Bitcoin Forum

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There are three options for this group buy.

1. Purchase of chips only
   
2. Chips plus assembly into the DrillBit system.

3. Purchase of DrillBit system components for DIY assembly

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Avlaon chips

Avalon 110nm ASIC chips, producing 282 mh/s.

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Introducing the DrillBit System

An affordable and expandable bitcoin mining system.

The DrillBit system is the most versatile Bitcoin mining system available. It will expand to suit your needs. You can start up with a small mining rig, similar to many entry level rigs on the market, or you can start bigger. As you decide to expand your hashing capabilities, the DrillBit system will expand to suit your requirements, easily and simply.

The basic module of the DrillBit system is a single DrillBit board; a 16 ASIC card. With the basic hashrate of approximately 4.5 GH per card (based on Avalon's published spec of 282MH per ASIC), the board plugs into a standard USB socket. The power can be supplied by a normal ATX power supply. If you are only running a single board, it may also be powered from a spare disc drive connector, allowing you to install it out of sight, inside your computer, should you wish to. You can be hashing all the time, with no extra boxes to stash, no cords to trip over and accidentally unplug.

The ASIC board has 3 ports built in. The top port on the first board takes a data distribution board - like the FPGA board in the Avalon miner, only much, much simpler. It comes included with the initial purchase of a DrillBit board so you are ready to start mining as soon as you get it, nothing more required. But when you want to add more hashing power, this is where the DrillBit system really shows its advantages over other systems. If you want to double your hashrate to 9GH, just get another ASIC card and plug it into the bottom port of the first card. Its that simple. No big strings of USB hubs, no messy cables or setup changes. The data distribution card automatically registers the extra ASIC card and operates accordingly. Up to 4 cards can be stacked in this way. Simple, convenient, efficient. Just add more processing power when you want to. You can then be running at 18GH quite easily, expanded up from your initial investment of 4.5GH. Nothing to resell, nothing going unused.

If you wish to expand beyond 4 DrillBit boards, to achieve even higher hashrates, the DrillBit system can accomodate this also with the backplane system. The backplane is a large distribution board that the ASIC cards plug into individually. So if you want to run much higher hashrates, you can get a backplane and fill it with ASIC cards as you decide to buy them.. The same principle applies. Simple and efficient. You just plug in extra cards, and the system configures to the extra power. All versions of the system run conveniently from a standard ATX power supply, so it is easy to operate. You could also just run a number of card stacks from a USB hub, in much the same way as other systems offer, if you so desire. Or you could run multiple backplane systems from the same setup. With 16 cards in a backplane, you will have 72GH/s of hashing power.

Thats more than any other single miner on the market at this time. But the beauty of the DrillBit system is that you don't have to outlay all that cash immediately. You can get started on a smaller system of whatever size you like, and build as you are ready.
 
The DrillBit system is designed by Dan Stocks, an electronics phd with 30+ years in electronic design, highly experienced PCB designer, currently doing it as a full time job for a well known electronics manufacturing company.

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About this Group Buy

We are based in Sydney Australia, but accept orders worldwide. If you are located in Australia, this is a fantastic opportunity to get your hands on locally built quality miners, saving on shipping costs and helping build the Australian Bitcoin network. Assembly and production is being done here in Sydney. Postage within Australia will be cheaper than any other board assembly offers out there. For our international participants, don’t worry, we will make affordable shipping options for all.

We are currently in prototyping stage for the DrillBit system. The board design is done and sample chips on the way. You will find regular updates here with the progress.

Once we have raised enough funds, an order will be placed with Avalon. For those purchasing only the chips, they will be sent on as soon as they are received. For those buying fully assembled miners, we will begin production of the boards as soon as we have the chips, and get them to you soon after that. We want you all mining as quick as possible.

We will also be offering standalone boards for those who desire to assemble their own chips, these will come along with chip purchases or on their own for those of you who already have your own chips.

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Pricing

Chips:

• Avalon ASIC chips can be ordered for BTC 0.086
• This is to be paid immediately upon order placement. This will fund the purchasing of the chips.
• Receipt of chips from Avalon may also incur other fees such as import tax, customs duties etc. These fees will be distributed evenly based on the amount of chips purchased. Once spread out amongst everyone, it is not expected that these fees will be very high.

Assembly:

• We are currently in conversations with manufacturers to determine the final costings on assembled boards. We will keep you updated as we lock down final pricing.
• Each DrillBit board takes 16 Chips so consider how many mining boards you would like when purchasing chips and multiply this number by 16. For example, if you would like 4 DrillBit cards you will need to pay for 64 chips + 4 X the final price of each board
• Likewise, final costing on a backplane for stacking more than 4 cards will be posted shortly.
• All boards will be fully tested and guarenteed functional before being sent out.

