You may have heard of ASIC mining. Perhaps you are thinking about buying now? How are they different from GPU mining, and is it worth it? Let's break down the basic facts.
What is an ASIC miner?
ASIC is an Application Specific Integrated Circuit. These are minicomputers with specialized processors designed to excel at a single task. This task does not have to be mining bitcoins, it can be anything from a digital voice recorder to a modem. Because of this specialized design, ASICs are far from the general purpose central processing units (CPUs) and graphics processing units (GPUs) used for both "traditional" cryptocurrency mining and your everyday computing needs.
Since ASIC miners are so specialized, it is difficult to find multipurpose miners. ASIC designed for Bitcoin mining will not work with Litecoin. This is where the confusion lies. If Bitcoin ASIC won't work with Litecoin, how can you mine both on the same device? Since they are one of the components of mining hardware, it is possible to buy a device with many different ASICs, each optimized for a different blockchain.
ASICs often include redundant power supplies, powerful fans for cooling internal components, as well as network interfaces and storage devices for connecting and storing the blockchain.
ASICs are much more effective in mining bitcoins and other cryptocurrencies than GPUs, but they still suffer from some problems, such as power consumption, excessive noise, excess heat and limited power supply.
Bitcoin mining ASICs are very efficient in calculating SHA-256 hashes used with the Bitcoin blockchain. Likewise, Litecoin ICs are excellent at computing Scrypt hashes. ASICs can mine any cryptocurrency using the same algorithm. For example, Bitcoin ASIC can mine Bitcoin Cash. Technically, any ASIC can mine any other cryptocurrency, but it will be expensive and inefficient. You are almost always better off using a GPU or even a CPU for mining cryptocurrency than an ASIC designed for a different algorithm.
ASICs are not magic devices. We recommend that you study this issue very well before buying, so as not to be disappointed.
How do ASICs work?
ASIC miners are computer processors that you have in your computer, but what's so special about it? To really explain how they work, we need to look at processors in general at the transistor level, but this is already getting too complicated.
Processors are very good at performing computations, but they must perform a huge number of different tasks. They can calculate the hashes of the cryptocurrency, but other types of processors can do it better. GPUs are better than CPUs for these calculations, but there is still room for improvement.
ASIC processors contain more components required for cryptocurrency mining calculations (or any other complex task) and fewer general-purpose components. There are three different types of ASIC processors:
- Completely custom
- Semi-custom
- Ready platform
Custom work best with one task. It may not be cryptocurrency mining, but specific calculations, some of which are used during cryptocurrency mining.
Semi-custom designed with some flexibility. Manufacturers can change these processors depending on the mining algorithm they want to use.
Finally, the ASIC platforms work in accordance with the established criteria. They can vary, but again they offer some customization.
If you buy a ready-made ASIC miner (this is a completely ready-made solution), you do not need to think about what type of processor or other details there, as the manufacturer has already done everything for you.
There are several manufacturers of turnkey solutions, for example Bitmain, Innosilicon
Why should you use ASIC and not a graphics processor?
ASIC is without a doubt one of the best ways to mine Bitcoin or other cryptocurrencies. They are more efficient than GPUs for mining cryptocurrencies, and often cheaper than a high-quality graphics card.
ASIC miners are specifically designed for mining bitcoins or other cryptocurrencies, and as a result, you do not compete with any other markets, such as 3D simulation or video games.
As with GPU mining, you need to understand hashing speed and calculate the total purchase and launch cost with an estimated block reward. If you have cheap electricity, you're in luck). However, make sure you are not breaking the law if you are using government-subsidized electricity.
While ASICs are very good at mining cryptocurrencies, this does not mean that GPUs are not suitable at all, and there are some circumstances where GPUs are the best option. If you don't have the space or money, GPU mining is a good option. GPUs are also great for video games, which cannot be said for ASICs, so using them for a general purpose computer (which you can play and mine on at night) is also a good advantage. ASICs are best used if you decide to get serious about mining cryptocurrencies.
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