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.