Earning rewards in crypto at scale often demands a lot of computing power used by the cryptocurrency mining hardware known as ASIC miners.
Understanding what an ASIC miner is and how it functions is super important if you want to try Bitcoin mining. From the ASIC definition to future industry trends, BiXBiT covers all key features of this important piece of equipment.
The term ASIC stands for Application-Specific Integrated Circuit. Unlike general-purpose computer processors, an ASIC is a microchip built for a single task: performing a lot of repetitive mathematical calculations, known as “hashing.”
Initially, single-chip systems were used for tasks like decoding audio and video in mobile phones and other simple devices. However, as the mining industry progressed, it needed hardware that could solve tasks for specific algorithms such as SHA-256 and Scrypt.
At first, the processing power of GPUs was used to parallelise these computations. But soon, special devices known as ASIC miners emerged onto the scene.
An ASIC miner is a mid-sized device packed in a metal casing that includes a power supply unit and a powerful cooling system. The variations in the design of its physical build and integrated chips create different ASIC types available on the market.
These differences are defined by key characteristics:
Performance (measured in hashrate: Terahashes per second or Th/s).
Power consumption (measured in Watts).
A higher hashrate means the device can perform more calculations per second for greater crypto mining profitability. However, this requires more power. The price of an ASIC miner is influenced by this balance of hashrate and energy efficiency, thus more powerful and efficient models are more expensive.
Here is a quick comparison of performance difference:
Powerful modern Bitcoin ASICs, such as Bitmain Antminer S19 XP+ Hydro, can achieve hashrates of over 270 terahashes per second (Th/s).
The latest high-end GPUs typically operate in the range of 85 megahashes per second (MH/s) for mining algorithms they can still process effectively.
This performance gap shows why ASICs hold such importance in the industry – they are specifically designed for the task, providing speed and efficiency for Proof-of-Work mining.
To understand how an ASIC miner works, let’s review at the core process it performs for cryptocurrencies like Bitcoin:
The miner receives data from the cryptocurrency network, including recent transactions.
It repeatedly hashes this data.
Each calculation attempts to find a result (a hash) that meets a very strict condition set by the network.
The ASIC performs trillions of these calculations every second until a valid result is found.
Finding a valid result allows the miner to propose the next block of transactions and earn a reward.
The market for high-performance ASIC miners is dominated byBitmain, Canaan, and MicroBT. They are undisputed leaders in producing the specialised cryptocurrency mining hardware that is essential for the entire industry, particularly for algorithms like SHA-256 used in Bitcoin.
Bitmain is known for making the most powerful Antminer machines and are often the first to use the newest, most advanced chip technology (like the really tiny 5nm or 3nm parts).
Canaan has been around for a long time and earned a reputation of a reliable maker of Avalon miners. While their miners might not always be the fastest, they are a solid, trustworthy company that was one of the first in the ASIC business.
MicroBT came onto the scene more recently and have become a major player. Their Whatsminer machines are known for being very good at using power efficiently, giving Bitmain a real challenge and offering strong alternatives.
These manufacturers have redefined miners’ image of what ASIC hardware is by creating miners with increasingly higher hashrates and better energy efficiency, key factors in crypto mining profitability.
Beyond the top three, other manufacturers are actively contributing to the ASIC market. Companies such as Bitfury, Innosilicon, Ebang provide alternative options with interesting features. However, the highest standard in terms of raw power and energy efficient mining is set by the market leaders.
Interestingly, in the earlier days of ASIC development, these manufacturers experimented with hybrid devices. These didn't always fit under the strict ASIC miner definition, as they combined mining capabilities with other functions, like the Bitmain Antrouter R3 series which included Wi-Fi router features.
However, Bitcoin ASIC trends and the broader market shifted towards developing increasingly powerful machines dedicated to mining, as specialisation proved far better for the purpose of achieving the most energy efficient mining.
After the hybrid models had kindled little interest among miners, manufacturers began to dig deeper into what Application-Specific Integrated Circuit is and how it can be integrated into the machines. Eventually, they presented early ASICs with older semiconductor nodes like 130nm or 90nm initially, then 28nm, which provided a big leap in efficiency over GPUs.
Popular models at that time:
Butterfly Labs Monarch.
AvalonMiner 1.
CoinTerra TerraMiner.
These ASICs made it into the Gigahashes per second (GH/s) range, often achieving speeds of hundreds of GH/s or even a few Terahashes (Th/s) for the most powerful early units.
Having realized the advantages of ASICs, manufacturers had doubled their efforts and moved to more advanced semiconductor nodes (like 28nm and 20nm). This period saw the emergence of the aforementioned market leaders. Back then, the focus was on increasing hashrate and improving power efficiency.
Popular models:
Bitmain Antminer S1, S3, S5, S7.
Canaan AvalonMiner 4, 6.
That period was characterised by a growth of hashrates, which reached tens of Terahashes per second (Th/s) for top models. For example, the Antminer S7 (released in 2015) offered around 4.7 Th/s.
The widespread adoption of the 16nm process node brought a breakthrough in hardware efficiency. ASIC miners of that generation dominated the market for quite a while. At the same time, the competition among major manufacturers intensified with every passing year.
Popular models:
Bitmain Antminer S9.
Canaan AvalonMiner 7, 8.
Ebang Ebit E9.
That particular generation established the performance standard for hashrates in the tens of Th/s. The iconic Antminer S9 (released 2016) delivered around 13-14.5 Th/s.
