ASIC-resistant Cryptocurrencies: What is their significance in the market?

As the name implies, ASIC-resistant coins are cryptocurrencies that use ASIC-resistant algorithms. Their ecosystem is designed in such a way that consumers cannot mine coins using ASIC equipment. Mining this cryptocurrency using ASICs is thus almost difficult. One might still try to process these currencies with an ASIC, but the rewards would be negligible. While some networks produce ASIC-resistant currencies in order to maintain and expand the extent of autonomy of their blockchain systems, others do it in order to make mining more inexpensive for everyone.

An ASIC-resistant cryptocurrency's protocol and mining algorithm are designed in such a manner that utilizing ASIC computers to mine the coin would be either impossible or provides no substantial advantage over standard GPU mining. In some circumstances, utilizing ASICs on ASIC-resistant coins may be worse than using standard hardware.

Cryptocurrencies that are ASIC resistant:

Monero (XMR): 

Monero is yet another cryptocurrency meant to be resistant to ASICs. As a result, no special devices are needed to manufacture a new Monero. To generate new blocks, the privacy-focused currency employs a RandomX hash algorithm in conjunction with the CryptoNote protocol. While Bitcoin is mostly mined using ASICs, Monero currencies may be mined using CPUs and GPUs. Furthermore, because Monero is ASIC-resistant, the network's hash rate has increased significantly.

Ethereum Classic (ETC): 

Ethereum Classic is a decentralized platform of the Ethereum network that strives to keep the original Ethereum blockchain's integrity. Ethereum Classics are non-ASIC currencies that formerly employed EtcHash, a customized version of Ethereum's mining algorithm. However, the Ethereum Classic team, like Ethereum, upgraded the system with the Kecaak-256 algorithm in its latest Thanos upgrade, allowing miners with even 3GB GPUs to process Ethereum Classic.

Ethereum (ETH):

Ethereum (ETH) is a well-known illustration of an ASIC-resistant network. The Ethereum network is ASIC resistant because it uses the Keccak-256 hash functions, which refuse hashes from ASIC devices. The method is meant to exclusively generate hashes for mining reasons and to do no other computational functions. Unlike Bitcoin, which mainly depends on ASIC mining machines to mine new blocks, Ethereum's PoW hashing method favors GPU devices that are widely available and inexpensive.

Vertcoin (VTC): 

Vertcoin is a Bitcoin fork that was created as a GPU-generated version of Bitcoin to increase network security and decentralization. It is most likely the best ASIC-resistant coin on the market since it employs an ASIC-resistant algorithm known as lyrar2v3. The reason for this is that its developers are strongly dedicated to a non-ASIC method and have committed to hard fork the system if an ASIC is successfully built. This strategy disincentivizes the development of an ASIC for Vertcoin.

Safex Cash (SFX): 

Its mining method, RandomSFX, was built on the RandomX algorithm from Monero (see above). A similar approach employs dynamic difficulty change, favoring CPU mining. Miners enjoy mining SFX since there are many methods to do it in the Safex pool. On Ubuntu, you may mine using a command-line interface or software. Furthermore, Safexcore Software is ideal for lone miners.

Ravencoin (RVN): 

Recent algorithm improvements allow miners to mine coins using the power and computational capability of GPUs. The new KAWPOW predictive model is user-friendly and gives additional options for everyone engaged in mining RVN.

Horizen (ZEN):

Horizen (ZEN) is a currency that employs the ASIC-resistant Equihash algorithm and is one of the simplest to mine. Horizon's development team has implemented various adjustments since its first release in 2017 to improve its accessibility to miners working from home. Perhaps this is just one of the causes why it is also regarded as the finest Equihash money in terms of mining incentives.

Aeon (AEON): 

This coin has been compared to a lighter form of the Monero. The concept behind its development is to provide a mobile-friendly alternative that is easier to mine and retain since it needs fewer resources. The ultimate result is a CryptoNote protocol-based method that is highly accommodating to crypto miners that use low-power computing devices.

Benefits of ASIC-resistant Cryptocurrencies:

Reduce the initial investment:

ASIC-resistant coins lower the entry cost into the mining process. An Antminer, one of the most famous ASICs for Bitcoin mining, costs roughly $6,000. The more costly ones may reach $11,600. A decent GPU, on the other hand, will cost you a few hundred bucks.

Beneficial for Home Mining:

ASIC-resistant coins allow miners a fair shot to mine cryptos on their home computers without spending thousands of dollars on ASIC hardware.

The benefit of the Blockchain:

ASIC-resistant algorithms help the blockchain in addition to mining. To begin, they contribute to the network's decentralization by letting the community engage in the mining procedure. This guarantees that miners are distributed globally instead of concentrated in a single area or nation. This can be useful if local laws suddenly prohibit mining, as China did in 2021.

Protection of Network:

ASIC-resistant algorithms also defend the network from 51 percent assaults, in which a single huge organization acquires control of a substantial amount of the network's processing capacity.

Saves Electricity:

ASIC mining equipment wastes millions of kWh of power every day and requires developers to make unfavourable adjustments to the blockchain, both environmentally and technologically. However, it is disputed since, in the absence of ASIC resistance, ASIC mining is much more effective than CPUs and GPUs, where the computational power per kWh is lower.

Final Thoughts:

People and corporations will continue to create technologies that will give them an advantage over others as long as there is an incentive for mining to get rewards. Some experts even feel that utilizing ASICs to mine crypto is harmless because it is only a fad in the ever-changing crypto industry.

Despite the dispute over ASICs' influence, practically everyone believes that ASICs are a danger to both equal hash rate allocation and crypto decentralization. If ASICs stay in the game, home and GPU miners would be left out. The point of decentralization is gone forever if there is no motivation for the average miner.