Definition
An integrated circuit or IC refers to a small chip made of silicon that is responsible for holding a set of electronic parts such as capacitors, resistors, and transistors.
Understanding the term
Integrated circuits are present in almost all modern electronic devices. While they can perform calculations, integrated circuits can also function as oscillators, amplifiers, microprocessors, and data storage. They are relatively cheap, reliable, and can be produced in large quantities, making them important to the continued development of electronics worldwide.
Integrated circuits contain billions of transistors which have made modern computers significantly more efficient compared to older computers. Before the introduction of integrated circuits, discrete circuits were used. However, with the advent of integrated circuits, the same job can be done using much fewer resources and requiring less cost.
In the world of cryptocurrencies, integrated circuits are used as part of an ASIC mining rig. An ASIC or Application Specific Integrated Circuit is used for Bitcoin mining, replacing basic CPUs and high-end GPUs.
Takeaway
Integrated circuits have made modern computers considerably more efficient when compared to older machines. While digital integrated circuits are used in computers, analog integrated circuits are used in radios or audio tools. Integrated circuits replaced discrete circuits as they use much fewer resources to perform the same tasks.