However, the challenge of mining Bitcoin kept growing rapidly. More and more miners joined the network, and the system is designed so that as more computing power is added, the mining problems become harder to solve.
On top of this, events like the Bitcoin halving impact on hardware are significant; when the reward for mining a block is cut in half, miners need much more processing power to find the same amount of Bitcoin. This increase in difficulty pushed manufacturers to build even faster and more efficient machines in the years that followed.
The latest stage is characterised by the move to even smaller process nodes (7nm, 5nm, 3nm) and intense competition to achieve maximum hashrate and efficiency. This has led to an increase in performance and a focus on large-scale, professional mining operations.
Popular models:
Bitmain Antminer S17, S19, S21 series.
MicroBT Whatsminer M20, M30, M50, M60 series.
Canaan AvalonMiner 10, 11, 12, 13, 14 series.
At the latest stage of ASIC miner development, hashrates have grown into the hundreds of Terahashes per second (Th/s). Modern top-tier miners like Bitmain Antminer S19 series ensure hasrates that often exceed 200 Th/s.
While the progression in computational power has formed the central narrative of ASIC development, it is equally important to review the development of cooling systems, which play an important role in a miner's overall efficiency and performance
The rise of hasrate couldn’t be possible without simultaneous adoption of cooling systems that are crucial for maintaining an energy efficient, thus profitable crypto mining. All ASICs come either with traditional air cooling or the more advanced liquid or hydro cooling solutions.
Back when standard CPUs and then GPUs were used, cooling was managed by the standard heatsinks and fans found in computer hardware.
The first ASIC miners were more efficient than GPUs, but still generated a lot of heat since they relied on basic air cooling.
The increase in hashrates pushed the limits of basic air cooling. Manufacturers started using more powerful fans and designing more complex heatsinks.
As the hasrate went into the hundreds of Terahashes, air cooling alone became less efficient and noisier. These problems forced manufacturers to create liquid cooling solutions, particularly a direct-to-chip liquid cooling, where a liquid coolant ran through cold plates attached directly to the hottest components.
Immersion cooling, where entire hashboards or even full ASIC miners are submerged in a non-conductive dielectric fluid, is the latest development that is becoming popular thanks to its superb heat removal ability and quieter work.
Below is the hydro cooling vs. air cooling comparison table where we highlighted the advantages and drawbacks of these two mining setups.
|
Feature |
Air Cooling |
Liquid/Hydro Cooling |
|
Mechanism |
Fans move air over heatsinks. |
Liquid (coolant) circulates to absorb and transfer heat. |
|
Initial cost |
Generally lower. |
Generally higher. |
|
Cooling efficiency |
Less efficient at removing high heat loads. |
Much more efficient at removing high heat loads. |
|
Noise level |
Very high (due to powerful fans) |
Much lower (fans only on radiators/chillers). |
|
Setup complexity |
Simpler and easier to install. |
More complex (requires pumps, radiators, plumbing) |
|
Maintenance |
Relatively simple (cleaning fans/filters). |
Complicated (monitoring coolant, leaks, pumps). |
|
Miner density |
Lower (requires space for airflow). |
Higher (allows more miners in a smaller area). |
|
Heat dissipation |
Dissipates heat into the surrounding air. |
Transfers heat to a liquid, often removed via radiators. |
|
Scalability |
Easier for small to medium setups. |
More complex but better for large-scale, dense farms. |
|
Lifespan |
Shorter if heat isn't managed well. |
Longer lifespan due to stable temperatures. |
The growth in hashrate production over time has gone hand in hand with the necessary improvement of cooling systems. This close bond between performance and cooling will remain as ASIC technology continues to advance.
While hashrate and the cooling system are important for performance and managing heat, several other factors also have to be considered.
The quality of the internal firmware, the low-level software that controls the hardware, is also crucial for performance, stability, and efficiency.
Manufacturer's reputation and the availability of support and repairs.
The miner's lifespan and its expected resale value over time can impact the overall return on investment.
The manufacturers of ASIC miners will continue focusing on both hashrate and energy efficiency. The move to smaller semiconductor manufacturing nodes, such as 3nm will be key to achieving the desired progress. However, as chips approach physical limits, the pace of improvement might eventually slow down.
Innovation in cooling systems, particularly liquid and immersion cooling, will remain critical. We may also see more development in ASICs for different algorithms as other cryptocurrencies gain popularity.
Factors like energy prices, regulatory changes, and the overall price of Bitcoin will also influence the adoption of future ASIC generations. The industry will likely continue to be dominated by a few major manufacturers, pushing the limits of specialised cryptocurrency mining hardware.
Having explained what an ASIC miner is and reviewed stages of its development, it becomes clear the industry has always been focusing on processing power and effective cooling. This connection, along with outside factors like market conditions, will continue playing a key role in establishing the efficiency of mining operations.
An ASIC mining rig is the setup of hardware made specifically for mining cryptocurrencies. It contains the special ASIC chips, the cooling parts to handle heat, a power supply for electricity, and a control part that manages the mining work and connects to the Internet.
When an ASIC miner is no longer profitable due to increased network difficulty or lower market prices, you can try selling it, although its value will likely be way lower.
A common example of an ASIC miner is the Bitmain Antminer S19. This is a powerful machine built with ASIC chips for mining cryptocurrencies like Bitcoin using the SHA-256 algorithm.
An ASIC is a chip made for one specific task only, like mining Bitcoin, whereas a SoC is a chip that puts many parts of a computer (like the main processor, memory, etc.) all together on one chip.