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Payment

• Payment for the chips is required immediately upon placing the order.
• Payment for boards and assembly will be sorted out down the track and does not need to be paid up front. The only amount required up front is the payment for the chips.
• If you desire to have your chips assembled into the DrillBit system, please let us know in your order how many boards and backplanes you will be wanting.
• Only payments in BTC accepted for now, but we will be moving to accept $US through Paypal soon. Please PM me if you desire to make a payment is $US.
• Shipping costs will be added to the final price, payable in one sum as we get closer to shipping the units out.
• Processing of Chip and Miner orders will be done on a first in first served basis. The earlier you place your order with us, the earlier we will process your order and get your chips and miners to you.

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Shipping

Shipping prices to be updated shortly.

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Terms

• Full payment including all USD based fees is required prior to shipment to final destination.
• Address signing is required for dispute settlement.
• We assume no responsibility for any issues that may arise due to circumstances outside our control, including but not limited to Avalon failing to ship, shipment being seized by customs, shipment arriving late, etc.
• All chips purchased are sold AS IS, with no warranty of any kind.
• You may choose to change your address a maximum of two times.
• In order to change your shipping address you must sign the change order with the purchase address.

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Purchase instructions

To calculate btc required: Multiply the number of chips desired by 0.086 (cost=chips*0.086)
Send payment to: 1KQ46GTddAhjghZmyT3C8ZeThtCMMjxohA

Email: drillbitsystem[at]gmail[dot]com with the subject “Chip Purchase”, and the following information in the body:

Forum Name:
First Name:
Last Name:
Street Address:
City:
State:
Zip Code:
Country:
Shipping type:
Phone Number:
Email Address:
Chip amount:
Payment amount:
Assembly: none if you are choosing the chip only option, or number of DrillBit boards, and/or backplanes you will be desiring
Sending Address:
TX ID:

*Note* Do not send funds from an address you do not control. You will be required to prove ownership of the sending address upon request.

If you have any questions, please feel free to PM me.

Looking forward to doing business with you all. Lets get these miners going.

A couple questions all may be interested in knowing the answer to...

At what point will btc be refunded if all 9500 are not purchased?  (Is there a cutoff date?)

If the buy fills up by August 1 for example, what is the current estimated delivery date of the chips?

Hey Lajz

Thanks for the question. The quoted lead time from Avalon is 9 to 10 weeks from date of purchase. This means that is the group buy is filled by August 1st, then we would be looking at receiving the chips around the end of september, beginning of october.

In terms of a cutoff date at which point the buy will be cancelled and funds refunded, there currently isn't one. It really depends on what level of interest we get in the project. We are looking into finding some larger investors who will hopefully account for decent numbers of the chip order and assist in getting the order in quickly.

If we find ourselves with little interest a month down the track then we will start reassessing.

There will perhaps be other avenues of getting our hands on chips at a higher price if we end up not being able to fill the full order from Avalon. If we arrive at this point, i will make this option available to everyone who has put in funds for the purchase should they want to still get miners made.

At this point however, we are confident that the word will spread and we will be able to fill the order.

Barntech

Sounds good, I'll take the chance on you guys.

Sent payment for 16 chips and will be going with an assembled board.  As more jump on board I'll definitely be down for some more!

what is this "Drillbit system" you speak of? is it another Klondike16 clone?

Nice to have you on board Lazj. We're on our way.

No, the DrillBit system is not a Klondike 16 clone. It is a superior design to the Klondike, designed by our engineer here in Sydney.

Got any pictures or CADs and specs? would be interesting seeing the difference of the design, i assume the design is not under the open source hardware?

If anything, fill us all in on the development on the board..

.. i may just move my weight behind this from terrahash

Thank you for your interest AJRGale. Pics and specs coming in the next couple of days. Stay tuned.

I'm interested in 16 of these but I'm not so sure how long is gonna take to get the 9.5k chips sold. I'll be watching.

Welcome to cache 22/chicken'n'egg scenario. Im waiting for more information over buying in. Heck, even if I get only the chips to throw at someone else (or experiment with myself) job done...

But lets see, Barntech, Care to use Escrow? if you get John .k into this I’d be happy to throw everything at you now

Hey guys.

So yes, it is a bit of a catch 22 scenario. In my experiences with these group buy situations, more people feel more comfortable jumping on board once that number starts to lower, but in order for that number to lower, people need to jump on board. The main issue is that you end up having to have your BTC tied up waiting for everyone else to throw theirs in, so it os understandably a bit nerve-wracking being of of the first. It is also largely about trust.

Now, if we all just threw our money in, then we'd be there in no time. But of course you guys don't know me, and so again it is perfectly understandable that you don't trust me. But hopefully we can do something about that.

