DL Research Content

A conversation with Marko Tarman, Lead Mining Manager, NiceHash

A conversation with Marko Tarman, Lead Mining Manager, NiceHash
Illustration: Andrés Tapia; Photo: Courtesy of NiceHash

How has NiceHash adapted to the shifts in the Bitcoin mining market since its launch in 2014?

We feel that innovation is the key to avoiding obsolescence. Our core product is a unique, deliverable hashrate marketplace, which serves as the foundation for numerous additional products. Initially, we created software for GPU miners, helping to lower the barrier to entry to crypto mining.

Following the Ethereum Proof-of-Stake migration, we shifted our focus to application-specific integrated circuit (ASIC) miners after seeing a trend of small GPU miners transitioning to medium-sized ASIC miners. We are now developing a comprehensive software suite for ASIC miners, including Custom NiceHash ASIC Firmware, powered by Marathon Digital (MARA).

What steps did the NiceHash team take to prepare for the recent Bitcoin halving event?

NiceHash operates 30 different algorithm marketplaces, allowing multiple coins to be mined, including Bitcoin. Despite Bitcoin’s significant daily turnover, we are not solely dependent on it. We support other coins on the same SHA256 algorithm market.

To prepare for the halving, we focused on assisting our miners with lower fees and proactively addressing their pool-side issues to optimize their performance during the mining bear market.

How has NiceHash’s hashing power marketplace impacted the energy-intensive miner community, given the surge in Bitcoin’s hash rate?

Since late 2022, our SHA256AsicBoost hashrate has increased by more than 700%, significantly outperforming the Bitcoin network’s growth. Miners using NiceHash have seen earnings up to 15% higher compared to traditional pools. Our platform for spot, on-demand hashrate contributes to higher prices across the board, benefiting the broader mining community.

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What are the benefits of the new Real-Time-Pay-Per-Share (RTTPS) reward system from NiceHash?

RTTPS offers distinct advantages over traditional PPS and FPPS systems. Unlike daily rate calculations that exclude transaction rewards, RTTPS pay rates are determined in real time by hashrate buyers. This real-time bidding ensures miners receive fair compensation based on current market conditions.

What are the benefits of the NiceHash Firmware, and how have ASIC miners responded?

The feedback has been overwhelmingly positive. The firmware provides three types of automated tuning based on target hashrate, power consumption, or percentage. It also includes thermal protection and standard features such as integration with third-party management solutions. Being developed by a publicly traded company adds a layer of trust and reliability.

What advice would you give to new Bitcoin miners today?

Start small and learn the ropes before scaling up. Many pitfalls can be avoided by taking gradual steps. Using NiceHash QuickMiner is a great way to begin, and if you have the resources, consider purchasing an ASIC.

Alternatively, team up with experienced companies to build a mining farm or host your devices with trusted providers.