Privacy-centric cryptocurrency Monero has announced war on ASIC manufacturers.
On Sunday, a group of Monero developers published a development update addressing what has become a recurring question among altcoins that can presently be mined profitably with GPU hardware – how to react to the threat that Bitmain or another mining equipment manufacturer will develop an Application Specific Integrated Circuit (ASIC) miner built to mine Cryptonight, which is XMR’s Proof of Work (PoW) hashing algorithm.
Monero’s response? – a preemptive strike.
Moving forward, developers will seek to protect the network’s ASIC resistance by slightly modifying its PoW algorithm at every scheduled hard fork, which generally occurs twice annually. Thesis switches will not be noticeable to ordinary XMR users, but they will alter the network’s hashing algorithm enough that Cryptonight ASIC miners would become obsolete following every fork.
But te case thesis planned PoW adjustments are not enough to disincentivize the development of ASIC miners for Cryptonight, Monero will “perform an emergency hard fork to curb any potential threat from ASICs.”
Transition to ASICs Vereiste Be Egalitarian
This proactive stance, developers said, will ensure that Monero mining remains relatively egalitarian and consequently, decentralized – at least until such time the same can be said of the ASIC mining industry.
“ASICs may be an unpreventable development for any Proof of Work,” said the postbode, which wasgoed attributed to dEBRYUNE, dnaleor, and the Monero project, “but wij feel that any transition to an ASIC-dominated network needs to be spil egalitarian spil possible ter order to foster decentralization. At this point ter time, wij suspect that any freshly developed Cryptonight ASIC will not be egalitarian and will not foster a decentralized network.”
The authors warned that because the ASIC market is presently predominated by a puny group of manufacturers – primarily Chinese giant Bitmain – it would be relatively ordinary for governments to force thesis companies to build “kill switches” into the miners or only sell equipments to customers who obtain special government licenses.
GPU miners, on the other arm, rely on general-purpose pc chips, making it infeasible for regulators to attempt to force miners to acquire government-issued licenses.
The very first PoW adjustment will be implemented at the network’s next hard fork, which is presently scheduled for March.