ASIC – Resistant in Blockchains and mining algorithms. We are going to know about ASIC resistant in blockchains and mining algorithm, meaning of ASIC resistant cryptocurrency, ASIC resistance mining and cryptocurrencies that are ASIC resistant.
ASIC the short form of application-specific integrated circuit. Most common computer consumer hardware can be said to be a general function hardware. That is able to perform almost every operation that the software orders it to do. However, this versatility comes at a cost; the opposite of optimization is generalization.
When there is a need for someone to create what will do just one thing. Let’s take a digital clock for example, it is very much effective to produce a particular PCB than when you use a whole laptop. It’s also same for cryptocurrencies. ASIC – Resistant in Blockchains and mining algorithms
Popular cryptocurrencies such as Bitcoin and Ethereum uses proof -of-work concensus algorithms as their bases. Computers on a blockchain need to solve some complex puzzle so as to confirm each new block. Attempting multiple solution to a mathematical problem. GPUs surpasses in parallel computation and they do it faster, and also with more energy efficiency than the CPU. As time goes on, if it becomes viable economically, the chip manufacturers create an ASIC miner for a particular mining algorithm. Due to the fact that the main purpose of ASIC , is to perform so many attempts(hashing function) as possible as every second. They are better tools for minning bitcoin or other ASIC-mineable poW cryptocurrencies. As been opposed to a GPU, they tend to do the job better because they are made for this one particular job.
Performance of ASIC Miners
ASIC miners for bitcoin these days perform a million times better than a desktop PC. Rendering the latter is very useless in today modern day mining. Moreover, Since almost all the hashpower will be eventually located in some few gargantuan mining pools. However, They are situated in regions that have access to cheap electricity and very favorable legal conditions. PC mining is already the thing of the past for most cryptocurrencies.
This situation successfully undermines and also threaten the cornerstone of crypto philosophy: decentralization. Early 2021 in Northern China, a power outage resulted to the bitcoin network hashrate that drop in half of several days. This prove the fact that we are perilously close to losing the independency nature of the first cryptocurrency.
The Idea of ASIC Resistance
The idea of ASIC resistance comes from here. Its very fair to say that An ASIC is fairly distributed because it is mined on a regular consumer PCs. This would guarantee that many people will participate in the mining which as a result, there wont be any ASIC arms race. This leaves the regular folk sidelined and makes the mining process stay less capital intensive in general. These kind of network is more likely to be decentralized and distributed geographically. This does not guarantee that hydropower dams near gigantic mining farms will not emerge, but it will make sure it does not entirely dominate the field.
ASIC – resistant solutions focus solely on decisive governance,and also with the right mining algorithm. By design, it should prevent the creation ASICs or give them no benefit over consumer PC hardware. This particular technical approach includes algorithm variabilty for each of the mining block (like x16r,which got ASC’ed). It increased memory demand like scrypt and ethash or the focusing of the mining on storage volume like Chia.
The largest cryptocurrency Ethereum have the goal of remaining ASIC-resistant , until it moves to the 2.0 version and also a proof of stake consensus. It’s been relatively successful by mid 2021,which is mainly mined on graphics card. The ASIC resistance is a game of defense, and it has no guarantee that any hashing algorithm will avoid the creation of the ASIC miner crafted for it . When the cryptocurrency price economically becomes feasible. ASIC – Resistant in Blockchains and mining algorithms
More to know about ASIC-resistant
ASIC – resistant refers to the vital part of a cryptocurrency that is immune to ASIC mining.
ASICs are set of integrated circuits that are created so they can serve a particular use case. Performing a specific computing task. ASIC devices are created to participate in bitcoin or other mining process in the world of cryptocurrency. However, Bitcoin is a cryptocurrency example that cannot be considered ASIC-resistant.
Every ASIC-resistant cryptocurrency has its protocol to follow . Mining algorithm are configured in a way that the use of ASIC machines in mining of the coin will be rather impossible. This will bring no significant benefit when its been compared to mining GPU traditionally. Using ASIC in some ASIC- resistant cryptocurrencies can be more worse than using conventional hardware.
What Mining Involves?
We can say that mining involves the multiple attempts taken to find some sort of solution for a mathematical problem. The ASIC job is to perform many attempt as possible i.e ,many hashing functions per second as possible. This means that its better to use ASICs to mine Bitcoin, or other proof of work cryptocurrencies than the use of GPU card.
The processes involves in making a cryptocurrency ASIC -resistant is a defensive game,this requires continous modification and development. Due to the Fact that ASIC miners are constantly creating new models,which sometimes bypass the ASIC-resistance of certain cryptocurrencies.
