ASIC and ASIC-Resistant Explanation.

ASIC full meaning is Application Specific Integrated Circuit. Most users computer hardware is usually generalized as function hardware, which means it can carry out any instruction asked by the software perfectly.

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Although, this versatility comes with its own price which is due to generalization been the opposite of optimization. For example, when you want to create a device for a single purpose, let say a digital clock to show the time. This can be done more efficiently when you create a specific Printed Circuit Board (PCB) than to use a whole laptop. The same principle is applied to all cryptocurrencies.

The Proof of Work (PoW) consensus algorithms is the most common type of protocol most cryptocurrencies follows for example Bitcoin. In confirming each new block on PoW a complex puzzle has to be solved correctly and which means they have to try multiple attempts in order to find a solution to a mathematical problem. GPUs are better in parallel computation and they do it faster with relatively more energy efficiency than the CPU. If GPUs becomes economically developed, the chip manufacturers produce an ASIC miner which will serve specifically for mining algorithm.

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The basic purpose of an ASIC is to execute as many attempts which in this case hashing functions per second as much as possible which makes mining PoW cryptocurrencies such as Bitcoin more efficient than when compare to GPU. So in a simpler term ASIC-mineable PoW cryptocurrencies perform better than GPU because its build/design specifically for that purpose.

Bitcoin ASIC miners we have presently is a million times better in term of performance than a desktop PC, which makes the latter almost or even completely useless in modern day mining. Even so, most of the hashpower ultimately are located in a few huge mining pools, located in places with cheap electrical supply and favorable legal conditions, all this reasons make PC mining obsolete for most cryptocurrencies.

This may post many advantages but a situation happened in China in early 2021 which resulted to a power outage and the Bitcoin network hash-rate dropped to half its original number for days and this got people questioning the main crypto philosophy which is decentralization because we almost lose the first cryptocurrency which prove to be an independent digital currency.

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Now let talk about how this problem can be fixed because the incident in China few years back is terrifying and sort situation should not occur again. The solution to this is to introduce an ASIC resistance. In theory, an ASIC resistance cryptocurrency is a little different form ASIC because it more fairly distributed which means it can be mined on regular consumer PCs. This has guarantee that people can take part in the mining so this means no competition between miners and an ordinary folk can be part of it because the process requires less capital intensive in general. A network of such will most likely be decentralized and distributed in different geographical location. Although, gigantic mining farms can still occur in this situation but the good news is that they cannot dominate the entire field as seen in ASIC.

ASIC resistance provide a solutions by focusing on decisive governance and also the right mining algorithm. It is designed to give a consumer PC hardware a chance. Some of the specific technical approaches are algorithm variability for every single mining block and also increased memory demand or focusing on the mining storage volume such as china.

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Conclusion

ASIC resistance has been successful so far in Ethereum which is the largest cryptocurreny with the aim of remaining ASIC resistance before it moves to the new version 2.0 and it is Proof of stake consensus. ASIC resistance seem to be a game of defense where they is no guarantee of any hashing algorithm which can avoid an ASIC miner to be created and this reason has makes the cryptocurrency price economically feasible.

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