Hello everyone, I'm Xiaok Jun. Today, we'll explore "The Rise of Mining Communities (Part 1) - The Birth of ASIC Miners."
In our previous lesson, we discussed how blockchain technology entered China in 2011, with mining emerging as one of the earliest and most influential industries. But to understand the origins of mining communities, we must spotlight two pioneers: Zhang Nangeng and Jiang Xinyu, whose innovations would later shape a billion-dollar empire.
The Genesis: FPGA Miners and a Technologist’s Leap
In 2011, Zhang Nangeng—a Ph.D. student at Beihang University with a passion for anime—stumbled upon Bitcoin. That June, the world’s first FPGA miner debuted, revolutionizing mining by offering 50–100x higher hash rates compared to CPU/GPU setups.
Driven by technical curiosity and financial need, Zhang began developing FPGA miners in his university lab. Under the pseudonym "ngzhang," he gained recognition on Bitcointalk, earning the nickname "Pumpkin Zhang."
The ASIC Revolution: A Race Against Monopoly
By 2012, U.S.-based Butterfly Labs announced plans to develop ASIC miners—more powerful yet exclusive to their team. Fearing a centralized takeover of Bitcoin’s network, Zhang made a bold decision:
"If Butterfly Labs succeeds, mining’s decentralized spirit dies. Someone had to act."
Despite his university denying his leave request, Zhang dropped out and built the first ASIC miner, named "Avalon" (inspired by the ultimate shield in Fate anime). In 2013, he co-founded Canaan Creative, selling out its inaugural batch of Avalon miners.
Legacy and the Dawn of a Gold Rush
Zhang’s triumph marked the transition from hobbyist mining to industrial-scale operations. Yet, his rival "Fried Cat" Jiang Xinyu was already brewing the next chapter—ushering in mining’s golden age.
👉 Discover how Bitcoin mining evolved
FAQ
1. What’s the difference between FPGA and ASIC miners?
FPGAs were faster than CPUs/GPUs but required reprogramming. ASICs, designed solely for mining, offered unmatched efficiency.
2. Why did Zhang Nangeng oppose Butterfly Labs?
Their closed-source ASICs threatened Bitcoin’s decentralization, prompting Zhang to develop open alternatives.
3. How did Avalon miners impact the market?
They democratized high-power mining, enabling broader participation beyond institutional players.
Special thanks to Kevin Shao (@Shaokevin on Weibo) for his insights.
### Keywords:
- Bitcoin mining
- ASIC miners
- FPGA vs ASIC
- Zhang Nangeng
- Avalon miner
- Butterfly Labs
- Decentralization