What is Vertcoin?
Vertcoin is a pure cryptocurrency similar to other coins like Bitcoin and Litecoin, but it has a greater emphasis on decentralization. It specifically tries to deter the potential of centralization of its consensus.
What problem does it solve?
1) Some coins are not as decentralized as they used to be. As big mining companies like Bitmain have risen, there are concerns that big third parties can single handedly make decisions for a cryptocurrency or censor its transactions. ‘
2)ASIC computers have made traditional computers obsolete in the Bitcoin mining process. An everyday computer that you may be using to read this article would barely have any impact on making an ASIC-mineable cryptocurrency more secure. Additionally, you wouldn’t be able to accrue much of that cryptocurrency by mining because your hashpower would be so insignificant compared to industrial miners. The main point is that normal users are no longer able to compete in the mining process because they do not have access to the necessary mining equipment.
3) Renting hashpower makes it easily possible to commit a cheap 51% attack for several coins.
What is its solution?
Vertcoin focusses on decentralization that includes avoiding being CPU mineable (encourages botnets), ASIC mineable, mined by rented hashrate, or mined by other specialized hardware like FPGAs. Vertcoin has had a history of forking twice in order to avoid botnets and ASIC miners.
Vertcoin has one of these easiest one click miners and anybody can mine Vertcoin without a significant disadvantage. Without much technical experience, it took Jeffrey from BlockWolf less than 5 minutes to set up a miner without any assistance. For Jeffrey, some other coins were impossible to mine without other people’s help. Vertcoin was the easiest coin for him to mine compared to the several other coins he has reviewed for BlockWolf.
Vertcoin uses a unique mining algorithm that uses a chain of different hashing algorithms that makes it increasingly difficult to create an ASIC for. Even in the event that somebody does create an ASIC miner, Vertcoin has showed a propensity for forking.
Vertcoin is also working on a cryptocurrency lightning scaling solution called LIT, which would make its cryptocurrency more scalable. Vertcoin is already faster than Bitcoin, but implementations like LIT would significantly boost its throughput.
In theory, ASIC resistance and decentralization sounds great. Vertcoin and its distributed community fulfills Satoshi’s original Bitcoin vision. One of the problems with Vertcoin is that it is unclear how the greater cryptocurrency community demands ASIC resistance and pure decentralization. Some users even favor ASICs as they increase the hashpower needed to commit a 51% attack. A big question for Vertcoin is what needs to happen to the crypto community in order for more people to care about ASIC resistance.
Vertcoin could be a good insurance coin against some of the other coins that could be potentially controlled by just a few third parties. In the event that something bad happens because of a coin’s centralization, many people could fleek to ASIC resistant and more decentralized coins like Vertcoin.