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Because ASIC designers and manufacturers are always making new models of ASIC miners and sometimes, the newer ones are able to bypass the resistance of some cryptocurrencies. It is worth noting, however, that blockchains that rely on other methods for achieving consensus such as Proof of Stake, Proof of Activity, Proof of Authority are ASIC-resistant by default. PoW cryptocurrencies are either resistant or non-resistant, depending on the mining algorithm implemented.
Application-Specific Integrated Circuit ASIC A circuit is designed specifically for a particular purpose rather than one designed for general purposes. It has an ecosystem that prevents users from using ASICs. Some networks create ASIC-resistant cryptocurrencies to preserve and increase the level of decentralization of their blockchain systems. Others do so to make mining available to everyone.
Which cryptocurrencies are ASIC resistant? This mechanism allows miners using GPU hardware to use their own memory and computing power. Add a comment 5 ASIC-resistance is a mirage. Given the high development cost and relatively lower increase in profitability, for an ASIC-resistant algorithm such a market would be even more likely to be dominated by a single producer. Instead, consider the upsides of an ASIC-friendly hashing algorithm.
As ASICs are the most efficient tools to turn power into security, similar dominance of all available hash rate to Bitcoin's security would take magnitudes more CPUs or GPUs at vastly worse energy efficiency. It's easier for manufacturers to enter the market, which opens production up to more competition. Since the hardware is network specific, miners cannot hop networks to pursue every tiny shift in relative profitability, resulting in a more stable hash rate.
Due to the upfront cost of the hardware, miners are—quite literally—invested in the success of the network. After over a decade, ASICs have caught up to state-of-the-art miniaturization.
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However, the process for making a cryptocurrency ASIC resistant is a defensive game, requiring continuous development and modifications. Because ASIC designers and manufacturers are always making new models of ASIC miners and sometimes, the newer ones are able to bypass the resistance of some cryptocurrencies. It is worth noting, however, that blockchains that rely on other methods for achieving consensus such as Proof of Stake, Proof of Activity, Proof of Authority are ASIC-resistant by default.
PoW cryptocurrencies are either resistant or non-resistant, depending on the mining algorithm implemented. Application-Specific Integrated Circuit ASIC A circuit is designed specifically for a particular purpose rather than one designed for general purposes. It has an ecosystem that prevents users from using ASICs.
Some networks create ASIC-resistant cryptocurrencies to preserve and increase the level of decentralization of their blockchain systems. Others do so to make mining available to everyone. Which cryptocurrencies are ASIC resistant? Instead, consider the upsides of an ASIC-friendly hashing algorithm. As ASICs are the most efficient tools to turn power into security, similar dominance of all available hash rate to Bitcoin's security would take magnitudes more CPUs or GPUs at vastly worse energy efficiency.
It's easier for manufacturers to enter the market, which opens production up to more competition. Since the hardware is network specific, miners cannot hop networks to pursue every tiny shift in relative profitability, resulting in a more stable hash rate. Due to the upfront cost of the hardware, miners are—quite literally—invested in the success of the network. After over a decade, ASICs have caught up to state-of-the-art miniaturization. Product cycles have slowed down. This reduces the advantage of mining operators with close ties to manufacturers, as the longer lifespan of hardware allows it to spread further geographically.
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