3 must knows about 3 types of crypto tech

Let’s say that you’ve already learned about some cryptocurrency basics, but are still confused about the types of crypto tech and how it is used.

There are many different types of crypto tech, and it can be confusing or overwhelming to figure out the right chip for your crypto needs. Many miners are searching for the chip that is the most profitable; some chips have usability advantages, while others are more versatile in terms of the cryptocurrencies that can be mined.

ASIC chips, FPGA chips, and CMP GPUs are all important to the world of cryptocurrency. 

ASICs are specialized processors that have been designed for mining cryptocurrencies like Bitcoin. FPGAs on the other hand are general-purpose programmable devices that can be used for multiple tasks including data processing or signal processing—but not crypto mining. CMPs are also general purpose programmable devices, but they’re usually found in computer servers where they help with some very specific functions like video encoding or encryption algorithms.

Let’s take a closer look at the different types of crypto tech, including FPGA, ASIC, and CMP chips. Below, we examine their differences, as well as their various advantages and disadvantages.

#1 ASIC

If you’re familiar with crypto mining, then there’s a good chance that you’ve heard about ASIC chips. These chips are microchips designed for specific applications, including crypto mining. This is why they are called Application Specific Integrated Circuits.

ASIC chips have increased accessibility to crypto mining, but some believe that the rise of ASIC mining also threatens the decentralized aspect of the crypto sector. They are widely considered to be the most popular way to mine cryptocurrency. Since they are customized, manufacturing and developing ASICs is often more expensive than other chips in crypto tech. 

ASICs also don’t need any cooling infrastructure, so their running costs tend not to be as high, but that doesn’t offset the cost of customized development and manufacturing. As a result, ASIC mining is less accessible to the average miner. This has led to a high concentration of miners in China.

3 things to know about ASICs:

1. Bitmain, one of the largest Bitcoin miners in the world, is largely responsible for the rise of ASIC chips.
2. ASICs are more expensive than other crypto mining chips to develop.
3. ASICs are popular because they are easier to use.

#2 FPGA

FPGA stands for Field Programmable Gate Array. It consists of digital circuits that act as building blocks, and it can take a significant amount of time and effort to create. This is because in order to mine crypto with an FGPA chip, it requires software and digital circuit design.

One of the main advantages over other chips in crypto tech is the fact that it offers more configuration. Another is that it is much more affordable than other chips, and it can be reprogrammed for multiple applications. They’re also designed to consume less power.

On the downside, FPGAs are more difficult to program, which is a barrier for those new to cryptocurrency or lacking technical knowledge. 

While ASICs are much more popular than FPGA chips, many miners use FPGA chips to mine specific ASIC-resistant coins. ASIC-resistant cryptocurrencies are those that cannot be efficiently mined using ASICs. Ethereum is a perfect example of an ASIC-resistant coin—it can be profitably mined with GPUs, making it less vulnerable to centralization.

3 things to know about FPGAs:

1. FPGA chips aren’t user-friendly, and there’s a big learning curve.
2. They are extremely useful for mining ASIC-resistant coins.
3. FGPA chips are also affordable, and consume less power.

#3 CMP GPU

The CMP is a GPU chip dedicated specifically for crypto mining, and it was created by the corporation Nvidia, one of the largest chip manufacturers in the world. CMP stands for cryptocurrency mining processor. Back in 2021, Nvidia created this specialty GPU (graphics processing unit) because a gaming chip shortage occurred, mainly because of crypto miners who were eager to profit from mining cryptocurrencies. Of course, it’s also a massive growth market for Nvidia.

The launch was simple: so many miners were using GPUs that were meant to be gaming chips, so Nvidia decided to launch their own crypto mining chip. Unfortunately, sales have been a bit disappointing. Regardless, this didn’t stop Hut 8 Mining, one of the largest Bitcoin mining companies in the world, from purchasing $30 million of CMP chips from the company.

Being the new kid on the block, CMPs have a long way to go to penetrate the crypto mining market. FPGAs are historically more efficient than GPUs, which is something Nvidia will have to address as it seems to deepen usability. The popularity of GPUs still reigns supreme, and the Nvidia CMP is filling a gap with the dwindling GPU supply. The supply chain issues that plague Nvidia will also have to be addressed sooner rather than later, though, to truly bridge that gap. 

3 things to know about CMPs:

1. Nvidia specifically created the CMP HX chip as a pro-level crypto mining chip to deliver maximum performance.
2. The CMP chip is a GPU chip that tends to offer flexibility regarding mineable cryptocurrencies.
3. CMP chips are starting to become more popular in the cryptocurrency world because they’re ASIC-resistant.

Will there be more types of crypto tech in the future?

We all know that the types of crypto tech are evolving quickly, especially in the new world of mining digital currencies. 

This is quite evident when you consider that Ethereum was only created in the past six years and has achieved massive success in a short period of time. Now, there are entire Ethereum ecosystems, applications, and competitors. Ethereum has also been integral to the rise of both DeFi and the once booming NFT market.

It can be difficult to predict what chips in crypto tech will become relevant or how profitable crypto mining will be over the next several years, though. ASICs, FPGAs, and CMPs serve very different purposes. They all have something in common, though: cryptography. 

As you can see, ASICs are at risk for crypto mining because of the huge costs involved. Instead, ASIC manufacturers like Bitmain sell their ASIC devices to large-scale cryptocurrency operations that then operate them as data centers. 

FPGA miners are trending downward for crypto mining because of the popularity of ASICs and the new CMPs, but they still have some use cases. For example, FPGA miners can be used for mining altcoins that aren’t as profitable to mine with ASICs or CMPs. 

CMP GPUs had a rough entrance to the marketplace, but are starting to regain popularity and adoption in the cryptocurrency world where they can be used to mine cryptocurrencies that are ASIC-proof, like Ethereum. 

The future of cryptocurrency and blockchain technology is still uncertain, but one thing is for sure: ASICs, FPGAs, and CMPs will continue to play a role in the years to come. Regardless, we hope these three facts about three chips in crypto tech helped you get a sense of what’s out there and what types of crypto tech could be a good fit for your crypto mining needs.