ASIC Resistance

Definition ∞ ASIC resistance refers to a cryptocurrency’s design characteristic that makes it impractical for specialized hardware, known as Application-Specific Integrated Circuits, to mine its tokens efficiently. This design aims to maintain decentralized mining by allowing general-purpose hardware, such as CPUs or GPUs, to remain competitive. It works by employing proof-of-work algorithms that are memory-intensive or otherwise unsuitable for ASIC optimization. The goal is to prevent mining centralization that could arise from the significant cost and performance advantages of ASICs.
Context ∞ The discussion around ASIC resistance centers on network decentralization and security. Protocols frequently consider ASIC resistance to protect against potential 51% attacks and to ensure a broader distribution of mining power among participants. The ongoing development of new mining algorithms often seeks to improve ASIC resistance, responding to the constant innovation in ASIC technology. This remains a significant factor in evaluating the long-term health and governance of various blockchain networks.