What is Bitcoin Gold (BTG) and ASIC?

What is Bitcoin Gold (BTG) and ASIC?

Bitcoin Gold (BTG), one of the most prominent Bitcoin (BTC) forked cryptocurrencies, recently migrated to a new mining algorithm, to ensure that ASIC-resistance is maintained. The Bitcoin Gold (BTG) team announced a successful implementation of the network upgrade by initiating a hard fork on the 536,200 BTG block. The release from team member, Edward Iskra, noted that the upgrade changed the mining algorithm for BTG. With the algorithm changing from Equihash to Equihash-BTG. The new upgrade is a conscious attempt to keep ASICs away from the network, introducing a layer of ASIC-resistance that should band off any attempts at centralizing BTG mining. Although successful so far, it is likely that ASIC manufacturers may pick up on the new Equihash-BTG algorithms moving into the future."What is Bitcoin Gold (BTG) and ASIC?"

Bitcoin Gold (BTG) was founded with the decentralization of mining in mind, adopting algorithms which ASICs cannot mine on. Many critics of ASIC mining machines see these specialized pieces of hardware as a source of centralization, as ASICs can be bought in-masse, putting an ample amount of relatively affordable hash power into the hands of a single entity. 

What is Bitcoin Gold (BTG) and ASIC?

An ASIC (application-specific integrated circuit) is a microchip designed for a special application, such as a particular kind of transmission protocol or a hand-held computer. One could contrast it with general integrated circuits, such as the microprocessor and the random access memory chips in your PC. As much as cryptocurrency mining was originally designed to be something everyone could do with their home computer, those days are long gone. Today, whether you're mining Bitcoin (BTC), Litecoin (LTC), DASH, or a host of other cryptocurrencies, the most effective way to do so is with a piece of hardware known as an ASIC miner.

Bitcoin Gold experienced a 51% attack in May, amongst growing fears of similar attacks on other blockchains. The double-spend attack saw $18 million worth of BTG being exploited by malevolent attackers, getting a nice payday from the attack.

According to analysis from cryptocurrency community and BTG team, the 51% attack was a result of hired hash power, which may have consisted of ASIC miners. The new algorithm ensures that there is no rental market for Equihash-BTG miners, making the upgraded blockchain more secure.

Edward Iskra made a profound statement regarding the attack. He stated the following:

"The recent 51% attacks, which may or may not have involved ASIC miners, were channeled through hash power rental markets, but with this change in algorithm, there's no longer a rental market for the algorithm we're using, and it's harder to set one up than before. This means more safety. Additionally, this hard fork also introduces a new difficulty adjustment system, ensuring that the BTG blockchain is responsive to large hash power shifts.'What is Bitcoin Gold (BTG) and ASIC?'

LWMA, the improved difficulty adjustment algorithms, allows for the better stabilization of block times, assuring that a new block gets pushed out approximately every 10 minutes after a hash rate strike. Iskra wrote up this change to the auto-switching method which miners conscript to receive the most mining profits. Our improved algorithm will help the blockchain adjust more quickly, providing a firmer flow of blocks."

What is Bitcoin Gold (BTG) and ASIC? What is Bitcoin Gold (BTG) and ASIC? Reviewed by mir khaleq ali on July 24, 2018 Rating: 5

2 comments:

  1. Thank You for Such an informative thing which i was unaware of ASIC.
    Even I run a blog post on Cryptocurrency for Beginners Level.
    It will be Pleasure to know your review.

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