The cryptocurrency market continues to be supported by people who are seeking a fundamentally different financial system. Many who are drawn to digital currencies lament a broken modern economy that places monetary activity squarely in the hands of third-parties and government entities.
A lot of virtual currency enthusiasts have long-desired the elimination of intermediaries so that money can once again be purely a tool of exchange. The underlying blockchain technology behind cryptocurrency has eliminated the need for an intermediary, but one of the problems with the popular Bitcoin (BTC) is that there is still somewhat of a lack of privacy. This is because the blockchain records are open to the public and can be accessed at any time.
The team behind SIBCoin (SIB) understands the privacy interests of those in the virtual currency community, and built their coin off of a fork of privacy-focused Dash. SIBCoin jumped into the cryptocurrency world as the first to “cater to the needs of [the] Russian-speaking community and perfectly filled the vacuum that existed on much of Eastern European territories due to certain cultural and linguistic barriers.”
However, SIBCoin is designed to connect those who are united by economics and culture. It does not intend to rival national currencies. The team believes the privacy aspects of Dash (DASH) are an “ideal starting point” for digital currencies due to tamper-proof instant transactions.
SIBCoin as an ASIC-Resistant Cryptocurrency
One of the most important features of SIBCoin is its status as an ASIC-resistant cryptocurrency. The problem with longstanding virtual currencies like Bitcoin is its SHA-256 hashtag algorithm has not been modified since it was created. Big entities have taken advantage of this by creating ASICs (application-specific integrated circuits) so they can mine a lot faster than people with a home setup of a CPU. ASICs use a PCB/hardware to run instead of general software.
What’s Wrong with ASIC Resistance?
In the early days of cryptocurrencies, individuals were able to build small mining systems in their homes. They have been pushed out of the market today by large data centers and other business run by professionals who mine with ASICs. Many believe the proof-of-work concept by Bitcoin has been completely broken by ASIC mining hardware. As a result, people behind endeavors like Bitcoin Gold (BTG) now have an eventual goal of building a “perpetually ASIC-resistant version of Bitcoin.”
The best ASIC miners often cost thousands of dollars and are not accessible to the average consumer who is looking to mine cryptocurrency. As a result, fewer and fewer people inevitably mine cryptocurrencies, and the large entities with ASICs start to control a lot of the mining and hash power. About 65% of Bitcoin hash power already comes from China (a nation whose government holds a particular disdain Bitcoin and cryptocurrency in general).
There is also a limited number of entities in the world that have the ability and authority to create ASIC hardware, which is very concerning to those who are looking to mine since they have to ‘go through’ a specific set of manufactures.
This ASIC centralization destroys any concept of a decentralized digital currency and also leads to a big risk of 51% attacks. Part of the reason the team brought SIBCoin to fruition through a fork of Dash was because some Dash miners were starting to build ASIC farms and contribute to the coin’s now-centralized mining model.
What Does ASIC Resistance Mean for SIBCoin?
Once a cryptocurrency like SIBCoin is ASIC resistant, a decentralized network is created because any person can now mine for themselves. This creates more hashing power overall. People who try and implement an ASIC resistant cryptocurrency algorithm on an ASIC are not going to see faster speeds than if the algorithm were mounted on a normal CPU. Since there’s no monopolization of mining from ASICs anymore, the digital currency inevitably becomes more decentralized.
SIBCoin is resistant to ASIC manufacturers thanks to a cryptographic hash function Streebog (GOST R 34.11-2012). These add-ons ensure decentralization will be maintained without sacrificing security concerns, and it even conforms to Russian governmental security standards.
SIBCoin is following the growing trend of digital currencies that are ASIC resistant in an effort to fight back against growing centralization in the cryptocurrency world. A wide variety of features and services, including its Streebog hashing algorithm and X-Layer protocol, give it a strong foundation on the Dash blockchain and the ability to easily integrate into the “real sector of the economy.” The team is fully dedicated to adhering to Satoshi’s “One CPU one vote concept.”
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing.