Computer chips specifically designed for the purpose of Bitcoin mining, and are therefore incredibly efficient at doing so, but require much capital to be used, making Bitcoin mining more centralized. 

Application-Specific Integrated Circuits (ASICs)

Due to the rise in ASICs, mining is shifting away from a decentralized and egalitarian pursuit. 

University of Connecticut

Vulnerable to two forms of centralization
- Mining ecosystem and ASICs
- Block validation not done locally

Mining Centralization

Buterin, Vitalik. (2013). A Next-Generation Smart Contract and Decentralized  

Application Platform. https://ethereum.org/en/whitepaper/


Ethereum Whitepaper

Miners rely on a centralized mining pool to provide block headers, 3 of such pools now indirectly controlling 50% of processing power.

Learn Before

Related

Learn After

Learn After

Related