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Monero (XMR) Militantly Maintains ASIC Resistance

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It may seem counter-intuitive to create an ASIC mining-rig specifically for a blockchain designed to resist such a device. Yet, that is exactly what Bitmain has done with their most recent Antminer hardware. They have alternately touted an ability to defeat Monero’s ASIC resistance and the complete opposite. The confusing public relations campaign spurred Monero’s development team to step in and make a few very clear statements. First and foremost, they reiterated that they will alter their blockchain software as necessary to maintain ASIC resistance.

This is not the first controversy for Bitmain’s mining hardware business. The Beijing, China-based Bitcoin behemoth found itself embroiled in a scandal when the Antbleed protocol was found within their mining chips. Antbleed is a simple process that reports into Bitmain regularly and allows the central company to kill the associated mining hardware if they so desire. This is particularly nefarious given Bitmain’s status as one of the largest mining concerns in the world.

How Monero Leverages ASIC Resistance

Monero’s vision is clear and consistent. They saw increasing centralization and failing privacy in the Bitcoin blockchain. As a result, they created a privacy coin that would obscure user transaction data, and resist large-scale mining. The stereotypical mining rig is a string of Graphics Processing Units or GPUs, but ASIC units have almost entirely replaced the traditional rigs. Application-specific integrated circuit units are hardware systems created for one purpose only. In mining rigs, their hardware is specifically for mining cryptocurrency. This creates an incredibly powerful miner when compared with previous generations. Banks of these ASIC mining rigs allow companies to accrue massive amounts of specific cryptocurrencies.

This is damaging to the decentralization of the targeted blockchain. Bitmain’s Antminer factories have had a detrimental effect on Bitcoin’s decentralization. Further, their ability to kill mining rigs on a whim gives them an incredible amount of control over currencies once known for a lack of control. Monero understandably wants to avoid falling into this trap, and they have no problem changing their currency to ensure it. Immediately after the discovery of the Antminer x3, Monero tweaked their algorithm to render the new hardware ineffective.

Bitmain’s New Antminer x3

The Antminer x3 is available on the Bitmain website as a 220KH/s mining rig for the CryptoNight hashing algorithm. The decision to list the miner as a CryptoNight mining rig is deliberate – it theoretically sidesteps the controversy that a ‘Monero’ mining rig would gain. Luckily for Monero investors, the development team keeps updated on all hardware releases and quickly changed their mining algorithm.

As the Antminer x3’s design is for a specific niche algorithm, it is completely ineffective at mining other cryptocurrencies. This makes the Antminer x3 an extremely poor investment option – it can only mine other cryptocurrencies that use the CryptoNight algorithm. Miners are better off looking at more general purpose mining rigs for Proof of Work currencies that encourage large-scale mining.

Monero’s Near-Term Outlook

The decision to maintain their ASIC resistance may result in disgruntled miners. However, Monero has clearly and quickly responded to the desires of their community – privacy and decentralization. ASIC resistance keeps Monero decentralized, while also ensuring that small-scale miners can still make a profit. The advantages of this are numerous, as shown by the recent adoption of Monero mining as an advertising alternative.

The low processing cost of mining Monero allows mining directly through web applications. Media site Salon recently started a pilot program that allows visitors to opt-in to mining Monero in place of traditional advertising options. A take over by ASIC mining would completely remove this ability, and damage the value of Monero as a whole. Investors can rest easy knowing that the Monero development team is monitoring the situation and ensuring that their cryptocurrency remains true to their original vision.

We will be updating our subscribers as soon as we know more. For the latest on XMR, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of The U.S. Army via Flickr

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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