Crypto News

Monero (XMR) Adopts New PoW Algorithm to Fight Off ASICs

Monero Adopts Brand New Consensus Algorithm to Fend Off Crypto Miners

Monero (XMR) has to deal with the inflow of specialized ASIC machines taking over mining on its network. After several ASIC-disabling forks, which slightly tweaked the CryptoNight mining algorithm, Monero is planning to switch to an entirely different proof-of-work algorithm to remain resistant.

Monero Plans Third ASIC-Disabling Upgrade

Toward the end of October, Monero plans an upgrade that will make the network once again easy enough to mine with CPU. The change will do away with CryptoNight and introduce the RandomX algorithm.

The Monero network shifted away from ASIC-powered mining on two occasions, in April 2018 and a year later, in the spring of 2019. For the first time, the Monero community noted a marked growth trend in mining in 2018. At first, the growth was ascribed to botnets or crypto hijacking, which harnessed multiple CPUs.

However, it turned out there were ASIC and programmable machines that could adapt to CryptoNight. After Monero disabled the ASIC, some switched to the few other coins using the same algorithm. Those include Haven Protocol (XHV), AEON (AEON), and the older Bytecoin (BCN), as well as Electroneum (ETN).

The rationale behind disabling ASIC is to return to the one CPU- one vote rule based on the Bitcoin White Paper. ASIC mining rigs are significantly more effective at mining than CPU machines, and allows a small handful of people to control a network. Not only does this create a more centralized network, but because ASIC equipment is typically expensive it also prevents miners with lower incomes from participating.

ASIC Not Really the Enemy

ASIC resistance, however, is not adopted by all projects. Ethereum (ETH) decided against a disabling fork. Other projects, like Siacoin (SC), decided on specific ASIC resistance to disable the machines by Bitmain, while favoring a native brand by the project’s founder, Obelisk.

Supporters of ASIC mining believe the large-scale operation makes coins more secure. CPU-based mining is less efficient, and in the case of Monero, may encourage more illegal mining.

XMR has met harder times with a more subdued market price. The recent ASIC-disabling fork is seen as a setback against the project, with another crash in mining predicted. The past few forks did not spell the end of the Monero project, but removed the coin from a booming mining industry. In the meantime, coins like Bitcoin (BTC) took over mining, and even Litecoin (LTC) showed significant activity.

XMR trades at $53.58, a far cry from its peak prices near $1,000. XMR is on track to slide away from the top 15 of coins, also depressed from a recent series of delistings. The anonymous features of XMR are no longer a selling point, as most exchanges require de-anonymization and increased transparency following new FATF measures.

What do you think about the change of Monero’s algorithm? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter @jcliff42

The post Monero (XMR) Adopts New PoW Algorithm to Fight Off ASICs appeared first on

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Related Crypto News

Developer reveals ‘biggest unsolvable Lightning attack vector’
Larger payment channels on Bitcoin’s Lightning network could be exploited according to an independent developer Independent Bitcoin Lightning developer,...
Are we dumb? Financial illiterates ‘twice as likely to own crypto’
Those with less financial knowledge may be twice as likely to invest in crypto. A report from Canada’s central...
Survey: Large Number of Yield Farmers Can’t Read Smart Contracts Despite High Risk
A new Coingecko survey has found that a large number of yield farmers do not know how to read...
South Korean regulator is wary of NFT-based games
The South Korean gaming regulator is reluctant to embrace NFTs. The South Korean blockchain gaming industry is concerned regulators...
MicroStrategy CEO could ‘liquidate $200M in Bitcoin on a Saturday’
‘We can liquidate it any day of the week, any hour of the day,’ said Michael Saylor. Michael Saylor...
You won’t believe the depths to which crypto scammers on Twitter are willing to sink
Twitter doesn’t seem able to move fast enough to stop thieves from grossly misusing their platform. Last Friday night,...

Featured Crypto News

This On-Chain Indicator Looks As It Did Prior to Bitcoin’s 2017 Rally
On a macro scale, Bitcoin has yet to break out. Despite surging around 20% in the past 1.5 months,...
Daily Ethereum transactions hit a new historical high amid DeFi boom
The previous all-time high in daily transactions was recorded in 2018. Daily transactions on the Ethereum blockchain have just...
Ripple (XRP) Above 100 SMA Signals Fresh Increase: The Big Picture
Ripple is slowly moving into a positive zone above the $0.2480 support zone against the US Dollar. XRP price...
Technicals Suggest Bitcoin Looks Ready For Another Leg Higher Over $11K
Bitcoin price corrected lower, but it found support near the $10,750 zone against the US Dollar. BTC is currently...
Tether market cap increases almost 4X in 2020 to $15 billion
Tether supply surges to $15 billion but it could still be a house of cards The surging DeFi sector...
Scarily Accurate Analyst Thinks Bitcoin Will Hold $10,000, Triggering Strong Growth
Bitcoin has flirted with falling under $10,000 multiple times over the past week. If you take a look at...