Hiding in Rohtak, Haryana, is a modern, emerging gold mine. Instead of excavators and shovels, there are hundreds of computers or “mining rigs” that work synchronously to extract Ethereum, the world’s second largest cryptocurrency.
Welcome to NewEdge Soft Sol Pvt Ltd, founded by Pardeep Narwal. He decided to try crypto mining from his home in October 2020 after struggling to maintain his business of providing college with online infrastructure during the first Covid lockdown. bottom.
34 years old gave India Express Peep into the elusive world of cryptocurrency mining and move to 24-hour operation in a three-story building with three engineers with 300 high-end graphics processing units (GPUs) in an eight-hour shift. Open the door. Average monthly electricity bill for Rs3lakh.
“The image miners often advertise is stealing electricity from power grids and huge fossil fuel plants, which is far from the perfect truth. Public opinion about cryptocurrency mining is, of course, this. It depends on the image, but it’s incomplete, “says Narwal.
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In India, regulatory uncertainty combined with security concerns has made mining a highly secretive business. “Several crypto miners operating on a large scale in India have either illegally imported crypto mining hardware or stole power to run rigs, so they are out there. I want to stay away from my eyes, “says Narwal.
Cryptographic mining is a decentralized process that validates transactions on a blockchain network. To validate each transaction, the miner receives a reward, where it is profitable.
Narwal provides an interesting analogy for understanding crypto mining. “For example, suppose Ram sends 100 rupees worth of Bitcoin to Shyam. If Shyam refuses to receive it, the miner comes to rescue Ram by validating the transaction in a blockchain distributed database. All Transactions need to be validated by crypto miners, so miners are sometimes referred to as verifiers, “he said.
To become a miner, you need a computer, preferably a high-end device that can validate transactions all day long. New blocks are added to the blockchain on average every 15 seconds, adding up to thousands of transactions per hour.
According to Narwal, from a unit perspective, his energy-intensive operations consume 35,000 units a month. “We have made an arrangement with a local distribution company to make sure there are no power outages … Purchasing a backup of a power supply requires additional infrastructure costs, which does what it does to us. I can’t stand, “he said.
Narwal’s rig GPUs consist of devices such as AMD RX580 and NVIDIA’s RTX3060, RTX3060 Ti, RTX3070, RTX3070 Ti, RTX3080 and RTX A4000. All of these are mining Ethereum for the simple reason of being “profitable.”
GPUs are basically graphics cards, originally designed for gaming, but also great for cryptocurrency mining. “All the GPUs I own are from India. Most miners buy from China, but I only buy these devices domestically,” Narwal said. He added that GPU costs range from 60,000 rupees to 1,20,000 rupees.
The Rohtak rig consists of multiple 4G connections. Broadband connections, private fiber optic connections, and two other devices running over the LAN, so even if one is down, the other device will still work. “The speed of the connection isn’t as important as the delay. We’ve confirmed that multiple connections are working in sync, so the plant is always working without shutting down,” says Narwal.
According to Narwal, the real challenge is not just to set up the plant, but to keep it running every day. “Regular GPU and Ethereum minor software updates, and monitoring of all GPUs are challenges,” he said.
“Compatibility is a big issue. All GPUs need to work in sync,” said Jyotirmay Ray, 27, one of the rig’s engineers. “We also need to continually check dusting for the device to function properly.”
Interestingly, the factory does not have air conditioning. The roof is equipped with an air cooler with a high-end exhaust system to remove excess heat. “I can’t afford to deploy AC. I’m using an air cooler instead because it can cost more than the initial investment, but AC is just as effective,” says Narwal.
Deepak Jangra, 26, another rig engineer, said it was important to maintain cooling. “Cooling and duct systems need to be continuously monitored. It’s important to keep the temperature below 26 degrees Celsius so that the device doesn’t overheat,” he said.
Like all crypto projects, Narwal’s rigs are wary of fraud. “The other day, when I woke up, I noticed that my revenue was being transferred to another crypto wallet. I needed to turn on two-factor authentication right away. One day, a hacker was mine. When I paste the wallet address because it tries to hack the clipboard, the malware subtly changes it to my private wallet … it happens on the clipboard, so most people copy and paste, “he said. Said.
When asked about his income, Narwal said it depends on the price of crypto assets, in this case Ethereum. Last month, with 300 GPU devices, or 13 gigahash computing power, entrepreneurs were able to mine seven Ethereum coins, or about 110,000 rupees. Current mining rewards are 2 Ethereum and fees per verified block.
On the bigger issue of cryptocurrencies and regulations, Narwal believes that crypto is as legal as any other IT business. “We pay GST for all our devices and we also pay for electricity. After that, we are charged a 30% tax and we are in full compliance with it,” he said.
He is also not worried about the possibility that the government will ban cryptocurrencies altogether. “As a rule of thumb, GPUs can be expected to lose up to 30% of their value, and my initial investment has already been repaid,” he said. “Cryptography cannot be stopped.”