Centralization in blockchain has become a relatively significant issue as time has passed by. Mining of coins has been largely overtaken by certain forces present in the framework and the most common algorithm that is being used across different blockchains for mining purposes is Proof-of-Work (PoW).
In Proof-of-Work framework, miners have to search for a specific number in order to validate the transaction and earn rewards. Bitcoin miners have to calculate the SHA-256 hash algorithm in order to find that specific number.
Different cryptocurrencies tend to have different cryptographic hash algorithms and miners are supposed to mine that particular cryptocurrency using that specified algorithm. In order to optimize best for an algorithm, different hardware pieces are generally needed. GPUs and CPUs are the generic processing hardware unit, but in addition, hardware pieces that support ASIC-mining are getting popular.
ASIC stands for Application Specific Integrated Circuits. They are not separate hardware pieces as GPUs, instead, they are integrated into motherboards and power supplies. Their task is to perform a specific function more efficiently.
Since most of the coins deploy PoW framework at their core, miners tend to find the best hardware pieces needed for performing the hash calculations and getting rewards. ASICs are generally more suited for this purpose and give the miners a higher chance of finding the correct number. But on the other end, they are also too expensive to afford.
This has led to certain forces in the mining community spending more and more money on ASIC-supporting hardware in order to overtake the mining ecosystem. The more expensive and better the hardware, more are the chances of getting of mining rewards.
Bitcore tries to overcome this centralization issue by employing an ASIC-resistant “Timetravel10” algorithm.
Talking to BlockPublisher regarding the elimination of the centralization issue in mining, the Head of Administration at Bitcore, Thomas Casper stated:
Well as you might know every POW coin can be ASIC mined. It’s just a matter of how much money a company would like to invest to make a ASIC miner. When it comes to Bitcore there’s no difference because it’s also a POW coin, But as we can say the algorithm that Chris (our core developer) has combined is really smart and makes it very very difficult to even build up a ASIC miner. I think to build a ASIC miner for the timetravel10 algo is not worth at the moment.
Bitcore tries to tackle this issue through its algorithm that Chris, Bitcore’s core developer, has cooked up as stated by Thomas. There a lot of other approaches that are currently being employed by various projects across the world to tackle this issue of such centralization in a decentralized network. The approach to tackle this issue through its Timetravel10 mining algorithm certainly makes it one to look out for.