Note that Blockchain networks that rely on other methods of achieving consensus(eg Pos, dPoS, and PoA) are ASIC-resistant by design. Regarding Proof of Work cryptocurrencies ,some of them are resistant and the others are not . This depends solely on the mining algorithm implemented.
Application-specific integrated circuit (ASIC) is a microship that’s specifically for a particular purpose, such as the transmission protocol. In the cryptocurrency world, ASIC’s are used for the computation of cryptographical puzzles particularly, for bitcoin mining. Since Bitcoin mining requires the miners to solve mathematical through tough computer computation, this makes ASIC’s machine very suitable. Regardless, the crypto world has many cryptocurrencies that they dont require ASIC’s for mining new coins.
The meaning of ASIC-Resistant cryptocurrencies?
ASIC- resistant coins are cryptocurrencies that have an ASIC resistance algorithm. They build their ecosystem in a way that will disable users to mine coin in an ASIC machine. Therefore, its nearly impossible to mine these cryptocurrencies with ASIC. While some networks develop ASIC resistant coins to protect and increase their decentralization degree in their blockchain, others do it to make mining affordable.
Cryptocurrencies That are ASIC-Resistance
Vertcoin which is a fork of Bitcoin, was designed as a GPU mined version of Bitcoin. This is so as to add more decentralization and security to the network. It is the most resistant coin the market that uses the ASIC-resistant algorithm called lyrar2v3. The reason behind this its because its developers are commited to a non-ASIC approach .This is because they make the decision to hard fork the network if anyone build an ASIC successfully.
This forked version of bitcoin utilizes an X16R hashing algorithm in the past. So last year, developers forked the network and switch to KAWPOW the new mining algorithm. This mechanism gives users access to utilize the memory and its computing capabilities of GPU. This helps ravencoin to achieve more decentralizations, as new coins can be mined by anyone using GPU. And its also made ravencoin resistant to ASICs.
Ethereum is ASIC-resistant because the network makes use of keccak-256 hashing algorithm that rejects hashes from ASIC machines. The algorithm is only designed to create hashes for the purpose of mining , and it does not serve computing functions. Unlike Bitcoin,that heavily relies on ASICs for mining new blocks, ethereum poW hashing algorithm favors GPU units that are very cheap and easily accessible.
Monero is another coin that is designed to be ASIC-resistant. The privacy-based coin makes use of a RandomX hash function along with the Cryptonote protocol to produce new blocks. However, special machines is not a requirement to create monero. While bitcoin is mainly mined by farms full of ASIC’s ,monero coins are mined with their CPUs and GPUs.
This coin is a hard fork of the ethereum network, which aims to maintain the integrity of the original ethereum blockchain. They are non ASICs that used a modified version of ethereums mining algorithm called Etchash previously. Just like its original counterpart, ethereum classic updated their network with the kecaak-256 algorithm in the recent Thanos upgrade . Which enabled the miners even with 3GB GPU’s to mine ethereum classic.
Reducing the Computing Power Monopolies Threat
The 51% hack on the Ethereum classic network, shows that computing power can also be monopolized. However,blockchain network have always been considered a decentralised technology. A large mining pool can employ various dubious method , to make sure they increase their block rate to be higher than their computing power ration,by the use of ASIC’s boost, eclipse attack, or other means that will resulting in a 51% attack. This is what exactly happened in the case of verge(XVG) network. The blockchain went under attack when a mining tyrant owns 10 percent of the total network computational power.
Modern cryptocurrency like Ethereum, Bitcoin, Monero, makes use of poW consensus algorithm to ensure the integrity of blocks[1-3]. The work will be hard on the requester side,and be easy for the service provider. Bitcoin makes use of the hash function to satisfy the special condition. AS the ASIC is designed for poW ,some applications are surrounded by it, which threatens the decentralization of blockchain network. In order to overcome these, modern cryptocurrencies uses multi hash PoW ,Memory and programmatic PoW. Irregular pattern can lead to a computation thats not effective on ASIC, since the ASIC is the targeted chip. ASIC – Resistant in Blockchains and mining algorithms.
The New Technique
This paper present a new technique to prevent mining monopoly. This caused by some special mining devices ,like ASIC and the field programmable gateway array (FPGA).The proposed model gives access to anyone that wish to perform a cryptographic module on a microcontroller. Power trace that is generated during the execution of the crypto module. Shows the different values dependent on the input parameter in the microcontroller. With unique power trace, poW concensus is performed with ASIC-resistance feature.
GPUs and CPUs devices helps to mine Crypto coins that are ASICs resistant. Based on this fact, interested individuals can join the network without buying expensive Devices. This do not only provide a more decentralized blockchain platforms but also provides less expensive mining. ASIC resistant consensus algorithm such as proof-of-state (POS) and proof-of-authority (POA) is now taking over the world of Cryptocurrency.
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