Bitcoin mining algorithm change
Due to the fact that they are designed for a specific use, they will typically have a large performance advantage over hardware that is intended for general-purpose use like CPUs, GPUs, and even FPGAs. Thus, any newly developed ASIC will obtain a significant majority of the network hashrate and introduce centralization.
The Monero code bitcoin mining algorithm change forked from the CryptoNote reference implementation. In the CryptoNote whitepaper https: We also concede that ASICs may be inevitable, but we feel that any transition to an ASIC-dominated network needs to be as egalitarian as possible in order to foster decentralization. At this point in time, we suspect that any newly developed Cryptonight ASIC will not be egalitarian and will not foster a decentralized network.
In essence, this causes centralization, because only those with access to specialized hardware ASICs are still able to mine, and these typically come from one or very few manufacturers.
As a result, ASICs get significantly more expensive to build. This proof-of-work system intends to foster egalitarian mining, which yields the following benefits: First, if mining is decentralized because CPUs and GPUs are still usable for mining bitcoin mining algorithm change, it will be very difficult to pressure miners into not confirming a certain transaction, or otherwise act as a censor to the Monero blockchain.
Second, it will lessen the pressure towards centralization of mining in large data centers as can be seen in Bitcoin. Third, it is quite difficult for governments to regulate companies selling general-purpose hardware as opposed to companies selling specialized hardware. Let's further discuss this last point. Specialized hardware will, most likely, only be designed by a few companies.
As Peter Todd said:. This creates a single point of failure. For instance, a government could require these ASIC manufacturers to add a "kill-switch" which allows them to shut down a miner remotely or otherwise control it. This threat has the potential to destroy the whole network. In a similar fashion, governments could require miners to have a license to buy and operate ASICs, thereby confining ASICs to a certain group of licensed people. Furthermore, licensing could ultimately lead to blacklisting certain transactions, i.
By contrast, introducing a license to operate general purpose hardware is probably an infeasible endeavor. Mining, in general, is also prone to the rich-get-richer effect, which ultimately leads to centralization. For example, a large miner may have significant economies of scale which allows him to grow his share of the hashrate. The Cryptonight algorithm, due to its egalitarian design, somewhat mitigates this effect because miners have competition from i miners that have virtually no costs e.
Note that web miners have both illegitimate e. In sum, we strongly believe that bitcoin mining algorithm change beneficial to preserve our ASIC resistance. Therefore, we will perform an emergency hard fork to curb any potential threat bitcoin mining algorithm change ASICs bitcoin mining algorithm change needed.
Furthermore, in order to maintain its goal of decentralization and to provide a deterrent for ASIC development and to protect against unknown or undetectable ASIC development, the Monero team proposes modifying the Cryptonight PoW hash every scheduled fork, twice a year. The modifications will be light, and should not change performance profiles much.
The first change is now being tested, and will happen in the coming March fork. Patches bitcoin mining algorithm change be available for the following software: It is important to realize that the security of the Monero network and your own Monero is dependent on the security of your Monero keys.
Do NOT use them for any other purpose, including claiming coins from a Monero fork. Using your keys to spend the same outputs twice on different forked blockchains will damage your privacy, and others', as both spends will bear the same key image, but different rings, with only your spent output in common this bitcoin mining algorithm change not impact stealth addresses nor confidential transactions, just ring signatures.
Moreover, by using such a "same keys" fork, the security of your Monero private keys now depends on those third parties. Users, if a forker asks you to use your Monero keys for their fork after this notification is publishedthey're trying to manipulate you into being part of a large scale attack on Monero.
MiningProtocol UpgradeCryptography. Team Hangouts Sponsorships Merchants. PoW change and key reuse. As Peter Bitcoin mining algorithm change said: Bitcoin mining algorithm change reuse It is important to realize that the security of the Monero network and your own Monero is dependent on the security of your Monero keys. Be safe, and don't reuse your Monero keys for any other purpose than using Monero.