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KEY TAKEAWAYS

  • Bitcoin miners review and verify previous bitcoin transactions and create new blocks so that the data can be added to the blockchain. 
  • Originally, Bitcoin’s creator intended for bitcoin to be mined on central processing units (CPUs)—your laptop or desktop computer. However, Bitcoin ASICs surpassed both CPUs and graphics processing units (GPUs) in terms of both their reduced electricity consumption and greater computing capacity. After gaining traction in mid-2013, when other hardware mining devices started hitting their bottlenecks in mining, Bitcoin ASIC miners have retained their lead.

  • ASIC Bitcoin miners are electronic circuits designed for the sole purpose of mining bitcoins.
  • When we say the words “block” and “chain” in the context of blockchain, we are actually talking about digital information (the “block”) that is stored in a public database (the “chain”). The Bitcoin protocol is built on the blockchain. So, with the launch of Bitcoin in 2009 as the first cryptocurrency, blockchain technology had its first real-world application.

  • Bitcoin miners review and verify previous bitcoin transactions and create new blocks so that the data can be added to the blockchain. 
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