BITCOIN FAQ
Frequently asked questions about Bitcoin and mining
Bitcoin FAQ
1What is Bitcoin?
Bitcoin is a digital money native to the internet that has no central servers or access permissions. Instead it is a highly inclusive, voluntary money that any person can use simply by downloading the software on readily available consumer hardware.
Users can broadcast transactions to the network at any time as long as they pay a fee and other merchants can accept and verify payment in bitcoin as valid by referencing their own software. All users stay in sync with each other by updating their software according to merchant who provably earned the right through mining.
Users can broadcast transactions to the network at any time as long as they pay a fee and other merchants can accept and verify payment in bitcoin as valid by referencing their own software. All users stay in sync with each other by updating their software according to merchant who provably earned the right through mining.
2What is Bitcoin mining?
Mining is the mechanism that keeps all users on the network in consensus with each other since there is no central server to do this job. Simply trusting each other does not work because trust inevitably breaks down and leads to disputes. So instead merchants engage in a contest to update the network by seeing who can do the most work by using computational power. Any dispute that may occur is simply settled by additional computational power – so basically whoever invests in the most work and takes the most risk gets rewarded.
Successful miners not only get to update everyone’s ledger with the newest block of transactions, but the miner also wins all of the fees associated with the transactions in the block. In this way the people using bitcoin and paying for transaction confirmation are paying miners to invest in computational power and keep their transactions secure. This synergy is what makes bitcoin tick.
Successful miners not only get to update everyone’s ledger with the newest block of transactions, but the miner also wins all of the fees associated with the transactions in the block. In this way the people using bitcoin and paying for transaction confirmation are paying miners to invest in computational power and keep their transactions secure. This synergy is what makes bitcoin tick.
3Why do people value Bitcoin?
People value bitcoin because the network of merchants using it can make and receive payments with ultra high settlement reliability without requiring any permissions to participate. Generally bitcoin has performed very well as a savings vehicle precisely because of this utility that has resulted in significant value appreciation.
As a native internet money, it transcends state borders and unlike sovereign fiat money it does not suffer from arbitrary, unpredictable monetary supply changes which devalue the work people have invested to earn the money. For these, and many other reasons, bitcoin is a highly sought after.
As a native internet money, it transcends state borders and unlike sovereign fiat money it does not suffer from arbitrary, unpredictable monetary supply changes which devalue the work people have invested to earn the money. For these, and many other reasons, bitcoin is a highly sought after.
4Is Bitcoin secure?
Any user accepting bitcoin as payment can run the bitcoin software, commonly called a ‘full node’, which accounts for all transactions on the network. Each user is able to verify for themselves if the bitcoin received is valid on their own ledger. The more time that passes after a payment is first confirmed, the less chance the payment will be counterfeit. In this way the user can ensure the payment is settled simply by giving it time to confirm.
5How much power can I generate from my natural gas?
Not all natural gas is equal, different sources have different heating values and capacity to produce power. A general rule of thumb is that 1000 standard cubic meters of methane quality natural gas can power a load equivalent of 100 kW for a day.
6How much Bitcoin can I mine from the power I generate?
Bitcoin mining revenue is proportional to your share of the total work being done on the network and how many bitcoins are being mined in total.
The work you do is measured by your hashrate, which is a function of how much power you are generating and the efficiency of the bitcoin mining computers (ASICs) that you are powering. If you own 10% of the network hashrate you would get 10% of the network reward, minus any pool fees if applicable.
Many online bitcoin mining calculators exist that can give you a snapshot of current revenue forecasts for a given hashrate.
The work you do is measured by your hashrate, which is a function of how much power you are generating and the efficiency of the bitcoin mining computers (ASICs) that you are powering. If you own 10% of the network hashrate you would get 10% of the network reward, minus any pool fees if applicable.
Many online bitcoin mining calculators exist that can give you a snapshot of current revenue forecasts for a given hashrate.
7What do I need to start mining off of natural gas?
