What is Bitcoin?
Bitcoin is a decentralized open-source digital currency which operates with no central authority or banks where managing of transactions and issuing of bitcoins is done collectively by the public network. The transactions in the network are usually confirmed within 10-20 minutes by a process called mining. Mining is distributed system of record keeping that is used to confirm pending transactions by including them in the block chain. Thus in a process of bitcoin mining, a new bitcoin is created by solving a complex computational puzzle. A bitcoin miner can effectively run such complex algorithms to solve those puzzles which is then said to complete a block, a process of creating a new bitcoin and updates the digital ledger that keeps track of all the bitcoin transactions.
What is Bitcoin Mining?
Mining is the process of creating new bitcoins or cryptocurrencies while managing their respective blockchain. The major role of bitcoin miners is to review and verify those previous bitcoin transactions, and then to create a new block so that the information can be added to the blockchain. Thus, the mining process involves solving of complex mathematical problems with intrinsic hash functions associated to the block that contains the transaction data. Thus, various bitcoin miners around the world compete intensely with each other to solve a necessary mathematical puzzle as fast as possible.
The first miner amongst others who finds the solution to those complex mathematical has function based puzzle is able to authorize the transaction, or add the bitcoin to the block. Each winner in this bitcoin mining competition receives a reward which is a certain amount of bitcoin. The reward comprises of all of the transaction fees for the transactions in that block. Such mining rewards motivate miners to collect as many transactions into a block as possible, in order to increase their reward.
What Is an Application-Specific Integrated Circuit (ASIC) Miner?
An application-specific integrated circuit (ASIC) is a type of highly advanced electronic chip based circuit that has is designed only for the particular purpose. Thus an ASIC miner is a device that has microprocessors designed and optimized for the only purpose of “mining” bitcoins and other digital currencies. Usually, every ASIC miner is specially optimized to mine a particular digital currency. Hence, a bitcoin ASIC miner can effectively mine bitcoin. Simply put, bitcoin ASIC miner is a sophisticated and specialized bitcoin mining computers,that are optimized to solve the complex mining algorithms for bitcoin generation.
The design, development and manufacturing of ASICs mining devices is more costly and complex because ASICs miner are manufactured especially for mining cryptocurrency. They perform cryptocurrency mining job faster than other less powerful computers and other general purpose electronic chips. ASIC miner chips for cryptocurrency mining have become so much popular and efficient due to the latest generations operating at around just 29.5 Joules per Terahash.
Some More About Application-Specific Integrated Circuit (ASIC) Miners
Instead of being general purpose integrated circuits like ROM chips or RAM chips or PC or mobile device microprocessors, ASICs deployed in cryptocurrency mining are specially designed integrated circuits whose only purpose is to maintain the bitcoin blockchain, a public shared database storing digital information.
Initially, bitcoin mining was intended for to be mined on general central processing units (CPUs) like your laptop or desktop computer. However, due to the advancement in fabrication technology later, bitcoin ASICs mining surpassed both CPUs and graphics processing units (GPUs) in terms of their reduced electricity consumption and greater computing capacity. When other hardware mining devices start hitting their bottlenecks in mining, Bitcoin ASICs miners have taken their lead.
The bitcoin miners can effectively perform complex mathematical calculations in ASICs, known as hashes. Each hash has a chance of yielding bitcoin so, the more hashes are carried out by miners in a given period of time, the more likely that miner will earn bitcoins. ASIC miners are specially designed and optimized to calculate hash functions more efficiently.
The investment in cryptocurrency has been costly due to the higher price of ASICs miners. People have been buying expensive ASICs and paying higher electricity bills thinking that they can mine more bitcoins and become profitable. Now days there are various high end Application Specific Integrated Circuit (ASIC) miners that are being used and more are still being designed and developed. If chosen wisely, the best ASIC miners, you can make huge profits from bitcoin and other cryptocurrency mining.