling the latest in-demand model, the Antminer S9 for Bitcoin Cash and creating a feeling of scarcity. The reason for Bitmain's dominance is that it had a head start when it comes to building energy-efficient chips. 

Creating a new ASIC processor is time-intensive and requires a large initial investment. But Halong Mining, the producers of DragonMint have finally caught up: 

"Around $30 million dollars have already been spent on research, development and prototyping miners, writing software and producing small batches of silicon wafers. The time, complexity and cost cannot be underestimated. The next step is mass production."

Mass production is expected to start in the spring of 2018, and will involve building the chips from scratch.

But the producers announced they would go a step further- to foster innovation, they would not keep their designs a secret, but instead post them in the hopes that other companies would improve on the designs. With this, Halong Mining puts the open source ethos into the production of mining rigs.

Halong Mining plans to publish its designs a few months in the future, hoping to at least recoup the initial costs of design and production. 

"...we will defer publishing board designs or software (either directly or through partner channels), until the first batch of miners is near ready for shipping. Because we have considerable costs to recoup, particular details of our process will also not be made available until closer to shipping of the first batches, to give us a better chance of succeeding and being able to drive forward with innovation into the future."

While cryptocurrencies are an open community, the production of mining rigs is still one area in which monopolies and centralization are causing potential problems. 

The introduction of more powerful mining hardware increases interest in a coin. The recent shipments of the powerful D3 Antminer have added to the boost in the price of DASH, which recently saw a spike in mining power. 

But the main area of interest is still Bitcoin, and possibly Bitcoin Cash, where block rewards are appealing for the high price of the asset.