Definition
An application-specific integrated circuit, or ASIC, is a chip designed to perform a narrowly defined task efficiently. In Bitcoin mining, ASIC hardware repeatedly calculates the hashes used in the network's proof-of-work process. Specialization allows this equipment to perform far more relevant hashing work per unit of energy than general-purpose computers used for the same task. However, an ASIC designed for one mining algorithm cannot simply be reconfigured to mine every cryptocurrency. Its usefulness depends on algorithm compatibility, electricity requirements, cooling, reliability, and the competitiveness of other miners. Hash rate describes its calculation speed, while energy efficiency describes the power needed for that output; neither alone determines profitability. An ASIC does not hold authority to change Bitcoin's rules. It produces candidate proofs of work, and independent full nodes still reject blocks that violate consensus requirements, regardless of the hardware that generated them.
Source references
References accompanying this glossary entry:
Educational reference, not financial advice. See our financial disclaimer and editorial policy.