Definition of application-specific integrated circuit minor (ASIC)
What is an application specific integrated circuit (ASIC) miner?
An application specific integrated circuit (ASIC) is a type of circuit that has been designed for a single specific purpose. An ASIC miner refers to a device that uses microprocessors for the sole purpose of “mining” digital currency. Generally, each ASIC miner is designed to mine a specific digital currency. So, a bitcoin ASIC miner can only mine bitcoin. One way to think of bitcoin ASICs is to use them as specialized bitcoin mining computers, or “bitcoin generators,” which are optimized to solve the mining algorithm.
The development and manufacture of ASICs as mining devices is expensive and complex. Since ASICs are specifically designed for mining cryptocurrency, they get the job done faster than less powerful computers. ASIC chips for cryptocurrency mining have become increasingly efficient, with the latest generation running at around 29.5 joules per terahash.
Key points to remember
- Application Specific Integrated Circuit (ASIC) miners are electronic circuits designed for the sole purpose of mining bitcoin or other cryptocurrencies.
- In general, an application specific integrated circuit (ASIC) is optimized to calculate a single function or a set of associated functions.
- Bitcoin miners review and verify previous Bitcoin transactions and create new blocks so that the data can be added to the blockchain.
Understanding Application Specific Integrated Circuit (ASIC) miners
Instead of being general purpose integrated circuits, like RAM chips or microprocessors of PCs or mobile devices, ASICs used in cryptocurrency mining are specific integrated circuits designed only to maintain the bitcoin blockchain. , a shared public database that stores digital information.
Originally, the creator of bitcoin planned for bitcoin to be mined on central processing units (CPUs) – your laptop or desktop computer. However, bitcoin ASICs have overtaken both processors and graphics processing units (GPUs) in terms of reduced power consumption and increased compute capacity. After gaining ground in mid-2013 when other hardware mining devices began to hit their bottlenecks in mining, Bitcoin ASIC miners held onto their lead.
Bitcoin miners perform complex calculations called hashes. Each hash has a chance to produce bitcoin. The more hashes that are done in a set period of time, the more likely a miner is to earn bitcoin. ASIC miners are optimized to efficiently compute hash functions.
While investing in cryptocurrency can be expensive, and only sporadically rewarding, some investors are drawn to it. People buy expensive ASICs and pay high electricity bills so they can earn bitcoin.
As part of the blockchain, digital information (stored in a “block”) is recorded in a public database (the “chain” of subsequent blocks). The bitcoin protocol is built on the blockchain.
What is Bitcoin mining?
Mining is the process of managing the blockchain and creating new bitcoins. The job of bitcoin miners is to review and verify previous bitcoin transactions and then create a new block so that the information can be added to the blockchain. The mining process involves solving complex mathematical problems using intrinsic hash functions tied to the block that contains the transaction data. Various bitcoin miners compete intensely with each other to solve a necessary math puzzle.
Many miners join a mining pool to increase their chances of earning bitcoin. Mining pools pay for high-value hashes, called shares.
The first miner to find the solution to the puzzle is able to authorize the transaction or add the bitcoin to the block. Each winner of the bitcoin mining “lottery” receives a reward (a certain amount of bitcoin). The reward includes all transaction fees for transactions in that block, which prompts miners to collect as many transactions as possible in a block, in order to increase their reward.