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Collect Bits, boost your Degree and gain actual rewards!

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Scale your career with online video courses. Dive into your learning adventure!
Crypto Terms:  Letter A

What is ASIC?

Meaning:
ASIC - a device designed for cryptocurrency mining.
easy
2 minutes

Let's find out ASIC meaning, definition in crypto, what is ASIC, and all other detailed facts.

ASIC stands for "application-specific integrated circuit". They are devices designed to act as crypto-mining machines.

New Bitcoin (BTC) currency is created by verifying the blocks via the Proof-of-Work consensus mechanism. The cryptocurrency is mined using CPUs and GPUs.

However, regular computers cannot handle the amount of computing power required to mine cryptocurrency. The process requires very intensive use of electricity and energy resources.

ASICs were designed to solve the issues of crypto-mining. They are developed solely for the purposes of mining, with some ASICs built to meet the needs of mining particular cryptocurrencies. Furthermore, ASICs can maximize the computing power used for mining while minimizing energy consumption.

All large-scale mining has been moved to ASICs. They are established in data centers that offer closely controlled environments. Mining using ASICs is usually conducted in countries that offer cheap power resources.

There are specific factors taken into account to determine the profitability potential of specific ASICs:

  • Hashes-per-second generated by the hardware;
  • The total hashrate across the entire network;
  • The overall value of the coin or token mined by the ASIC;
  • The energy consumption rate per each generated hash;
  • The initial hardware costs.

There are specific directories dedicated to tracking real-time values of the most efficient ASICs in the world. These directories also provide data on the break-even point for varying ASIC models, which reveals how long it takes for the ASIC unit to generate income worth the same value as the hardware.

Some of the most popular ASIC manufacturers are ASICminer, Bitmain, Innosilicon, and MicroBT. While costs may vary depending on the availability of materials and power expenses, the most efficient ASICs may cost several thousand dollars.