Hello. What is an ASIC? I know it's used in cryptocurrency mining, but could someone else elaborate more? Greetings .
Application Specific Integrated Circuit (ASIC), is a chip designed to perform one predefined task.
It has the highest computing power of all the systems, unquestionable efficiency in performing the task entrusted to it. These are unquestionable advantages of ASICs, but what is the biggest advantage is also the biggest disadvantage. Undoubtedly, the disadvantage of such systems should be considered the lack of possibility to use them for other tasks than just the programmed function. ASICs are the most risky form of computing power, this is due to the very dynamic development of newer generations of devices characterized by increasing computing power.
The characteristic feature of ASICs is also high volume of the device and high demand for electricity. The technology for the production of ASICs is very advanced and only a few manufacturers in the world have access to it, who control the production of ASICs. The best known ASIC manufacturer is the Chinese Bitmain, the creator of Antminer series for bitcoin extraction. ASIC, apart from bitcoin, supplies with computing power such currencies as litecoin, zcash, dash, bitcoin cash. To become an ASIC miner you need to purchase a specialized device. The cost of such a device is 500-2000 dollars.
An ASIC is a specific type of electronic integrated circuit, which is designed and manufactured to perform a predefined task. ASICs, by building them from scratch for a given electronic system, can replace a whole plethora of additional general purpose circuits performing the same function.
ASIC (application-specific integrated circuit). As the name suggests, ASICs are integrated circuits that are designed to serve a specific case, as opposed to general purpose circuits such as processors powering our computers and mobile devices.
In some circumstances, there are simple computational tasks that do not require the financial and computational effort that a general purpose processor would bring to the table. Instead, an ASIC can be used as a much simpler and more efficient alternative (both in terms of cost and energy).
In the crypto world, the term ASIC is widely used for specialist equipment that is developed and regularly improved by companies such as Bitmain and Halong Mining. This equipment is designed exclusively for crypto mining. There are coins that cannot be effectively extracted by ASIC miners, and as such can be referred to as ASIC resistant cryptocurrencies.
In short, mining is a process that involves performing countless mixing functions until the correct mixing result is generated. A miner who finds the correct acronym uses it as proof of his work, which gives him the right to check the next block of the transaction and claim the reward for the block.
Although ASICs can be very efficient, the limitation to a specific case of use makes them completely useless to do anything else. What's more, the continuous technological progress in the crypto space introduces new ASIC models that quickly make older projects completely unprofitable.