Decred: Soon Mined by ASIC
Decred has used the chaos around Bitcoin to come into the spotlight. Now, there is the possibility to invest in a new ASIC, taking mining to the professional level.
While it is difficult to create an ASIC for some coins, it is not impossible. Now, Decred may be yet another crypto asset mined by specialized equipment instead of video cards. The Decred Assembly YouTube show suggested ASIC-based mining is in the works.
"Only having GPUs actually makes the coin more vulnerable to attack," said Decred's lead developer, Dave Collins.
Currently, Decred is mined with 350TH/s, a power that could be handled by just 25 ASIC machines. Also, GPU mining is not decentralized, but organized in pools, so currently two pools control most of the network. This is a problem for blockchains, where even in theory, a 51% attach is not a good sign.
Decred has solved the issue by a second layer of proof-of-stake, where stakeholders approve transactions. According to Decred experts, even Ethereum with its more than 2 million GPUs is not really decentralized, since most graphic cards are organized in a handful of pools.
With this, Decred makes the opposite strategy to Bitcoin Gold, a project that believes ASIC mining is the answer to decentralizing the network.
Currently, Decred may not alter its code to become resistant to ASICs and may end up with a larger hash rate and a more secure network in the future.
"We definitely designed it with ASICs in mind," said Dave Collins.
ASICs may also increase loyalty, since they are specific to one coin and mine it most efficiently. According to experts, introducing specialized rigs would secure more loyalty from miners. Currently, GPU miners may switch between coins easily and abandon a network. Decred would be less vulnerable to attacks from spare capacity GPUs, and ASICs would provide a strong baseline hash rate, as in Bitcoin, experts commented.
Investing in an ASIC resembles a long-term commitment to a coin.
Decred in fact came with a package of positive news, leading to the recent price spike. It was added to the UpBit exchange, the new Korean exchange adding more than 100 new coins. With the recent climb in prices, Decred may be on track to revisit its near $50 heights from a few months ago.
Decred also expects to implement the lightning network, as voting is currently going on, with more than 99% of the answers for implementing the second-tier of transactions. The Lightning Network, tested on Litecoin and Vertcoin, allows for off-chain transaction verification, with optional settlement on the main network.
Decred stands for Decentralized Credit, and is a two-tier proof-of-work and proof-of-stake cryptocurrency, with built in community governance.