Most people interested in cryptocurrencies are somehow familiar with the concept of mining. It is the process by which some digital coins are created. Bitcoin is the most popular cryptocurrency that is mined. Mining is essential for all proof-of-work blockchains, like Bitcoin’s.
A crypto blockchain is continuously updated by adding new data blocks containing information regarding user transactions. Miners are in charge of adding these blocks. But to do so, they should find the solutions to complex equations that the blockchain system generates. The miner who solves the puzzle first gets a reward in cryptocurrency.
As one can expect, many miners compete to solve the said cryptographic problems faster to earn the rewards. Therefore, modern crypto mining usually requires high-speed computers to solve these problems in the shortest time. A typical mining rig includes all the components of a personal computer: a motherboard, central processing unit (CPU), graphics processing unit (GPU), random access memory (RAM), storage, and power supply.
As mining has evolved, the technology to mine cryptocurrencies has produced more specialized equipment. This advanced mining hardware maximizes processing capability, thereby making the use of electricity more efficient while solving cryptographic equations faster.
Application-Specific Integrated Circuit (ASIC) Crypto Miners
An application-specific integrated circuit (ASIC) is an electronic chip that performs a specific task. Engineers have created ASIC miners, computerized devices specifically designed for mining cryptocurrencies using these chips. ASIC miners are built to mine a particular cryptocurrency. For example, a Bitcoin ASIC miner is optimized to work with the Bitcoin mining algorithm.
Developing and manufacturing ASIC miners is expensive. However, they can mine faster than regular computers equipped with CPU/GPU. It is possible because an ASIC miner is a bank of microprocessors with a cooling system. But because of the specific task for which the chips were created, an ASIC miner cannot be used for any other task than mining a particular coin. So, if the profits fall back on the mined coin, the hardware will have no further use.
Field-Programmable Gate Array (FPGA) Crypto Miners
A field-programmable gate array (FPGA) is an electronic circuit that one can program to execute specific logical operations. This feature distinguishes FPGAs from ASICs. Therefore, an FPGA miner can be programmed to mine a particular coin. However, it can be reprogrammed to mine a different cryptocurrency with another mining algorithm if needed. However, programming and configuring FPGAs requires special training.
How Do ASIC and FPGA Mining Devices Compare?
ASIC mining is an established method that has been proven to work well. On the other hand, FPGA mining has been announced as a new, efficient, and cost-effective technique. Are these claims correct? Let’s look at some of the most important comparison criteria to draw our conclusions.
1. User Friendliness
Using an ASIC miner is very easy. After unpacking an ASIC miner, you will need to configure the device before connecting it to the crypto network. However, the configuration doesn’t require any special technical abilities. On the other hand, FPGAs are difficult to program. You need to have solid knowledge in FPGA technology to configure or reconfigure an FPGA miner.
2. Adaptability
An FPGA miner is very flexible and adaptable. You can program it to mine different cryptocurrencies, whereas an ASIC miner is specific for one coin only. The FPGA technology allows you to “reuse” the hardware if you change your mining activity for something else.
3. Energy Efficiency
Despite the progress in FPGA technology, ASIC miners are more energy-efficient. They deliver higher hash rates per Joule of energy. Hence, they are better options to mine cryptocurrencies with energy-demanding mining algorithms like Bitcoin’s. Also, ASIC miners deliver higher throughput per Joule. FPGAs are more energy-efficient than CPUs and GPUs.
4. Price
The initial cost of the equipment is higher for ASIC miners. They are fast, powerful, and compact computers optimized to mine a specific coin. But these features come at a higher price. ASIC miners are more affordable but still more expensive than CPUs and GPUs.
Conclusion: Which Type of Crypto Miner Is More Affordable?
Both ASIC and FPGA miners have their advantages and disadvantages. The selection of a type of miner depends on each person’s specific conditions. If you plan on mining full-time for one particular coin, it may be more profitable to invest in ASIC equipment. It will likely pay off in the long run. However, if you don’t plan on devoting all your time to crypto mining, you may not get a return on your investment. Keep in mind that ASIC miners are expensive.
But if you plan on mining a cryptocurrency first and later try a different one, then FPGA could be a more profitable solution. You won't need to invest in new mining hardware to mine a different coin. FPGA miners can also be an excellent alternative to mine ASIC-resistant coins. FPGA miners are good options for crypto enthusiasts that don’t want to invest huge sums on mining hardware.
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