Welcome to Crypto Jargon the series where I break down the complex terms that we use in reference to cryptocurrencies and blockchain tech In this episode, I'll explain the following terms related to crypto mining: GPU and CPU Mining RIG, ASIC and ASIC Resistant Ok starting with GPU which is a Graphics Processor Unit

This is a computer hardware that is processing data And the higher a computer's GPU is, the faster it operates It can be very useful to have a high GPU processor for those who play video games or mine cryptocurrencies with a regular home PC CPU on the other hand, stands for Central Processing Unit and is different than a GPU since it coordinates the different components of a computer when it's in operation The term Central Processing Unit (CPU) has been widely used in the computer industry since the early 60s

CPU is often measured in terms of its speed, and the units for such measurement is gigahertz (GHz) The stronger your computer's CPU is, the more successful it will be for mining Early mining was done on home computers with CPU and GPU mining but as the industry grew, it moved on to Mining Rigs And a mining rig is basically a machine, a computer that is specially built for mining cryptocurrencies It often consists of multiple high-end graphics processors (GPUs) in order to maximize its processing power

Some mining rigs also use ASICs ASIC stands for Application Specific Integrated Circuit Well, let's break down this confusing term: "Integrated circuit" is a computer chip and "Application-specific" means that it was built for one specific purpose or computer application An ASIC chip is used in cryptocurrencies to help record transactions on a blockchain, the process' known as mining Since mining of cryptocurrency data blocks can demand a lot of computer space and time, some miners set aside entire devices or partition off a section of their computers to do nothing else but mining An ASIC also uses far less power than a standard mining rig

And most ASICs are produced in China, In fact, the biggest producer of ASIC chips is Bitmain, a Chinese company that for a long time was holding almost a complete monopoly on the market As the value of Bitcoin went up, ASICs began dominating the mining indusry, creating mining pools to make it cost-efficient due to the high equipment expenses, making it impossible for people to mine Bitcoin using their home computers These ASIC machines were not only dominating the network but also taking all the power from the small miners Which poses a threat of centralized mining and in retaliation, "ASIC resistance" came into the picture ASIC Resistant basically, is used to describe those cryptocurrencies that do not require expensive equipment for mining

Those miners who prefer using their personal computers for home GPU mining are in favor of ASIC-Resistant cryptocurrencies and they are considered to be fairer and more decentralized Enjoying this content? Go check out Crypto Jargon: The Ebook out now on Kindle It's an Amazon bestseller and the most up to date crypto dictionary with more than 700 terms, acronyms and trading slang related to cryptocurrencies and blockchain tech Just go to ojjordancom/cryptojargon and grab your digital copy today