ASIC

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An ASIC (application-specific integrated circuit) is a specialized hardware component designed for a specific task, offering greater efficiency than general-purpose processors. What is ASIC in blockchain? It refers to high-performance chips built specifically for cryptocurrency mining. Unlike CPUs or GPUs, which can handle a variety of computing tasks, ASICs are optimized for solving cryptographic puzzles required in proof-of-work (PoW) blockchains like Bitcoin. Their efficiency allows miners to process transactions faster while consuming less power per calculation, making them the preferred choice for large-scale mining operations.

ASIC can be understood as a custom-built processor designed to execute hashing algorithms at maximum speed, significantly outperforming traditional hardware in mining. ASIC miners increase the chances of successfully validating blocks and earning rewards, but their high cost, lack of flexibility, and susceptibility to algorithm changes make them a significant investment. Some blockchain networks have introduced ASIC-resistant algorithms to promote decentralization and prevent mining from becoming dominated by a few powerful entities.

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