Generally you need 5 components:
- Quality fuel gas to fuel a genset / power plant
- Natural gas genset to generate electricity
- Datacenter to house, cool and distribute power to the mining ASICs
- Bitcoin mining ASICs such as Antminers or Whatsminer brand
- 24/7 internet connection such as cellular or satellite
8After I mine some Bitcoin, what can I do with it?
Generally you can hold on to it (save / speculate) or use it to buy things. While it is true that few businesses accept bitcoin as payment, you can use an exchange to convert it to the currency of your choice. Upstream Data will even market buy your bitcoin if you work with us on a project!
Upstream Data FAQ
1What does Upstream Data do?
Upstream Data Inc. is an energy services business focused on offering solutions to optimize stationary power generation systems.
We design and manufacture a suite of power generation products which help maintain optimal loading for upstream power generation facilities located both on and off grid.
Our customers are oil and gas producers, coal and nuclear thermal power plants, wind and solar generators and more. Anywhere power is being generated.
Our patented Computational Load Response™ control system enables our Ohmm™ Thermal Loadcenters to maintain prime movers at peak energy efficiency through frequency response.
We design and manufacture a suite of power generation products which help maintain optimal loading for upstream power generation facilities located both on and off grid.
Our customers are oil and gas producers, coal and nuclear thermal power plants, wind and solar generators and more. Anywhere power is being generated.
Our patented Computational Load Response™ control system enables our Ohmm™ Thermal Loadcenters to maintain prime movers at peak energy efficiency through frequency response.
2What solutions does Upstream Data offer?
Upstream Data builds in three major domains, On and off grid thermal loadcenters with our Hash Huts and Natural Gas Hash Generators, small scale home and light commercial applications in our Black Box line, and Oil and Gas buildings and power generation.
Additionally, Upstream Data offers a suite of remote monitoring and oilfield service solutions to optimally maintain your fleet.
Additionally, Upstream Data offers a suite of remote monitoring and oilfield service solutions to optimally maintain your fleet.
3What makes Upstream Data different?
The DNA of our company was forged in the oilfield, an unforgiving environment where excellent engineering and cost efficiency matter most. Each container and engine is built from the ground up, with highly experienced fabricators, electricians, and technicians leading the way.
We stand behind the quality and operation of our buildings like no other builder in this space.
We stand behind the quality and operation of our buildings like no other builder in this space.
4What are the maintenance requirements for your building solutions?
Our Hash Huts, Hash Generators, and Oilfield buildings all require safe handling practices during transport and placement. Successful operation requires monitoring of all internal systems and routine maintenance and cleaning of all air filtration systems. Hash Generators and Power Generation specifically require routine engine monitoring and maintenance, as well as standard oil and filter changes and specced by the manufacturer.
5How much power can I generate from my natural gas?
Not all natural gas is equal, different sources have different heating values and capacity to produce power. A general rule of thumb is that 1000 standard cubic meters of methane quality natural gas can power a load equivalent of 100 kW for a day.
6What is a Hash Hut?
A Hash Hut is a custom skidded building, engineered and built to maximize power consumption density, while maintaining optimal airflow and protecting ASIC computers from all weather conditions. Our proprietary design protects ASICs from dirt, water and weather ingress, and allows peak function across wide variance in seasons and geographies.
The Hash Hut comes fully complete and ready to be wired to your source of electrical generation.You provide machines and cables.
The Hash Hut comes fully complete and ready to be wired to your source of electrical generation.You provide machines and cables.
7What are the major Components of a Hash Hut and how do they work?
A Hash Hut has 4 main components, Building, Airflow, Electrical, and Networking. The building is a custom built steel skidded structure available in both galvanized steel and urethane. Airflow is managed by variable frequency drive fans that create positive pressure in the running building. Electrical is assembled by master electricians and the option of either standard or smart PDUs are available. Each Hash Hut is fully networked from a router and optional cell modem (for remote deployments) to switchgear that terminates in one CAT5 cable per machine.
8What is a Hash Generator?
