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The Application Specific Integrated Circuit (ASIC) is a fundamental part of the extraction of cryptocurrencies. But what is it and why is it so important to encrypt the extraction? Here's everything you need to know.
What is the ASIC?
An application-specific integrated circuit (ASIC) is a computerized circuit that has been customized for a specific purpose.
The easiest way to think about it is to compare it with a more general computer chip. The internal hardware of your computer is designed to perform a lot of different tasks at the same time.
On the other hand, an application-specific chip (ASIC) is a powerful and focused chip. So instead of doing a lot at once and spreading its processing power, complete one task at a time.
This makes it incredibly powerful and efficient.
History
ASICs began appearing for the first time in commercial applications in 1981. At the time they were mainly used in low-end 8-bit personal computers.
From there, its evolution has followed more general progress in computer technology. For example, while microprocessors and microchips became more powerful and smaller, ASIC features.
ASIC today
Today they have a huge processing power. In some cases, people build them in a chip-based system. Basically, this is when an ASIC includes microprocessors and some form of memory block.
Despite the ongoing technological advances, the central idea remains the same. An application-specific integrated circuit (ASIC) is always a custom circuit built to complete a single highly focused task.
Cryptocurrency extraction
Most cryptocurrency miners use ASIC. Shutterstock
ASIC has proved to be revolutionary in the extraction of cryptocurrencies. Here is a brief overview of how mining works:
- To generate new coins, computers must process a huge block of data to solve a complex equation.
- The person who ultimately finds the right solution is rewarded with a new coin or part of a new coin. This process is called "mining".
- To get to the right solution, computers need to perform a massive set of possible answers. This requires a lot of processing power.
Initially, in the early days of cryptocurrency, a typical PC could extract it quite effectively. But it is no longer the case. As blockchain registers have become increasingly complex, and as the mining sector has become increasingly competitive, miners must find ways to process data faster and more efficiently.
And this is where the ASIC (Application Specific Integrated Circuit) comes into play. It is perfect for encrypted extraction. It is powerful, fast, efficient and complete only a hyper-focused activity. Today, the only real way to keep up with the encryption needs is to use a powerful one.
How to use the ASIC
Remember, ASICs are built for a specialized task. As a result, miners must calibrate it to the specific crypt algorithm you are trying to extract.
Each cryptocurrency has its own unique algorithm. This is what we call a "hashing algorithm". Here are some of the most important:
- Bitcoin (BTC) uses the SHA-256 algorithm.
- Monero (XMR) uses an algorithm called cryptonight.
- Ethereum (ETH) uses the Ethash algorithm.
To become an effective miner, your ASIC must only execute the algorithm used by the currency you are trying to extract. From there, he will take care of everything else. In theory, it will process data quickly enough to generate enough possible answers to make a profit.
advantages
- Speed
- Efficiency
- High power calculation
- Hyper-focused only on mining
- The hash can be fast enough to make a profit from mining
disadvantages
- High energy use
- High electrical costs
- Significant carbon footprint
Mineral cryptocurrency with ASIC
Currently, anything other than the ASIC is too inefficient and too slow to keep up with other cryptocurrency miners. Moving on to the future, cryptographic extraction will probably require even faster processing. As a result, expect to see an evolution in mining technology.
Alternatively, completely new hardware could replace it. This would only happen if the new hardware is faster and cheaper.
Developers are also exploring new ways to generate cryptocurrency coins. In particular, a protocol called Proof of Stake (PoS) provides a more efficient means of creating cryptocurrency through "forging" rather than "mining".
