Why Did Some Cryptocurrencies Intentionally Adopt Mining Algorithms Resistant to ASICs?
Cryptocurrencies like Ethereum (originally) and Monero adopted ASIC-resistant algorithms to promote decentralization. This strategy aimed to prevent mining power from being concentrated in the hands of a few large ASIC manufacturers or farms.
The goal was to keep mining accessible to individuals using commodity hardware like GPUs. This maintains a more equitable distribution of mining rewards and increases network resilience against a 51% attack.
Glossar
Sophisticated Surveillance Algorithms
Algorithm ⎊ Sophisticated Surveillance Algorithms are advanced computational models, often incorporating machine learning and behavioral economics principles, specifically designed to monitor and analyze massive volumes of real-time trading data across derivatives and crypto markets.
Iceberg Detection Algorithms
Algorithm ⎊ Iceberg Detection Algorithms are sophisticated quantitative models designed to identify and predict the presence of large, hidden institutional orders, known as iceberg orders, within the visible order book of an exchange.
Advanced Options Algorithms
Algorithm ⎊ Advanced Options Algorithms, within the context of cryptocurrency derivatives, represent sophisticated computational models designed to optimize options trading strategies and manage associated risks.
Complex Consensus Algorithms
Algorithm ⎊ Complex consensus algorithms represent advanced protocols used by decentralized networks to validate transactions and maintain state integrity across distributed ledgers.
Simple Hashing Algorithms
Function ⎊ Simple hashing algorithms are non-cryptographic mathematical functions designed to produce a fixed-length output, or digest, from a variable-length input, primarily serving as a quick, simple integrity check for data.
Cryptocurrency Mining Algorithms
Algorithm ⎊ Cryptocurrency mining algorithms are the specific cryptographic hash functions mandated by a blockchain's protocol to validate transactions and secure the network in a Proof-of-Work consensus mechanism.
Smart Order Routing Algorithms
Algorithm ⎊ Smart Order Routing Algorithms are sophisticated, automated trading systems designed to determine the optimal venue for executing a trade by simultaneously scanning multiple decentralized and centralized exchanges for the best available price and liquidity.
Hashing Algorithms Explained
Function ⎊ Hashing algorithms are deterministic mathematical functions central to cryptocurrency, serving to map an input of arbitrary size to a fixed-size output, known as a hash or digest.
Data Consistency Algorithms
Protocol ⎊ Data Consistency Algorithms, fundamentally rooted in distributed consensus protocols like Proof-of-Work or Proof-of-Stake, ensure that all network participants maintain an identical copy of the transactional history.
ASIC Resistance Algorithms
Algorithm ⎊ ASIC resistance algorithms are cryptographic hash functions specifically engineered to minimize the efficiency advantage of Application-Specific Integrated Circuits over general-purpose hardware like CPUs and GPUs.