ASIC stands for Application-Specific Integrated Circuit, a device engineered specifically for the purpose of mining cryptocurrencies. ASICs offer superior performance and energy efficiency compared to general-purpose hardware like GPUs.
They are predominantly used in networks that rely on the Proof of Work (PoW) consensus mechanism, particularly for Bitcoin mining.
While ASICs have greatly increased mining efficiency, they have also contributed to mining centralization by making it difficult for smaller miners to compete.
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