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  • Writer's pictureChiara - Alena Lintner

What are ASICs

ASIC means Application-Specific Integrated Circuit. What this is and what it has to do with cryptocurrencies is clarified in this blog entry.

ASICs in general

An ASIC is a microchip designed for a specific task. For example, the processor for encoding signals in a mobile phone is an ASIC. ASICs are thus in contrast to generally integrated circuits, such the CPU.

Although, generally integrated circuits have a wide range of applications (a component can take on several tasks) but no problem is solved technically optimally. It is therefore always necessary to make cuts in terms of clock frequency, chip area, power consumption and many more aspects.

Because of, an ASIC is not a general integrated circuit, its function can not be changed by the user. So, it is usually used for specific customer requirements. An ASIC solves a task optimally and helps to reduce the cost of mass products, as the one-off costs of ASICs are relatively low.

However, their development is very cost-intensive and more complex than alternative solutions using ICs.

Role of ASICs in the field of mining:

The first ASIC-Miners werde already deployed 2013. That was just 5 years after the invention of Bitcoin.

ASICs mine particularly efficiently and powerful. They are energy efficiently because their power consumptions can be optimized by the user.

That's the reason why mining with ASICs is more energy efficient than mining with GPUs or CPUs. Further, GPUs usually needs to be underclocked and powered with less power to achieve a longer uptime.

Fun fact that shows how powerful ASICs are in contrast to GPUs:

A 2018 ASIC-Miner, which cost $2,500, can replace 400 GPUs or 12,000 CPUs.

That's definitely amazing.

Advantages and disadvantages of ASICs

The high computing power of ASICs makes networks, such as Bitcoin, more secure.

Furthermore, the hardware is becoming cheaper per efficient unit every year. ASICs have enable optimized mining in terms of performance and energy consumption.

Of course, ASICs also have some disadvantages. With ASICs, some cryptocurrencies, such as Bitcoin, can no longer make profit by mining with GPUs and/or CPUs. It is therefore also useful for private individuals to mine some cryptocurrencies only withs ASICs.

Manufacturers of ASICs:

Well-known manufacturers of ASICs are Bitmain with the "Antminer" series and iPollo with several series to cover every budget.

If you are interested in ASICs, just visit our online shop. Here you get ASICs from Bitmain and iPollo for every budget plus everything else for mining.

So have fun discovering our online shop ; )

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