ASIC Resistance of Merkle Tree Proof
Egalitarian extraction and work trial algorithm (PoW) makes ASIC resistance worthy of research. The algorithm, called Merkle Tree Proofs, is one in which Zcoin seems to believe and states that it is "premature" to give up at the start of the game.
There are many reasons for ASIC resistance. The project is often challenged between the algorithm and the ASIC designers. With an MPT job testing algorithm, centralization of extraction can be fought, which derives from ASICs.
Zcoin is trying to create a greater level playing field and to do so, he hopes to implement MPT. With this implementation, it may be able to democratize, what it believes to be, a non-democratic cryptocurrency extraction system. Here are three factors identified by ASIC and referring to ASIC resistant proof-of-work algorithms:
- ASIC gains advantages over commodity hardware such as CPU and GPU, but these advantages are limited
- The algorithm will become more expensive to develop
As a result, a robust ASIC algorithm mitigates the development of ASIC, thus enabling people with merchandise hardware CPU and GPU to extract in an area that is more equal.
There are two advantages to this approach, including more coin distribution and decentralized security. Instead of collecting security on the blockchain of large mining companies, network security is evenly distributed among miners. Some believe that decentralized hashrates can also increase censorship resistance.
The ASIC resistance also promotes the distribution of more coins. MPT allows everyone to have a fair chance of earning a coin with existing computer hardware, rather than having to buy a specialized ASIC that undermines specific algorithms. Some countries, such as Venezuela and Vietnam, have also banned the importation of ASICs into their countries in an attempt to stagnate the development of cryptocurrencies.
Some believe that ASICs should be welcomed, even when a currency is in its early stages of development. A condition for this adoption is that the ASIC must be marketed, which means it is widely available to the average consumer and that manufacturers can compete to place the ASICs at a competitive rate in the market.
As you can say, ASIC have many advantages For example, hashrati are stable and miners can insert their own algorithm and it is not necessary to switch from one currency to another during the extraction process. Some also believe that this eventually leads to greater security on the network and higher levels of hardware extraction on goods.
Bitcoin, Bitcoin Cash, Litecoin and Dahs they tend to do well with ASIC, perhaps because their communities took years to develop and can be compared to new projects. Those who embrace ASIC early in the development of a currency may find themselves benefiting the most. There is also a discussion on the creation of an open-source ASIC technology. This will allow manufacturers to produce them – but on the downside, larger companies with R & D will also have to produce more efficient ASICs so that they can be secretly extracted on their coin distribution.
There are some projects out there that are trying to control the process – one of the most important is SIA, which has spent a lot of money and time developing its own ASIC. Unfortunately, Bitmain seems to have beaten SIA to it. SIA has now generated a stumbling block in response to its miners, working to defeat the commodification of ASICs. At the end of the day, however, it is important to recognize that cryptocurrency projects are not part of the hardware business and instead should focus on developing software and technology that provides companies with the tools and resources needed to develop ASIC.
Those who are pushing for the commodification of ASIC argue that there are some few companies that are capable of producing ASIC – one of these is the computer industry. Here, companies like Intel AMD and Nvidia are dominant players. The problem is that this argument circumvents the fact that it dissimilar from a society in which the extraction of cryptocurrencies is only a tiny part of their business model, main goal is to ensure that as many chips as possible are sold. As a result, ASIC producers have little incentive to sell their ASIC if they make more profits by selling them through extraction and at a price that leads to potential gains.
Another group believes it ASIC resistance it's impossible and that ASIC for any algorithm is just part of the game. Although it is true that ASICs can be developed for any algorithm, it is possible to increase the cost of development and production, thereby reducing potential efficiency gains. This can therefore lead to the delay in the development of ASIC.
This is already evident when it comes to ASIC SHA 256, which are attributed to Bitcoin and Bitcoin Cash. These ASICs are faster than the GPU. In addition, the Scrypt ASICs for Litecoin and Dogecoin are also fast and algorithms like Equihash, used in Zcash, are five to ten times faster. As for Ethash, which is used in Ethereum, it is two to three times faster.
Implementation of Zcoin by MPT allows you to use 4 GB of memory and also in this case higher values such as Ethash, which is ASIC resistant, updates the memory every 100 hours¸ while MPT must be updated at each block. The use of so much memory also has the advantage of being less attractive for botnet extraction.
MPT ASIC it is also expensive to develop, especially considering the use of memory, limited efficiency gains and more. As a result, the Zcoin community may have more time to adopt and grow ASICs before they are available on the market.
It is also important to note that a PoW fixed fork may not be sustainable. Coins like Monero pursue ASIC resistance in an ad-hoc way – they program hard forks every few months and modify their demonstration of the working algorithm. The theory behind this practice is that changes limit ASIC lifespan and discourage producers from developing them. There are also some coins that release very little information on any changes, which makes it difficult for ASIC producers to move forward.
There is also growing evidence that ASICs can be able to adapt to changes, even with less efficiency. Even with the anti-ASIC approach adopted by many projects, incentives still exist to not divulge miners to the public. Some even believe that the ASICs extracted Monero before the public exit.
When a rigid fork occurs, there is a risk and the introduction of instability in the mining ecosystem. Miners often need to switch to new algorithms and coin security becomes more susceptible to attack. To make matters worse, even the POW can be kept secret. As a result, new forks occur that can confuse users. The same problem occurred with Monero 0, Monero V and Monero Classic.
The use of hard forks just to combat ASIC resistance may not be sustainable in the long run due to the introduction of risk on the network. For these reasons, it might be better to research and implement algorithms such as MPT. In addition, unlike other ad hoc algorithms, MPT has undergone an academic review and funding program by Zcoin to ensure it is able to overcome cheating and attacks.
At the end of the day, MTP it can be a primary solution for coins like Zcoin, which are still in the early stages of distribution. Of course, feedback can help the platform improve its MPT, so it's always welcome.