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 shouldn't provide any advantage to ASICs 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.
Several well-known cryptocurrencies (e.g., Bitcoin) use Proof-of-Work (PoW) consensus algorithms. PoW is a decentralized consensus technique that compels network participants to solve random mathematical puzzles in order to prevent anyone from manipulating the system.
PoW GPUs often excel at parallel processing and do it quicker and with greater energy efficiency than CPUs. Then, if it becomes commercially feasible, chip makers create ASIC miners for a specific mining algorithm.
ASIC miners are better at mining since their built to do this one unique task. Besides, since the fundamental objective of an ASIC is to conduct as many hashing operations per second as possible, they are superior to GPU for mining Bitcoin, or other ASIC-mineable PoW coins.
Besides, Bitcoin ASIC miners nowadays are superior at performance compared to desktop PCs, leaving the latter obsolete in current mining. However, when a power outage occurred in Northern China in 2021, the Bitcoin hash rate quickly went down. This was the evidence that the independent nature of the very first cryptocurrency might come to an end.
In this case, ASIC-resistance becomes a defensive tactic. Yes, it has no assurance that any hashing algorithm can avoid the construction of an ASIC miner if the fundamental cryptocurrency price makes it financially viable.
However, ASIC-resistant cryptocurrencies are more relatively arranged and can be mined on basic consumer PCs. The adaptability might bring more people who wish to participate in mining. And, in the end, this prevents an ASIC arms race, which keeps average people out, and makes the mining process 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.