Most of the people involved in the crypto community know Max Keizer. And, the famous crypto influencer with a program in Russia Today, usually makes headlines due to their opinions and analysis about the crypto market. Participating on this occasion in the debate about integrated circuits for specific applications (ASIC), together with his guest Alex Petrov.
The importance of ASICs in mining
As we have discussed on other occasions here in CriptoTendencia, mining is one of the most important activities of the Blockchain. Well, it is thanks to it that transactions made in blockchains can be processed. Taking advantage of the computing power of the Blockchain users themselves with this objective.
Thus, instead of owning central servers under the control of some entity. Block chains can distribute the maintenance tasks of their platform among all those involved in mining. Giving these users a reward in cryptocurrency for the work they do.
However, in the case of Bitcoin, the decentralization expected with this mode of operation has not been maintained over time. Well, as more users participate in the BTC network, and therefore the fixing of transactions in the blocks of the chain becomes more complicated. Greater processing power is required to participate in Bitcoin mining, such as that provided by ASIC equipment.
Thus, normal Bitcoin users were displaced, who provided the computing power of their personal computers to the network. For those individuals or companies that use ASIC equipment for mining. Which, as Petrov says, are more efficient:
«Important engineering knowledge is needed to create it, in addition to greater capital investment. Despite that, it goes like silk and consumes less energy despite offering much higher performance«, Explains the manager of the company Bitfury.
However, since these ASIC devices are more expensive than a personal computer or graphics card, a barrier to mining by common individuals is created. The process of mining the Bitcoin network is inevitably centralized in a group of powerful mining farms. Which are essentially located in the territory of China.
Less energy and more mining
Petrov also argues that ASIC equipment would be better for the environment than common mining, or even fiat money. Well, the latter bases its operation on energy consumption from fossil fuels. Thanks to which it is possible to maintain the platform of the international financial system.
On the contrary, according to Petrov, ASIC mining equipment obtains its energy from non-polluting power plants. This would mean that, despite their high energy consumption, they were not as harmful to the environment as ordinary fiat money.
Which does not mean that ASIC teams are perfect. On the contrary, there is a large space to improve the characteristics of these equipment. Which has led to a career within the sector to dominate Bitcoin mining, which China would be winning at the moment: «The Asian country has many people who design chips, and also has many sources of energy at their disposal and controls between 40 and 50% of mining«Petrov concludes.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.