Welcome, welcome to One Minute Crypto! I'm your host, Chronos, and today we're going to compare the two major categories of crypto mining: general purpose, using computers and graphics cards, and ASIC mining, using specialized hardware In this video, we're going to compare these from the perspective of blockchain security, rather than which might be better from the miner's perspective
This episode is proudly sponsored by KeepKey, a USB hardware wallet that plugs into your computer to keep your cryptocurrency safe This little guy stores your private keys directly on it, so even if your computer gets a virus, your funds are still secure Check them out at KeepKeycom So back when Bitcoin was first launched, it didn't really have any market value, so it was easy to mine new blocks with a general-purpose home computer
But as the price went up, competition for mining grew, and people designed computer chips that were specifically focused on efficiently mining bitcoin These machines were called ASICs, which stands for Application Specific Integrated Circuit Eventually, the mining difficulty got so high that anyone who wasn't using an ASIC was wasting more money in electricity than they could earn through bitcoin But then, new cryptocurrencies were launched, with ASIC-resistant mining algorithms specifically designed to make that specialized hardware inefficient So here's the question: is an ASIC-resistant mining algorithm better for blockchain security? One way to measure security is in terms of decentralization
If one entity controls all the mining power, that's not very secure, because they could destabilize the network, or be forced to do so by an outside influence So now for the answer: Botnets A Botnet is a network of computers that are infected by an attacker's virus software, and botnets exist all over the world Fortunately for bitcoin, computers aren't very efficient at mining bitcoin anymore, so botnets can't make much of a dent in its security But for an ASIC-resistant altcoin, botnets can be a threat to take over control the network, because of their sheer processing power
The attacker can use all the machines on the botnet to mine on that single network I've put a link in the video description so you can read more about botnets I'd be interested to hear if you have any thoughts on this Just throw your comments below the video I'm Chronos
Thanks for watching!