What Is an ASIC-resistant Algorithm and How Does It Promote Decentralization?
An ASIC-resistant algorithm is a Proof-of-Work algorithm designed to be inefficient for Application-Specific Integrated Circuits (ASICs), which are specialized, high-performance mining hardware. These algorithms are typically memory-intensive, requiring large amounts of RAM, which is expensive to implement in ASICs.
By resisting ASICs, the algorithm levels the playing field, allowing individuals to mine effectively with consumer-grade hardware like GPUs. This promotes decentralization by distributing the network's hashrate among a larger number of participants, making it harder for any single entity to accumulate the 51% majority required for an attack.
Glossar
ASIC-Resistant Algorithm
Algorithm ⎊ The selection of a hashing function intentionally designed to resist optimization via custom silicon deployment is central to this concept.
ASIC Resistance
Mitigation ⎊ ASIC Resistance, within cryptocurrency, represents a design philosophy prioritizing decentralization by increasing the computational cost for specialized mining hardware, known as ASICs.
Algorithm
Framework ⎊ Within cryptocurrency derivatives and options trading, a framework denotes a structured computational process designed to model, predict, or automate trading strategies, often incorporating elements of quantitative finance and market microstructure.