A Hash Generator is a custom skidded building that is half datacenter and half natural gas genset. It is engineered and built to maximize power consumption density, while maintaining optimal airflow and protecting ASIC computers from all weather conditions. Our proprietary design protects ASICs from dirt, water and weather ingress, and allows peak function across wide variance in seasons and geographies. We utilize a variety of natural gas engines, chosen to optimize their reliability and ease of maintenance in the oilfield.
The Hash Hut comes fully complete and ready to be plumbed to your source of gas.You provide machines and cables.
The Hash Hut comes fully complete and ready to be plumbed to your source of gas.You provide machines and cables.
9What are the major Components of a Hash Generator and how do they work?
A Hash Generator has 5 main components, Building, Airflow, Electrical, Networking and Power Generation. The building is a custom built steel skidded structure available in both galvanized steel and urethane. Airflow is managed by variable frequency drive fans that create positive pressure in the building while running. Electrical is assembled by master electricians and the option of either standard or smart PDUs are available. Each Hash Generator is fully networked from a router and optional cell modem (for remote deployments) to switchgear that terminates in one CAT5 cable per machine. Power Generation varies on the size of your deployment and ranges from 50kw 5.7L gensets, up to 260kw 20LT engines. All gensets come ready to be plumbed to your source of properly graded gas.
10What is a Black Box?
A Black Box is a custom fabricated product designed to allow ASIC deployment in residential and small commercial settings, while minimizing nuisance sound.. It is engineered and built to sustain outdoor or indoor deployment, and to reduce ambient ASIC noise levels, while maintaining optimal airflow. The proprietary internal design protects ASICs from dirt, water and weather ingress, and allows peak function across wide variance in seasons and geographies.
Hundreds of Black Boxes are deployed across North America and even in Africa on small scale bitcoin mining operations.
Hundreds of Black Boxes are deployed across North America and even in Africa on small scale bitcoin mining operations.
11How are Upstream Data buildings shipped?
Upstream Data Buildings can be delivered by a shipper of your choosing, or we can coordinate shipping from our manufacturing facility. All buildings are prepped and sealed for travel to reduce the risks of weather and dust ingress.
Upon delivery, you will need either a certified forklift operator, or a small mobile crane with a spreader bar setup, to most easily unload and place your building.
Upon delivery, you will need either a certified forklift operator, or a small mobile crane with a spreader bar setup, to most easily unload and place your building.
12How do I monitor my building and machines?
Hash Huts and Hash Generators come fully networked and offer a variety of options for monitoring. You can direct access your machines via a laptop connected to the internal router, or, network your hut to an existing modem or optional 3G Antenna Modem for remote cell access.
From there, you are able to run the full suite of third party monitoring and firmwares. Optionally, Upstream Data has an open sourced ASIC monitoring suite called PYASIC, which allows full monitoring in an open source package.
From there, you are able to run the full suite of third party monitoring and firmwares. Optionally, Upstream Data has an open sourced ASIC monitoring suite called PYASIC, which allows full monitoring in an open source package.
13How do I decide which Bitcoin mining machines to put in my Upstream Data build?
The type of ASIC used in your Upstream Data build is contingent on your goals as a miner and your overall profitability model. Generally speaking, oilfield deployments must decide whether to build for gas mitigation or profit maximization, while on grid deployments must decide which ASIC to buy based on their particular power agreement. Off grid and Oilfield miners will utilize lower cost, tried and true, older model machines if their primary goal is to mitigate gas, and newer generation machines if their goal is to optimize Bitcoin generation. For on grid miners, more efficient miners are typically the preferred purchase, unless you have an extremely favorable rate due to curtailment or load balancing agreements.
14Does Upstream Data have preferred ASIC types?
Upstream Data Containers are built to run most major ASIC brands. MicroBT and Antminer machines are the top performers in this space, and while it is estimated that Antminer machines are roughly 70% of the ASIC market, after much experimentation and many seasons of mining, we have found that Whatsminer machines are more robust under adverse hashing conditions. However, both Antminer and MicroBT machines are of extremely high quality and our containers facilitate the running of both.