ASIC-resistant cryptocurrency is one that is “immune” to ASIC mining. ASICs are integrated circuits designed to perform a specific computing task for a particular use case.
In cryptocurrency, ASIC devices are designed to participate in the Bitcoin mining process (or other cryptocurrencies). As a result, Bitcoin is an example of a cryptocurrency vulnerable to ASICs.
What Is ASIC-Resistant?
ASICs (Application Specific Integrated Circuits) are pieces of hardware that are purpose-specific. They are designed to mine Bitcoin and other cryptocurrencies when it comes to crypto. ASIC-resistant cryptocurrencies cannot be mined using ASIC mining rigs.
Although graphic cards can be used for mining, ASICS renders graphic cards obsolete when competing on the same level. This is because ASICs are only used for mining and thus have more mining power than graphics cards, which can perform multiple functions.s
What Are ASIC-resistant Cryptocurrencies?
Cryptocurrencies have inherited a decentralized structure designed to encourage equitable resource distribution. However, as cryptocurrency has grown in popularity and potential rewards have increased, mining farms have gradually taken over the industry.
As a result, massive hash power farms have threatened the foundation of cryptocurrency decentralization. A sudden drop in Bitcoin network hash rate, for example, caused by a power outage in one of China’s mining hubs, triggered a violent Bitcoin crash.
As a result, ASIC-resistant coins have been developed. Technically, ASIC-resistant cryptocurrency can mine coins, but it is not financially feasible because the protocol’s algorithm does not provide comparable benefits to GPU mining.
ASIC-resistant cryptocurrencies also imply a more evenly distributed mining ability for participants using standard PCs. Ultimately results in a fair distribution of mining resources — keeping the network decentralized.
What Are ASIC-Resistant Coins?
ASICs, or application-specific integrated circuits, are used in a variety of fields, including medicine, satellites, and research. ASIC-resistant is a term used in the crypto world to describe crypto coins that are less susceptible to mining by ASIC miners. Such coins have distinct mining algorithms and protocols, making it less appealing for miners to develop ASICs to mine the coin in question, hence the term ASIC-resistant.
Ethereum is a prime example of a cryptocurrency designed to thwart ASIC mining. Even if someone tries to mine the coin with an ASIC, it is usually inefficient in terms of time and cost.
Advantages of ASIC-resistant Coins
ASIC-resistant coins give miners a fair chance to mine cryptos on home computers without spending thousands of dollars on ASIC hardware.
According to the developers, ASIC-resistant technology is the only way to keep the crypto sphere decentralized. Crypto will continue to serve its original purpose, which is to create a transparent financial environment free of monopolies, in the absence of ASIC machines.
ASIC mining machines consume millions of kWh of electricity per day and force developers to make unfavorable changes to the blockchain, both environmentally and technologically. However, it is debatable because, in the absence of ASIC resistance, ASIC mining is more efficient than CPUs and GPUs, where the hash rate per kWh is lower.
Despite the ongoing debate over the use of ASICs, the ASIC industry is expanding. Currently, three to four major players rely solely on ASIC manufacturing. While coin developers continue to make changes to prevent such machines from being used, ASIC companies play catch-up in this never-ending game of cat and mouse.
Top 5 ASIC-resistant Coins
Ethereum (ETH, or Ether)
The ETH coin employs the Keccak256 hashing algorithm, which is designed to withstand hashes generated by ASIC machines. Because it only actually produces hashes for mining, the Ethash algorithm is suitable for CPU and GPU miners. While a single miner can mine, most miners prefer to join a pool to receive regular block rewards.
Safex Cash (SFX)
Its mining algorithm, RandomSFX, was built on Monero’s RandomX algorithm (see above). A similar design employs dynamic difficulty adjustment, favoring CPU mining. Miners enjoy mining SFX because there are numerous ways to do so in the Safex pool.
On Ubuntu, you can mine using a command-line interface or software. Furthermore, Safexcore Software is ideal for solo miners.
VTC is a very simple mining coin. The Lyra2RE proof-of-work algorithm was designed specifically for home miners who use CPUs and GPUs.
VTC is ASIC-resistant and popular among beginners because they can mine coins with a single click or join a pool for regular block rewards. It’s worth noting that the developers intend to hard fork the network if an ASIC mining machine for VTC is developed.
Haven Protocol (XHV)
This coin employs the RandomX proof-of-work mining algorithm. XHV is designed to be resistant to ASIC mining equipment, and it can be mined by anyone with a good computer. It’s also one of the most profitable currencies to mine, often two to three times more profitable than comparable coins, assuming you can save money on your electricity bill.
Conclusion On ASIC-Resistant
That’s all there is to it! It is also worth noting that blockchain networks that rely on other methods of consensus (such as PoS, dPoS, and PoA) are designed to be ASIC-resistant. Some Proof of Work (PoW) cryptocurrencies is resistant to attack, while others are not (it depends on the mining algorithm implemented).