ASIC-Resistant
What is ASIC-Resistant?
Let’s find out ASIC-Resistant meaning, definition in crypto, what is ASIC-Resistant, and all other detailed facts.
The phrase ASIC-Resistant refers to mining and blockchain algorithms that are intended to provide ASICs no advantage over customer-grade hardware. ASICs (Application Specific Integrated Circuits) are bits of hardware that are purpose-specific. They are meant to mine Ethereum, Bitcoin, and other cryptocurrencies.
Like with cryptocurrency, if you wanted to make a device that could only perform one thing, such as a digital clock, it would be easier to design a PCB rather than employ a computer. To put it succinctly, generalization is the inverse of optimization.
Understanding of ASIC-Resistant
Several well-known cryptocurrencies (Ethereum, Bitcoin) use proof-of-work consensus algorithms. Proof of work (PoW) is a decentralized consensus technique that compels network participants to spend time by solving a random mathematical puzzle, in order to prevent anyone from manipulating the system.
Nevertheless, proof-of-work has its drawbacks, and proof-of-stake is becoming more popular.
Furthermore, proof-of-work GPUs often excel at parallel processing and do it quicker and with greater energy efficiency than CPUs. If it becomes commercially feasible, chip makers will create an ASIC miner for a specific mining algorithm.
ASIC performs a better job since it’s built to do one unique task. Because the fundamental objective of an ASIC is to conduct as many hashing operations per second as possible, they are superior to a GPU for mining Bitcoin or other ASIC-mineable PoW coins.
For example, one of the most popular cryptocurrencies Ethereum has the vision to keep ASIC-resistant until it shifts to the 2.0 version as well as changes to proof-of-stake.
New ASIC miners with a power of 32 graphics cards have surfaced, indicating that 2021 was a pretty successful year. ASIC resistance is a defensive tactic, with no assurance that any hashing algorithm can avoid the construction of an ASIC miner if the fundamental cryptocurrency price makes it financially viable.
Furthermore, PC mining is an outdated way for most cryptocurrencies, since the biggest amount of hash power is concentrated in a few massive mining pools located in areas with cheap electricity and good legal conditions.
Besides, Bitcoin ASIC miners nowadays are superior at performance compared to desktop PC, leaving the latter obsolete in current mining. Moreover, a power outage occurred in Northern China, which preceded the Bitcoin hash rate going down. This was the evidence that the independent nature of the very first cryptocurrency might come to an end.
Here, ASIC resistance becomes very essential. ASIC-resistant cryptocurrency is superior since its surprisingly more relatively arranged and can be mined on basic consumer PCs. The adaptability might bring more people that wish to participate in mining.
And at the end, this prevents an ASIC arms race, which keeps average people out, and the mining process remains less capital-intensive in general.
Furthermore, while this type of network does not exclude the creation of massive mining farms near hydroelectric dams, it does ensure that they don’t completely control the sector. It can also be fractured and geographically distributed.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
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Damir is the team leader, product manager, and editor at Metaverse Post, covering topics such as AI/ML, AGI, LLMs, Metaverse, and Web3-related fields. His articles attract a massive audience of over a million users every month. He appears to be an expert with 10 years of experience in SEO and digital marketing. Damir has been mentioned in Mashable, Wired, Cointelegraph, The New Yorker, Inside.com, Entrepreneur, BeInCrypto, and other publications. He travels between the UAE, Turkey, Russia, and the CIS as a digital nomad. Damir earned a bachelor's degree in physics, which he believes has given him the critical thinking skills needed to be successful in the ever-changing landscape of the internet.
