Finance Technology

What is ASIC mining

Editor

ASIC stands for «Application-Specific Integrated Circuit». Thus, the ASIC chip has a narrow range of functions, it is designed to perform tasks of the same type. Compared to multitasking devices, ASIC mining equipment works faster and more efficiently. Due to the narrow focus, finding a block of transactions is faster. The first bitcoin ASICs were released in 2012. At the same time, there was a drop in mining profitability due to an increase in the complexity of the cryptocurrency and in energy consumption.

What is ASIC mining?

ASIC mining is no different from regular mining: it involves performing complex mathematical calculations in order to receive a block reward. Using of ASICs for mining has become very profitable, because they give a much higher hashrate, and consume less electricity than conventional video cards. For Bitcoin ASIC is the only way to make a profit due to the high complexity of mining. Modern ASICs allow you to achieve 24 hours equipment operation with sufficient cooling.

How does ASIC mining work?

Asic mining machine works according to the following principle: each chip executes a programmed algorithm. All chips are synchronized with each other to increase power. Using ASIC firmware, you can significantly improve the efficiency of ASIC. It can increase the hashrate from 50 Th/s on the stock firmware to 80 Th/s. The essence of its work is to reduce the frequency of worn chips and their power consumption.

Also special firmware provides virus protection. The firmware is fully integrated with Hive OS, allows you to track the temperature of the equipment, hashrate changes.

Is ASIC mining worth it?

A modern ASIC replaces, at least, three new video cards. Thus, ASIC gives, on average, 3 times more profit. ASIC also pays for itself faster, than a video card, it takes approximately 6 months. You can count ASIC mining profitability, using a mining calculator. To do this, you need to enter the equipment model and capacity, the number of units and the cost for electricity in your region.

In general, ASIC mining is profitable and suitable for industrial-scale mining of cryptocurrencies. Therefore, many people decide to invest in the arrangement of ASIC rig.

Advantages and disadvantages

The main advantages of ASIC mining are high profitability and fast payback. If you successfully build an ASIC mining rig, you can live on mining and not work.

But there are some disadvantages to this way of making money:

  •         high equipment price;
  •         narrow focus on a single algorithm;
  •         noisy work;
  •         the need for constant monitoring of system productivity.

The narrow focus of ASIC on one algorithm leads to the fact, that only bitcoin can be mined on this equipment. This Bitcoin ASIC is not suitable for other cryptocurrencies.

Also the disadvantage is that many companies buy a huge amount of ASIC and mine a large number of coins. This greatly increases the complexity of cryptocurrencies and makes mining impossible for ordinary people.. This violates decentralization, which is the main principle of cryptocurrencies.