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Why Three-Phase Electrical Systems Can Give Miners a Competitive Advantage While ASIC Efficiency Decreases
Since the introduction of the first ASIC miner in 2013, Bitcoin mining has grown exponentially, with efficiency increasing from 1,200 J/TH to just 15 J/TH. While these gains were driven by improved chip technology, we have now reached the limits of silicon-based semiconductors. As efficiency continues to improve, the focus must shift to optimizing other aspects of mining, especially power settings.
In Bitcoin mining, three-phase power has become a better alternative to single-phase power. As more ASICs are designed for three-phase input voltage, future mining infrastructure should consider implementing a unified three-phase 480V system, especially given its prevalence and scalability in North America.
To understand the importance of three-phase power supply when mining Bitcoin, you must first understand the basics of single-phase and three-phase power systems.
Single-phase power is the most common type of power used in residential applications. It consists of two wires: a phase wire and a neutral wire. The voltage in a single-phase system fluctuates in a sinusoidal pattern, with the power supplied peaking and then falling to zero twice during each cycle.
Imagine pushing a person on a swing. With each push, the swing swings forward, then back, reaches its highest point, then drops to its lowest point, and then you push again.
Like oscillations, single-phase power systems also have periods of maximum and zero output power. This can lead to inefficiencies, especially when a stable supply is required, although in residential applications such inefficiencies are negligible. However, in demanding industrial applications such as Bitcoin mining, this becomes extremely important.
Three-phase electricity is commonly used in industrial and commercial settings. It consists of three phase wires, which provides a more stable and reliable power supply.
Similarly, using the swing example, suppose three people are pushing the swing, but the time interval between each push is different. One person pushes the swing when it starts to slow down after the first push, another pushes it one-third of the way, and the third pushes it two-thirds of the way. As a result, the swing moves more smoothly and evenly because it is constantly being pushed at different angles, which ensures constant motion.
Likewise, three-phase power systems provide a constant and balanced flow of electricity, thereby increasing efficiency and reliability, which is especially useful for high-demand applications such as Bitcoin mining.
Bitcoin mining has come a long way since its inception, and electricity requirements have changed significantly over the years.
Before 2013, miners used CPUs and GPUs to mine Bitcoin. As the Bitcoin network grew and competition increased, the advent of ASIC (application-specific integrated circuit) miners truly changed the game. These devices are designed specifically for Bitcoin mining and offer unmatched efficiency and performance. However, these machines consume more and more power, requiring improvements in power supply systems.
In 2016, the most powerful mining machines had a computing speed of 13 TH/s and consumed about 1,300 watts. Although mining with this rig was extremely inefficient by today’s standards, it was profitable at the time due to the low competition on the network. However, to make a decent profit in today’s competitive environment, institutional miners now rely on mining equipment that consumes about 3,510 watts of electricity.
As ASIC power and efficiency requirements for high-performance mining operations continue to increase, the limitations of single-phase power systems become apparent. Moving to three-phase power is becoming a logical step to meet the industry’s growing energy needs.
Three-phase 480V has long been the standard in industrial settings in North America, South America, and elsewhere. It is widely adopted due to its many benefits in terms of efficiency, cost savings, and scalability. The stability and reliability of three-phase 480V power makes it ideal for operations that require higher uptime and fleet efficiency, especially in a world undergoing a halving.
One of the main advantages of three-phase electricity is its ability to provide higher power density, thereby reducing energy losses and ensuring that mining equipment operates at optimum performance.
In addition, the implementation of a three-phase power supply system can lead to significant savings in power infrastructure costs. Fewer transformers, less wiring, and a reduced need for voltage stabilization equipment help reduce installation and maintenance costs.
For example, at 208V three-phase, a 17.3kW load would require 48 amps of current. However, when powered by a 480V source, the current draw drops to only 24 amps. Cutting the current in half not only reduces power loss, but also minimizes the need for thicker, more expensive wires.
As mining operations expand, the ability to easily scale up capacity without significant changes to the power infrastructure is critical. Systems and components designed for 480V three-phase power provide high availability, allowing miners to scale their operations efficiently.
As the Bitcoin mining industry grows, there is a clear trend towards developing more ASICs that comply with the three-phase standard. Designing mining facilities with a three-phase 480V configuration not only solves the current inefficiency problem, but also ensures that the infrastructure is future-proof. This allows miners to seamlessly integrate new technologies that may have been designed with three-phase power compatibility in mind.
As shown in the table below, immersion cooling and water cooling are excellent methods for scaling Bitcoin mining to achieve higher hashing performance. However, to support such high computing power, the three-phase power supply must be configured to maintain a similar level of energy efficiency. In short, this will result in higher operating profits at the same margin percentage.
Switching to a three-phase power system requires careful planning and implementation. Below are the basic steps to implement three-phase power in your Bitcoin mining operation.
The first step in implementing a three-phase power system is to assess the power requirements of your mining operation. This involves calculating the total power consumption of all mining equipment and determining the appropriate power system capacity.
Upgrading your electrical infrastructure to support a three-phase power system may require installing new transformers, wires, and circuit breakers. It is critical to work with a qualified electrician to ensure that the installation meets safety standards and regulations.
Many modern ASIC miners are designed to operate on three-phase power. However, older models may require modifications or the use of power conversion equipment. Setting up your mining rig to operate on three-phase power is a critical step to ensure maximum efficiency.
To ensure uninterrupted operations of mining operations, it is essential to implement backup and redundancy systems. This includes the installation of backup generators, uninterruptible power supplies, and backup circuits to protect against power outages and equipment failures.
Once a three-phase power system is operational, ongoing monitoring and maintenance are critical to ensuring optimum performance. Regular inspections, load balancing, and preventative maintenance can help identify and resolve potential problems before they affect operations.
The future of Bitcoin mining lies in the efficient use of electricity resources. As advances in chip processing technology reach their limits, paying attention to power settings is becoming increasingly important. Three-phase power, especially 480V systems, offers many benefits that can revolutionize Bitcoin mining operations.
Three-phase power systems can meet the growing needs of the mining industry by providing higher power density, improved efficiency, lower infrastructure costs, and scalability. Implementing such a system requires careful planning and implementation, but the benefits far outweigh the challenges.
As the Bitcoin mining industry continues to grow, the adoption of three-phase power supply could pave the way for a more sustainable and profitable operation. With the right infrastructure in place, miners can utilize the full potential of their equipment and remain leaders in the competitive world of Bitcoin mining.
This is a guest post by Christian Lucas of Bitdeer Strategy. The opinions expressed are solely his own and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.