Application-Specific Integrated Circuit (ASIC)

A processor designed solely to do one, highly-specific function like solving a hashing algorithm. ASICs are controversial as miners using ASICs have an advantage in winning the block reward by completing Proof of Work calculations faster than miners with less powerful processors. Groups of individuals may pool capital to create ASIC mining farms to achieve economies of scale. Some blockchains are therefore designed to be “ASIC-resistant” to promote decentralization.