Application-Specific Integrated Circuit(ASIC)
Specialized hardware designed for a single purpose, typically mining a specific cryptocurrency algorithm.
In-Depth Explanation
ASICs dominate Bitcoin mining because they're orders of magnitude more efficient than general-purpose hardware for SHA-256 hashing. This creates centralization concerns (only those who can afford ASICs can mine profitably) and e-waste issues. Some cryptocurrencies use 'ASIC-resistant' algorithms to favor GPU mining.
Related Terms
Mining
The process of using computational power to validate transactions and add new blocks to a proof-of-work blockchain.
Proof of Work
PoWA consensus mechanism where miners compete to solve computational puzzles, with the winner adding the next block and earning rewards.
Graphics Processing Unit
GPUA processor originally designed for graphics rendering, widely used for cryptocurrency mining due to parallel processing capabilities.
SHA-256
The cryptographic hash function used by Bitcoin for mining and transaction verification.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.