Re: Will bitcoin ASIC mining lead to litecoin or namecoin adoption ?
ok thanks, but what does it mean in practical terms? why is everyone talking about it? what effects will it have on the bitcoin world? thanks in advance!
CPU : GPU :: GPU : FPGA :: FPGA : ASIC
As the market matures, mining will progress towards more and more specialized hardware. This will allow for a greater hashrate given the same price.
CPU is general purpose
GPU is for several specific applications (mostly games)
FPGA is for even fewer applications, great at crypto
ASIC models will be made specifically with Bitcoin in mind
Bitcoin ASICs are controversial because at first one company will have a temporary monopoly on their manufacture. Expect a big boost in hash rate, and more people complaining about that monopoly until more manufacturers enter the market. Since this makes CPU even MORE obsolete, expect fewer botnet miners and more professional miners with lower profits - which in the long run goes to zero.
Really it sucks for miners but is great for users.
Ok, thanks. Very informative. Why is it good for users to have a boost in hash rate? Also, I still don't understand what ASIC is, it's better hardware that's designed specifically for mining bitcoins? It involves better software too or no? What makes ASIC so much better? How much faster will it be at mining? Is there some place where I can read lay discussion of this issue, I'm not that technically advanced. Thanks!