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Author:Ala-Peijari, Ossi
Title:Bitcoin the virtual currency: Energy efficient mining of bitcoins
Bitcoin virtuaali valuutta: Energiatehokas louhinta
Publication type:Master's thesis
Publication year:2014
Pages:81      Language:   eng
Department/School:Perustieteiden korkeakoulu
Main subject:Tietoliikenneohjelmistot   (T3005)
Supervisor:Ylä-Jääski, Antti
Instructor:Komu, Miika
Electronic version URL: http://urn.fi/URN:NBN:fi:aalto-201410042721
OEVS:
Electronic archive copy is available via Aalto Thesis Database.
Instructions

Reading digital theses in the closed network of the Aalto University Harald Herlin Learning Centre

In the closed network of Learning Centre you can read digital and digitized theses not available in the open network.

The Learning Centre contact details and opening hours: https://learningcentre.aalto.fi/en/harald-herlin-learning-centre/

You can read theses on the Learning Centre customer computers, which are available on all floors.

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Opening a thesis

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    Aalto Thesis Database

  • Click on the icon to search for and open the thesis you are looking for from Aaltodoc database. You can find the thesis file by clicking the link on the OEV or OEVS field.

Reading the thesis

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Printing the thesis

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  • Other customers can use the printer u90203-psc3. All printing is subject to a charge to non-University members.
Location:P1 Ark Aalto  1732   | Archive
Keywords:bitcoin
mining
efficiency
profitability
bitcoin
louhinta
tehokkuus
kannattavuus
Abstract (eng):Bitcoin is a distributed, virtual currency without centralized control.
While a few services accept bitcoins directly, it is also possible to exchange bitcoins into fiat currency and vice versa.

Bitcoins are effectively computation puzzles that are mined based on a brute-force algorithm.
As computation requires electricity, it can be stated that the miners are exchanging energy for bitcoins.
However, electricity is not usually free and the energy efficiency of the mining devices can vary.
Thus, some low-efficiency devices could be considered mainly as an environmental hazard because the expense of using the electricity exceeds the profits.

The miners are competing with each other to find solutions, which has resulted in an arms race to use specialized hardware for mining.
While this improves energy efficiency, the computational limit for profitable Bitcoin mining is still a moving target.
In this thesis, we study and analyse past developments in this limit and try to estimate its future directions.
Abstract (fin):Bitcoin on hajautettu kryptografinen virtuaalivaluutta vailla keskitettyä hallintaa.
Toistaiseksi harvat kauppiaat ottavat suoraan vastaan bitcoineja, mutta bitcoinit voi muuttaa euroiksi tai eurot bitcoineiksi useassa bitcoin pörssissä.

Bitcoin perustuu tiivisteisiin ja laskennalliseen vaativuuteen löytää tiivistettä vastaava alkuperäinen numerosarja, joka onnistuu nykyisen tiedon mukaan vain ns. brute-force menetelmällä.
Tämä vie merkittävän määrän energiaa ja voidaankin sanoa, että bitcoinien louhinta onkin sähkön vaihtoa bitcoineiksi.
Sähkö ei luonnollisesti ole ilmaista ja sen hinta vaihtelee suuresti, kuten myös louhintalaitteiden energiatehokkuus.
Tästä syystä energiatehottomat laitteet ovat haitaksi ympäristölle, koska niiden louhinta ei ole voitollista.

Bitcoin verkossa louhijat kilpailevat toisiaan vastaan etsimällä bitcoin verkon hyväksymää tiivistettä.
Tämä on johtanut siihen, että louhijat ovat alkaneet ostamaan louhintaan erikoistuneita, energiatehokkaampia laitteita.
Tämä taas on puolestaan nostanut energiataloudellisuuden vaatimusta, koska bitcoineja louhitaan entistä nopeammin.
Olemme työssä analysoineet tätä vaatimusta ja yleisesti bitcoinin tulevaisuudennäkymiä.
ED:2014-10-05
INSSI record number: 49782
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