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ASIC (Application-Specific Integrated Circuit): An ASIC is a specialized computing device designed exclusively for a particular function, notably for cryptocurrency mining. Unlike general-purpose integrated circuits that cater to a broad range of applications, ASICs are engineered to perform specific, complex calculations with higher efficiency. They are substantially more effective than traditional CPUs (Central Processing Units) and GPUs (Graphics Processing Units) in mining operations due to their enhanced performance and power efficiency.

ASICs are pivotal in mining cryptocurrencies like Bitcoin and Litecoin, which use specific algorithms (SHA-256 and Scrypt, respectively). The introduction of ASICs has significantly altered the mining landscape, making it challenging for individual miners to compete due to the high cost and operational expenses associated with these devices. Modern ASICs are integral to large-scale mining operations, often situated in regions with low energy costs. The profitability of an ASIC is determined by factors including its hash rate, the total network hash rate, the value of the mined cryptocurrency, energy efficiency, and the initial hardware cost. Leading ASIC manufacturers include Bitmain, Innosilicon, ASICminer, and MicroBT, with top-tier models commanding prices in the thousands of dollars.

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