What is Crypto Mining Farm (Complete guide 2020) Part 1

In simple terms, crypto mining farms are rooms with a large number of mining hardware take on tasks for mining. After a decade of development, the crypto mining farms are now becoming more and more scaled with professional management for crypto mining machines.

Why do we need to build a specialized mining farm?

The crypto mining farms at its early stage were relatively extensive, the miners set up a shelf on which they put the mining machines, then they can start the mining operation, there is no cooling nor ventilation system.

Mining machines

Later, the miners noticed that the damage rate of the mining machines was very high causing an excessive maintenance costs. To reverse the tide, miners started to add ventilation and dust isolation solutions, as well as apply a strict control of indoor temperature and humidity. The mining business is becoming an increasingly specialized industry, especially with the emergence of ASIC machines.

Compared to mining at home, mining at a specialized farm has a number of advantages, especially in the following aspects:

First of all, it is for cost-saving purpose. Large mining farms are generally located in places with abundant power resources and cheap electricity. One of the main resources into which a miner has to invest is electricity, given that the mining farm requires a permanent 24/7 power source, finding less expensive electricity will significantly reduce the mining costs. In addition, the large-scaled and professional management helps to reduce the labor and services costs. The large mining farms also have stronger bargaining power to get cheaper electricity and more favorable services.

Secondly, it facilitates the formation of sub-sectors, improves professional capabilities and elevate the service standards, On a micro level, if there is a hosted machine failure, which will be quickly detected and addressed by professionals; on the macro level, the scaled mining farm promotes the division of the labor in the industry, improves the professional skills of the practitioners and accelerates the accumulation of experience, which in turn benefit the mining farms, lift the mining industry to the next level.

Why are the mining farms built away from urban areas?

As mentioned above, generally, the mining farms are built in places where electricity is relatively cheap with a stable power source.

Electricity fee: It should be pointed out that Bitcoin mining requires a lot of electricity. According to the survey, a medium-sized mining farm with 5,000 mining machines consumes about 60 million Kwh electricity per year, which is equivalent to the power consumption of 100,000 inhabitants. As a result, mining farm owners generally build their facilities in places where power price are relatively low, for example, in Sichuan, China. These places are hidden in mountains and far away from the urban areas.

Remote area with abundant power resources

To identify a suitable hydropower station, you need to check two indicators: installed capacity and the availability factor. The former determines the power generation capacity of the hydropower station and the latter determines its production level. If the power generation capacity and the amount of power generation are not sufficient, the mining machine cannot run for a sufficient number of days. To put it bluntly, it means that the breaking-even period will be extended, or the rate of making money will be slower.

Noise: The noise of the mining machine is high. When a mining machine is running, the test noise is about 73dB (a) at one meter distance, image how the noise impact will be if there are thousands of mining machines running at the same time.

Overheat: Most of the electrical energy consumed by the mining machine is converted into heat. If the mining machine is placed in a residential building, the high temperature caused by the machine will turn the entire room into a sauna room.

Legal risks: Located in a remote area, the mining farms not only avoid the disruption to daily life, but also mitigate the potential legal risk vis-a-vis the urban residents.

Modern crypto mining farm’s Structure

Building a Crypto Mining farm requires tremendous funds both in construction and operation. For example, network, manpower, electricity power and their setting up, installation and maintenance etc.

Plant: There are generally two types of shelve installation inside a plant: single-row and double-row.

Double-row Type

For the double-row type, as shown in the picture above, machines are put on two shelves, so that the hot air from the front machines will aftect the cooling effect of the machines in the back.

The single-row design avoids this situation. The air flows from the left to the right, and each machine is affected evenly by the air flow.

Single-row Type

Generally speaking, the material of the plant consists of colored steel plate whose cost is lower.

Therefore in most cases, the mining farm adopts the single-row design without saving money on the plant.

Transformer: Power facilities are the most costly part of the mining farm, for which the transformer accounts for the most. The power transformer is a key device in the power supply system. Its main function is to boost or reduce the voltage to facilitate the reasonable transmission, distribution, and use of electrical energy.

Transformer

The main function of the transformer in the mining farm is to lower the voltage the electricity from the power plant and then feed it to the mining machine. It is crucial to have a good quality transformer for stable power.

The internet: The mining farm also needs to be equipped with a network connection. A slow or unstable network will cause an increase in the rejection rate, resulting in losses.

Ventilation and cooling: Thousands of mining machines running together inside the plant will generate enormous heat, the machines might be burned if the temperature is not controled. The plant is generally equipped with high-power fans to ensure the ventilation. During the summer, the maintenance staff will consider to run the wet pad to cool the mining machines. In some areas with sand hazards, the mining farm owners will add a dustproof net inside the plant.

High power fans
Wet Pad
On the left side, Dustproof net

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