At this point, the plan is to not use John K for escrow, and rather be our own escrow (though i am open to the idea of a third party escrow if that will help the project move forwards quicker). Our aim is to establish an ongoing business servicing miners to the community, and for this reason we would like to establish a relationship of trust with all involved. We are not here to scam anyone. If we ran away with your BTC, we would have no hope of seeing this project through. This is not about talking people out of their bitcoin, this is about getting a bunch of miners going for everyone involved.

The BTC gathered for the purchase from Avalon will stay in the account it is deposited into until the purchase is made. You can check it regularly on blockchain.info to confirm this. We also offer refunds if for some reason you decide that you would no longer like to go ahead with the purchase. In terms of being interested in being involved, but not willing to throw in the money, thats where the catch 22 comes in, if we had 10000 chips worth of interest but no one put in the money, then we would be no closer to putting in the order. Getting involved in something like this always involves some degree of a leap of faith. I'm hoping that we can get that going without escrow, but as i said, if that ends up being the guarantor that will build the faith, then so be it. Let me know how you guys feel about the current set up first.

As AJRGale mentioned, if you end up not wanting to go with the DrillBit system, you can always use chips purchased with any other assembly option.

Look forward to hearing everyone's thoughts.

Barntech

Looking forward to doing business with you.

Well, since there is a lot of scammers and con artists out there and its all about trust, to get people to trust you, you have to show that you are willing to use services like known escrows. keeping everything open and transparent so we can see everything you do will add points to you trust.. But, since you are neutral, and you don't want to use john .k, find a 3rd party escrow, there are plenty here.

Really I'm going to poke probe and prod everything out of you to gain my trust, i have already been a victim of a scam, to my own stupidity, now I'm to guarded to even drop down any coinage unless i know its clear.

If you use john .k, and push his fees to the buyers, the price will rise to ~0.091/chip (his 2% fee) which I'm OK with.

Now if you have the same issue as "i sent out XX units worth ZZ amount and the buyer said they only got X amount so escrow only gave me Z amount", simple fix, Show the escrow that you are not in fault, give evidence that you packed and sent the requested amount, it will show that it is ether tampered with via shipping, or the buyer is lying. if you cant trust a trusted person (known escrows), then how can the buyers trust you?

TL;DR: no escrow, people will see a possible scammer.

Hey AJRGale.

Fair point. I'm sorry to hear that you were scammed. I'm sure it was a very unpleasant experience. I will make some inquiries into various escrow services and see if i can find a good solution that will satisfy you. I appreciate that you don't feel like you can trust me at this point, and fair enough, so i'm keen to make motions towards a setup where you can feel fully comfortable and see that you can in fact trust me. At this point my thought is to include escrow as an option, at a slightly higher fee that will take into account the escrow commision, as well as tranferring coin straight to me. This will be at the buyers discretion. If they want the extra security of third party escrow and are willing to pay for it, then it will be there as an option. If they wish to put trust in me and go with the lower price, then that will be an option too. I'll get this sorted in the next few days.

I'd be keen to have you on board AJR, so i'll make sure we can find an arrangement that you are comfortable with. Stay tuned for updates on this.

Cheers.

Barntech

Barntech, sorry if I'm being to hard on you,

I did get here because you mentioned that you are based in Sydney, im just a bit out in the sticks.

Anywho, get a escrow up and i could fish out 4btc in the next few weeks for basically 40 of them chips, that'll cover 2 of your miners and 11 chips spare (excluding the cost of the miners)

also.. pretty card is pretty, will it fit inside a 5.25" drive bay?, or even better, 3.5" bay? (oh i can just see my mining rigs now :D )

Can I have chips from another group buy shipped to you guys for assembly. I really like the drillbit system as a concept and it would be great to utilize this concept in my miner using the chips I have procured from:

https://bitcointalk.org/index.php?topic=217316.0 (246 Chips)

https://bitcointalk.org/index.php?topic=189582.0 (42 Chips)

Very interested in this, I'll be in contact soon.

Hey guys.

We have decided to focus our attentions on BITFURY chips instead of Avalon chips. They are next generation chips and 10 times more powerful than the Avalon chips. Please check out:

https://bitcointalk.org/index.php?topic=266235

Would love to have you on board with the Bitfury chips group buy. Great potential to get some seriously powerful mining rigs going for a very respectable cost.

We are still looking at doing a run of Avalon ASIC based boards, but will not be doing the group buy. Please be in touch if you have Avalon chips and are interested in having them assembled into the DrillBit system. We will be making DrillBit for both Avalon and BITFURY chips, but the main production run will be BITFURY based boards. Please hop onto the BITFURY chip group buy above if you are interested in getting some BITFURY based DrillBit boards.

Cheers.

Barntech